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The isobutanol market size is estimated to grow at a CAGR of 5.01% between 2022 and 2027. The market size is forecast to increase by USD 353.24 million. The growth of the market depends on several factors, including increasing demand for coatings in the automotive sector, the advent of innovative chemical distribution channels, and growing demand for non-woven medical textiles.
This isobutanol market report extensively covers market segmentation by product (bio-based isobutanol and synthetic isobutanol), application (solvent, intermediate for glycol ethers and esters, textile, and de-icing fluids and others), and geography (APAC, Europe, North America, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The increasing demand for coatings in the automotive sector is notably driving the market growth, although the harmful effects on the environment and human health may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Increasing demand for coatings in the automotive sector is notably driving the isobutanol market growth. In the automotive sector, the demand for coatings such as surface coatings and engine coatings is booming. Growth in the automotive and transportation industry and an increasing number of automotive suppliers will have a significant impact on the market. Coatings are widely used to improve performance in the automotive and transportation industries. It also protects the vehicle's interior and exterior surfaces from scratches and chips. Therefore, increasing use of coatings in the automotive industry is expected to have a positive impact on the market during the forecast period.
Some automakers are looking to expand their presence. In addition, several factors are influencing electric vehicle(EV) sales, with the government's intent to encourage EV sales being the most important factor. Such initiatives are expected to boost demand for coating solutions in the automotive industry, which will drive the growth of the market during the forecast period.
The rising rate of industrialization in emerging economies is a key trend influencing the isobutanol market growth. The growth of the market is strongly influenced by increasing industrialization across the globe, especially in emerging countries. Population growth in economies such as India, Brazil, and China, along with people's rising disposable income, has forced major manufacturers to locate manufacturing facilities in these countries. Demand for isobutanol (CH3)2CHCH2OH also known as 2-methylpropan-1-ol is expected to increase during the forecast period, especially in emerging markets. This is as manufacturing activity increases and automakers outsource to low-wage countries to cut capital expenditures.
The rise in consumer goods and chemical companies in India and China is another factor that will significantly boost the demand for isobutanol (CH3)2CHCH2OH used in these industries during the forecast period. Therefore, rapid industrialization in emerging markets is likely to drive the growth of the market during the forecast period.
Harmful effects on the environment and impact on human health are challenging the isobutanol market growth. Strict US Environmental Protection Agency (EPA) and Registration, Evaluation, Authorization, and Restriction of Chemicals (REACH) regulations on volatile organic compound (VOC) content in specialty chemicals such as specialty paints and coatings, adhesives and sealants are a key challenge to the growth of the market. The Massachusetts Department of Environmental Protection (MassDEP) issued strict VOC guidelines for adhesives and sealants.
US regulation provides VOC limits for adhesives containing specialty chemicals for industrial and commercial use. California sets VOC limits for various products, adhesives, and sealants. The state has also established 13 Air Pollution Control Districts (APCDs) or Air Quality Control Districts (AQMDs) with VOC limits for adhesives and sealants. Global chemical suppliers must follow these standards to meet VOC requirements. Strict regulations and guidelines on the use of adhesives are expected to hamper the growth of the market during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Isobutanol Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
BASF SE: The company provides isobutanol which is used in feedstock for synthesis.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the bio-based isobutanol segment will be significant during the forecast period. In the market, bio-based isobutanol is gaining popularity due to its eco-friendly properties and wide range of applications. The growth of bio-based isobutanol in various industries such as automotive, aerospace, and construction is driven by the increasing demand for renewable chemicals and biofuels. Many governments around the world have introduced policies and initiatives to encourage the use of bio-based isobutanol to reduce carbon emissions and promote sustainable development.
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The bio-based isobutanol segment was valued at USD 616.84 million in 2017 and continued to grow until 2021. Market participants are funding the development and production of bio-based isobutanol. For example, Gevo manufactures bio-based isobutanol for use as specialty chemicals and renewable gasoline blendstocks. Other significant players in the bio-based isobutanol segment include Green Biologics, Butamax Advanced Biofuels (Butamax), and Global Bioenergies (Global Bioenergies). In summary, the market is expected to grow significantly during the forecast period owing to increasing consumer demand for renewable chemicals and biofuels, favorable government regulations, and increased investment by market players.
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APAC is estimated to contribute 31% to the growth of the global isobutanol market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The market in the APAC region is expected to rise at a considerable rate during the forecast period. Market growth is mainly driven by countries such as China, Japan, India, Vietnam, South Korea, Malaysia, and Australia. China, Japan, South Korea, and India. These regions are the major chemical markets in APAC due to rapid industrialization and increasing demand for chemical intermediates in the region. China and India have become preferred hubs for many manufacturers, especially automakers. The economies of these countries receive huge amounts of foreign direct investment, which will have a positive impact on their economic growth during the forecast period.
In 2020, the COVID-19 outbreak impacted the growth of the market as demand for isobutanol (CH3)2CHCH2OH from end-user industries such as oilfields, automotive, chemicals, plastics, and textiles decreased. Due to the lockdown measures, the government imposed restrictions on the movement of vehicles and people, affecting chemical imports and exports globally. Additionally, the COVID-19 outbreak impacted the growth of several vendors in the market due to the economic downturn and supply chain disruptions. This impacted the growth of the market in 2020. However, with large-scale vaccinations and end-user industries re-opening in 2021, and the economy recovering from the crisis caused by COVID-19, isobutanol demand grew in 2021 and 2022. The growth trends from other end-user industries such as manufacturing are expected to increase the demand for isobutanol, driving the growth of the market during the forecast period.
The isobutanol market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Technavio categorizes the global isobutanol market as a part of the global commodity chemicals market within the global chemicals market. The global commodity chemicals market includes companies primarily producing industrial and basic chemicals including, but not limited to, plastics, synthetic fibers, films, basic paints and pigments, explosives, and petrochemicals. The market does not include chemical companies that produce diversified chemicals, fertilizers and pesticides, industrial gases, and specialty chemicals.
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Isobutanol Market Scope |
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Report Coverage |
Details |
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Page number |
174 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 5.01% |
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Market growth 2023-2027 |
USD 353.24 million |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
4.6 |
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Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
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Performing market contribution |
APAC at 31% |
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Key countries |
US, China, India, Japan, and Germany |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
BASF SE, Bharat Petroleum Corp. Ltd., BP Plc, DhanLaxmi Organics and Chemicals, Dow Inc., Eastman Chemical Co., Formosa Plastics Group, Gevo Inc., Grupa Azoty SA, Hi Tech Chemicals, INEOS Group Holdings SA, Merck KGaA, Mitsubishi Chemical Corp., Niksan Pharmaceutical, OQ SAOC, PETRONAS Chemicals Group Berhad, PJSC SIBUR Holding, Sasol Ltd., Somu Organo Chem Pvt. Ltd., and The Andhra Petrochemicals Ltd. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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