North America Alkylation Market, By Production Process (Sulfuric Acid Alkylation, Hydrofluoric Acid Alkylation, and Others), Application (Motor Oil, Aviation Turbine Fuel, Lubricants (Excluding Automotive Engine Oil), Gasoline, and Others), End Use (Automobile, Aviation, Agriculture, Industrial, and Others) - Industry Trends and Forecast to 2040.
North America Alkylation Market Analysis and Size
The North America alkylation market is expected to grow significantly in the forecast period of 2023 to 2040. Data Bridge Market Research analyses that the market is growing with a CAGR of 4.5% in the forecast period of 2023 to 2040 and is expected to reach USD 1,407,254.36 thousand by 2040. The major factor driving the alkylation market's growth is the demand for highly efficient gasoline.
Reacting olefins with an isoparaffin to create higher molecular weight paraffin is known as alkylation and is commonly used in the petroleum refining business. In particular, the method produces branched-chain paraffin in the gasoline boiling range by reacting propylene and butylenes with isobutane. Alkylate has high octane ratings and low sensitivity, making it a premium petrol blending stock.
The North America alkylation market report provides details of market share, new developments, and the impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, products approvals, strategic decisions, product launches, geographic expansions, and technological innovations in the market. To understand the analysis and the market scenario, contact us for an analyst brief. Our team will help you create a revenue-impact solution to achieve your desired goal.
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Report Metric
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Details
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Forecast Period
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2023 to 2040
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Base Year
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2022
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Historic Years
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2021 (Customizable to 2015-2020)
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Quantitative Units
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Revenue in USD Thousand
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Segments Covered
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Production Process (Sulfuric Acid Alkylation, Hydrofluoric Acid Alkylation, and Others), Application (Motor Oil, Aviation Turbine Fuel, Lubricants (Excluding Automotive Engine Oil), Gasoline, and Others), End Use (Automobile, Aviation, Agriculture, Industrial, and Others)
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Countries Covered
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U.S., Canada, and Mexico
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Market Players Covered
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Exxon Mobil Corporation, Honeywell International Inc., Lummus Technology, Elessent Clean Technologies Inc., Sulzer Ltd, KBR Inc., and Well Resources Inc. among others
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Market Definition
Alkylation produces longer-branched hydrocarbons from alkylating olefins, such as propylene, butylene, and isobutene. The high-octane hydrocarbons produced by alkylation are known as alkylates. Blending these alkylate with gasoline was introduced to improve the machinery's performance efficacy. The main factor that impacts the alkylation is using a suitable catalyst. Sulphuric acid and hydrofluoric acid are the most used alkylation catalysts.
North America Alkylation Market Dynamics
This section deals with understanding the market drivers, opportunities, restraints, and challenges. All of this is discussed in detail as below:
Drivers
- Rise in demand for highly efficient gasoline
The automobile sector, an important economic indicator, is on the cusp of new technology and developments. Furthermore, customers' need for distinctive and expensive features is driving the automotive sector in the present period. Today's consumers employ all-purpose vehicles on a North America scale, which is driving up automotive sales worldwide. Most automobiles are built around an internal combustion engine that only runs on diesel or gasoline. Therefore, the gasoline demand is increasing significantly, and powertrains based on combustion engines will continue to dominate for the foreseeable future.
- Application growth of derivatives, namely gasoline, and lubricants
There are several refinery products generated from crude oil in petroleum refining. Alkylation is a secondary refinery unit process that numerous refineries worldwide use to add high-octane hydrocarbons to motor and aviation gasoline. It is the process of adding alkyl groups to a substrate molecule and is helpful in several applications. Alkylation produces high-octane gasoline by turning isoparaffins and low-molecular-weight alkenes into alkylate. High-octane hydrocarbons are required to avoid gasoline auto-ignition (knocking) in an engine and fulfill engine octane standards.
Opportunities
- Implementation of investment-friendly policies in countries, namely China and India
Alkylation has become an essential refinery process with the increased need for high-octane and low-vapor-pressure gasoline blending components. It will be much more important in satisfying the government's stringent laws and requirements. Commercial and regulatory pressure refiners to utilize safe and sustainable techniques to provide clean-burning, environmentally friendly fuels. Thus, established refinery firms in the alkylation market may take advantage of this opportunity to spend more on new production capacities. In contrast, new entrants can invest more in incorporating alkylation units to contribute to the industry's growth.
- Technological advancement to improvise alkylation processes
Long-term North America demand for high-quality gasoline is driven by macro factors such as a continually rising customer base and the advent of high-compression engines requiring low vapor pressure. Simultaneously, stricter fuel and emissions criteria, such as low-sulfur or ultra-low-sulfur content demands, increase dependence on octane-boosting blending stocks, like alkylate. Refineries utilize several technologies to create alkylate, and all refineries must use an innovative, safe, and sustainable alkylation technique.
Restraints/Challenges
- Safety concerns related to the use of alkylation technology
The acid-based alkylation technology converts mixed olefin feedstock into high-octane alkylates for gasoline blending using hydrogen fluoride or sulfuric acid as the catalyst. However, the highly corrosive nature of the strong acid catalysts makes both the hydrogen fluoride and sulfuric acid alkylation reactions dangerous. The refiners using acid-based alkylation technology use various metals for equipment for alkylation technology and also require high-cost safety systems to protect refinery employees, infrastructure, and the outer environment. The operators and owners are highly concerned about the safety of the alkylation process and regularly monitor their units' safety. However, as every industrial process has risks, the alkylation process will likely face potential safety concerns.
- Environmental issues associated with alkylation technology
Alkylate is produced through alkylation technology from light olefins and isobutene in the presence of chemical-based catalysts. It is essential for producing gasoline, so various environmental issues are associated with alkylation technology. Alkylate manufacturing requires the utilization of liquid acid-catalyzed processes, for example, hydrofluoric acid or sulfuric acid chemical catalysts. The catalysts are unsafe, corrosive, and toxic in nature. The temperature rises, and the air vapor volume increases when hydrofluoric acid comes into contact with water. Spilled hydrofluoric acid evaporates quickly, but some remain in the soil environment and can severely impact the soil quality and groundwater.
Recent Development
- In June 2021, Sinopec successfully launched two more STRATCO alkylation specialized units from Elessent Clean Technologies Inc. The company is expanding its alkylation capacity by adding a fifth and sixth STRATCO alkylation unit to its refining network.
- In March 2023, ExxonMobil announced the successful start-up of its Beaumont refinery expansion project, which will increase the capacity of one of the biggest petrochemical and refining complexes on the American Gulf Coast by 250,000 barrels per day. The greatest refinery expansion in more than ten years is supported by the company's rising crude production in the Permian Basin, which will assist in meeting the rising need for affordable and dependable energy. The Beaumont refinery, where the company produces finished products including diesel, petrol, and jet fuel through the Permian crude oil
North America Alkylation Market Scope
The North America alkylation market is categorized based on production process, application, and end use. The growth amongst these segments will help you analyze major growth segments in the industries and provide the users with a valuable market overview and market insights to make strategic decisions to identify core market applications.
Production Process
- Sulfuric Acid Alkylation
- Hydrofluoric Acid Alkylation
- Others
On the basis of production process, the North America alkylation market is classified into sulfuric acid alkylation, hydrofluoric acid alkylation, others.
Application
- Motor Oil
- Aviation Turbine Fuel
- Lubricants (Excluding Automotive Engine Oil)
- Gasoline
- Others
On the basis of application, the North America alkylation market is classified into motor oil, aviation turbine fuel, lubricants (excluding automotive engine oil), gasoline, and others.
End Use
- Automobile
- Aviation
- Agriculture
- Industrial
- Others
On the basis of end use, the North America alkylation market is classified into automobile, aviation, agriculture, industrial, and others.
North America Alkylation Market Regional Analysis/Insights
The North America alkylation market is segmented on the basis of production process, application, and end use.
The countries in the North America alkylation market are the U.S., Canada, and Mexico. The U.S. is dominating the North America alkylation market in terms of share and revenue due to the due to positive outlook towards the aviation and defense sector in this region.
The country section of the report also provides individual market-impacting factors and changes in market regulation that impact the current and future trends of the market. Data point downstream and upstream value chain analysis, technical trends, porter's five forces analysis, and case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of North America brands and their challenges faced due to large or scarce competition from local and domestic brands, the impact of domestic tariffs, and trade routes are considered while providing forecast analysis of the country data.
Competitive Landscape and North America Alkylation Market Share Analysis
The North America alkylation market competitive landscape provides details by competitors. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, production sites and facilities, company strengths and weaknesses, product launch, product trials pipelines, product approvals, patents, product width and breadth, application dominance, technology lifeline curve. The above data points provided are only related to the companies’ focus related to the North America Alkylation market.
Some of the prominent participants operating in the North America alkylation market are Exxon Mobil Corporation, Honeywell International Inc., Lummus Technology, Elessent Clean Technologies Inc., Sulzer Ltd, KBR Inc., and Well Resources Inc. among others.
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