Butane Market Insights and Forecast -2027
Butane is an aliphatic hydrocarbon, which falls under the category of organic compounds. Butane consists of 4 carbon atoms and 10 hydrogen atoms, and is found in 2 isomeric forms, which include normal butane (n-butane) and iso-butane. It is a colorless gas, which is highly flammable and can easily be liquefied. It has a boiling point of −1°C and a flash point of about −40°C. Butane is obtained as a by-product during refining crude oil. The refining process of crude oil takes place in a fractionating tower where the different byproducts are recovered at different temperature levels.
COVID-19 scenario analysis
The outbreak of the COVID-19 pandemic has severely affected the global butane market.
- The outbreak of the global pandemic has caused the commercial places such as restaurants and malls to shut down. As a result, the demand for butane dropped significantly all over the world, thereby affecting the market.
- Owing to the lockdown implemented across various countries, national and international transport have been hampered, which has significantly impacted the supply chain of butane across the globe, thereby increasing the supply–demand gap.
- Thus, insufficiency in raw material supply is expected to hamper the production rate of butane, which negatively impacts the market growth.
- However, this situation is expected to improve as government has started relaxing norms around the world for resuming business activities.
Top impacting factors: market scenario analysis, trends, drivers and impact analysis
The major fraction of the total amount of butane, which is produced globally is utilized in the manufacture of liquid petroleum gas (LPG). LPG is used all over the world in both residential and commercial places majorly for cooking and heating purposes. Furthermore, butane is used in the production of ethylene in the petrochemical industry and is also the precursor for the manufacture of butadiene. Butadiene is the key raw material in the production of synthetic rubber, and the growth of the rubber industry has escalated the demand for butane significantly. Moreover, butadiene is utilized in the refineries as a blending agent in fuels such as gasoline and compressed natural gas (CNG) and also in other utility products such as cigarette lighters and in propellant aerosol sprays such as deodorants. The increasing usage of butane torch in glass manufacturing, plumbing, and in the construction industry has played a significant role in the growth of the butane market across the globe. However, the fluctuating prices of the crude oil might act as a restraining factor for the market. Conversely, rapid technological developments by the manufacturers and increase in usage of LPG and CNG are expected to boost the growth of the butane market.
In terms of market share, Asia-Pacific region is leading the global butane market, owing high demand for LPG and CNG in the region. Factors such as high population density and increase in number of vehicles have led to the increase in the demand for fuel in the region. The market in the Middle East region is expected to grow at a significant pace due to the presence of high number of refineries in the region.
Key benefits of the report
- This study presents the analytical depiction of the global butane industry along with the current trends and future estimations to determine the imminent investment pockets.
- The report presents information related to key drivers, restraints, and opportunities along with detailed analysis of the global butane market share.
- The current market is quantitatively analyzed to highlight the global butane market growth scenario.
- Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market.
- The report provides a detailed market analysis depending on competitive intensity and how the competition will take shape in coming years.
Questions answered in the butane market research report:
- Which are the leading players active in the butane market?
- What are the current trends that will influence the market in the next few years?
- What are the driving factors, restraints, and opportunities of the market?
- What are the projections for the future that would help in taking further strategic steps?
Butane Market Report Highlights
| Aspects | Details |
 By Type |
|
 By End-user |
|
 By Region |
|
 Key Market Players | Chevron Corporation, Aditya Air Product Pvt. Ltd., Royal Dutch Shell, ConocoPhillips Co., Valero Energy Corporation, ExxonMobil Corp., Proton Gases India Pvt. ltd., British Petroleum, Sinopec Group. |
Loading Table Of Content...
