NEW YORK, Oct. 24, 2016 /PRNewswire/ -- The global poly alpha olefin (PAO) market is expected to reach USD 1.58 billion by 2025, according to a new report by Grand View Research, Inc. Increasing offshore drilling activities coupled with growing automotive industry is expected to drive the demand for poly alpha olefin in synthetic lubricant application. High growth markets such as India, China, UAE, and Brazil have been shifting their preferences towards high-grade lubricants from conventional mineral oils. This factor is anticipated to remain the key driving factor for the growth of PAO over the forecast period.
PAO has various advantages over conventional lubricants such as wear & tear protection, excellent thermal stability, and good load carrying capacity which is anticipated to propel PAO industry growth over the forecast period.
PAO based synthetic fluids are expected to gain importance in future owing to lower toxicity, bioaccumulation potential and fluid loss as compared with oil base fluids (OBF). Growing concern toward downhole losses and rising maintenance expenses in deepwater projects have urged oil & gas companies to move toward such efficient drilling oils.
Further key findings from the report suggest:
The global poly alpha olefin (PAO) market demand was 582.4 kilo tons in 2015 and is expected to reach 815.2 kilo tons by 2025, growing at a CAGR of 3.5% from 2016 to 2025
The engine oil was the leading application segment and accounted for over 65% of total market volume in 2015. Growth in this sector may be attributed to increasing use of motor oil in automobile industry under extreme temperatures.
Europe PAO market is anticipated to grow at a CAGR of 3.1% from 2016 to 2025 and accounted for over 40% of global volume in 2015. The growth may be attributed to regulatory support towards biodegradable products such as The Blue Angel Scheme and The White Swan Scheme.
Asia Pacific accounted for over 12% of the total market volume in 2015 and is estimated to be the fastest growing regional market on account of growing automotive industry which is experiencing a shift from mineral to synthetic based lubricants
Key industry participants in the market include Chevron Phillips Chemical Company LLC, ExxonMobil, Tulstar Products, Inc, INEOS Oligomers, Chemtura Corporation, NACO Corporation, Shanghai Fox Chemical Technology Co., Ltd., Lubricon Industries, Idemitsu Kosan Co., Ltd., Mitsui Chemicals, Inc., Shell Chemical Ltd.
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