Aviation Industry to Spearhead Alkylate Market Demand, Growing at 2% CAGR: Fact.MR Report
Published : 24 Sep 2021 Industry: Chemical & Materials
A recently published report by Fact.MR reveals that the global alkylate market is projected to grow at a modest CAGR of 2.5% during the forecast period (2021-2031). The market is envisaged to reach nearly US$ 100 Bn, with extensive applications abounding across the aviation and automotive sectors respectively.
Historically, the market witnessed a sluggish to moderate growth rate, registering a CAGR of 2% across the 2016-2020 period. As of 2021, the industry is likely to be valued at US$ 78.1 Bn. Prospects slumped in H1 2020, as the COVID-19 pandemic slowed down developments in the aviation and automotive sectors. However, as populations get inoculated, countries are lifting travel restrictions, rendering air travel possible, restoring alkylate growth prospects.
As governments scramble to recover losses incurred due to suspension of air traffic, various stimulus packages have been deployed. The International Air Transport Association (IATA), the industry is poised to recover, but government support, particularly as employment support programs, would be required. As the industry stabilizes and travel resumes, prospects for alkylates will definitely broaden in the long run.
Key Takeaways from the Market Study
- Global alkylate market projected to expand 1.3x from 2021 to 2031
- By application, solvents to enjoy highest growth, at a CAGR of 3%
- Aviation to emerge as the dominant end use industry, growing at over 2% CAGR
- Growing requirement from aviation and automobile sectors to bolster demand growth
- U.S to be an opportunistic alkylate market, capturing 40% of global market share
- Germany to maintain its lead in the alkylate industry in Europe, surging at 3.5% CAGR
- China to capture 50% of alkylate demand from 2021 to 2031
- India to experience a CAGR of 2% in the global alkylates market by 2031
“With key end-use sectors getting back on track, suppliers of alkylate are subject to impressive growth. Furthermore, growing demand for hydrofluoric acid alkylation and sulfuric acid alkylation is set to raise the profit margins for manufacturers in future,” says a Fact.MR analyst.
Competition in the global alkylate market is expected to rise, with players focusing on gaining a competitive advantage and increasing their market foothold. Various players around the world are investing in new R&D projects, making joint ventures, and partnerships for being ahead in the competition among others.
- In April 2021, Chevron Corporation and Honeywell announced the commissioning and start-up of the world’s first commercial-scale ISOALKY™ process unit that utilizes ionic liquids to produce alkylate. The ISOALKY™ technology represents a major innovation in alkylation technology.
- In March 2021, Lummus Technology announced a start-up of its CDAlky® C5 alkylation unit at Valero's St. Charles Refinery in Norco, Louisiana. The capacity of the alkylation complex is 17,000 BPSD of Alkylate products.
More Insights Available
In its latest report, Fact.MR offers an unbiased analysis of the alkylate market, providing historical data for the period of 2016-2020 and forecast statistics for the period of 2021-2031.
In order to understand the global market potential, its growth, and scope, the market is segmented on the basis of production process (sulphuric acid alkylation, hydrofluoric acid alkylation, and others), end use (aviation, automobile, agriculture, electronics, and others), and application (solvents, surfactants & synthetic sulfonates, specialty lubricants, functional fluids, additives, and others), across seven major regions of the world (North America, Latin America, Europe, East Asia, South Asia, Oceania, and MEA).
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Sr. Consultant – Chemicals and Materials