PUBLISHER: KBV Research | PRODUCT CODE: 1450657
PUBLISHER: KBV Research | PRODUCT CODE: 1450657
The Global Polyalphaolefin Market size is expected to reach $2.5 billion by 2030, rising at a market growth of 3.0% CAGR during the forecast period. In the year 2022, the market attained a volume of 4821.1 hundred Tonnes, experiencing a growth of 2.2% (2019-2022).
The growing EV industry in Europe presents opportunities for the market. The shift towards electric vehicles may change lubricant requirements and market dynamics. Consequently, the Europe region will generate a revenue of USD 715.6 million by 2022. As consumers demand better fuel economy and longer engine life, automotive manufacturers and oil companies increasingly turn to PAO-based lubricants to meet these requirements.
As industrialization accelerates, there is a parallel increase in the demand for lubricants and functional fluids across various industrial sectors such as automotive, manufacturing, construction, and machinery. As industries seek lubricants and fluids capable of withstanding these challenging operating conditions, the demand for PAOs as premium base oils increases.
Additionally, Synthetic lubricants formulated with PAOs offer superior performance to conventional mineral-based lubricants. PAOs exhibit excellent thermal stability, oxidation resistance, viscosity index, and lubricating properties, making them well-suited for use in demanding operating conditions across various automotive, manufacturing, aerospace, and marine industries. Hence, the increasing global demand for synthetic lubricants propels the market's growth.
However, The production of PAOs requires specific raw materials, primarily alpha olefins, which are derived from petrochemical sources. The cost of alpha olefins accounts for a significant portion of the overall production costs of PAOs. Thus, high production costs and price fluctuations are impeding the growth of the market.
By Type Analysis
On the basis of type, the market is segmented into high viscosity, medium viscosity, and low viscosity. The medium viscosity segment recorded a 29.46 % revenue share in the market in 2022. Moreover, medium viscosity PAO is commonly used in automotive lubricants, such as engine oils and transmission fluids. With the automotive industry's growth, particularly in emerging markets, the demand for medium viscosity PAO to meet the requirements of modern engines and transmissions is increasing.
By Application Analysis
Based on application, the market is divided into gear oil, engine oil, compressor oil, grease, and others. In 2022, the engine oil segment garnered the 50.52 % revenue share in the market. PAO-based engine oils offer several advantages. PAOs have excellent viscosity-temperature characteristics and maintain their viscosity across various temperatures. These properties make PAO-based engine oils highly desirable for modern high-performance engines, including those in luxury cars and high-performance vehicles.
By Regional Analysis
Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. In 2022, the Asia Pacific region generated 26.63 % revenue share in the market. The Asia Pacific region is a hub for industrialization and manufacturing activities across various sectors, including machinery, electronics, chemicals, and construction. High-performance lubricants like PAO are becoming increasingly necessary to maintain the durability and smooth operation of machinery and equipment as the region's industrial operations continue to increase and modernize.
List of Key Companies Profiled
Global Polyalphaolefin Market Report Segmentation
By Type (Volume, Hundred Tonnes, USD Billion, 2019-2030)
By Application (Volume, Hundred Tonnes, USD Billion, 2019-2030)
By Geography (Volume, Hundred Tonnes, USD Billion, 2019-2030)