Global Isobutene Market Size, Share & Industry Trends Analysis Report By Product (Methyl tert-butyl ether (MTBE), and Ethyl tert-butyl ether (ETBE)), By Application, By Regional Outlook and Forecast, 2023 - 2030

Global Isobutene Market Size, Share & Industry Trends Analysis Report By Product (Methyl tert-butyl ether (MTBE), and Ethyl tert-butyl ether (ETBE)), By Application, By Regional Outlook and Forecast, 2023 - 2030

The Global Isobutene Market size is expected to reach $35.4 billion by 2030, rising at a market growth of 4.4% CAGR during the forecast period. In the year 2022, the market attained a volume of 18,952.7 Kilo Tonnes, experiencing a growth of 2.4% (2019-2022).

Isobutene is a key raw material in producing certain antioxidants, particularly hindered phenols. Thus, the antioxidants segment would acquire 1/4th share of the market by 2030. Hindered phenols are a class of chemical compounds widely used as antioxidants in plastics, rubber, and other polymer materials. In the polymer industry, isobutene-derived antioxidants are added to plastic and rubber formulations to prevent or slow oxidation. This helps prevent the degradation of the material, including color changes, embrittlement, and loss of physical properties, which can occur when these materials are exposed to oxygen, heat, and UV radiation. Isobutene plays a crucial role in developing antioxidants that help preserve the integrity and longevity of a wide range of materials and products, contributing to their durability and performance. Some of the factors impacting the market are increasing technological advances and techniques, growing adoption of renewable isobutene, and growing health and safety regulations.

Technological innovations have led to more efficient methods of isobutene production. These innovations can reduce energy consumption, waste generation, and production costs, making isobutene more economically viable and increasing its availability in the market. Advancements in technology have enabled the use of alternative feedstocks for isobutene production. These feedstocks can include biomass, agricultural residues, and other sustainable sources, reducing the reliance on traditional fossil fuels and contributing to an additional sustainable industry. Developing new catalysts and catalyst systems has improved the selectivity and yield of isobutene in production processes. This results in higher product quality and increased production efficiency. Innovative methods, such as metathesis, have been developing to produce isobutene efficiently. Additionally, Renewable isobutene is typically produced from biomass sources, such as agricultural residues, forestry waste, or dedicated energy crops. This renewable feedstock reduces the environmental impact of traditional isobutene production, which relies on fossil fuels. As sustainability becomes a more prominent concern, the demand for eco-friendly chemicals like renewable isobutene grows. The production of renewable isobutene can result in lower greenhouse gas emissions compared to traditional petrochemical-based isobutene production. The availability of renewable isobutene can open up new markets and applications, especially in industries where sustainable materials are highly valued. It addresses environmental concerns, supports renewable energy sources, and offers a more responsible alternative to traditional petrochemical-based isobutene, contributing to the market's growth and long-term viability.

However, Isobutene production and handling can pose risks to workers, such as exposure to toxic chemicals, fire hazards, and explosion risks. Complying with safety standards and ensuring the well-being of employees is a top priority. This often requires significant investments in safety measures, training, and equipment. Meeting health and safety regulations can vary by jurisdiction and be complex and costly. Companies in the isobutene market must navigate and adhere to many chemical handling, transportation, and emergency response planning rules. In case of accidents or chemical releases, isobutene producers must have robust emergency response plans. Preparing for various contingencies and ensuring effective communication with local authorities is essential. Preparing for these assessments and addressing any identified non-compliance issues can be challenging. Due to several health and safety concerns, the market growth will decline in the coming years.

Product Outlook

On the basis of the product, the market is segmented into methyl tert-butyl ether (MTBE) and ethyl tert-butyl ether (ETBE). The ethyl tert-butyl ether (ETBE) segment acquired a substantial revenue share in the market in 2022. ETBE is a biofuel derived mainly from isobutylene and ethanol. Due to its high-octane content, low pressure of vapor, and low boiling point, it is an ideal component for gasoline combining. This allows refiners to meet bio-component and octane requirements. Its use also enables companies to meet environmental standards and adapt to alterations in the gasoline market. Using compounds, naphtha is upgraded to gasoline, or lower octane grades are improved to higher grades. Over the forecast period, the demand for ETBE is anticipated to be driven by an increasing worldwide need for higher-quality gasoline due to various factors, such as a greater awareness of the importance of vehicle performance enhancement and stricter regulatory mandates requiring consumers to use eco-friendly fuel.

Application Outlook

Based on application, the market is fragmented into automotive, aerospace, antioxidants, pharmaceuticals, and others. In 2022, the automotive segment held the highest revenue share in the market. Isobutylene-based elastomers have properties exclusive to automotive applications. These characteristics include minimal gas and liquid permeability, chemical resistance, and superior damping. When these elastomers are halogenated, their thermal efficacy also improves. Similar to isobutylene-co-para-methylstyrene, brominated isobutylene-co-para-methylstyrene has inherent ozone resistance. These characteristics give the material an advantage in automotive applications, including dynamic components, cables, and tire inner liners. In addition, its chemical properties have contributed significantly to its widespread use as an anti-knock agent in automotive fuel.

Regional Outlook

Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. In 2022, the North America region registered the highest revenue share in the market. Isobutene is a key raw material in the production of butyl rubber, which is used in various applications, including tire manufacturing. The growing automotive industry in North America and the demand for high-quality tires drove the need for butyl rubber and, consequently, isobutene. The vital contribution of North America to this industry is owing to higher spending on passenger cars and light vehicles, increasing per capita disposable income, and strong and sustained manufacturing sector growth in the region in recent years.

The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include BASF SE, Evonik Industries AG (RAG-Stiftung), Exxon Mobil Corporation, Sumitomo Chemical Co., Ltd., Global Bioenergies, Weifang Binhai Petro-Chem Co., Ltd (Tiande Chemical Holdings Co., LTD), Honeywell International, Inc., LyondellBasell Industries Holdings B.V., Linde PLC, and China Petrochemical Corporation (Sinopec Group).

Strategies Deployed in Isobutene Market

Jul-2023: Sumitomo Chemical Co., Ltd. partnered with Ginkgo Bioworks, an American biotech company. Under this partnership, both companies aimed to allow the mass production of functional chemicals through fermentation.

Jun-2023: Exxon Mobil Corporation partnered with Axens, a French company in the energy and petrochemical sector. This partnership aimed to produce high-quality isobutylene using MTBE Decomposition Technology which would be cost-effective.

Mar-2023: Global Bioenergies introduced Isonaturane 16, a twelve-carbon molecule obtained by assembling three naturally sourced isobutene molecules. This launch aimed to begin to market the new naturally sourced ingredient widely used in cosmetics.

Nov-2022: Global Bioenergies joined hands with Shell, a global group of energy and petrochemical companies. Under this collaboration, both companies aimed to produce high-octane components for the development of low-carbon road fuels.

Apr-2022: BASF partnered with SINOPEC, a Chinese oil and gas enterprise based in Beijing. This partnership aimed to construct a new tert-butyl acrylate plant which would support the growing demand from various industries in the Chinese market.

Mar-2021: BASF joined hands with OMV, an integrated oil, gas, and petrochemical company which is headquartered in Vienna, Austria. Under this collaboration, both companies aimed to launch a codeveloped ISO C4 plant, responsible for producing high-quality isobutene.

Nov-2020: BASF joined hands with Linde plc, a chemical company founded in Germany. Under this collaboration, both companies aimed to provide licensing and engineering and/or bundled services for engineering, procurement, and construction (EPC) for BASF’s superior technology allowing the production of HPIB from refinery and steam cracker C4 streams.

Apr-2020: Sumitomo Chemical Co., Ltd. took over the group companies of Nufarm Limited, an Australian agricultural chemical company. This acquisition aimed to achieve further growth in the Sumitomo Chemical Health & Crop Sciences Sector.

Scope of the Study

By Product (Volume, Kilo Tonnes, USD Million, 2019-2030)

• Methyl tert-butyl ether (MTBE)
• Ethyl tert-butyl ether (ETBE)

By Application (Volume, Kilo Tonnes, USD Million, 2019-2030)

• Automotive
• Aerospace
• Pharmaceuticals
• Antioxidants
• Others

By Geography (Volume, Kilo Tonnes, USD Million, 2019-2030)

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
• Germany
• UK
• France
• Russia
• Spain
• Italy
• Rest of Europe
• Asia Pacific
• China
• India
• Japan
• South Korea
• Singapore
• Malaysia
• Rest of Asia Pacific
• LAMEA
• Brazil
• Argentina
• UAE
• Saudi Arabia
• South Africa
• Nigeria
• Rest of LAMEA

Companies Profiled

• BASF SE
• Evonik Industries AG (RAG-Stiftung)
• Exxon Mobil Corporation
• Sumitomo Chemical Co., Ltd.
• Global Bioenergies
• Weifang Binhai Petro-Chem Co., Ltd (Tiande Chemical Holdings Co., LTD)
• Honeywell International, Inc.
• LyondellBasell Industries Holdings B.V.
• Linde PLC
• China Petrochemical Corporation (Sinopec Group)

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