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The isobutene market has been showing dynamic developments due to a complex interaction of factors. Demand and supply for isobutene, a major chemical and polymer building block, have changed market dynamics. Isobutene is increasingly used to make high-performance synthetic rubber, an essential automotive component. As the automotive industry prioritizes sustainability and fuel efficiency, demand for specialty rubber products has increased, driving the isobutene market.
Another major trend in isobutene is the shift toward bio-based alternatives. Sustainable bio-based isobutene from renewable feedstocks is gaining popularity as companies prioritize sustainability. This transition follows the global greening and fossil fuel reduction movement. Manufacturers are developing new biomass-to-isobutene techniques, which could boost the market.
Geopolitics and energy prices also affect the isobutene market. Any delays in the oil and gas supply chain can affect isobutene production and pricing, as it is refined from crude oil. Thus, geopolitical tensions, oil prices, and energy market stability affect the market.
Technological advances also influence isobutene market developments. Production techniques, isobutene synthesis efficiency, and new applications are the focus of continuous R&D. Catalytic technology and process optimization breakthroughs lower costs and increase market competition.
End-user industries and regulations affect the isobutene market. Isobutene manufacturing and formulations are affected by strict environmental restrictions and chemical production standards. These rules require industry adaptation and innovation to fulfill environmental standards, impacting market trends.
The global economy and trade dynamics also affect the isobutene market. Currency exchange rates, trade barriers, and significant market actors' economic policies affect market volatility. The isobutene market is intrinsically linked to the economy and sensitive to its conditions.
Isobutene Market Highlights:
Global Isobutene Market Overview
Isobutene Market Size was valued at USD 28.2 billion in 2022. The Isobutene market is projected to grow from USD 29.66 Billion in 2023 to USD 44.50 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.20% during the forecast period (2023 - 2032). Expanding demand for synthetic rubber due to its widespread use is the key market driver enhancing market growth.
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Isobutene Market Trends
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The growing use of isobutylene is driving the market growth
Combining isoprene and isobutylene produces the synthetic elastomer butyl rubber. This is the only recognized elastomer that is impervious to gases and water. The material also possesses flexibility and damping at ambient temperature. The material is biocompatible, resistant to aging, heat, various alkaline and acidic substances, and the elements.
As an industrially significant hydrocarbon, the chemical has a wide spectrum of applications in industries such as the automotive and pharmaceutical sectors. It is produced during the separation of refinery gases and the catalytic cracking of methyl tert-butyl ether. Due to its use in various applications, spanning from fuel additives and polymers to agricultural industries, the global market is anticipated to experience significant growth. Moreover, "bio-based isobutene," a green, widely-used fuel additive and industrial chemical, is produced using a specific enzyme to convert the naturally occurring glucose in plants. Over fifty percent of all organisms contain the enzyme naturally. Isooctane is present in gasoline to prevent cracking and other issues. The fuel could replace the potentially hazardous gasoline additive methyl tert-butyl ether (MBTE). In addition to isobutene and its derivatives, bio-based alternatives are overcoming other environmental concerns associated with their presence on the market. Various government incentives and tax benefits also support the production of isobutene from renewable resources. Thus, the growing application is driving the Isobutene market revenue.
Isobutene Market Segment Insights
Isobutene Product Type Insights
Based on Product Type, the Isobutene Market segmentation includes Ethyl Tert-butyl Ether (ETBE) and Methyl Tert-butyl Ether (MTBE). The Methyl Tert-butyl Ether (MTBE) segment dominated the market, accounting for 55%-65% of market revenue. The product has a broad range of applications in sectors such as automotive and aerospace. The product is refined to produce butyl rubber through the polymerization of isobutylene and isoprene. The automotive and medical sectors employ butyl rubber extensively.
Figure 1: Isobutene Market, by Product Type, 2022 & 2032 (USD billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Isobutene Application Insights
Based on Application, the Isobutene Market segmentation includes Automotive, Aerospace, Antioxidants, Pharmaceuticals, and Others. The automotive category generated the most income. Elastomers composed of isobutylene exhibit characteristics unique to automotive applications. These characteristics include chemical resistance, minimal gas and liquid permeability, and superior damping. When these elastomers are halogenated, their thermal efficacy also improves.
Isobutene Regional Insights
By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American Isobutene market area will dominate this market in 2022. The U.S. economic recovery has benefited the automotive industry, which has witnessed a consistent increase in vehicle production units and sales. As disposable income rises, consumers become more self-assured and purchase individual passenger vehicles while favoring luxurious models.
Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: ISOBUTENE MARKET SHARE BY REGION 2022 (%)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Europe’s Isobutene market accounted for the second-largest market share in 2022. Manufacturers in this region are tasked with identifying and capitalizing on white spaces in the applications of isobutylene, which range from cosmetics and pharmaceuticals to chemical lubricants. MTBE and ETBE are the most common octane boosters. In contrast, the remainder is used to produce high-purity isobutylene, and its swift growth in the fuel industry is expected to benefit isobutylene producers. Further, the German Isobutene market held the largest market share, and the UK Isobutene market was the fastest-growing market in the European region
The Asia-Pacific Isobutene Market is expected to grow at the fastest CAGR from 2023 to 2032. These factors have increased consumer confidence and expenditure on automobiles and light vehicles. Increasing disposable income per capita and robust manufacturing sector growth in APAC are anticipated to drive product demand. Moreover, China’s Isobutene market held the largest market share, and the Indian Isobutene market was the fastest-growing market in the Asia-Pacific region.
Isobutene Key Market Players & Competitive Insights
Leading market players have employed a vertical business model to capitalize on substantial profit margins throughout the supply chain. This business model enables companies to decrease their reliance on other raw material suppliers and increase their profit margins. Contributing to the global expansion of the isobutene market are the main market developments, including product launches, acquisitions, and partnerships.
Manufacturing locally to minimize operational costs is among the key tactics players in the global Isobutene industry use. Major players in the Isobutene market, including Yuhua Group, Sumitomo Chemical Co.Ltd., Weifang Binhai Petro-Chem Co.Ltd., TPC Group, Exxon Mobil Corporation, Enterprise Products Partners, China Petroleum & Chemical Corporation, SINOPEC Beijing Yanshan Company, Yuhuang Chemical Inc., Zoucheng Qifa Chemical Co.Ltd., LyondellBasell Industries N.V.l, SONGWON Industrial Group, Qixiang Electron Science & Technology Co.Ltd., and Evonik Industries AG.
Sumitomo Chemical Co Ltd is a chemical company that offers various chemical products in energy and functional materials, petrochemicals, health, and crop science products, information technology-related chemicals and materials, and pharmaceuticals. The company offers inorganic and organic industrial chemicals, alumina products, polymer alloys, optical materials, dyestuffs, polymer additives, thermos-plastic elastomers, agricultural insecticides, and petrochemicals. Its products are utilized in the rubber, automobile, paper, pharmaceuticals, home electrical appliances, effluent treatment, paints, and construction industries. It operates in the Americas, Asia, Europe, Africa, the Middle East, and Oceania. The headquarters of SCCL is in Tokyo, Japan.
Exxon Mobil Corporation is an integrated oil and gas enterprise that discovers, explores, develops, and produces petroleum, natural gas, and natural gas liquids. It refines crude oil, manufactures, transports, exchanges, sells petroleum products, and produces lube base stocks and completed lubricants. ExxonMobil also manufactures and distributes commodity petrochemicals, such as aromatics, olefins, polyethylene, polypropylene polymers, and a vast array of specialty products. It operates via a network of transportation systems, manufacturing facilities, and distribution centers. The company operates in North America, South America, Europe, Asia-Pacific, the Middle East, and Africa. ExxonMobil's headquarters are located in Irving, Texas, in the United States.
Key Companies in the Isobutene market include
- Yuhua Group
- Sumitomo Chemical Co.Ltd.
- Weifang Binhai Petro-Chem Co.Ltd.
- TPC Group
- Exxon Mobil Corporation
- Nizhnekamskneftekhim
- Enterprise Products Partners
- China Petroleum & Chemical Corporation
- SINOPEC Beijing Yanshan Company
- Yuhuang Chemical Inc
- Zoucheng Qifa Chemical Co.Ltd.
- LyondellBasell Industries N.V.l
- SONGWON Industrial Group
- Qixiang Electron Science & Technology Co.Ltd.
- Evonik Industries AG.
Isobutene Industry Developments
March 2022:Â The construction of the new linear alpha olefins (LAO) manufacturing facility at ExxonMobil's integrated petrochemical complex in Baytown, Texas, is anticipated to be completed, and the unit will be operational by mid-2023.
March 2022: Evonik spent millions of euros to increase the capacity for manufacturing isobutene derivatives at its Marl facility.
Isobutene Market Segmentation
Isobutene Product Type Outlook
- Ethyl Tert-butyl Ether (ETBE)
- Methyl Tert-butyl Ether (MTBE)
Isobutene Application Outlook
- Automotive
- Aerospace
- Antioxidants
- Pharmaceuticals
- Others
Isobutene 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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