Jun 25, 2020
Sales of Isobutylene to Ride on Gas Permeability Quotient; Uptake by End-use Industries Limited by COVID-19 Outbreak: Fact.MR
by Team Fact.MR
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.
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% remains highly preferred, accounting for a significant share of the total market value. However, >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.
“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.
- 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.
More Valuable Insights on IsobutyleneMarket:
Fact.MR, in its new offering, presents an unbiased analysis of the global isobutylene market, presenting historical demand data (2015-2019) and forecast statistics for the period of 2020-2030. The study divulges essential insights on the isobutylene market on the basis of grade (<99% and >99%), function (additive, intermediate and antioxidant) and end-use industry (fuel, rubber, chemical & cosmetics, lubricants, and others) across six major regions.
>>> To Get more insights on isobutylene market, visit- https://www.factmr.com/report/3786/isobutylene-market
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Expert analysis, actionable insights, and strategic recommendations – the Chemicals & Materials team at Fact.MR helps clients from all over the globe with their unique business intelligence needs and requirements of entire value chain of chemical & materials sector. A team of passionate analysts track the performance of the existing Chemicals & Materials as well as those that have just entered their product life cycle. With a repertoire of over 1,000 reports and 1 million plus data points, the team has analyzed Chemicals & Materials lucidly in 50+ countries for over a decade. The Chemicals & Materials team at Fact.MR has been assisting clients in their business expansion as well as new ventures, through their analysis and recommendations.