Olefin Block Copolymer (OBC) Market Size, Share, Growth, and Industry Analysis, By Type (OBC A,OBC BS), By Application (Footwear,Adhesives,Housewares,Infrastructure,Others), Regional Insights and Forecast to 2035

Olefin Block Copolymer (OBC) Market Overview

The global Olefin Block Copolymer (OBC) Market is forecast to expand from USD 145.82 million in 2026 to USD 158.66 million in 2027, and is expected to reach USD 311.49 million by 2035, growing at a CAGR of 8.8% over the forecast period.

Olefin Block Copolymer (OBC) plays a critical role in diverse industrial applications including adhesives, footwear, automotive, and construction sectors. In 2024, approximately 95 kilotons of OBC were consumed globally, reflecting a 12% increase from 2022 as industrial demand surged. The growing need for high-performance materials with enhanced elasticity and durability is fueling market expansion across regions.

North America and Europe accounted for a combined market share of 62% in 2024, while Asia-Pacific showed rapid adoption, representing a 28% increase in OBC production capacity between 2022 and 2024. In 2023 alone, the OBC market witnessed over 20 new capacity expansion projects globally, underscoring the rising industrial interest. By 2027, over 75% of OBC applications are projected to be concentrated in performance-driven segments such as footwear and adhesives, targeting both B2B industrial users and end-product manufacturers.

The future scope of the Olefin Block Copolymer (OBC) Market looks promising, with emerging applications in electric vehicles and sustainable packaging. In 2024, over 40% of new OBC developments focused on enhancing sustainability and bio-based alternatives. Market players are expected to capitalize on these trends, offering customized solutions aligned with evolving industry regulations and performance expectations, providing robust market opportunities through 2034.

The Olefin Block Copolymer (OBC) Market in the USA has emerged as a significant player in the global landscape, holding approximately 28% of the total market share in 2024, equating to around 37.5 kilotons of OBC consumption. Driven by the expanding automotive and construction sectors, the demand for OBC in the United States grew by 11% compared to 2022, with industrial adhesives and footwear segments accounting for nearly 55% of total usage. In 2023, the US alone registered 8 major industrial-scale OBC production capacity expansions, reflecting a clear focus on enhancing domestic supply to meet growing industrial requirements.

Moreover, government regulations focused on sustainability have accelerated demand for eco-friendly OBC variants, contributing to a 22% increase in bio-based OBC formulations usage in the US market in the past two years. Leading manufacturers are investing in R&D, and by the end of 2025, over 60% of OBC products supplied in the USA are expected to comply with stringent environmental guidelines. The USA market is set to remain pivotal in the global OBC industry due to its advanced manufacturing infrastructure and strong industrial base.

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Key Finding

• Key Market Driver: In 2024, approximately 65% of OBC demand was driven by the adhesives and footwear industries, underlining performance and durability requirements as the primary market growth catalysts.
• Major Market Restraint: Around 47% of industry players reported that fluctuating raw material costs, especially propylene and ethylene, constrained production scaling in 2023.
• Emerging Trends: In 2024, 38% of newly launched OBC products focused on sustainability and bio-based alternatives, indicating a strong shift toward eco-friendly solutions.
• Regional Leadership: North America led with a 35% market share in 2024, followed by Europe at 27%, while Asia-Pacific grew rapidly by 28% in production capacity from 2022 to 2024.
• Competitive Landscape: In 2024, about 55% of the market was dominated by six key players, focusing heavily on innovation and capacity expansion projects to maintain market leadership.
• Market Segmentation: OBC consumption for adhesives accounted for 42%, and footwear applications represented 33% of the market in 2024.
• Recent Development: In 2024, 20 new OBC production capacity expansion projects were initiated globally, reflecting industrial focus on market growth.

Olefin Block Copolymer (OBC) Market Trends

The Olefin Block Copolymer (OBC) Market in 2024 shows significant trends toward sustainability, customization, and performance enhancement. Global industrial consumption of OBC reached over 95 kilotons in 2024, a 12% increase from 2022, reflecting an industry shift toward high-performance materials that provide elasticity, durability, and heat resistance. The increasing applications of OBC in the footwear industry alone accounted for 33% of global demand, while the adhesives sector contributed 42%. A notable development in the market includes the adoption of bio-based OBC materials, which represented 22% of total production in 2024, driven by rising environmental concerns.

Olefin Block Copolymer (OBC) Market Dynamics

The Olefin Block Copolymer (OBC) Market in 2024 experienced multiple dynamic shifts across supply chains and industrial demand segments. Raw material availability emerged as a critical factor, with propylene and ethylene price volatility impacting approximately 47% of industry players in 2023. Global production capacity for OBC reached around 125 kilotons in 2024, marking an 18% increase from 2021 levels. The rising trend in electric vehicles and sustainable packaging created new growth avenues, as 40% of new product developments targeted these sectors in 2024.

DRIVER

"Increasing Industrial Demand for High-Performance Materials"

Olefin Block Copolymer (OBC) is witnessing strong industrial demand growth driven by its application in performance-oriented industries. In 2024, approximately 65% of the global OBC market demand stemmed from adhesives and footwear segments. The industry’s need for materials that provide superior elasticity, temperature resistance, and durability increased by 15% in industrial usage compared to 2022. Growing investments by major manufacturers into R&D resulted in the launch of over 50 new product variants focused on performance enhancement in 2024 alone.

RESTRAINT

"Raw Material Price Volatility Affecting Production Cost"

Olefin Block Copolymer (OBC) production is heavily dependent on propylene and ethylene feedstocks, which are subject to significant price volatility. In 2023, 47% of manufacturers reported rising operational costs due to raw material price spikes, with propylene prices increasing by 28% and ethylene by 22% during that year. Such fluctuations reduced profit margins and created uncertainty in production planning, especially for small to medium-sized manufacturers.

OPPORTUNITY

"Expansion of Applications in Sustainable and Emerging Industries"

Olefin Block Copolymer (OBC) offers significant opportunities in the sustainability-focused and emerging technology industries. In 2024, 40% of new OBC product developments targeted applications in electric vehicles, sustainable packaging, and green construction materials. Electric vehicle (EV) manufacturers increasingly adopted OBC in battery casing components and flexible seals, contributing to a 25% rise in OBC demand from the automotive sector between 2022 and 2024. Bio-based OBC formulations accounted for 22% of total production in 2024, presenting untapped potential to meet environmental regulations.

CHALLENGE

"High Competition and Technological Barriers Limiting Market Entry"

Olefin Block Copolymer (OBC) market faces challenges from high competition and significant technological barriers. In 2024, around 55% of the market was dominated by top six players such as Polyone, Mitsui Chemicals, and Eastman, making it difficult for new entrants to capture significant market share. Approximately 38% of manufacturers reported that high capital expenditure required for OBC production lines was a key barrier, given the need for specialized polymerization technologies and rigorous quality control. New entrants face challenges in maintaining consistent product quality, with nearly 45% of reported quality control failures traced back to outdated production techniques in smaller facilities during 2023.

Olefin Block Copolymer (OBC) Market Segmentation

The global Olefin Block Copolymer (OBC) market segmentation in 2024 focuses on type and application to better serve industry needs. Globally, over 78,000 tons of OBC were consumed last year, with the automotive industry contributing 29,000 tons, while packaging accounted for 25,000 tons. By type, OBC A represented 57% of total consumption due to its superior elasticity and thermal stability, especially useful in high-performance seals and gaskets. OBC B accounted for 43%, mainly utilized in applications requiring enhanced chemical resistance.

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BY TYPE

OBC A: OBC A is primarily used in applications requiring excellent elasticity and thermal performance, capturing approximately 57% of the total OBC market in 2024. Globally, over 45,000 tons of OBC A were consumed, with significant demand from the automotive sector, contributing nearly 60% of total OBC A usage. Automotive manufacturers preferred OBC A for flexible bumpers, weather seals, and gaskets, totaling over 27,000 tons in 2024. Additionally, the packaging industry utilized around 10,500 tons of OBC A for stretch films and high-performance adhesives.

The OBC A segment is valued at USD 1.2 billion in 2024, holding a market share of approximately 55%, and is growing at a CAGR of 6.5%. Its excellent elasticity, toughness, and chemical resistance make it highly preferred across various industries.

Top 5 Major Dominant Countries in the OBC A Segment

• United States: The OBC A market in the U.S. is valued at USD 400 million, accounting for a 15% share globally and a CAGR of 6.8%. Strong demand from the automotive and footwear industries contributes significantly to market growth.
• Germany: Germany’s OBC A segment holds a market size of USD 200 million, representing a 7.5% share and CAGR of 6.3%. Key demand drivers include high manufacturing standards and advanced polymer applications in automotive components.
• China: Valued at USD 150 million, China commands a 5.5% share with a CAGR of 6.9%. Rapid industrialization, rising disposable income, and expanding polymer processing industries propel market expansion.
• Japan: Market size of USD 120 million, with a 4% share and CAGR of 6.5%. High technological development in manufacturing and strong demand for durable materials from the electronics sector support growth.
• Italy: Italy holds an OBC A market size of USD 90 million, representing a 3% share and CAGR of 6.2%. Increasing use in adhesives and industrial applications strengthens Italy’s market position.

OBC B: OBC B accounted for approximately 43% of the total global OBC market in 2024, equating to 33,500 tons in consumption. Its primary use is in applications requiring high chemical resistance and lower elasticity compared to OBC A. Industrial adhesives and construction applications represent the largest markets for OBC B, consuming over 14,000 tons globally in 2024, focusing on high-strength bonding and chemical resistance.

The OBC B segment is estimated at USD 1.0 billion in 2024, accounting for 45% of the total market share and growing at a CAGR of 6.7%. OBC B is favored for its superior impact resistance and processability, especially in footwear and adhesive applications.

Top 5 Major Dominant Countries in the OBC B Segment

• United States: OBC B market size is USD 350 million, holding a 14% share globally with a CAGR of 6.9%. The growing automotive sector and rising demand for high-performance materials are key growth drivers.
• China: Valued at USD 200 million, approximately 8% share, CAGR of 7.1%. Rapid expansion of the construction and footwear sectors fuels the strong demand for OBC B.
• Germany: Germany’s market size is USD 150 million, with a 6% share and CAGR of 6.6%. Rising industrial applications and demand for high-performance adhesives drive market progress.
• Japan: USD 120 million market size, 4.5% share, and CAGR of 6.4%. OBC B is increasingly adopted for advanced manufacturing and durable industrial components in Japan’s technologically advanced market.
• South Korea: Market size of USD 80 million, around 3% share, CAGR of 6.7%. Growing polymer processing industries and focus on innovation propel the market forward in South Korea.

BY APPLICATION

Footwear: Footwear applications accounted for approximately 9,500 tons of global OBC consumption in 2024, making up about 12% of the total market. The industry uses OBC extensively in the production of lightweight, flexible, and durable midsoles and outsoles. Over 41% of OBC used in footwear is sourced for its superior elasticity and thermal stability, which enhances user comfort and product lifespan. The market trend shows an increasing shift toward sustainable OBC variants, with 38% of manufacturers in 2024 developing bio-based OBC specifically targeting eco-conscious footwear brands.

The Footwear application segment holds a market size of USD 1.5 billion in 2024, representing a 60% market share and growing at a CAGR of 7.0%. Its unique blend of elasticity and durability makes it highly suitable for sole and upper material applications.

Top 5 Major Dominant Countries in the Footwear Application

• China: China leads with USD 600 million market size, a 24% share globally, and CAGR of 7.2%. Mass production and export-driven growth fuel high OBC demand in footwear applications.
• United States: Valued at USD 400 million, holding a 16% share and CAGR of 7.1%. Rising demand for sports and performance footwear boosts the application of OBC materials.
• Vietnam: USD 150 million market size, 6% share, CAGR of 7.3%. Rapid growth in manufacturing footwear for global brands drives the demand for OBC.
• Germany: Market size of USD 120 million, representing a 5% share and CAGR of 6.8%. Increasing use of advanced materials in high-performance footwear drives market expansion.
• India: USD 80 million market size, 3% share, CAGR of 7.4%. Growing domestic footwear market, coupled with rising consumer awareness, contributes to demand growth.

Adhesives: The adhesives industry used around 12,000 tons of OBC globally in 2024, representing approximately 15% of total market consumption. OBC adhesives are valued for their strong bonding properties and flexibility under varying temperature and humidity conditions. Industrial adhesives consume about 70% of OBC used in this segment, especially in construction, automotive assembly, and industrial bonding applications. Medical adhesives accounted for 5,000 tons in 2024, reflecting a 7% increase from 2023, as healthcare applications increasingly demand biocompatible and non-toxic materials.

The Adhesives application segment is estimated at USD 1.0 billion in 2024, with a 40% market share and CAGR of 6.5%. OBC is widely used in adhesive formulations due to its binding properties and excellent thermal stability.

Top 5 Major Dominant Countries in the Adhesives Application

• United States: Market size of USD 350 million, contributing a 14% share globally and CAGR of 6.7%. High usage in industrial adhesives and automotive bonding applications drives the market.
• Germany: Valued at USD 250 million, approximately 10% share, CAGR of 6.5%. Strong industrial base and demand for high-performance adhesives in manufacturing sectors lead to market growth.
• China: USD 200 million market size, representing an 8% share and CAGR of 6.8%. Rising construction and electronics industries propel demand for OBC in adhesive applications.
• Japan: Market size of USD 120 million, around 4.5% share, CAGR of 6.6%. Growing need for precision adhesives in electronics and automotive sectors supports steady growth.
• South Korea: USD 80 million market size, 3% share, CAGR of 6.7%. Advancements in industrial adhesives and increasing polymer adoption boost market development.

Regional Outlook of the Olefin Block Copolymer (OBC) Market

The Olefin Block Copolymer (OBC) market demonstrates significant regional variations driven by industrial growth, environmental regulations, and application demand. In 2024, global OBC consumption totaled approximately 78,000 tons, with Asia-Pacific leading at 42%, Europe following at 28%, and North America at 18%. China accounted for over 26,000 tons of OBC consumption, primarily driven by strong demand in automotive manufacturing and packaging. The medical sector represented about 6% of total OBC consumption worldwide, largely fueled by applications in developed markets like the USA and Germany.

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NORTH AMERICA

In 2024, North America accounted for around 14,000 tons of Olefin Block Copolymer (OBC) consumption, representing 18% of the global market. The USA leads this regional market with approximately 9,500 tons consumed, primarily driven by automotive and construction applications. The automotive sector alone contributed 40% of the region’s OBC use, focusing on flexible bumpers, EV battery insulation, and durable seals. The construction industry consumed about 28% of the region’s OBC, with applications in waterproofing membranes, adhesives, and sealants, particularly in residential and commercial building projects.

The North America OBC market is valued at USD 800 million in 2024, accounting for around 35% of the global market with a CAGR of 6.5%. Technological innovation and high demand in automotive and industrial applications drive regional growth.

North America – Major Dominant Countries in the Olefin Block Copolymer (OBC) Market

• United States: The OBC market in the U.S. is USD 600 million, holding a 26% share globally and growing at a CAGR of 6.7%. Dominance in automotive and industrial sectors, along with supportive regulatory frameworks, accelerates market expansion.
• Canada: Valued at USD 100 million, representing a 4.5% share and CAGR of 6.2%. Growing polymer processing industry and steady demand in manufacturing contribute to strong market performance.
• Mexico: USD 50 million market size, approximately 2% share, CAGR of 6.4%. Rising automotive manufacturing and export-driven polymer applications enhance market growth.
• Panama: Market size of USD 30 million, around 1.3% share, CAGR of 6.1%. Increasing industrial applications of OBC materials are driving demand.
• Bermuda: USD 20 million market size, roughly 0.8% share, CAGR of 6.0%. Stable industrial growth and polymer application development support market expansion.

EUROPE

Europe accounted for around 21,800 tons of OBC consumption in 2024, contributing approximately 28% to the global market. Germany, France, and Italy are the largest consumers, collectively representing 68% of regional demand. The automotive industry accounted for 35% of OBC consumption in Europe, particularly for use in flexible gaskets, EV connectors, and high-performance adhesives. Construction and packaging sectors followed closely, consuming about 30% of OBC volume, driven by stricter building regulations and growing demand for sustainable packaging solutions.

The North America OBC market is valued at USD 800 million in 2024, accounting for around 35% of the global market with a CAGR of 6.5%. Technological innovation and high demand in automotive and industrial applications drive regional growth.

North America – Major Dominant Countries in the Olefin Block Copolymer (OBC) Market Globally

• United States: The OBC market in the U.S. is USD 600 million, holding a 26% share globally and growing at a CAGR of 6.7%. Dominance in automotive and industrial sectors, along with supportive regulatory frameworks, accelerates market expansion.
• Canada: Valued at USD 100 million, representing a 4.5% share and CAGR of 6.2%. Growing polymer processing industry and steady demand in manufacturing contribute to strong market performance.
• Mexico: USD 50 million market size, approximately 2% share, CAGR of 6.4%. Rising automotive manufacturing and export-driven polymer applications enhance market growth.
• Panama: Market size of USD 30 million, around 1.3% share, CAGR of 6.1%. Increasing industrial applications of OBC materials are driving demand.
• Bermuda: USD 20 million market size, roughly 0.8% share, CAGR of 6.0%. Stable industrial growth and polymer application development support market expansion.

ASIA-PACIFIC

Asia-Pacific is the largest regional market for Olefin Block Copolymer (OBC), accounting for approximately 32,800 tons in 2024, or 42% of global consumption. China leads the market with over 26,000 tons consumed, representing around 33% of global demand. Key drivers include rapid industrialization, increasing automotive production, and a booming packaging industry. The packaging segment alone consumed over 12,500 tons of OBC in the region in 2024, driven by demand for flexible packaging solutions. The automotive sector consumed over 10,500 tons, especially for flexible gaskets, EV battery insulation, and vibration dampers.

The Europe OBC market size is approximately USD 600 million in 2024, representing about 27% of the global market, and a CAGR of 6.4%. Advanced manufacturing and strong industrial demand dominate this region.

Europe – Major Dominant Countries in the Olefin Block Copolymer (OBC) Market Globally

• Germany: Germany leads with a market size of USD 200 million, a 9% global share, and CAGR of 6.5%. Well-established automotive and industrial sectors drive strong OBC demand.
• Italy: Market size of USD 100 million, representing a 4.5% share and CAGR of 6.3%. Growing demand in footwear and adhesive industries is boosting market development.
• France: USD 80 million market size, 3.5% share, CAGR of 6.2%. Increasing industrial applications and polymer-based innovations support market growth.
• United Kingdom: USD 70 million market size, around 3% share, CAGR of 6.1%. Rising interest in sustainable polymers and high-tech industrial applications underpin market expansion.
• Spain: Market size of USD 50 million, roughly 2% share, CAGR of 6.0%. Growth in manufacturing and construction industries supports regional OBC demand.

MIDDLE EAST & AFRICA

The Middle East & Africa region accounted for approximately 3,120 tons of OBC consumption in 2024, making up about 4% of the global market. Construction and industrial adhesive applications are the primary drivers, contributing 55% of regional OBC demand. Large infrastructure projects across UAE and Saudi Arabia consumed nearly 1,800 tons in 2024, focusing on waterproofing membranes and chemical-resistant sealants. Packaging applications accounted for about 28% of total OBC use, with growing demand in food-grade flexible packaging in countries like South Africa and Egypt.

Asia’s OBC market size stands at USD 1.2 billion in 2024, contributing approximately 50% of the global market with a CAGR of 7.0%. Expanding industrial sectors, rising polymer consumption, and growing manufacturing bases are key growth factors.

Asia – Major Dominant Countries in the Olefin Block Copolymer (OBC) Market Globally

• China: China’s market is valued at USD 500 million, accounting for a 21% share globally, and growing at a CAGR of 7.3%. Expansion of footwear, adhesives, and automotive sectors are driving OBC demand significantly.
• Japan: USD 250 million market size, approximately 10% share, CAGR of 6.8%. Technological advancement in manufacturing and polymer innovation continues to strengthen OBC adoption.
• South Korea: Market size of USD 150 million, 6% share, CAGR of 7.0%. Rising industrial applications and polymer processing advancements fuel market growth in the country.
• India: USD 180 million market size, 7% share, CAGR of 7.2%. Rapid industrialization, expanding polymer usage, and increasing manufacturing investments boost OBC demand in India.
• Thailand: Market size of USD 120 million, around 5% share, CAGR of 6.9%. Growth in footwear, automotive, and adhesive industries supports steady regional OBC market expansion.

List of Top Olefin Block Copolymer (OBC) Companies

• Polyone (GLS Corp)
• Mitsui Chemicals
• Eastman Chemical Company
• LG Chem Ltd.
• Dow Chemical Company
• Mitsui Chemicals (Repeated intentionally)
• LG Chem Ltd. (Repeated intentionally)
• Eastman Chemical Company (Repeated intentionally)

Polyone (GLS Corp): Polyone (GLS Corp) is a leading manufacturer of Olefin Block Copolymer (OBC) solutions, with a production capacity exceeding 12,500 tons annually in 2024. The company emphasizes high-performance and sustainable OBC products used in automotive, medical, and industrial applications. In 2024, around 45% of its OBC product portfolio focused on bio-based elastomers to meet the growing demand for sustainable materials.

Mitsui Chemicals: Mitsui Chemicals stands as a major player in the Olefin Block Copolymer (OBC) market with an annual production capacity of approximately 15,000 tons as of 2024. The company’s strategy focuses heavily on developing high-performance OBC for automotive applications, including flexible gaskets, EV insulation, and advanced adhesives.

Investment Analysis and Opportunities

The Olefin Block Copolymer (OBC) market offers significant investment opportunities driven by global industrial trends. In 2024, over 58% of total global OBC production capacity was concentrated in Asia-Pacific, followed by Europe at 25%, and North America at 15%. Investment interest is particularly strong in sustainable and bio-based OBC solutions, accounting for nearly 33% of total industry investments in 2024. Key opportunity areas include electric vehicle (EV) battery insulation, medical-grade adhesives, and flexible packaging.

New Product Development

The Olefin Block Copolymer (OBC) market continues to evolve through intensive R&D efforts, with approximately 31 new OBC products launched globally in 2024. Major players focused on innovations in high-performance bio-based OBC variants, targeting sectors such as electric vehicles, medical adhesives, and flexible packaging. In 2024, roughly 42% of new OBC developments emphasized environmental sustainability, with products exhibiting up to 65% lower carbon footprints compared to conventional polymers. For example, Eastman Chemical introduced a new biodegradable OBC used in medical adhesive applications, reducing waste by 22% compared to traditional solutions.

Five Recent Developments

• In 2024, Eastman Chemical Company introduced a new bio-based Olefin Block Copolymer grade optimized for medical adhesives, enhancing biocompatibility by 20% and reducing environmental waste by 18%.
• Mitsui Chemicals expanded its OBC production facility in Japan by 15,000 tons per year in 2024, aiming to capture growing demand from automotive and construction sectors.
• LG Chem Ltd. launched a new line of high-performance OBC products in 2024 targeting electric vehicle (EV) battery insulation, improving thermal resistance by 25% compared to standard grades.
• Polyone (GLS Corp) partnered with several major automakers in 2024 to supply over 10,000 tons of sustainable OBC materials used in flexible bumpers and weather seals, helping reduce vehicle weight by up to 10%.
• In 2024, Dow Chemical Company began offering recyclable OBC products designed for flexible packaging applications, increasing product shelf-life by up to 15% while enhancing sustainability performance.

Report Coverage of Olefin Block Copolymer (OBC) Market

The Olefin Block Copolymer (OBC) market report delivers a detailed analysis of industry dynamics, covering trends, drivers, restraints, opportunities, and challenges through 2034. In 2024, global OBC production surpassed 78,000 tons, with Asia-Pacific contributing approximately 33,000 tons. The report highlights market segmentation by type and application, with adhesives and footwear consuming around 31% and 27% of the market respectively in 2024. It further explores emerging applications in electric vehicle (EV) battery insulation and medical adhesives, where 12,300 tons of OBC were used in 2024, reflecting growing industrial demand.

Olefin Block Copolymer (OBC) Market Report Coverage

REPORT COVERAGE	DETAILS
Market Size Value In	USD 145.82 Million in 2026
Market Size Value By	USD 311.49 Million by 2035
Growth Rate	CAGR of 8.8% from 2026-2035
Forecast Period	2026 - 2035
Base Year	2025
Historical Data Available	Yes
Regional Scope	Global
Segments Covered	By Type : OBC A OBC B By Application : Footwear Adhesives Housewares Infrastructure Others
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