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The isobutanol market size is forecast to increase by USD 375.5 million at a CAGR of 5.09% between 2023 and 2028. The market is experiencing significant growth due to its increasing adoption as a green alternative to traditional petroleum fuels and chemicals, such as acrylates, and adhesives in various industries. One of the major driving factors is the increasing demand for paints and coatings in the automotive sector. Additionally, the rising rate of industrialization in emerging economies is boosting market growth. However, technological challenges persist in the production of isobutanol through biomass fermentation, which may hinder market expansion. Furthermore, the harmful effects of conventional chemicals on both the environment and human health are fueling the shift towards eco-friendly alternatives like isobutanol. This trend is expected to continue as there is a growing awareness and regulatory push towards sustainable manufacturing processes.
Isobutanol, a four-carbon alcohol, is a valuable chemical with applications in various industries. It can be produced from both bio-based and synthetic sources, making it a versatile option for manufacturers seeking sustainable alternatives to petroleum-derived chemicals. Isobutanol functions as a solvent and an intermediate in the production of several chemicals, including textiles, coatings, adhesives, resins, and butyl acetates. In the textile industry, it is used as a solvent for dyes and finishing agents. In the coatings sector, it acts as a solvent for high-performance coatings, providing excellent properties such as high gloss, good adhesion, and excellent chemical resistance.
Moreover, isobutanol is a crucial component in the production of de-icing fluids, which are essential for safe air travel during winter conditions. Its eco-friendly and renewable nature makes it an attractive green alternative to traditional de-icing fluids, contributing to sustainable development in the aerospace industry. Isobutanol also plays a significant role in the production of renewable chemicals and biofuels. It is a key intermediate in the production of acrylates, which are used in the manufacturing of plastics and resins. Furthermore, it can be converted into biofuels through fermentation, offering a potential solution to reduce carbon emissions and promote sustainable energy sources.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The solvent segment is estimated to witness significant growth during the forecast period. Isobutanol is a valuable chemical used in various industries, including the production of bio-based and synthetic isobutanol. In the realm of the Paint and coatings industry, isobutanol serves as a solvent, playing a crucial role in the manufacture of lacquers, paints, inks, and coatings. Its applications span diverse sectors such as aerosol coatings, architectural coatings, aerospace coatings, automotive protective coatings, auto refinish, coil coatings, commercial and flexographic inks, and wood coatings. The escalating demand for architectural coatings, protective coatings, automotive coatings, industrial coatings, oil coatings, coatings for packaging, and wood coatings is projected to fuel the market for isobutanol in the coming years.
Furthermore, the industrial sector in Asia Pacific is witnessing significant growth, leading to a rise in demand for industrial coatings and subsequently driving the expansion of the regional market. Isobutanol's versatility and extensive applications make it an indispensable component in the paints and coatings industry.
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The solvent segment was valued at USD 488.60 million in 2018 and showed a gradual increase during the forecast period.
North America is estimated to contribute 31% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The market in Asia Pacific is poised for substantial expansion over the coming years. Key contributors to this growth include countries such as China, Japan, India, Vietnam, South Korea, Malaysia, and Australia. These nations are experiencing significant industrialization, leading to an increase in manufacturing activity and the demand for chemical intermediates. China, Japan, South Korea, and India are major chemical markets in Asia Pacific due to their strong economies and expanding industries.
Furthermore, automobile manufacturing is a significant sector in these countries, particularly in China and India, which drives the demand for paints and coatings. Foreign direct investments in these economies are on the rise, fueling economic growth and further boosting market expansion. The need for compliance with VOC regulations and the growing emphasis on reducing environmental impact are also factors propelling the market forward in Asia Pacific.
Our researchers analyzed the data with 2023 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 the key driver of the market. The market is experiencing significant growth due to its extensive usage as a chemical intermediate in various industries, particularly in the automotive sector. The increasing demand for coatings, both for engine and surface applications, is driving the market's expansion. These coatings enhance vehicle performance by protecting interiors and exteriors from damage. The growing automotive and transportation industries, along with the rising number of automotive suppliers, are key factors contributing to the market's growth.
Furthermore, foreign direct investment in the manufacturing of isobutanol and its derivatives is increasing, providing a positive impact on the market. In the automotive industry's shift towards electric vehicles, isobutanol is gaining attention as a potential biofuel, adding to the market's potential growth. Key industry players are focusing on expanding their production capacity to meet the increasing demand. Overall, the market is poised for steady growth during the forecast period.
The rising rate of industrialization in emerging economies is the upcoming trend in the market. The market is experiencing significant growth due to the escalating industrialization trend worldwide, particularly in emerging economies. The expanding population base in countries like India, Brazil, and China, along with the rising disposable income of consumers, has led major manufacturers to establish production facilities in these regions. The demand for isobutanol is projected to expand during the forecast period, notably in emerging economies, owing to the rise in production activities and the outsourcing strategies adopted by automobile manufacturers to minimize capital investments. Furthermore, the burgeoning number of consumer goods and chemical companies in India and China will significantly fuel the demand for isobutanol in these industries over the forecast period.
Furthermore, \isobutanol is extensively used in the production of resins and textiles. In the resin industry, it is employed as a solvent and monomer in the synthesis of polyesters and polyurethanes. In textiles, it is used as a solvent for dyes and coatings. Dow, a leading chemical company, has increased its production capacity to cater to the growing demand for isobutanol in various industries. Butyl acrylates, a derivative of isobutanol, are extensively used in the production of coatings, adhesives, and sealants. The increasing demand for these products is expected to boost the consumption of isobutanol during the forecast period.
The harmful effects of chemicals on the environment and human health is a key challenge affecting the market growth. Specialty chemicals, including acrylates used in adhesives and sealants, face regulatory hurdles due to stringent environmental regulations. In the US, the Environmental Protection Agency (EPA) and Registration, Evaluation, Authorization, and Restriction of Chemicals (REACH) have imposed restrictions on the volatile organic compound (VOC) content of these chemicals. For instance, the Massachusetts Department of Environmental Protection (MassDEP) introduced strict VOC guidelines for adhesives and sealants in August 2013 (Regulation 310 CMR 7.18(30)).
Similarly, California has set VOC limits for various products, including adhesives and sealants. These regulations pose significant challenges to the growth of the global chemicals market, particularly in sectors such as specialty paints and coatings, and adhesives. US companies must adhere to these regulations to remain competitive in the global market.
The market forecasting 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 market growth analysis strategies.
Customer Landscape
Companies 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 market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
Isobutanol, a versatile chemical compound, is gaining significant attention in various industries due to its eco-friendly and renewable properties. Both bio-based and synthetic isobutanol are used as solvents and intermediates in numerous applications. In the textile industry, isobutanol is employed in the production of acrylates, resins, and adhesives. It also finds extensive use in de-icing fluids, coatings, and construction materials. Isobutanol's role extends to the aerospace and automotive sectors, where it is used as a green alternative to petroleum fuels and as a raw material in the production of butyl acetylates and butyl acrylates. The chemical's adoption is driven by sustainable development, reducing carbon emissions, and adhering to VOC regulations.
Furthermore, the industrialization of emerging economies and increasing manufacturing activity are expected to boost the demand for isobutanol. The chemical's production capacity is expanding with the establishment of new manufacturing plants and Verbund sites, specifically designed for the production of coating production and plastic production. Despite its advantages, the production of isobutanol faces technological challenges, including high production costs and complex manufacturing processes. The health impact of electric vehicle (EVs) is largely positive, as they reduce air pollution and greenhouse gas emissions, contributing to cleaner urban environments. At various sites, where integrated processes streamline production and resource use, the manufacturing of EVs can be optimized to further minimize environmental and health impacts, promoting a sustainable future. However, the potential environmental and health benefits make it an attractive alternative to traditional chemicals and fuels. Isobutanol's role in the production of renewable chemicals and biofuels is crucial in the transition towards a sustainable future.
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Market Scope |
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Report Coverage |
Details |
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Page number |
181 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 5.09% |
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Market Growth 2024-2028 |
USD 375.5 million |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
4.75 |
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Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
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Performing market contribution |
North America at 31% |
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Key countries |
US, China, Germany, India, and Japan |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Andhra Petrochemicals Ltd., 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 AG, Merck KGaA, Mitsubishi Chemical Group Corp., Niksan Pharmaceutical, OQ SAOC, PETRONAS Chemicals Group Berhad, PJSC SIBUR Holding, Sasol Ltd., and Somu Organo Chem Pvt. Ltd. |
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Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
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Customization purview |
If our market 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 Application
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive 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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