Global Internal Olefins Market Growth, Share, Size, Trends and Forecast (2025 - 2031)
By Technology;
Paraffin Dehydrogenation, and Isomerization & Disproportionation (I/D).By Product;
Industrial, Agricultural.By Application;
Surfactants, Oil Drilling, Pharmaceuticals, Lubricants, Agrochemical, and Others.By Geography;
North America, Europe, Asia Pacific, Middle East and Africa and Latin America - Report Timeline (2021 - 2031).Introduction
Global Internal Olefins Market (USD Million), 2021 - 2031
In the year 2024, the Global Internal Olefins Market was valued at USD 2,377.87 million. The size of this market is expected to increase to USD 3,192.85 million by the year 2031, while growing at a Compounded Annual Growth Rate (CAGR) of 4.3%.
The global internal olefins market is a significant segment of the chemical industry, primarily driven by the growing demand for a wide range of applications in industries such as automotive, pharmaceuticals, textiles, and detergents. Internal olefins are a class of olefins (unsaturated hydrocarbons) that contain a double bond in the carbon chain, typically at the second position. These compounds are produced through various chemical processes, such as oligomerization, isomerization, and cracking of longer-chain hydrocarbons. Due to their versatility and ability to be tailored for specific applications, internal olefins have found widespread use in several manufacturing processes and end-use industries.
Internal olefins are key raw materials for the production of surfactants, detergents, and lubricants, offering essential properties such as emulsification, foaming, and wetting. The automotive sector also benefits from internal olefins in the formulation of fuel additives, lubricants, and plasticizers, enhancing vehicle performance and reducing emissions. Additionally, the chemical industry uses these compounds as intermediates in the production of synthetic lubricants, plastic additives, and other specialty chemicals. The continuous evolution of industries and technological advancements in chemical production processes have paved the way for a steady increase in the demand for high-purity internal olefins in various applications.
The market for internal olefins is experiencing growth as manufacturers across the globe aim to meet the rising demand for more efficient and environmentally friendly products. The expansion of end-user industries, particularly in emerging markets, is anticipated to drive the demand for internal olefins in the coming years. Additionally, with a growing focus on sustainability and regulatory standards, companies are exploring innovative methods of production to reduce the environmental footprint of internal olefin manufacturing. As the global market for chemicals and petrochemicals continues to expand, the internal olefins market is expected to benefit from its increasing use in various industrial applications, supporting growth and innovation within the broader chemical sector.
Global Internal Olefins Market Recent Developments
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In March 2023, Shell Chemicals partnered with ExxonMobil to enhance production capabilities of internal olefins in the U.S. The collaboration is aimed at meeting the growing demand from industrial sectors that require high-quality raw materials for manufacturing
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In October 2023, Chevron Phillips Chemical Company expanded its internal olefins production in Asia to cater to the rising demand in the region, particularly in China, where industries like automotive and construction are driving the need for these chemicals
Segment Analysis
The global internal olefins market is segmented by technology, application, and product, each contributing to the market’s overall growth and development.
In terms of technology, the market is primarily divided into two categories: paraffin dehydrogenation and isomerization & disproportionation (I/D). Paraffin dehydrogenation involves the process of converting paraffins into olefins, which is a key method for producing internal olefins, especially in the production of surfactants, lubricants, and other chemical intermediates. The isomerization & disproportionation (I/D) process, on the other hand, is used to convert long-chain hydrocarbons into more valuable branched isomers, creating internal olefins with specific properties suited for use in a variety of industries. The increasing demand for high-performance internal olefins in multiple applications has boosted the adoption of these technologies, supporting the growth of the market.
In terms of application, internal olefins play a vital role in several industries, including surfactants, oil drilling, pharmaceuticals, lubricants, agrochemicals, and others. In the surfactants industry, internal olefins are used to produce detergents and emulsifiers, which are essential for cleaning products, personal care products, and industrial applications. The oil drilling industry uses internal olefins as surfactants for drilling fluids, while pharmaceuticals utilize these compounds as intermediates in the production of various drugs. In lubricants, internal olefins are essential for enhancing performance, reducing friction, and improving engine efficiency. The growing demand for agrochemicals in agricultural practices has led to increased use of internal olefins in pesticide and herbicide formulations, further propelling the market.
The market is also segmented by product type, into industrial and agricultural categories. Industrial internal olefins are primarily used in the production of lubricants, coatings, and additives, contributing to a wide range of industrial applications. Agricultural internal olefins, on the other hand, are mainly used in agrochemical formulations, particularly for producing high-quality pesticides and herbicides. As the demand for sustainable and high-performance chemicals continues to grow, both segments are expected to see steady growth. The increasing focus on crop protection and industrial efficiency will likely drive the demand for internal olefins in these sectors, making both industrial and agricultural applications key drivers for the overall market.
Global Internal Olefins Market Analysis
In this report, the Global Internal Olefins Market has been segmented by Technology, Product, Application and Geography.
Global Internal Olefins Market, Segmentation by Technology
The Global Internal Olefins Market has been segmented by Technology into Paraffin Dehydrogenation and Isomerization & Disproportionation (I/D).
The global internal olefins market has been segmented by technology into two primary categories: paraffin dehydrogenation and isomerization & disproportionation (I/D). These technologies are essential for producing high-quality internal olefins, which are used in a wide variety of applications across industries such as automotive, detergents, pharmaceuticals, and lubricants.
Paraffin dehydrogenation is a key process used to convert paraffin, a type of saturated hydrocarbon, into olefins by removing hydrogen atoms. This method is often employed in the production of internal olefins for applications requiring high-purity chemical intermediates, such as surfactants and lubricants. The process helps increase the yield of olefins, which are vital for the production of high-performance chemicals. The growing demand for these chemicals in consumer goods, industrial applications, and automotive manufacturing is driving the use of paraffin dehydrogenation technology. This method is particularly favored for its ability to produce olefins with specific chain lengths, meeting the demands of various sectors.
Isomerization & disproportionation (I/D) is another significant technology used in the internal olefins market. This process involves rearranging the molecular structure of hydrocarbons to create branched isomers, or disproportionating the molecules to create compounds of varying sizes. I/D is typically used to improve the performance characteristics of internal olefins, making them suitable for more specialized applications. This technology is crucial for producing internal olefins that meet strict requirements for use in high-end products, including performance lubricants, specialty chemicals, and advanced materials. The growing need for more efficient and tailored chemicals in industries such as automotive, aerospace, and manufacturing is driving the adoption of isomerization and disproportionation technologies.
Both paraffin dehydrogenation and isomerization & disproportionation technologies are integral to the expansion of the internal olefins market, as they enable the production of olefins with specific properties that cater to the demands of various industries. As these technologies evolve, they will continue to support the growth of high-performance chemicals and intermediates, further boosting the market for internal olefins across multiple sectors.
Global Internal Olefins Market, Segmentation by Product
The Global Internal Olefins Market has been segmented by Product into Industrial, Agricultural.
The global internal olefins market has been segmented by product into industrial and agricultural categories, each serving distinct end-user industries with unique demands and applications.
In the industrial segment, internal olefins are primarily used in the production of lubricants, surfactants, and additives for various manufacturing processes. These olefins are essential for enhancing the performance and efficiency of industrial lubricants, reducing friction, and improving the longevity of machinery. Additionally, internal olefins are used in coatings, plasticizers, and fuel additives, contributing to a wide range of industrial applications. The demand for high-performance lubricants and specialized chemicals in industries such as automotive, manufacturing, and machinery is fueling the growth of the industrial internal olefins market. As industrialization continues to rise, particularly in emerging markets, the demand for these versatile products is expected to increase.
The agricultural segment of the internal olefins market primarily focuses on the production of agrochemicals, including pesticides, herbicides, and fungicides. Internal olefins serve as key intermediates in the synthesis of these chemicals, helping to enhance crop protection and agricultural productivity. The agricultural sector's growing need for efficient crop protection solutions, especially with the increasing global population and demand for food, drives the demand for internal olefins. These chemicals contribute to the formulation of high-performance agrochemicals that improve pest control, weed management, and overall crop health. With increasing awareness about sustainable farming practices and environmentally friendly solutions, the agricultural use of internal olefins is likely to grow, supported by innovations in agrochemical formulations and sustainable practices.
Both the industrial and agricultural segments are integral to the global internal olefins market, with each catering to different industries that rely heavily on these compounds for performance enhancement and application efficiency. As industrialization and agricultural demand continue to grow, these two product categories will likely remain pivotal drivers of market expansion in the coming years.
Global Internal Olefins Market, Segmentation by Application
The Global Internal Olefins Market has been segmented by Application into Surfactants, Oil Drilling, Pharmaceuticals, Lubricants, Agrochemical and Others.
The global internal olefins market has been segmented by application into surfactants, oil drilling, pharmaceuticals, lubricants, agrochemical, and others, with each sector exhibiting unique demand dynamics and growth potential.
In the surfactants industry, internal olefins are widely used for manufacturing detergents, cleaning agents, and emulsifiers. These compounds serve as key ingredients in household and industrial cleaning products, personal care formulations, and oil spill dispersants. Surfactants derived from internal olefins are valued for their ability to reduce surface tension, enhance cleaning efficiency, and provide stable foaming properties. The growing global demand for cleaning products, particularly in emerging markets, is expected to drive continued growth in this application segment.
The oil drilling industry relies on internal olefins to produce surfactants that are used in drilling fluids. These fluids are essential for lubrication, cooling, and cleaning during the drilling process. Internal olefins in oil drilling are valued for their ability to improve the stability and performance of drilling fluids, as well as enhance the overall efficiency of the drilling operation. As exploration and production activities increase, particularly in offshore and unconventional resources, the demand for specialized drilling fluids that incorporate internal olefins is likely to expand.
In the pharmaceuticals sector, internal olefins are used as intermediates in the production of various active pharmaceutical ingredients (APIs) and drug formulations. Their chemical properties make them suitable for creating compounds with desired therapeutic effects. As the global pharmaceutical industry continues to grow, driven by an aging population and increased healthcare access, the demand for internal olefins in pharmaceutical applications is expected to rise.
The lubricants segment is another major application area for internal olefins. These compounds are used to produce synthetic lubricants, which are essential in automotive, industrial, and machinery applications. Internal olefins help improve the viscosity, stability, and performance of lubricants, particularly in high-performance and high-temperature environments. The increasing demand for energy-efficient and high-performance vehicles and machinery is driving the use of internal olefins in the formulation of advanced lubricants.
The agrochemical application of internal olefins focuses primarily on their use in the production of pesticides, herbicides, and fungicides. Internal olefins help improve the efficacy and stability of agrochemical formulations, ensuring better protection for crops against pests and diseases. As the global agricultural sector continues to adopt more advanced crop protection solutions to meet the challenges of food security and sustainable farming, the demand for internal olefins in agrochemicals is expected to rise.
The "others" category includes various niche applications of internal olefins, such as in coatings, adhesives, and plastics, where their chemical properties provide stability, flexibility, and performance enhancements. As industries seek more sustainable and efficient chemical solutions, internal olefins are finding new uses in specialized applications, contributing to the broader growth of the market.
Global Internal Olefins Market, Segmentation by Geography
In this report, the Global Internal Olefins Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa and Latin America.
Global Internal Olefins Market Share (%), by Geographical Region, 2024
The global internal olefins market is segmented regionally into North America, Europe, Asia Pacific, and the Rest of the World, each with distinct growth drivers and market dynamics. North America holds the largest share of the market, largely due to the region's robust oil and gas industry. The shale gas revolution in the U.S. has significantly boosted oil and gas exploration, resulting in increased demand for internal olefins in applications such as oil drilling and lubricants. The well-established infrastructure and technological advancements in the region’s oil and gas exploration further strengthen the market’s position, ensuring continuous growth in the demand for internal olefins.
In Europe, the internal olefins market is also poised for steady growth, driven by the increasing adoption of advanced chemical technologies and sustainable practices across various industries. The region’s strong automotive, pharmaceutical, and manufacturing sectors create significant demand for internal olefins in lubricants, surfactants, and pharmaceutical intermediates. Additionally, Europe’s stringent environmental regulations are encouraging the use of eco-friendly chemicals, providing further opportunities for internal olefins to be used in greener and more efficient applications.
Asia Pacific is expected to experience the highest growth rate in the global internal olefins market. The region’s rapid industrialization, increasing urbanization, and rising demand for consumer goods are propelling the need for internal olefins in a wide range of applications, particularly in surfactants and lubricants. As countries like China, India, and Southeast Asian nations invest heavily in infrastructure development and manufacturing, the demand for internal olefins will continue to rise. The growing oil and gas exploration activities in Asia Pacific, along with the expansion of the automotive and agrochemical sectors, will further drive market growth in the region.
Market Trends
This report provides an in depth analysis of various factors that impact the dynamics of Global Internal Olefins Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.
Drivers, Restraints and Opportunity Analysis
Drivers:
- Rising Demand from Automotive Industry
- Growth in the Detergents and Surfactants Market
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Expanding Applications in Lubricants and Additives- Global internal olefins market is the expanding applications in lubricants and additives. Internal olefins are essential components in the formulation of high-performance lubricants used in automotive, industrial, and machinery applications. Their ability to improve the viscosity, stability, and performance of lubricants, especially under extreme conditions, makes them highly desirable in sectors requiring high-efficiency lubrication. With the increasing demand for vehicles, machinery, and industrial equipment, the need for superior lubricants is growing, driving the demand for internal olefins in this application.
In addition to lubricants, internal olefins are also widely used as additives in various formulations, including fuels, plastics, and paints. They serve as surfactants, dispersants, and emulsifiers, enhancing the performance and properties of the final product. As industries such as automotive, manufacturing, and construction seek to improve the performance, energy efficiency, and longevity of their products, the demand for additives derived from internal olefins is increasing. For example, in the automotive sector, the use of advanced lubricants that incorporate internal olefins helps in enhancing engine performance, reducing friction, and extending the life of vehicle components.
The growing focus on energy efficiency and environmental sustainability is further fueling the demand for high-quality lubricants and additives, which has become a critical factor in the global market. As manufacturers continue to innovate and produce products that are both environmentally friendly and technologically advanced, the role of internal olefins in improving the efficiency and sustainability of lubricants and additives is increasingly recognized. This trend is expected to accelerate as more industries adopt energy-efficient and eco-friendly solutions, further driving the growth of the internal olefins market.
Restraints:
- Fluctuating Raw Material Prices
- Environmental Regulations on Chemical Production
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High Production Costs-One of the key restraints in the global internal olefins market is the high production costs associated with the manufacturing of these chemicals. Internal olefins are typically produced through complex processes such as paraffin dehydrogenation or isomerization, which require advanced technologies and significant energy inputs. These processes are capital-intensive and often involve expensive raw materials, increasing the overall production cost of internal olefins. Additionally, maintaining high-quality standards in the production of internal olefins for various applications, such as lubricants, surfactants, and pharmaceuticals, requires strict control measures, further elevating production costs.
The high production costs are compounded by fluctuating prices of raw materials, such as crude oil and natural gas, which are essential for producing internal olefins. As these materials are susceptible to market volatility, any fluctuations in their prices can directly impact the cost structure of internal olefins production. Moreover, the need for continuous investment in research and development to improve production efficiencies and reduce costs adds to the financial burden on manufacturers. These factors make it challenging for companies to maintain competitive pricing while ensuring profitability, particularly in price-sensitive markets.
As a result of these high production costs, manufacturers may face pressure to increase the price of their products, which could limit their market share, particularly in emerging economies where cost sensitivity is higher. The need to balance cost reduction with maintaining product quality and meeting regulatory standards is a constant challenge for companies operating in the internal olefins market, further limiting their ability to expand market reach and profitability.
Opportunities:
- Growth in Emerging Markets
- Innovation in Sustainable and Green Production Techniques
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Increasing Demand for High-Performance Chemicals- An important opportunity for the global internal olefins market lies in the increasing demand for high-performance chemicals across a variety of industries. As industries evolve and the need for specialized, more efficient chemical solutions grows, internal olefins are gaining prominence due to their versatile properties, such as high stability, excellent lubricity, and enhanced efficiency. These qualities make them essential in applications like surfactants, lubricants, oil drilling, and pharmaceuticals, where high-performance chemicals are critical for improved product performance and operational efficiency.
The automotive and manufacturing sectors are particularly driving this demand, as advancements in technology and the rise of energy-efficient and high-performance machinery require chemical solutions that can enhance durability and reduce friction. Internal olefins are used in the production of synthetic lubricants that help improve engine performance, reduce wear and tear, and extend the lifespan of automotive components. This trend is fueling the demand for internal olefins, especially with the growing focus on electric vehicles (EVs) and high-performance machinery that require specialized lubricants and additives to operate efficiently.
In the oil and gas industry, internal olefins play a crucial role in drilling fluids, where they help improve the stability and performance of the fluids used in extraction processes. As exploration and production activities expand, especially in offshore and unconventional resources, the demand for high-performance chemicals like internal olefins in drilling and oil recovery operations is rising. Additionally, the increasing use of internal olefins in agriculture (for pesticides and herbicides) and pharmaceuticals (as intermediates in drug formulation) further drives their demand. This growing emphasis on high-performance chemicals across multiple sectors presents a substantial opportunity for the internal olefins market to expand its reach and innovate with new applications.
Competitive Landscape Analysis
Key players in Global Internal Olefins Market include:
- INEOS Group Limited
- Sasol Limited
- Royal Dutch Shell plc
- Elevance Renewable Sciences
- Chevron Corporation
In this report, the profile of each market player provides following information:
- Company Overview and Product Portfolio
- Key Developments
- Financial Overview
- Strategies
- Company SWOT Analysis
- Introduction
- Research Objectives and Assumptions
- Research Methodology
- Abbreviations
- Market Definition & Study Scope
- Executive Summary
- Market Snapshot, By Technology
- Market Snapshot, By Product
- Market Snapshot, By Application
- Market Snapshot, By Region
- Global Internal Olefins Market Dynamics
- Drivers, Restraints and Opportunities
- Drivers
- Rising Demand from Automotive Industry
- Growth in the Detergents and Surfactants Market
- Expanding Applications in Lubricants and Additives
- Restraints
- Fluctuating Raw Material Prices
- Environmental Regulations on Chemical Production
- High Production Costs
- Opportunities
- Growth in Emerging Markets
- Innovation in Sustainable and Green Production Techniques
- Increasing Demand for High-Performance Chemicals
- Drivers
- PEST Analysis
- Political Analysis
- Economic Analysis
- Social Analysis
- Technological Analysis
- Porter's Analysis
- Bargaining Power of Suppliers
- Bargaining Power of Buyers
- Threat of Substitutes
- Threat of New Entrants
- Competitive Rivalry
- Drivers, Restraints and Opportunities
- Market Segmentation
- Global Internal Olefins Market, By Technology, 2021 - 2031 (USD Million)
- Paraffin Dehydrogenation
- Isomerization & Disproportionation (I/D)
- Global Internal Olefins Market, By Product, 2021 - 2031 (USD Million)
- Industrial
- Agricultural
- Global Internal Olefins Market, By Application, 2021 - 2031 (USD Million)
- Surfactants
- Oil Drilling
- Pharmaceuticals
- Lubricants
- Agrochemical
- Others
- Global Internal Olefins Market, By Geography, 2021 - 2031 (USD Million)
- North America
- United States
- Canada
- Europe
- Germany
- United Kingdom
- France
- Italy
- Spain
- Nordic
- Benelux
- Rest of Europe
- Asia Pacific
- Japan
- China
- India
- Australia & New Zealand
- South Korea
- ASEAN (Association of South East Asian Countries)
- Rest of Asia Pacific
- Middle East & Africa
- GCC
- Israel
- South Africa
- Rest of Middle East & Africa
- Latin America
- Brazil
- Mexico
- Argentina
- Rest of Latin America
- North America
- Global Internal Olefins Market, By Technology, 2021 - 2031 (USD Million)
- Competitive Landscape
- Company Profiles
- INEOS Group Limited
- Sasol Limited
- Royal Dutch Shell plc
- Elevance Renewable Sciences
- Chevron Corporation
- Company Profiles
- Analyst Views
- Future Outlook of the Market