Isobutanol Market Expected to Reach $1.9 Billion by 2030

According to a new report published by Allied Market Research, titled, "Isobutanol Market by Product and Application: Global Opportunity Analysis and Industry Forecast, 2021-2030," the isobutanol market size was valued at $1.0 billion in 2020, and is projected to reach $1.9 billion by 2030, at a CAGR of 6.3% from 2021 to 2030.

Isobutanol is an organic molecule made from propylene that has been carbonized. It is a flammable, colorless liquid with a distinct odor. It is mostly employed as a solvent, either directly or in the form of esters. The other butanols, or isomers, are n-butanol, 2-butanol, and tert-butanol, which are important industrially.

The isobutanol market is estimated to grow at a significant rate, owing to the rise in demand for isobutanol from various end-use industries such as oil & gas, automotive, solvents & coatings, pharmaceutical, and more. A large portion of isobutanol is transformed into derivatives, which are then utilized as coating solvents. Isobutanol is frequently used as a diluent in cellulose nitrate lacquers because it minimizes blushing of some coatings when they cure in humid circumstances and improves their flow, gloss, and resistance to flushing. Furthermore, it is widely utilized as a feedstock in the manufacturing of glycol ethers and flotation aids, which is expected to significantly drive the growth of the isobutanol market during the forecast period.

The global isobutanol market analysis has been done on the basis of product, application, and region. By product, the isobutanol market is divided into synthetic isobutanol, bio based isobutanol, and others. The bio based isobutanol sector accounted for the substantial market share of Isobutanol in terms of value and is estimated to lead the overall market in the coming years. This could be due to increased demand from developing countries such as China and India. In addition, in the future years, synthetic isobutanol is expected to expand at the fastest rate. 

By application, the oil & gas sector accounted for the significant market share of isobutanol and is estimated to lead the overall market in the coming years. This may be because of the increase in demand from the construction and automotive industries. In addition, the chemicals industry is expected to grow at the quickest rate in the future years. 

By region, the Asia Pacific led the global economy and is predicted to experience the highest growth during the projected period. Rise in oil & gas, petrochemicals, and construction industries is anticipated to augment regional growth in developing economies such as India, China, Indonesia, and Vietnam.  

The major companies profiled in this report include BASF SE, Eastman Chemical Company, Gevo, Ineos Group Holdings S.A., Mitsubishi Chemical Holdings Corporation, OQ Chemicals Gmbh, Petronas Chemicals Group Berhad, Sasol Limited, The Andhra Petrochemicals Limited, and The Dow Chemical Company. 

Key findings of the study

• By region, Asia-Pacific is projected to grow at the highest CAGR of nearly 6.6%, in terms of revenue, during the isobutanol market forecast period.
• By product, the bio based isobutanol segment accounted for the largest isobutanol market share in 2020.
• By application, the oil & gas segment garnered the largest market share in 2020.

Impact of COVID-19 on the global isobutanol market

• Some of the major economies suffering from the COVID-19 crisis include Germany, France, Italy, Spain, the UK, Norway, and others. Many industries have been shut down due to lack of raw material availability and disruptions in the supply chain, owing to the virus outbreak. The worldwide lockdown has suspended the oil & gas, solvents & coatings and chemical intermediate activities, which results in declining demand for isobutanol.
• Manufacture of synthetic isobutanol and bio based isobutanol and other products across the globe came to a halt due to unavailability of raw materials, shortage of labor, and others. This is expected to hamper the isobutanol market growth.
• The isobutanol end-use sectors are experiencing challenges as a result of the COVID-19 outbreak, such as delays in getting surfactants from producers due to material import and export restrictions. Raw material deliveries are being delayed, which is causing delays in delivery to customers.

Furthermore, the COVID-19 epidemic is having an effect on the automotive and construction industries. The production of automotive has been halted, resulting in a significant loss in the whole automotive sector. The need for paint and coatings has decreased dramatically as a result of the drop in vehicle manufacturing, which has had a considerable influence on the isobutanol market.