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The isobutanol market size is estimated to grow by USD 353.24 million at a CAGR of 5.01% between 2022 and 2027. The increasing demand for coatings in the automotive sector is driven by the need for protective and decorative coatings to enhance the durability and aesthetic appeal of vehicles. The advent of innovative chemical distribution channels is making it easier for manufacturers to access a wider range of chemicals and raw materials, thereby driving the market growth. Additionally, the growing demand for non-woven medical textiles, which are used in various medical applications such as wound dressings and surgical gowns, is fueling market expansion as healthcare facilities seek more efficient and cost-effective textile solutions. Overall, these factors indicate a positive outlook for these markets in the coming years.
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This 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.
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 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 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.
Isobutanol is a versatile solvent with varying viscosities used in the formulation of paints and coatings, making them ideal for applications requiring excellent leveling and flow properties. It finds applications in various industries such as oil and gas, pharmaceuticals, textiles, and chemicals. In the pharmaceutical and medical sectors, isobutanol plays a crucial role in the production of antibiotics, vitamins, and camphor. Its chemical formula, (CH3)2CHCH2OH, denotes it as a primary alcohol. OQ Chemicals is a major player in the global isobutanol market, which is essential in chemical synthesis, automotive production, and construction industries. 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 market growth. The automotive sector is experiencing a surge in demand for coatings, including surface coatings and engine coatings, driven by several factors. The growth of the automotive and transportation industry, coupled with the expansion of automotive suppliers, is significantly impacting the market. Coatings play a vital role in enhancing performance and protecting both interior and exterior surfaces of vehicles from scratches and chips, thereby improving durability and aesthetics. As a result, the increasing use of coatings in the automotive industry is expected to positively influence the market's growth trajectory in the forecast period.
Furthermore, the rising interest in electric vehicles (EVs) is reshaping the automotive landscape and further driving the demand for coating solutions. Government initiatives aimed at promoting EV adoption are key catalysts propelling this trend. As automakers strive to expand their presence in the EV market and meet stringent regulatory standards, the need for advanced coatings to enhance the performance and longevity of EV components becomes paramount. Consequently, the push towards EVs is expected to fuel the demand for innovative coating solutions in the automotive industry, contributing to the market's growth in the foreseeable future.
The rising rate of industrialization in emerging economies is a key trend influencing 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 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 Market 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 report also includes detailed analyses of the competitive landscape of the market and information about 15 market 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.
The 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.
Isobutanol is a versatile compound with applications across various industries. It serves as a key ingredient in formulations for industrial maintenance, marine coatings, can and coil coatings, and wood coatings. The automotive sector also relies on isobutanol for production and sales. With rising coatings usage in woodworking and marine applications, isobutanol's demand is increasing in the textile sector. As a chemical intermediary, isobutanol is an organic molecule used as a solvent, extractant, additive, humectant, and dehydrating agent. Bio-based isobutanol is gaining traction, especially in oil & gas, jet fuels, and diesel. Despite challenges like labor shortages and material import/export restrictions, the market offers significant opportunities for growth, particularly in urbanization scenarios.
Isobutanol is a significant compound in the chemical industry, serving as a starting material for various applications. It is commonly used in the production of n-butyl alcohol and isobutyl acetate, which find extensive use in the automotive sector. Isobutanol is a flammable liquid with excellent miscibility in water, making it a versatile solvent. The emergence of bio-based isobutanol has opened up new opportunities in the coating sectors and solvents & coatings industry. Despite challenges like material import and export restrictions, isobutanol continues to play a vital role in chemical intermediate activities, supporting a robust supply chain for various industries. The market is witnessing increased demand, particularly in sectors like automotive production and sales. The emergence of Bio based isobutanol is creating new isobutanol market opportunities. Additionally, Bio-isobutanol is used in the production of surfactants, further driving its demand in various industries.
Market Scope |
|
Report Coverage |
Details |
Page number |
174 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.01% |
Market growth 2023-2027 |
USD 353.24 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
4.6 |
Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
Performing market contribution |
APAC at 31% |
Key countries |
US, China, India, Japan, and Germany |
Competitive landscape |
Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks |
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. |
Market dynamics |
Parent market analysis, Market Forecasting, 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 |
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
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