Alkylate Market Size, Share, Trends, Growth 2030

Alkylate Market Industry Perspective:    

The global alkylate market size was evaluated at $11.6 Billion in 2022 and is slated to hit $25.7 Billion by the end of 2030 with a CAGR of nearly 10.1% between 2023 and 2030.

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The alkylate market report offers market basket analysis, porter five force analysis, PESTEL analysis, SWOT analysis, market attractiveness analysis, and value chain analysis. We also include factor analysis, key drivers, market restraints, challenges, and opportunities available in the global alkylate market. We provide comprehensive information and an overview of each player in the global market along with benchmarking adopted by these players to stay ahead of the competition.  

Alkylate Market: Overview

Alkylate is a high-octane gasoline component that is derived through light olefins reaction from steam cracking units as well as fluid catalytic cracking units. Moreover, the compound has proved to be a key component in outputting clean high-octane gasoline from isobutylene feedstock. It is one of the cleanest petroleum products which has made it eco-friendly and thus complying with the strict laws enforced by various governments pertaining to environmental pollution.

Key Insights

• As per the analysis shared by our research analyst, the global alkylate market is projected to expand annually at the annual growth rate of around 10.1% over the forecast timespan (2023-2030)
• In terms of revenue, the global alkylate market size was evaluated at nearly $11.6 billion in 2022 and is expected to reach $25.7 billion by 2030.
• The global alkylate market is anticipated to record massive growth over the forecast period owing to a rise in the government expenditure on agriculture, aerospace, and automotive sectors along with the focus on research activities
• Based on production process, the hydrofluoric acid alkylation segment is predicted to register the fastest CAGR over the forecast timeline.
• In terms of end-use, the agriculture segment is slated to contribute majorly towards the market growth over 2023-2030.
• On basis of application, the solvents segment is slated to make notable contributions towards the global market share by 2030.
• Region-wise, the Asia-Pacific alkylate market is projected to register the highest CAGR during the assessment period.

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Alkylate Market: Growth Factors

Massive use of alkylate in octane to drive the global market trends

Large-scale use of alkylate in the production of herbicides, insecticides, fertilizers, and pesticides will steer the expansion of the global alkylate market. Increase in costs of agricultural yield will lead to humungous demand for alkylate. Reportedly, alkylate finds massive use in octane including gasoline, thereby steering the global market trends. Thriving automotive sector in both the emerging economies and developed countries will expand the scope of the global market. Growing focus of the government on market growth will push the demand for alkylate.

Rise in the government expenditure on agriculture, aerospace, and automotive sectors along with a focus on research activities related to alkylate production will embellish the growth of the global alkylate market growth. Growing demand for clean fuel in aviation activities will further propel the expansion of the global market. Escalating demand for products in agrochemicals for improving crop yield and reducing crop damage will promote market growth across the globe.

Alkylate Market: Hindrances

Huge product posts have proved an impediment to the growth of the global industry

Various anti-knocking agents in the industry are cost-effective and offer exceptional performance. For instance, iron pentacarbonyl, ferrocene, and methylcyclopentadienyl manganese tricarbonyl are a few substitute products that are inexpensive and provide exceptional performance that can replace alkylate. This can hinder the global alkylate industry surge.

Alkylate Market: Opportunities

High penetration of alkylate in gasoline applications to open new growth opportunities for the global market

Alkylates are utilized as fuel additives for attaining high octane numbers and low vapor pressures, thereby opening new growth avenues for the global alkylate market. Humungous demand for gasoline in the automotive and the need for producing more oil will create new facades of growth for the global market.

Alkylate Market: Challenges

High inflatability of the product has put up a big challenge for industry growth across the globe

Launching of electric vehicles has restricted the demand for alkylates and this has posed a major challenge to the growth of the alkylate industry. Apart from this, alkylate possess highly inflammable light hydrocarbons and this has posed a big threat to the use of alkylate in the automotive sector.

Alkylate Market: Segmentation

The global alkylate market is sectored into end-use, application, production process, and region.   

In terms of end-use, the global alkylate market is divided into aviation, automotive, agriculture, and others. Furthermore, the agriculture segment, which accounted for more than half of the global market share in 2022, is projected to lead the segment space in the next eight years. The segmental expansion in the forecast period can be due to the wide use of pesticides owing to an increase in crop infections. Moreover, alkylates are utilized in agrochemicals and in pesticide sulfonation.

Based on the application, the global alkylate industry is segregated into solvents, surfactants & synthetic sulfonates, functional fluids, and additives segments. Moreover, the solvents segment, which accounted for more than half of the global industry share in 2022, is set to lead the segmental surge in the years ahead.

The growth of the segment over 2023-2030 can be credited to the wide use of solvents in chemical labs, biotech research & development activities, and other biology domains. Moreover, solvent alkylation is necessary as it can add high-octane carbons to aviation as well as aerospace gasoline, thereby aiding auto-ignition for acquiring desired octane rating.

On the basis of production process, the global alkylate industry is divided into sulfuric acid alkylation, hydrofluoric acid alkylation, and others. Moreover, the hydrofluoric acid alkylation segment is predicted to register the highest CAGR in the upcoming years. The segmental growth can be attributed to the low sensitivity of the hydrofluoric acid alkylation process to temperature fluctuations in comparison to the sulfuric acid alkylation process.

Recent Breakthroughs

• In the first half of 2019, Royal Dutch Shell Inc, decided to increase the overhaul of gasoline that helps in the manufacture of residual catalytic cracking units at its U.S. facility. The move will help in increasing the production of alkylate in the U.S., thereby augmenting business growth.
• In the second quarter of 2021, Chevron Corporation and Honeywell Systems joined hands for commencing the ISOALKYTM process unit, thereby utilizing ionic liquids for manufacturing alkylate. Reportedly, the ISOALKYTM tools demonstrate a key breakthrough in the alkylation process, thereby steering the growth of the alkylate market across the globe.
• In the first quarter of 2021, Lummus Technology, declared that it is opening a alkylate manufacturing unit in China for expanding its business in Asia and making it the largest alkylation plant across the globe. The move will enhance the earnings of the firm along with contributing sizably towards the global market revenue.

Alkylate Market: Report Scope

Alkylate Market: Regional Insights

North American Alkylate market to witness substantial growth in the forecasting years

The North American region, which accounted for three-fourths of the global alkylate market revenue share in 2022, is anticipated to lead the regional market surge over the forecast timespan. The regional market growth over 2023-2030 is subject to a rise in the investments made by the U.S. aerospace industry in alkylate production. High demand for products in the automotive and aviation industries in the U.S. will proliferate the regional market surge in the years to come.

On the other hand, the alkylate industry in the Asia-Pacific region is predicted to register the fastest CAGR in the forthcoming years. The regional market expansion over the forecast timeline can be due to the rise in use of the product in civil aviation and aerospace in China.

Alkylate Market: Competitive Space

The alkylate market profiles key players such as:

• Hengyi Industries Sdn Bhd (Malaysia)
• Janex S.A (Switzerland)
• Honeywell International Inc. (U.S.)
• ExxonMobil Corporation (U.S.)
• Koch Engineered Solutions (U.S.)
• Marathon Petroleum Corporation (U.S.)
• PJSC Lukoil Oil Company (Russia)
• BASF SE (Germany)
• Royal Shell plc (UK)
• Chevron Corporation (U.S.)
• SOLVAY (Belgium)
• Soltex Inc. (U.S.)
• Dupont (U.S.)
• Valero (U.S.)
• Ashland Inc. (U.S.)
• Neste (Finland)
• Reliance Industries Limited (India)
• Adrol (U.S.)
• Cosmique Pvt. Ltd. (India).

The global alkylate market is segmented as follows:

By Production Process

• Sulfuric Acid Alkylation
• Hydrofluoric Acid Alkylation
• Others

 By End-Use

• Aviation
• Agriculture
• Automotive
• Others

By Application

• Solvents
• Functional Fluids
• Surfactants & Synthetic Sulfonates
• Additives

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa