Polyolefin (PO) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Polyolefin (PO) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The polyolefin market is projected to register a CAGR of more than 8% during the forecast period (2021-2026).

The polyolefins market is witnessing a slower growth in terms of demand from its downstream derivatives. Under supply and compressed profit margins resulted from the ongoing wave of capacity expansions in the polyethylene industry, placing even more pressure on producers. For manufacturers, who were already experiencing over supply chain disruptions due to the United States and China trade war, got another dosage of recession in cargo delivers due to the COVID-19 pandemic. The advent of COVID-19, which the World Health Organization has deemed a pandemic, is having a noticeable effect on global economic development. The pandemic has impacted operations in several sectors, including automotive, oil and gas, manufacturing, aerospace, and others, as most countries have declared a state of emergency, and the impact can still be seen in the current quarter of 2021. As a result of this, demand for polyolefin has declined drastically.

Key Highlights

• Over the short term, due to its advanced properties, the demand for polyolefin in electronics, automotive, and other industries lead to an increase in the growth of the market.
• Polyolefin provides a good insulation property, offering electric treeing resistance and can become electrostatically charged. Due to this reason, the demand for polyolefin tends to be higher in electrical and electronic industries also.
• However, growing environmental regulation on plastic, imposed by various countries, tends to constrain the growth of the market.
• Asia-Pacific dominated the market across the world with the largest consumption in a country such as India, China, etc.

Key Market TrendsIncreasing Demand from Films and Sheets

• Films and sheets include a wide range of applications across transportation, packaging, agriculture, building and construction, etc.
• Growing demand for polyolefin films and sheets from the agricultural sector across various applications such as greenhouse, mulch and silage stretch films, and silage sheets and construction for window films and the medical sector is driving the market's growth.
• Furthermore, polyolefin-based agricultural films protect vegetables from frost, wind, rain, and pests and speed up the ripening of fruit, vegetables, and flowers, enabling farmers to cultivate multiple crops in a year. Polyolefin films also help to minimize water consumption by reducing evaporation.
• On the other side, polyolefin sheet also finds its application in the construction industry. The polyethylene sheeting is done under the slab, which acts as a vapor retarder. The most beneficial part of polyethylene sheets is they do not decay and have the capability to retard for a longer duration. Due to this reason, the demand for polyolefin is increasing in the construction industry.
• Globally, the construction industry is booming in the Asia-Pacific region, which is predominant in the lucrative markets of China and India. Owing to their business potential, countries like Indonesia, China, Malaysia, Singapore, and South Korea have become hosts to numerous national and international events. A huge consumer base and cheaper manufacturing costs in the Asia-Pacific region are drawing in high FDIs, with India and China being the major beneficiaries.
• However, due to the COVID-19 pandemic, the lockdown measures have forced manufacturers to cut down their production. The pandemic has forced all the construction activities to halt for several months, which might have a negative impact on the growth of the market in the short term.

China to Dominate the Asia-Pacific Region

• China is one of the fastest emerging economies and has presently become one of the biggest production houses in the world. The country’s manufacturing sector is one of the major contributors to its economy.
• Presently, China is a major consumer of polyolefin worldwide. The growth is majorly driven by the increase in e-commerce, as the strong courier business has led to a spike in demand for plastic packaging.
• The country primarily relies on imports from the United States to meet the demand for PE. The United States exported 600,000 metric ton of PE to China. The huge shale gas-based capacities in the United States have inundated China with PE.
• Electronic products, such as smartphones, OLED TVs, tablets, and so on, have the highest growth in the market in the consumer electronics segment. With the increase in the disposable income of the middle-class population, the demand for electronic products is projected to grow in the near future, thereby driving the demand for polyolefins in the country.
• All the factors are likely to increase the demand for the market over the forecast period.

Competitive Landscape

The polyolefin market is consolidated in nature. Some of the major players in the market include LyondellBasell Industries Holdings BV, Exxon Mobil Corporation, SABIC, LG Chem, and Mitsubishi Chemical Holdings Corporation, among others.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

IBM Corporation
Oracle Corporation
Internap Corporation
Packet Inc. (An Equinix Inc. Company)
Scaleway Inc.
Amazon Web Services Inc
Rackspace Inc.
CenturyLink, Inc.
LightEdge Solutions, Inc

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