Isobutanol Market Estimated to Record Highest CAGR by 2025


The highly competitive global market for isobutanol features a large number of small and large companies, wherein companies are putting more focus on reducing their dependence on conventional feedstock derived from crude oil as a way to reap benefits from the rising demand for bio-based products, observes Transparency Market Research in a recent report. Some of the leading companies in the market are The Dow Chemical Company, Mitsubishi Chemical Corporation, BASF SE, Eastman Chemical Company, Gevo, Grupa Azoty S.A., Saudi Butanol Company, Andra Perteochemicals Limited, and Oxea GmbH.

According to the report, the global isobutanol market was valued at US$679.7 mn in 2016. The market is likely to reach US$1,069.9 mn by 2025, expanding at a CAGR of 5.2% between 2017 and 2025.

Asia Pacific to Continue to Remain Leading Regional Market Applications of isobutanol across industries such as automotive, chemical, and paints and coatings are likely to amass the most share in the overall revenue of the global market over the forecast period. The rising usage of the compound across the bio-fuel sector is also likely to present promising growth avenues before the market in the near future.

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Geographically, the isobutanol market earns a large share in its revenue from sales across the Asia Pacific region, where the thriving industrial sector in countries such as India and China provides a big boost to the overall market. The market for isobutanol in Asia Pacific is likely to expand at a promising pace in the next few years as well, thanks to the steadily expanding chemical and paints and coatings industries in China.

Increased Global Consumption of Paints and Coatings to Spell Growth for Market

One of the key factors expected to have a significant positive impact on the overall development of the global isobutanol market is the increased demand from the paints and coatings industry. As isobutanol is one of the key constituent of coatings and solvents used across a number of applications in industries such as building and construction and automotive, the increased demand for coatings across these industries is likely to have a significant positive impact on the overall development of the global isobutanol market in the next few years.

Isobutanol has a wide set of applications in automobiles, including usage in anti-wear and anti-corrosion engine oils and polishing and cleaning of automobile parts. Owing to rising disposable income in developing economies, sales of personal vehicles have skyrocketed in the past few years. Moreover, the demand for a variety of pharmaceutical products has also significantly increased in several regional markets. As isobutanol is one of the most used solvents in the pharmaceutical industry, the rising demand for products from the latter is expected to have a positive impact on the overall development of the isobutanol industry as well. Isobutanol is also used as a key ingredient in the production of industrially important products such as lubricants, plastics, and propylene, rising demand for which is expected to further drive the market.

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Fluctuations in Crude Oil Prices could Hamper Market Growth

Despite vast growth opportunities, the market’s growth prospects could be restrained to a certain extent owing to fluctuations in supply and pricing of crude oil as isobutanol is manufactured from propene, which is a key derivative of crude oil refining. Nevertheless, the increased focus on research and development in the area of bio-fuel has enabled the production of isobutanol with the help of biological fermentation in the recent years. Moreover, companies operating in the global isobutanol market may benefit from the increased usage of isobutanol in the development of bio-fuel, which are much cleaner and have nearly 30% more energy content as compared to ethanol.

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