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Major Suppliers In Isobutylene Market Projected to Witness Vigorous Expansion by 2030

01-27-2021 01:39 PM CET | Business, Economy, Finances, Banking & Insurance

Press release from: Fact.MR

Isobutylene Market

Isobutylene Market

The global isobutylene market is poised to record a CAGR of 5% during the forecast period (2020-2030). Attributed to excellent resistivity against water, steam alkalis, and oxygenated solvents, isobutylene has emerged as a material of choice in the rubber industry. Demand for isobutylene in the rubber industry is further gaining a boost from its bundled benefits such as low gas permeation and high-energy absorption (dampening) coupled with high hot tear strength.

Isobutylene has gained significant traction as an ideal ingredient for the production of butyl rubber, owing to its excellent vibration dampening property and high temperature resistivity. Moreover, as butyl rubber is made up of 98% from isobutylene, the market is projected to witness strong growth during the forecast period.

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However, in 2020, the isobutylene market has been hit hard by the COVID-19 outbreak and subsequent fall in oil prices. Manufacturing operations across several end-use industries have been scaled down on the account of labor shortages and supply chain disruptions. The result has led to a decline in demand for isobutylene.

Key Takeaways of Isobutylene Market Study

On the basis of grade, 99% isobutylene is poised to experience a relatively high growth rate over the forecast period.

Use of isobutylene as a fuel additive is set to account for nearly three-fourths of the global consumption by 2030.

The fuel industry remained a key consumption area of isobutylene during the historical period, reaching a volume of over 10 Mn tons in 2019.

Butyl rubber industry is set to emerge as a growth epicenter of the isobutylene market and expand at an impressive CAGR of ~6% during the forecast period.
In terms of both volume and value, East Asia has dominated the global isobutylene market and is projected to account for over half of the global consumption by 2030.

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“Suring demand for high purity isobutylene for application in production of poly-isobutylene, methyl methacrylate, butyl rubber, cosmetic and lubricants is set to create ample opportunities for isobutylene suppliers during the forecast period,” says the Fact.MR analyst.

Market Players to Focus on Expansion of Production Capacities

To sustain the increasing demand for isobutylene from a range of industries including fuel, rubber, lubricants, and chemical, market players have been significantly focused on expanding their production capacities. For instance,

In 2019, Enterprise Products Partners LP expanded its production capacity to 425 kilo tons, which enhanced its market position over its competitors.
In 2019, Saudi Aramco announced to joint venture with Total Company to establish new production facility for poly-isobutylene.

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In 2018, under its organic strategy, Nizhnekamskneftekhim expanded its isobutylene production capacity by 160 kilo tons, which has strengthened its market position across the globe.

Inline production capacity expansions by prominent manufacturers are thus poised to uplift the market growth during the forecast period.

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