The isobutene market share is expected to increase by USD 5.87 billion from 2020 to 2025, and the market’s growth momentum will accelerate at a CAGR of 3.52%.
This isobutene market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers isobutene market segmentations by product (methyl tert-butyl ether (MTBE) and ethyl tert-butyl ether (ETBE)), application (automotive, aerospace, pharmaceuticals, antioxidants, and others), and geography (North America, APAC, Europe, South America, MEA, North America, APAC, Europe, South America, and MEA). The isobutene market report also offers information on several market vendors, including BASF SE, Chevron Phillips Chemical Co. LLC, Dayaram Chemicals Pvt. Ltd., Evonik Industries AG, LANXESS AG, Linde Plc, LyondellBasell Industries NV, Sumitomo Chemical Co. Ltd., Tokyo Chemical Industry Co. Ltd. , and TPC Group among others.
What will the Isobutene Market Size be During the Forecast Period?
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Isobutene Market: Key Drivers, Trends, and Challenges
The growing demand for rubber from automotive industry is notably driving the isobutene market growth, although factors such as hazardous effects of isobutene derivatives may impede market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the isobutene industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.
Key Isobutene Market Driver
The growing demand for rubber from automotive industry is a major factor driving the global isobutene market share growth. The production of various synthetic chemical products is done using high-purity isobutene or isobutylene. In the automotive industry, the demand for butyl rubber in tire manufacturing is growing at a steady rate due to its excellent chemical and mechanical properties, such as high vibration damping capabilities and low permeability to air and moisture. With a booming automotive industry, tire production has increased exponentially in developing countries like India and China. With the ever-growing need for tires in automotive vehicles by original equipment manufacturers (OEM) and the aftermarket, the demand for rubber will increase, which will, in turn, drive the isobutene market during the forecast period. APAC was the major consumer of rubber in 2020 due to the region's booming automotive market. Countries such as Thailand, Indonesia, and Malaysia are the major markets for rubber due to their high production and consumption capacities. The growing automotive market will foster the demand for rubber in tire manufacturing.
Key Isobutene Market Trend
The innovations and advances in the production of isobutene is another factor supporting the global isobutene market share growth. A new bio-based, green method has been developed to produce the widely used fuel-additive and industrial chemical isobutene. The continuous demand for isobutene has led to the development of this novel production method, which involves the conversion of biomass to isobutene. However, the conventional method of producing isobutene is by the petrochemical cracking of crude oil. The fluctuations in crude oil prices have forced the end-users to shift from the conventional method to the bio-based fermentation process. Global Bioenergies, a French company, has developed the bio-based production process for the production of isobutene. The company has developed a unique metabolic pathway that carries out the genetic transformation of microbes using advanced engineering for the conversion of glucose to isobutene. The company has even developed isobutene from wheat straw. The process involves the digestion of biomass to glucose. Then, through fermentation and separation, it gets converted into isobutanol. In the final step, isobutanol is converted to isobutene through dehydration and separation. Such innovations will drive the growth of the market.
Key Isobutene Market Challenge
The hazardous effects of isobutene derivatives will be a major challenge for the global isobutene market share growth during the forecast period. Although isobutene derivatives are used in automotive, aerospace, pharmaceuticals, and other sectors, they have been known to have mildly hazardous effects on the environment. With the rising concerns for harmful emissions from automobiles, the use of octane boosters or octane enhancers is continuously increasing. MTBE, a derivative product of isobutylene or isobutene, when used as an octane enhancer, often goes into the groundwater, resulting in the contamination of drinking water. It also affects the taste and smell of the water. MTBE gets into the groundwater when it leaks from a storage tank or when gasoline is spilled on the ground. Since MTBE easily evaporates in water and moisture, it can go unnoticed in drinking water or air inside the house. Exposure to high levels of MTBE over a long period of time can cause kidney and liver damage, drowsiness, cancer, respiratory diseases, and other health issues. Essentially, this will hamper the growth of the market.
This isobutene market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2021-2025.
Parent Market Analysis
Technavio categorizes the global isobutene market as a part of the global specialty chemicals market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the isobutene market during the forecast period.
Who are the Major Isobutene Market Vendors?
The report analyzes the market’s competitive landscape and offers information on several market vendors, including:
- BASF SE
- Chevron Phillips Chemical Co. LLC
- Dayaram Chemicals Pvt. Ltd.
- Evonik Industries AG
- LANXESS AG
- Linde Plc
- LyondellBasell Industries NV
- Sumitomo Chemical Co. Ltd.
- Tokyo Chemical Industry Co. Ltd.
- TPC Group
This statistical study of the isobutene market encompasses successful business strategies deployed by the key vendors. The isobutene market is fragmented and the vendors are deploying growth strategies such as increasing their product offerings to compete in the market.
Product Insights and News
- BASF SE- The company offers Isobutene products that are highly flammable, toxic, colorless, and has the odour of benzine
To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.
The isobutene market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.
Isobutene Market Value Chain Analysis
Our report provides extensive information on the value chain analysis for the isobutene market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.
The value chain of global specialty chemicals market includes the following core components:
- Inputs
- Inbound logistics
- Operations
- Outbound logistics
- Marketing and sales
- Service
- Support activities
- Innovation
The report has further elucidated on other innovative approaches being followed by manufacturers to ensure a sustainable market presence.
Which are the Key Regions for Isobutene Market?
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40% of the market’s growth will originate from APAC during the forecast period. China, Japan and India are the key markets for isobutene market in APAC. Market growth in this region will be faster than the growth of the market in all other regions.
The rapidly increasing automotive industry, growth in the manufacturing sector, and the rising per capita disposable income will facilitate the isobutene market growth in APAC over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.
COVID Impact and Recovery Analysis
The outbreak of COVID-19 in the region impacted the growth of the regional isobutene market in 2020. Several countries, such as China, India, Nepal, Pakistan, South Korea, Malaysia, Sri Lanka, and the Philippines, were under either partial or complete lockdowns to contain the spread of COVID-19. In March 2020, India imposed a nationwide lockdown. All manufacturing industries in the region were severely affected due to the governments' imposition of safety measures and stringent regulations. Either the production units were closed, or the production process was suspended. This had a negative impact on the growth of the regional isobutene market in 2020. However, from Q3 2020, the regional government has started lifting lockdown restrictions. As a result, the manufacturing units of various application segments such as automotive, aerospace, and antioxidants resumed the production activities, which gradually raised the demand for isobutene in the region. Thus, rising economic activities after the lifting of restrictions are further expected to drive the market during the forecast period.
What are the Revenue-generating Product Segments in the Isobutene Market?
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The isobutene market share growth by the methyl tert-butyl ether (MTBE) segment will be significant during the forecast period. MTBE is added to gasoline to increase its octane number. Additionally, it helps reduce carbon monoxide emissions from engine fuel and enhances the lifespan of engines. MTBE finds use in end-user application industries, including automotive and aerospace.
This report provides an accurate prediction of the contribution of all the segments to the growth of the isobutene market size and actionable market insights on post COVID-19 impact on each segment.
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Isobutene Market Scope |
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Report Coverage |
Details |
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Page number |
120 |
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Base year |
2020 |
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Forecast period |
2021-2025 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 3.52% |
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Market growth 2021-2025 |
$ 5.87 billion |
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Market structure |
Fragmented |
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YoY growth (%) |
2.40 |
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Regional analysis |
North America, APAC, Europe, South America, MEA, North America, APAC, Europe, South America, and MEA |
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Performing market contribution |
APAC at 40% |
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Key consumer countries |
China, Japan, Germany, US, and India |
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Competitive landscape |
Leading companies, Competitive strategies, Consumer engagement scope |
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Key companies profiled |
BASF SE, Chevron Phillips Chemical Co. LLC, Dayaram Chemicals Pvt. Ltd., Evonik Industries AG, LANXESS AG, Linde Plc, LyondellBasell Industries NV, Sumitomo Chemical Co. Ltd., Tokyo Chemical Industry Co. Ltd. , and TPC Group |
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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. |
What are the Key Data Covered in this Isobutene Market Report?
- CAGR of the market during the forecast period 2021-2025
- Detailed information on factors that will drive isobutene market growth during the next five years
- Precise estimation of the isobutene market size and its contribution to the parent market
- Accurate predictions on upcoming trends and changes in consumer behavior
- The growth of the isobutene industry across North America, APAC, Europe, South America, MEA, North America, APAC, Europe, South America, and MEA
- A thorough analysis of the market’s competitive landscape and detailed information on vendors
- Comprehensive details of factors that will challenge the growth of isobutene market vendors
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