Isobutanol Market - Forecast(2021 - 2026)

 

Isobutanol Market Overview

Isobutanol market size is forecast to reach $1.03 billion by 2025, after growing at a CAGR of 5.36% during 2020-2025, owing to the rising demand for isobutanol from various end-use industries such as oil & gas, automotive, solvents & coatings, pharmaceutical, and more. A major part of Isobutanol is converted into derivates which are then used as solvents in the coating industry. Isobutanol prevents blushing of certain coatings when they dry under humid conditions and improve their flow, gloss, and resistance to blushing, due to which they are widely used as a diluent in cellulose nitrate lacquers. In addition, it is extensively used as a feedstock in the production of glycol ethers and flotation aids, which is anticipated to drive the isobutanol market substantially during the forecast period.

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Isobutanol Market Report Coverage

The report: “Isobutanol Market – Forecast (2020-2025)”, by IndustryARC, covers an in-depth analysis of the following segments of the Isobutanol Industry. 

By Type: Synthetic Isobutanol, Bio-Based Isobutanol, and Others

By End-Use Industry: Oil & Gas (Diesel, Gasoline, Jet Fuel, and Others), Solvents & Coatings, Chemical Intermediates, Automotive (Passenger Vehicles, Commercial Vehicles, and Others), Building and Construction (Residential, Commercial, Industrial, and Others), Medical and Healthcare (Antibiotics, Vitamins, Alkaloids, and Others), Textile, and Others

By Geography: North America, South America, Europe, Asia Pacific, RoW

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Key Takeaways

• Asia Pacific dominates the isobutanol market, owing to the rising demand for isobutanol in the automotive, chemical, solvent, and coating sectors in the region. Increased urbanization and purchases are also the key factors driving the isobutanol market in APAC.
• Isobutanol is produced by propylene carbonylation. The same products are obtained in Reppe carbonylation, but the hydrogenation is effected by the water-gas shift reaction.
• Isobutanol as a chemical intermediate gives access to aromatics like p-xylene from biomass. The p-xylene can then be oxidized to form terephthalic acid or terephthalate esters.
• Increasing consumption of isobutanol in the production of antibiotics, vitamins, and camphor along with the expansion of the medical and healthcare sector across the world is anticipated to fuel the demand for isobutanol over the forecast period. 
• Furthermore, increased demand for coatings across numerous industries such as building & construction, automotive, wood, and others is predicted to have a significant positive impact on the demand for the global isobutanol market in the upcoming years. 
• Due to the COVID-19 pandemic, most of the countries have gone under lockdown, due to which operations of various industries such as chemical, and oil & gas has been negatively affected, which is hampering the isobutanol market growth.

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Isobutanol Market Segment Analysis - By Application

Synthetic isobutanol held the largest share in the isobutanol market in 2019, owing to the easy availability of synthetic isobutanol. Some thermophilic and hyperthermophilic archaea also have enzymes that provide an alternative pathway from 2-ketoisovalerate (KIV) to isobutanol. However, bio-based isobutanol is expected to witness the highest growth during the forecast period. Growing environmental and toxicity concerns coupled with the cheaper price of bio-based isobutanol may be attributed to product demand. For renewable jet fuels that provide low carbon footprints and cleaner-burning, bio-based isobutanol is widely used. "Farm-to-Fly" is an established initiative that comprises USDA, Airlines for America, and Boeing to promote the production of renewable jet fuels that do not require jet engine modifications and to target the production of 1 billion gallons of drop-in aviation biofuels a year by 2018. The program was extended until 2019 with the addition of DOE, the Department of Transportation (DOT) Federal Aviation Administration (FAA), and major private partners such as the Commercial Aviation Alternative Fuels Initiative (CAAFI). Such government initiatives are boosting the bio-based isobutanol market growth during the forecast period.

Isobutanol Market Segment Analysis - By End-Use Industry

The chemical intermediate segment held the largest share in the isobutanol market in 2019 and is growing at a CAGR of 4.96%, owing to the increasing demand for isobutanol for the production of chemical intermediates such as isobutyl acetate. Also, isobutanol synthesis provides a potential route to methyl tertiary butyl ether (MTBE) via isobutanol dehydration. The demand for isobutyl acetate is growing, owing to its acceptance in the various consumer product industries, such as the food processing industry and lacquer. In recent years the demand for isobutyl acetate from the paint and coating industries has also increased due to the strict regulation on the production of environmentally friendly paint and coating, mainly in western countries such as the “National Volatile Organic Compound Emission Standards for Architectural Coatings” and “National Volatile Organic Compound Emission Standards for Automobile Refinish Coatings” approved by EPA. The rising demand for isobutyl acetate is projected to eventually drive the isobutanol market during the forecast period.

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