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High purity isobutylene (HPIB) is a valuable chemical byproduct created during the cracking of crude oil into smaller molecules. It's also produced from other chemicals, such as methyl tertiary butyl ether (MTBE) and isobutane. HPIB is a key ingredient in the manufacturing of synthetic rubber, particularly butyl rubber, which is widely used in tires and tubes. It also serves as a chemical intermediate in the production of fuel and lubricant additives, extending the lifespan of oil in engines and gearboxes.
As concerns about the environmental impact of traditional HPIB production methods grow, manufacturers are increasingly turning to bio-based alternatives. These methods, such as the fermentation of glucose, offer a more sustainable and environmentally friendly approach to HPIB production.
The C4 fraction separation method is gaining traction in the market due to its lower manufacturing costs and reduced energy consumption. This method involves separating isobutylene from a mixture of hydrocarbons known as C4 streams. Several companies, including Honeywell International Inc., Shandong Chambroad Petrochemicals Co.Ltd, Tasco Group, TPC Group, and Evonik Industries AG, have adopted this technology for HPIB production.
The demand for HPIB is primarily driven by the growing automotive industry. The increasing demand for automobiles, both new and replacement, translates into a higher demand for tires and tubes, which are major consumers of HPIB. Additionally, the rising automobile production in BRIC countries, including Brazil, Russia, India, and China, is further fueling market growth.
Countries in the Asia-Pacific region, such as Thailand, Malaysia, and Vietnam, are expected to play a significant role in driving HPIB market growth. The increasing consumer spending on passenger cars and light commercial vehicles in these countries is creating lucrative opportunities for market players.
However, the volatility in crude oil prices has led to a shift towards bio-based HPIB production processes. Environmental impact and sustainability are at the forefront of concerns among industry players. Companies like Evonik Industries AG, Global Bioenergies, and LyondellBasell Industries Holdings BV have made significant strides in commercializing bio-based HPIB production methods.
The global HPIB market is estimated to reach a value of USD 10,684.2 million by 2023, growing at a CAGR of 7.06%. The market is segmented based on production method and application. MTBE decomposition was the dominant method in 2017, holding a market share of 36.7%. However, concerns about the toxicity of MTBE derivatives and the ban in the US are expected to drive a shift towards other methods like C4 fraction separation and isobutane dehydrogenation.
In terms of application, butyl rubber is expected to remain the primary driving force behind HPIB demand, as its use in tire production continues to expand. The trimethylacetic acid segment is also projected to experience steady growth, with a CAGR of 6.09% during the forecast period.
The Asia-Pacific region is expected to dominate market growth, with its regional market reaching a value of USD 4,377.1 million by 2023. The factors contributing to this growth include the rising production of automobiles, low labor costs, and production capacity expansions by regional players. Changing government policies on trade liberalization and new policy frameworks are also expected to create new opportunities for regional market players.
In conclusion, the global HPIB market is poised for continued growth, driven by the increasing demand for synthetic rubber in the automotive industry, the shift towards bio-based production methods, and the expanding market in the Asia-Pacific region. Technological advancements, environmental considerations, and government policies will continue to shape the future of HPIB production and consumption.
Covered Aspects:
| Report Attribute/Metric | Details |
|---|---|
| Market Size Value In 2023 | USD 6.6Billion Billion |
| Growth Rate | 7.62% (2023-2032) |
High Purity Isobutylene Market Highlights:
Global High Purity Isobutylene Market Overview
High Purity Isobutylene Market Size was valued at USD 6.6 Billion in 2023. The High Purity Isobutylene industry is projected to grow from USD 7.10 Billion in 2024 to USD 12.0 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 6.77% during the forecast period (2024 - 2032). Growing demand for high-performance elastomers and plastics in the automotive and construction industries are the key market drivers enhancing the market growth. 
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
High Purity Isobutylene Market Trends
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Growing demand from the rubber industry propels the market growth.
Market CAGR high purity isobutylene is being driven by the growing demand from the rubber industry. High purity isobutylene (HPIB) is widely utilized in the production of various rubbers such as butyl rubber, polyisobutylene, and others. Butyl rubber is used in adhesives, consumer goods, and pharmaceuticals. Aside from that, the substance is widely utilized in the manufacture of tires. The increasing usage of the product for roof repair appears to have fueled the rise of the butyl rubber business. Sporting equipment, automotive and mechanical goods, vibration isolation, and pharmaceutical closure are some of the other product applications. According to the Automotive Tyre Manufacturers' Association (ATMA), tyre output in India increased by 8% in 2019 to 1,919.81 lakh/numbers. Furthermore, India exported US$1,853,720,000 in rubber tires in 2019, a 1.6% increase over the previous year. Furthermore, anti-dumping tariffs placed by the US on Chinese tyres would help India's tyre exports rise in the next years, driving high purity isobutylene market growth in India for butyl rubber manufacture. Furthermore, with a thriving automobile industry, tire production in India is rising at an exponential rate. As a result, rising car production in India is pushing up demand for high purity isobutylene.
Additionally, high purity isobutylene vapours are heavier than air, and a flame can easily flash back to the source of the leak. The leak could be a liquid or a vapour leak. It can cause asphyxiation due to air displacement. As a result, HPIB is utilized in the production of isooctane, a high octane aviation fuel. High purity isobutylene is used as an addition to gasoline to increase octane performance. Furthermore, high purity isobutylene is widely used in the production of poly-isobutylene (PIB), which is primarily used in products such as fuel and lube additives, viscosity modifiers, and two-stroke motor oil, monograde engine oils, marine oils, gear and transmission fluids, and metalworking fluids, among other applications. According to the Petroleum Planning and Analysis Cell (PPAC), India's gasoline demand increased 10.5% in November 2019 compared to the same month in 2018. The total amount of fuel consumed was 18.77 million tons.
Furthermore, demand for high-performance elastomers and plastics, which are widely utilized in the automotive and construction industries, is increasing. High purity isobutylene is a critical raw ingredient in the manufacture of isobutylene-based elastomers such butyl rubber, which is utilized in tire manufacturing and other automotive applications. Growing need for high-performance elastomers and plastics is likely to increase demand for high-purity isobutylene, fueling market expansion.
High Purity Isobutylene Market Segment Insights
High Purity Isobutylene Methods Insights
The High Purity Isobutylene Market segmentation, based on Methods includes C4 fraction separation, MTBE decomposition, isobutane dehydrogenation and others. One of the main segments in the high purity isobutylene market is isobutane dehydrogenation. This is because one of the key procedures for producing high purity isobutylene is isobutane dehydrogenation. The method involves dehydrogenating isobutane, which yields isobutylene and other byproducts. After that, the isobutylene is separated and refined to yield high purity isobutylene. The isobutane dehydrogenation process is widely utilized in the manufacture of high-performance elastomers and plastics used in a variety of industries including automotive, construction, and healthcare.
Figure1: High Purity Isobutylene Market, by Methods, 2022 & 2032 (USD Billion) 
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
High Purity Isobutylene Application Insights
The High Purity Isobutylene Market segmentation, based on application, includes butyl rubber, polyisobutylene, tery-butylphenol series product, trimethylacetic acid, methyl-ally-chloride and others. Butyl rubber segment dominates the market in 2022 and is expected to increase at an 8.6% CAGR from 2022 to 2030. Butyl Rubber's superior product features in terms of tear strength, aging, and heat resistance in compared to natural rubber are expected to provide a positive scope for market expansion over the forecast period. India, as one of the largest pharmaceutical manufacturers, is projected to stimulate demand for butyl rubber in pharmaceutical closures. Furthermore, butyl rubber demand remains concentrated in the Indian tire business. Butyl rubber ticks most of the boxes as a raw material for tire manufacturing, making it a valuable commodity in the industry. Butyl rubber tires have great inflation pressure retention, making them a popular tire choice for a variety of vehicles, including passenger and commercial vehicles.
High Purity Isobutylene Regional Insights
By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. North America dominates the high purity isobutylene market due to the presence of well-established automotive and construction industries, which are the key end-users of high purity isobutylene. The region is home to a large number of automobile manufacturers, who are increasingly integrating high-performance elastomers and plastics in their vehicles to enhance fuel efficiency and minimize pollution.
Further, the major countries studiedin the market reportare The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure2: HIGH PURITY ISOBUTYLENE MARKET SHARE BY REGION 2022 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europen High Purity Isobutylene Market accounts for the second-largest market share because of the existence of several significant manufacturers in the region and the growing demand for high-performance materials in the automotive, construction, and healthcare industries. Further, the German High Purity Isobutylene Market held the largest market share, and the UK High Purity Isobutylene Market was the fastest growing market in the European region
The Asia-Pacific High Purity Isobutylene Market is expected to grow at the fastest CAGR from 2023 to 2032. This is because of the growing need for high-performance elastomers and plastics in the automotive and construction industries. Moreover, China’s High Purity Isobutylene Market held the largest market share, and the Indian High Purity Isobutylene Market was the fastest growing market in the Asia-Pacific region.
High Purity Isobutylene Key Market Players& Competitive Insights
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the High Purity Isobutylene Market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, High Purity Isobutyleneindustry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the High Purity Isobutylene industry to benefit clients and increase the market sector. In recent years, the High Purity Isobutylene industry has offered some of the most significant advantages to medicine. Major players in the High Purity Isobutylene Market, including G Zibo Qixiangtengda Chemcial Co., Ltd., Evonik Industries AG., TPC Group, Exxon Mobil Corporation, Bioenergies, LyondellBasell Industries Holdings BV and others, are attempting to increase market demand by investing in research and development operations.
Exxon Mobil firm is a worldwide oil and gas firm headquartered in Houston, Texas, and the largest direct descendent of John D. Rockefeller's Standard Oil. The firm, which was formed by the merging of Exxon and Mobil in 1999, is vertically integrated across the whole oil and gas industry, and it also has a chemicals division that manufactures plastic, synthetic rubber, and other chemical goods. ExxonMobil is headquartered in the Houston suburb of Spring, Texas, but was founded in New Jersey. In 2019, ExxonMobil, a leading manufacturer of high-purity isobutylene, announced the expansion of its Baytown plant's production capacity. The expansion was designed to address the increased demand for high-purity isobutylene from a variety of end-use industries, including automotive, construction, and healthcare.
BASF SE is a European multinational corporation and the world's largest chemical producer. The company's headquarters are in Ludwigshafen, Germany. BASF has subsidiaries and joint ventures in over 80 countries and runs six integrated manufacturing sites as well as 390 other manufacturing locations throughout Europe, Asia, Australia, the Americas, and Africa. BASF has customers in over 190 countries and serves a wide range of sectors. Despite its size and reach, BASF has gotten little public notice since it stopped manufacturing and selling BASF-branded consumer electronics items. In 2020, BASF, a prominent manufacturer of high-performance plastics and elastomers, has announced the purchase of Solvay's polyamide division. The acquisition aims to broaden BASF's product offering in high-performance plastics and elastomers by leveraging Solvay's experience in high-purity isobutylene manufacturing.
Key Companies in the High Purity Isobutylene market include
- Zhejiang Shunda New Material Co., Ltd.
- Sinopec Beijing Yanshan Company
- Honeywell International Inc.
- Sumitomo Chemical Co., Ltd
- PJSC Nizhnekamskneftekhim
- Shandong Chambroad Petrochemicals Co. Ltd.
- Zibo Qixiangtengda Chemcial Co., Ltd.
- Evonik Industries AG.
- TPC Group
- Exxon Mobil Corporation
- Bioenergies
- Lyondell Basell Industries Holdings BV
- Tasco Group
- Songwon
- Saipem SpA
High Purity Isobutylene Industry Developments
In July 2021, Lanxess, a specialty chemicals firm, announced the acquisition of Emerald Kalama Chemical, a specialty chemicals manufacturer. Emerald's expertise in the manufacturing of high-purity isobutylene was used to broaden Lanxess' product offering in high-performance polymers and elastomers.
In September 2020, TPC Group, a prominent producer of high-purity isobutylene, has announced an increase in production capacity at its Houston facility. The expansion was designed to address the increased demand for high-purity isobutylene from a variety of end-use industries, including automotive, construction, and healthcare.
In October 2019, Evonik, a specialty chemicals firm, announced the acquisition of PeroxyChem, a specialty chemicals manufacturer. The acquisition aims to broaden Evonik's product offering in high-performance elastomers and plastics by leveraging PeroxyChem's expertise in high-purity isobutylene manufacturing.
High Purity Isobutylene Market Segmentation
High Purity Isobutylene Market By Methods Outlook
- C4 fraction separation
- MTBE decomposition
- Isobutane Dehydrogenation
- Others
High Purity Isobutylene Market By Application Outlook
- Butyl Rubber
- Polyisobutylene
- Tery-Butylphenol Series Product
- Trimethylacetic Acid
- Methyl-Ally-Chloride
- Others
High Purity Isobutylene Regional Outlook
- North America
- US
- Canada
- Europe
- Germany
- France
- UK
- Italy
- Spain
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Australia
- Rest of Asia-Pacific
- Rest of the World
- Middle East
- Africa
- Latin America
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