Press release
Growing Demand For Sustainable Fuel Boosts The n-Butanol Market Amid Environmental Concerns: Powering Innovation and Expansion in the n-Butanol Market by 2025
Use code ONLINE30 to get 30% off on global market reports and stay ahead of tariff changes, macro trends, and global economic shifts.What Is the Expected CAGR for the n-Butanol Market Through 2025?
The size of the n-butanol market has seen significant growth in the past few years. Its expansion is projected to continue, moving from $3.55 billion in 2024 to $3.77 billion in 2025, at a consistent annual growth rate (CAGR) of 6.1%. Factors such as the construction industry's upward trend, increased need for plasticizers, higher demand in coatings and paints, boosted production in agrochemical industry, and a surge in disposable incomes have contributed to the growth in the historical period.
What's the Projected Size of the Global n-Butanol Market by 2029?
Anticipations suggest a robust expansion in the size of the n-butanol market in the coming years. By 2029, its expected valuation would reach $4.7 billion, fructifying at a compound annual growth rate (CAGR) of 5.7%. Factors like the escalating demand for bio-sourced chemicals, expansion in the personal care sector, increase in food processing operations, amplified automotive production, and surge in infrastructure development initiatives, underpin this projected growth. The prediction period also records trends like progress in manufacturing techniques, widespread adoption in eco-friendly chemical production, increasing devotion towards carbon footprint reduction, and growth in investments dedicated to research and development.
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Top Growth Drivers in the n-Butanol Industry: What's Accelerating the Market?
The n-butanol market is anticipated to experience accelerated growth due to the rising demand for sustainable fuel. Sustainable fuel signifies energy sources that are renewable, low in carbon and eco-friendly, secure the environment, and mitigate the effects of climate change. This surge in the sustainable fuel's demand is due to the rising awareness regarding climate change, stringent environmental regulations, improvements in renewable energy technologies and enhanced pursuit towards energy security and autonomy. n-butanol is advantageous as a sustainable fuel as it can be manufactured from renewable biomass, along with providing higher energy content and lower emissions than ethanol. It is also compatible with current gasoline engines. For example, as per International Energy Agency, which is an intergovernmental organization based in France, reports a substantial increase in global clean energy investments - surging from $1,408 billion in 2021 to $1,740 billion in 2023. This clearly portrays the escalating commitment to eco-friendly practices. Hence, the catapulting demand for sustainable fuel stimulates the n-butanol market growth. n-Butanol Market Driver: Expansion of n-Butanol Market due to the Construction Industry's Growth Owing to Infrastructure Demand
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What Trends Will Shape the n-Butanol Market Through 2029 and Beyond?
Leading corporations involved in the market are honing their strategies on creating superior methodologies like the PO/TBA production processes to maintain their competitive positioning. This approach is specifically lucrative and economically beneficial, as it yields two valuable products catering to a broad spectrum of industrial usage. For exemplification, Lyondell Basell Industries N.V., an American petrochemical firm, inaugurated the globe's largest propylene oxide (PO) and tertiary butyl alcohol (TBA) facility in March 2023. This facility primarily focuses on generating crucial chemicals widely utilized in multiple industrial and consumer applications. The primary utility of Propylene oxide (PO) is in the production of polyurethane foam, which is found in commodities such as mattresses, automobile seat cushions, and insulation materials, thus boosting energy efficiency. Tertiary butyl alcohol (TBA) morphs into fuel additives like methyl tertiary butyl ether (MTBE) and ethyl tertiary butyl ether (ETBE), elevating gasoline combustion and subsequently curtailing vehicle emissions.
What Are the Main Segments in the n-Butanol Market?
The n-butanol market covered in this report is segmented -
1) By Grade: Pharmaceuticals, Industrial, Chemicals
2) By Production Process: Oxyhydrogenation Of Propylene, Butane Oxidation, Fermentation Of Biomass
3) By Application: Butyl Acrylate, Butyl Acetate, Glycol Ethers, Direct Solvent, Plasticizers, Other Applications
4) By End-Use Industry: Paints And Coatings, Chemicals And Petrochemicals, Textiles, Agriculture, Buildings And Constructions, Food And Beverages, Transportation, Pharmaceuticals
Subsegments:
1) By Pharmaceuticals: Active Pharmaceutical Ingredients (APIs), Solvents For Drug Formulations, Excipients
2) By Industrial: Solvent For Paints And Coatings, Adhesives And Sealants, Plasticizers, Lubricants And Hydraulic Fluids
3) By Chemicals: Butyl Acetate, Butyl Acrylate, Butanol-Based Polymers, Glycol Ethers
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Which Top Companies are Driving Growth in the n-Butanol Market?
Major companies operating in the n-butanol market are China National Petroleum Corporation, BASF SE, Grupa Azoty, The Dow Chemical Company, Saudi Basic Industries Corporation, Thermo Fisher Scientific Inc., Mitsubishi Chemical Corporation, Merck KGaA, Ineos Group Limited, Brenntag AG, Sasol Limited, Arkema S.A., Eastman Chemical Company, PETRONAS Chemicals Group, Jiangsu Huachang Chemical Industry Company Limited, Solventis Ltd, BASF PETRONAS Chemicals Sdn. Bhd., OQ Chemicals GmbH, KH Neochem Co. Ltd., Texmark Chemicals Inc., Santa Cruz Biotechnology Inc., Anhui Shuguang Chemical Group, Finar Limited, Tokyo Chemical Industry Co. Ltd., Pacific Texchem Private Limited, Andhra Petrochemicals Ltd.
Which Regions Will Dominate the n-Butanol Market Through 2029?
Asia-Pacific was the largest region in the n-butanol market in 2024. North America is expected to be the fastest-growing region in the forecast period. The regions covered in the n-butanol market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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