Isobutene Market Is Expected To Touch New Height Of USD 30.71 Billion by 2024: Grand View Research, Inc

August 22 09:56 2019
Isobutene Market Is Expected To Touch New Height Of USD 30.71 Billion by 2024: Grand View Research, Inc

Grand View Research, Inc. – Market Research And Consulting.
According to report published by Grand View Research,Isobutene or isobutylene is majorly utilized for the production of polybutylene (butyl rubber) and as an intermediate for manufacturing methyl tert-butyl ether. These products are widely utilized in plastic packaging, hot melt adhesives, compounding and masterbatches, as well as niche areas such as electrical insulation, compression packaging, and wires and cables.

According to a report, “ Isobutene Market Analysis Report By Product (Methyl Tert-Butyl Ether, Ethyl Tert-Butyl Ether), By Application (Automotive, Aerospace, Antioxidants, Pharmaceuticals), And Segment Forecasts 2016 – 2024 ”, published by Grand View Research, Inc.,The global isobutene market is expected to reach USD 30.71 billion by 2024, Regulatory policies aimed at carcinogenicity of petrochemicals to have a huge impact on industry dynamics and product development sources. The primary market driver is the growing demand for rubber from the automotive industry. It used primarily used as a precursor to various chemicals, for instance, in the polymerization reaction with isoprene for the production of polybutene. Polybutene, in simple terms, is butyl rubber used for the production of tires and other synthetic products.

Tire production increased exponentially in the emerging countries of Asia Pacific including China and India. This increase in production is attributable to the growing transportation sector in these economies. Factors such as low-cost land for production facilities and easy availability of skilled labor have had a positive impact on the growth trend. Asia Pacific accounted for over 33% of the global volume in 2015.

China isobutene market

Further key findings from the report suggest:

  • The global isobutene market demand was estimated at 11.59 million tons in 2015 and is expected to reach 16.23 million tons by 2024, growing at a CAGR of 3.9% from 2016 to 2024

  • MTBE was the leading product segment and accounted for nearly 80% of the overall volume in 2015. However, growing concerns regarding groundwater contamination caused due to leakage of MTBE coupled with increasing popularity of ethanol as a gasoline blending agent is expected to segment impact growth negatively

  • The U.S. EPA has decided to ban MTBE to be used for gasoline blending in the nation on account of the aforementioned factor. The regulatory ban might have an influential role on policies established in other regions as well.

  • Automotive emerged as the leading application segment and accounted for over 35% of total market volume in 2015. The segment is also expected to witness the highest growth of 4.1% over the forecast period

  • Product development and capacity expansions remain key determinants of competitiveness. Evonik Industries increased its production capacity by three times in Antwerp, Belgium.

  • Global Bioenergies produced second generation bio sourced isobutene as an initiative to diversify accessible feedstock towards cheaper resources

  • Key industry participants include Evonik Industries, BASF, ExxonMobil, Praxair Inc., Syngip BV, LanzaTech Inc., ABI Chemicals, Songwon Industrial Co. Ltd., Honeywell International, TPC Group LLC, and LyondellBasell Industries

Application Insights

Elastomers based on isobutylene exhibit properties unique to automotive applications. These properties include minimal permeability in gases and liquids, chemical resistance, and superior damping. These elastomers, when halogenated, improvise on their thermal performance as well.

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Brominated isobutylene-co-paramethylstyrene exhibits similar properties, but also has inherent ozone resistance. These properties give the material a distinct advantage in automotive applications, which include dynamic parts, hoses, and inner liners of tires. Furthermore, its chemical properties have been a major factor in its usage as an anti-knocking agent in automotive fuel.

Isobutene on alkylation with butane produces isooctane, which is extensively used as a fuel additive in aviation fuel. The civil aviation industry, in particular, is witnessing significant expansion due to factors such as liberalization in trade activities, declining fares, opening up of economies for foreign direct investment, and advancement in information technology.

Engine manufacturers of aircraft recommend a certain type of oil for use in different application areas such as engine usage, engine design, climate, and location. Growing importance of regional connectivity, along with rapid urbanization, has supported growth of the aviation industry over the past couple of decades.

Regional Insights

Asia Pacific has one of the largest automotive markets, which is on the road to recovery from the economic recession of 2009-’10. These factors have contributed to higher consumer confidence and spending on passenger cars and light vehicles. Increasing per capita disposable income, coupled with strong manufacturing sector growth in the region, is expected to drive product demand in APAC.

A significant contribution from Southeast Asian countries such as Thailand, Malaysia, and Vietnam is expected to further drive the regional market. Developing countries in the region are making efforts to develop their automobile sector. Governments in these nations are continuously focusing on trade liberalization programs and policy frameworks.

Global isobutene market

Economic recovery in U.S. has proved beneficial for the automotive sector, which in turn, has witnessed a steady increase in vehicle production units and sales. Consumers are increasingly becoming confident and choosing to purchase individual passenger cars while flavoring luxurious models on account of rising disposable income. These factors are expected to drive MTBE consumption in rubber tires, tubes, and other automotive components over the forecast period.

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Grand View Research has segmented the isobutene market on the basis product, application and region:

Global Isobutene Product Outlook (Volume, Kilo Tons; Revenue, USD Million; 2014 – 2024)

  • Methyl Tert-butyl Ether (MTBE)

  • Ethyl Tert-butyl Ether (ETBE)

Global Isobutene Application Outlook (Volume, Kilo Tons; Revenue, USD Million; 2014 – 2024)

  • Automotive

  • Aerospace

  • Antioxidants

  • Pharmaceuticals

  • Others

Global Isobutene Regional Outlook (Volume, Kilo Tons; Revenue, USD Million; 2014 – 2024)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • France

    • UK

  • Asia Pacific

    • China

    • India

    • Japan

  • Central & South America

    • Mexico

  • Middle East & Africa

    • Saudi Arabia

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About Grand View Research

Grand View Research provides syndicated as well as customized research reports and consulting services on 46 industries across 25 major countries worldwide. This U.S.-based market research and consulting company is registered in California and headquartered in San Francisco. Comprising over 425 analysts and consultants, the company adds 1200+ market research reports to its extensive database each year. Supported by an interactive market intelligence platform, the team at Grand View Research guides Fortune 500 companies and prominent academic institutes in comprehending the global and regional business environment and carefully identifying future opportunities.

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