The global Contained Isobutylene market was valued at USD 29 billion in 2023, and it is forecast to register a CAGR of 1.4% during 2024-2036 to cross USD 34 billion by end of forecast period. Contained Isobutylene is mainly produced using following process: Fluid catalytic cracking (FCC), Butadiene Raffinate, Propylene Oxide/ Tertiary Butyl Alcohol (PO/TBA), Isobutane Dehydrogenation, and C4s Hydrogenation. Contained Isobutylene market's growth is also supported by the rising demand for fuel applications and specialty chemicals, with producers continually investing in innovative processes to enhance yield and reduce environmental impact.
The global production capacity for contained isobutylene has surged by 6,000 kilo tons since 2016, reaching around 40,000 kilo tons in 2023. Projections indicate it will exceed 46,000 kilo tons by the end of 2036, with the majority of capacity expansions occurring in Asia-Pacific, North America, and Europe. Currently Northeast Asia dominates the global Contained Isobutylene capacity accounting for around 35% of the global Contained Isobutylene capacity, followed by North America at 27% and Western & Central Europe together accounting for 20%. All other regions including Southeast Asia, Middle East & Africa and Latin America together account for around 18% of the global Contained Isobutylene capacity
In terms of Contained Isobutylene capacity by production process, FCC dominates the market followed by Butadiene Raffinate, Isobutane Dehydrogenation, C4s Hydrogenation and PO/TBA. LyondellBasell is a sole contained isobutylene producer through PO/TBA process, accounting for less than 10% of the global contained isobutylene capacity with production facility in North America and Western Europe. Contained Isobutylene production through Butadiene Raffinate process holds over 25% of the global capacity and it is projected to witness strong growth mainly due to increase in Butadiene capacity in Asia Pacific and North America during the forecast period.
In 2023, Fuel Application (MTBE, ETBE and others) was estimated to be the largest consumer of Contained isobutylene followed by High Purity Isobutylene and Polyisobutylene (PIB). Contained isobutylene demand for Fuel application is projected to grow at a CAGR of 1% between 2024-2036 to cross USD 29 billion by end of 2036. During the long-term forecast period, contained isobutylene demand for High Purity Isobutylene is projected to witness strong growth mainly driven by huge investment in High Purity Isobutylene capacity in Asia Pacific. High Purity Isobutylene is used as raw material to produce Butyl Rubber also known as Isobutylene-Isoprene Rubber (IIR). Butyl Rubber is widely used in applications such as Tire applications (inner liners, innertubes, etc), adhesives & sealants, hoses, and many other rubber goods that are suitable for various industrial and consumer applications. IIR serves end-use industries such as Automotive, Industria, Medical, Pharmaceuticals, Construction, Food, and Others.
Contained isobutylene demand is largely concentrated in Asia Pacific, North America, and Europe, primarily due to high gasoline consumption across these regions. Contained isobutylene is essential in producing fuel additives like MTBE, ETBE, and other related applications. These additives play a key role in gasoline blending, which drives significant demand within these regions. Owing to stringent environmental regulations, there is a rising interest in exploring alternative fuel additives and enhancing the efficiency of gasoline formulations, which is further estimated to drive the Contained Isobutylene demand during the forecast period.
Source: Secondary & Primary Research and Prismane Consulting estimates
Asia Pacific dominates the global Contained Isobutylene market, accounting for around 40% of the global market. During the forecast period, Contained Isobutylene market in the Asia Pacific is poised to register a CAGR of 2.4% to cross USD 14 billion by 2036. The strong growth in the Contained Isobutylene demand can be attributed to increasing consumption in production of High Purity Isobutylene, MMA and Polyisobutylene. Demand of Fuel application is projected to register a CAGR of 2% to during 2024-2036 from the current market size of USD 10 billion.
China, Japan, South Korea, India, Singapore, Thailand, Malaysia, Indonesia, Australia, and Vietnam, are key producer and consumer of contained isobutylene in the region together accounting for around 95% of the regional contained isobutylene market. India and China are projected to witness strong growth in the forecast period driven by huge capacity addition in downstream end use applications.
India Contained Isobutylene market size was estimated to be around USD 1.0 billion which is around 4% of the global Contained Isobutylene market. India Contained Isobutylene market is projected to register a CAGR of 1.5% between 2024-2036, mainly driven by increasing consumption of Contained Isobutylene in production of Polyisobutylene and High Purity Isobutylene. Currently Gujarat Polybutenes, (subsidiary of Gujarat Petrosynthese, Maharashtra Polybutenes Limited (MPL) (formerly Herdillia Polymers), Reliance Industries, BPCL Kochi Refinery, and Kothari Petrochemicals are major Polyisobutylene producers in India using contained isobutylene. Kothari Petrochemicals is one of the largest Polyisobutylene producer in India and it has recently completed expansion of Polyisobutylene production capacity from 24 kilo tons to 48 kilo tons.
ExxonMobil, Shell, Texas PC, Chevron Corp, Valero, PEMEX, Petrobras, Dow, Total, CEPSA, BASF, Reliance, SIBUR, Rosneft, and Idemitsu Kosan are some of the key producers of accounting for around 20% of Contained Isobutylene production capacity in the world. There are over 700 production facilities for Contained Isobutylene in the world with over 40% located in Asia Pacific and 33% in Norther America and Western Europe.
Key Developments in Contained Isobutylene Market
Need help
How can we help you?
Reach us with your research requirements and we shall provide the optimum solution to suit your needs.