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Alkylate Market

Alkylate Market

Alkylate Market Analysis By Production Process (Sulfuric Acid, Hydrofluoric Acid Alkylation Process), By Application (Solvents, Surfactants & Synthetic Sulfonates, Specialty Lubricants, Functional Fluids, Additives), By End Use & By Region - Global Insights to 2031

Alkylate Market
FACT5758MR

Market Outlook for Alkylate

According to Fact.MR’s recent study on the global alkylate market, the market is expected to exhibit modest growth, ascending at around 2.5% CAGR through 2031. Expected valuation by the end of the forecast period is approximately US$ 100 Bn, with projections for 2021 indicating a market value worth US$ 78.1 Bn. Demand from the aviation and automobile sectors coupled with advancements in manufacturing infrastructure is expected to drive growth further over the coming years.

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Key Points Covered in Alkylate Industry Survey

  • Market Estimates and Forecasts (2016-2031)
  • Key Drivers and Restraints Shaping Market Growth
  • Segment-wise, Country-wise, and Region-wise Analysis
  • Competition Mapping and Benchmarking
  • Brand Share and Market Share Analysis
  • Key Product Innovations and Regulatory Climate
  • Assessment by Product Grade / Purity / Formulation Standards
  • Assessment of Import Price, Bulk Price, Contractual Price, Producer / Distributor Price
  • Certifications and Compliance Requirements
  • COVID-19 Impact on Alkylate and How to Navigate
  • Recommendation on Key Winning Strategies

Consumption Analysis of Alkylate from 2016-2020 Vs Market Outlook for 2021 to 2031

As per Fact.MR – market research and competitive intelligence provider, during the historic period of 2016 to 2020, the market registered a moderate growth rate and value sales of alkylation increased at around 2% CAGR.

Demand for alkylate grew steadily over the past years, creating substantial growth opportunities for key players. Though the industry came across difficulties in 2020 due to the outbreak of the COVID-19 pandemic, the overall industry outlook has remained positive over the past decade. 

With key end-use segments such as automobiles, aviation, and agriculture, to name a few, gaining traction again, demand for alkylate is set to grow steadily over the coming years.  An increase in government expenditure on these key end-use sectors and a rise in research & development (R&D) activities by alkylate manufacturers are likely to further propel the demand and supply of alkylate through 2031. 

Considering these factors, the global alkylate market is slated to expand at around 2.5% CAGR over the next ten years (2021-2031), and reach a valuation of approximately US$ 100 Bn.

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How is Requirement from Aviation Sector Spearheading Growth of Alkylate Manufacturers?

Alkylate is highly used in the production of avgas (alkylate fuel), which is an aviation fuel used in aircraft with spark-ignited internal combustion engines. As the aviation sector is recovering slowly, yet steadily, it is contributing steadily to raising industry revenue. According to “Aerospace Industry Spotlight”, published by SelectUSA, the United States aerospace industry is the largest in the world, employing around 509,000 workers in its scientific and technical fields across the nation. 

Furthermore, the report states that investment in the U.S. aerospace industry is facilitated by a large pool of well-trained machinists, aerospace engineers, and other highly skilled workers with experience in the aerospace industry. This gives a glimpse of the growing opportunities for alkylate manufacturers around the globe.

Expansion of Production Capacities Stimulating Alkylate Industry Growth?

New and existing players are investing majorly in the new production capacities which are contributing towards the growth of the global market. For instance, Hengli Petrochemical commissioned a new alkylation unit at its new crude-to-paraxylene integrated refining and petrochemical complex. It is equipped with proprietary technologies from E.I. DuPont de Nemours & Co. The new 300,000-tonnes/year STRATCO alkylation unit will enable Hengli to produce high-quality alkylate, a key component for cleaner, and high octane gasoline, from a 100% isobutylene feed stream.

Manufacturers in the alkylate market are gaining a strong research base in techniques that maximize product octane and minimize end-point with this feedstock. In addition, globally, the demand for cleaner burning gasoline blend components is increasing. Companies are using this opportunity to develop a new solid acid catalyst technology in order to outperform liquid acids and to adopt reactors that actively replace hydrofluoric acid (HF) alkylation.

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Country-Wise Analysis  

What’s Augmenting Growth of Alkylate Manufacturers in the U.S?

The U.S has been taking the spotlight in North America for alkylate for the past decade. The high requirement in the automobile and aviation sectors and advancements in manufacturing units are fuelling sales in the country. A market share worth 40% is projected for the U.S market.

According to SelectUSA, new R&D initiatives in the U.S. automotive industry are transforming it rapidly, while out of US$ 105 billion spent globally, almost a fifth is spent in the U.S. Hence, suppliers are targeting the U.S. in order to increase their revenues.

Will Germany Remain in the Spotlight for Alkylate Providers?

Backed by highly advanced aviation, agriculture, and automobile industries, Germany is the hotspot for alkylate manufacturers and is expected to maintain its lead in Europe, expanding at a CAGR of 3.5% until 2031.

According to a report published by the European Commission (EC), the German automotive industry is highly potential, while its annual output is close to 6 million units, representing 31.5% share of the European Union (EU). As these figures are subject to grow further, players in Germany are set to come across more opportunities in the foreseeable future.

What’s Driving Sales of Alkylate in China?

China is leading in the world’s fastest-growing industry for alkylate - Asia Pacific and is anticipated to sustain its position throughout the forecast period. The requirement from highly advanced automobile and aviation industries is bolstering demand growth in the country.

According to a report titled China-Aviation, published by the International Trade Administration on 3rd February 2021, aviation is the best prospect industry for China, while the country is the world’s second-largest and fastest-growing civil aerospace and aviation services industry. This explains well why suppliers of alkylate are focusing on China in order to increase their sales footprint. Almost 50% of global alkylate demand is expected to be fueled by China.

How Lucrative is India for Alkylate Manufacturers?

India has emerged as a lucrative market for alkylate, expected to exhibit substantial growth throughout the forecast period. Advancements in agricultural and automobile sectors are spurring the growth of alkylate manufacturers in India.

According to Indian Brand Equity (IBEF), from 2017 to 2020, India received ~US$ 1 billion in agritech funding. With significant interest from the investors, India ranks third in terms of agritech funding and number of agritech start-ups. By 2025, Indian agritech companies are likely to witness investments worth US$ 30-35 billion.

This implies lucrative growth scope for manufacturers in India as demand for alkylate in the agriculture sector is high. Fact.MR anticipates the demand for alkylates in India to surge at over 2% CAGR until 2031.

Alkylate market forecast analysis by Fact.MR

Category-wise Insights

Why are Alkylates Highly Demanded in the Aviation Industry?

By end use, alkylate applications will be maximum across the aviation industry, expanding at over 2% CAGR until 2031, projects Fact.MR. Due to its properties such as gasoline blending, low vapor pressure and high octane, alkyls are widely deployed in aviation fuel.

Critically, alkylate possesses low fuel volatility and evaporative emissions, an important criterion across countries where smog is a major concern. Furthermore, low sulfur content renders it an ideal choice for vehicular fuel, particularly for aircrafts.

Will Alkylates for Solvent Applications Sustain its Dominance?

Currently, solvents is the leading segment in the global alkylate industry in terms of application, and is expected to remain dominant during the forecast period. Solvents have extensive usage in various domains, such as chemical laboratories, biotechnological R&D activities and other biological fields.

Alkylation of solvents, particularly of petroleum based fuels, is important as it adds high octane hydrocarbons to motor and aviation gasoline. This helps achieve auto ignition to meet recommended octane ratings. Fact.MR expects the segment to clock a CAGR of 3% until 2031

Competitive Landscape  

Prominent manufacturers of alkylate are emphasizing on expanding their production and manufacturing capabilities, attributed to the increase in demand across key end-use industries. Notable developments in the alkylate industry are mentioned below:

  • 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.
  • In January 2019, Royal Dutch Shell (Shell Chemical) initiated production of its fourth alpha olefins (AO) unit at its Geismar, Louisiana chemical manufacturing site. The 425,000 ton-per-year capacity expansion has increased total production capacity to 1.3 million tons per annum

Report Scope 

Attribute

Details

Market size value in 2020

USD 78.1 Billion

Market forecast value in 2031

USD 100 Billion (approx.)

Growth Rate

CAGR of 2.5% from 2021-2031

Forecast Period

2021-2031

Historical Data Available for

2016-2020

Market Analysis

US$ Mn for Value

Key Regions Covered

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia
  • Oceania
  • Middle East & Africa

Key Countries Covered

  • U.S.
  • Canada
  • Germany
  • U.K.
  • France
  • Italy
  • Russia
  • China
  • Japan
  • India
  • ASEAN
  • Australia
  • Brazil
  • Mexico
  • GCC
  • South Africa

Key Market Segments Covered

  • Production Process
  • End Use
  • Application
  • Region

Key Companies Profiled

  • Reliance Industries Limited
  • Marathon Petroleum Corporation
  • ExxonMobil Corporation
  • PJSC Lukoil Oil Company
  • Valero Energy Corporation
  • Royal Dutch Shell Plc.
  • Chevron Corporation
  • Honeywell International Plc.
  • Janex S.A
  • Neste Oyj
  • Soltex Inc.
  • Hengyi Industries Sdn Bhd

Pricing

Available upon Request

Key Segments Covered

  • Production Process

    • Sulfuric Acid Alkylation Process
    • Hydrofluoric Acid Alkylation Process
    • Others
  • End Use

    • Alkylate for Aviation
    • Alkylate for Automobiles
    • Alkylate for Agriculture
    • Alkylate for Electronics
    • Others
  • Application

    • Solvents
    • Surfactants & Synthetic Sulfonates
    • Specialty Lubricants
    • Functional Fluids
    • Additives
    • Others

- FAQs -

According to Fact.MR, the alkylate market is poised to be valued at US$ 78.1 Bn by 2021

The market for alkylate is expected to reach approximately US$ 100 Bn by 2031-end

The alkylates industry is expected to surge at a CAGR of 2.5% from 2021 to 2031

Extensive applications across the global aviation industry is poised to heighten prospects for alkylates until 2031

Some of the top companies manufacturing alkylate are Reliance, Marathon Petroleum, ExxonMobil, and LUKOIL.

Sales of alkylates in the U.S are likely to generate 40% of global market demand until 2031

China is expected to generate 50% of the global market for alkylates

Solvent applications are expected to be dominant, clocking a CAGR of 3% until 2031

Aviation accounts for bulk of alkylate sales, registering a 2% CAGR until 2031

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