Advent of Isobutene Derivative as Food Additive is Positively Imapacting the Isobutene Market Growth
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The substantial usage of isobutene material in various industry verticals such as automotive, aerospace, chemical, agriculture, transportation, and pharmaceutical is boosting the isobutene market size globally. The properties such as chemical resistance, high tensile strength, increased electrical insulation, superior damping, and minimal gas and liquid permeability are the prime factors proliferating the demand for isobutene across the aforementioned end-user industries. Isobutene is predominantly used as a fuel additive in aerospace industries. It is used in the production of isooctane, which is a high octane aviation gasoline. Moreover, as isobutene is more versatile than hydrogen, it is considered perfect as jet fuels. Therefore, the growth of the aerospace industry is expected to drive the isobutene market. Wherein, the aerospace industry is experiencing significant expansion due to increasing air passenger traffic and liberalization in trade activities. For instance, Boeing, an American aerospace company, set a new record by delivering 806 new commercial aircrafts in 2018, up from 763 in 2017. Moreover, rising aviation activities is anticipated to boost the demand of airplanes, hence the airline industry will need more than 44,000 new commercial airplanes by 2038, according to Boeing. Therefore, the growth in the aerospace industry is significantly providing promising prospects for the growth of the isobutene market size. Apart from these, isobutene is majorly used in chemicals such as methyl tert-butyl ether (MTBE), ethyl tert-butyl ether (ETBE), butylated hydroxytoluene, and butylated hydroxyanisole. These chemicals have various applications such as plastic packaging, electrical insulation, wires and cables, hot melt adhesives, compounding, and masterbatches, which consequently account for notable demand of isobutene. The isobutene market size was valued as $32.9 billion in 2018, which is predicted to prosper at a CAGR of 4.6%, during the forecast period 2019-2025.
Advent of Isobutene Derivative as Food Additive is Positively Imapacting the Isobutene Market Growth—
The food industry is experiencing high growth, owing to rapidly increasing global population. For instance, according to the report by United States Department of Agriculture (USDA), the Chinese processed food industry continued to grow in 2017 and attained $1.47 trillion, an increase of 6.3% compared with the previous year. In the food industry, food additives plays an important role in preserving the processed food products. Butylated hydroxytoluene is a widely used food additive, with antioxidant properties it is synthesized by isobutene. The product is approved by the Food and Drug Administration (FDA) and the European Union. Therefore, the growing food industry will provide lucrative opportunities for the isobutene market.
Increasing Demand for Rubber Products will Support the growth of the Isobutene Market—
In the isobutene market, rubber is a key application segment that is anticipated to propel at highest growth rate. It is majorly attributed to the inevitable usage of rubber in various industries including automotive, transportation, pharmaceutical, garments, and others. The prevalence of rubber usage can be easily fathomed from the statistics by International Trade Centre (ITC), according to which, the global trade value of rubber reached $198.8 billion in 2018. Moreover, the trade experienced annual growth of 3% from 2017 to 2018. Isobutene is predominantly used in the manufacturing process of rubber tires and tubes for automotive applications. Moreover, it is also used in the form of lubricants, sealants, adhesives, and fuel additives. Therefore, the growth in the automotive industry is anticipated to provide the prime impetus for the growth of this segment. The growth in the automotive industry can be easily fathomed from the statistics by International Organization of Motor Vehicle Manufacturers, according to which, the world motor vehicle production increased from 94.9 million in 2016 to 97.3 million in 2017. Therefore, the key application segment is anticipated to grow at a CAGR of 5.2% through to 2025.
Isobutene Market Leveraging Booming End-User Industries in North America—
Geographically, North America is gain a majority of the global isobutene market share during the forecast period and was responsible for 42% of the revenue generated in 2018. The dominance of this region is due to the presence of booming end-user industries such as aerospace, automotive, and pharmaceutical, which extensively use isobutene in various applications ranging from fuel additives to rubber tires. For instance, the revenue of the U.S. aerospace industry reached $929.5 billion in 2018, an increase of 4% from 2017, according to the Aerospace Industries Association (AIA). Whereas, 2.78 million cars and 8.5 million commercial vehicles were produced in the U.S. in 2018 with an overall growth rate of 1.1% from 2017, according to the International Organization of Motor Vehicle Manufacturers. The aforementioned statistics are the attenuated representation of the thriving end-user industries in North America. These factors are responsible for the substantial growth of the isobutene market in this region.
Isobutene Market Companies’ Strategies—
Major companies that account for the largest isobutene market share are Lyondell Basell, TPC Group, Exxon Mobil, Nizhnekamskneftekhim, Enterprise Products Partners, Evonik Industries, Yuhua Group, Sumitomo Chemical Co., Ltd., Yuhuang Chemical Inc., Zoucheng Qifa Chemical Co., Ltd., Songwon, Sinopec Beijing Yanshan Co., and Weifang Binhai Petro-Chem Co., Ltd. These companies are continuously investing in research and development activities to provide innovative and cost-effective product portfolio. Moreover, they are engaged in implementing business strategies such as mergers, acquisitions, collaborations, and partnerships to stay ahead of their competitors in the global market.
In August 2018, Lyondell Basell announced the acquisition of A. Schulman, Inc., a global provider of plastic compounds, composites and powders. This acquisition is intended to expand the company’s reach to global end-user industries such as automotive, construction, and packaging and thereby, secure its presence in the global isobutene market.
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