The Isobutylene market is projected to grow at a healthy CAGR of 5% in terms of value through the period of forecasting between 2020 and 2030. The growth of the market is majorly driven by perpetual demand for isobutylene in the production of methyl tert-butyl ether (MTBE) and ethyl tert-butyl ether (ETBE).
However, the COVID-19 pandemic has hindered the smooth growth trajectory of the entire chemical sector, leading to a downfall in sales of isobutylene.
Isobutylene Market – Key Takeaways
By grade, the <99% segment is expected to hold the majority of market share through the forecast period, while the >99% segment is poised to register relatively higher growth.
- On the basis of application, isobutylene as a fuel additive accounts for nearly 3/4th of total revenue.
- By end-use, consumption of isobutylene in the fuel industry crossed a volume of 10 Million tons in 2019 and will remain a prominent end-use sector through the forecast period.
- Butyl rubber industry is projected to progress at a healthy value CAGR of 6% and emerge as a lucrative sub-segment by 2030.
- East Asia is expected to prevail as the most lucrative regional market, capturing more than 50% of global value, on the back of the presence of flourishing chemical industry.
Isobutylene Market – Driving Factors
- Growing demand for isobutylene as an additive in fuel, rubber, chemical, and cosmetics industries will remain a crucial growth attribute.
- The surging adoption of isobutylene in the rubber industry, backed by benefits such as low gas permeation and high-energy absorption will continue to boost the market growth.
- Properties such as excellent vibration dampening property and resistance to high temperatures have made isobutylene an essential ingredient in the production of butyl rubber, thereby ensuring persistent adoption.
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Isobutylene Market – Constraints
- Complications associated with production and transportation are expected to limit the growth of the market to an extent.
Anticipated Market Impact by Coronavirus Outbreak
On the back of the COVID-19 outbreak, the global chemical industry has come to a screeching halt, in turn, creating a downtrend in the demand for isobutylene.
Furthermore, a steep decline in the consumption of fuel over the first and second quarters of 2020 is also negatively impacting the market’s growth trajectory.
Although uncertainty prevails over the complete revamp of revenue prospects, manufacturing plants in East Asian nations such as Japan and South Korea are gradually restarting operations, which is expected to alleviate the impact to an extent.
The key players operating in the isobutylene market include, but not limited to, Enterprise Products Partners L.P., LyondellBasell Industries Holdings B.V., Nizhnekamskneftekhim, Shandong Huachao Chemical Co., Ltd., TPC Group, and Heilongjiang Anruijia Petrochemical Co.
Market players are focusing on upscaling their production capacities to cater to the growing demand. On these lines, in 2019, Enterprise Products Partners LP expanded its production capacity to 425 kilotons.
Likewise, Saudi Aramco announced a joint venture with Total Company to establish a new production facility for poly-isobutylene.