Isopentane Market

Isopentane Market Outlook (2023-2033)

The global isopentane market is anticipated to be valued at US$ 3.9 billion in 2023 and it is anticipated to grow at a CAGR of 5.6% to reach US$ 6.8 billion by the end of 2033.

Isopentane is available in liquid form at room temperature and is highly flammable in nature. Isopentane is used during polystyrene and foam manufacturing as a blowing agent. It is often employed in numerous personal care and cosmetic product as an aerosol propellant. Increasing demand for EPS and foam for insulation and packaging, along with expanding the cosmetic industry will drive the isopentane market.

Report Attributes	Details
Isopentane Market Size (2022A)	US$ 3.7 Billion
Estimated Market Value (2023E)	US$ 3.9 Billion
Forecasted Market Value (2033F)	US$ 6.8 Billion
Global Market Growth Rate (2023-2033)	5.6%
North America Market Share (2023)	~35.9%
East Asia Market Growth Rate (2023-2033)	~6.0% CAGR
Europe Market Growth Rate (2023-2033)	~5.2% CAGR
East Asia Market Share (2023)	~21.5%
Key Companies Profiled	Aeropres A-Gas Belorusneft Chemogas Chevron Phillips Daoqing Oilfields ExxonMobil Gazprom Junyuan Petroleum Group Phillips 66 Praxair Rosneft Shell SIBUR South Hampton Resources

Market Buoyancy Analysis

Isopentane is a chemical compound that is a branched chain formed by saturated hydrocarbon. This branched chain of hydrocarbons contains an alkane group with five carbon atoms. Isopentane has been widely used in varied industries based on its chemical composition upper hand and the presence of the hydrocarbon group.

Isopentane is used as a blowing agent for polyurethane foam additive and also EPS additive during the manufacturing of plastics. Isopentane also acts as a bleeding agent which further opens the door for wide product offerings for its global existence. The swelling functional outlook of the isopentane shall open wide avenues in such business.

• Short Term (2023-2026): Pullulating demand for isopentane from EPS and foam manufacturing industries coupled with government regulations to promote non-HCFC foam manufacturing is driving the market for isopentane.
• Medium Term (2026-2029): Growing petrochemical industry and rising investments in the oil & gas sector especially in developing nations like China and India will boost the demand for isopentane.
• Long Term (2029-2033): Isopentane is witnessing high demand from the cosmetic industries due to increased consumer spending on cosmetic products and rising awareness regarding personal hygiene will drive the market in the long term.

Over the 2018-2022 historical period, the global isopentane market registered a CAGR of 4.3%, according to the Fact.MR, a market research and competitive intelligence provider, the market is projected to exhibit growth at 5.6% CAGR between 2023 and 2033.

“Escalating Investment in Oil & Gas and Petrochemicals Production”

The oil & gas industry plays a prominent role in the overall growth cycle of various countries. Isopentane is derived from petrochemicals through subsequent stages of refining and synthesis processes and finds prominence in many use cases globally. Key business leaders are constantly fueling significant cash flow in the oil & gas business to draw strong backing in the market.

Over the past few decades, these petrochemical and oil & gas companies have witnessed positive results in terms of investments, industries GVA, and increased industrial production index and have driven industrial production with a wide array of offerings. Isopentane is a petrochemical by-product and is anticipated to exhibit similar growth potential during the coming years.

Many petrochemical products have become important in the chemical industry, and isopentane acetate has merely furthered this trend. Isopentane is primarily used during the manufacturing of expanded polystyrene and polyurethane foam which find its application in various end-use industries.

“Stringent Regulations for Hydrocarbon Imports & Exports might Diminish Isopentane Potential”

Globally, for hydrocarbon imports and exports, permits are required, which are creating significant challenges for traders and key suppliers. Governments of almost all regions are adding significant tariffs to the supply of these hydrocarbons from one region to another.

The dependence on the availability of crude oil has remained a matter of concern for key manufacturers of isopentane. Isopentane is referred to as a gasoline product, which is a derivative of crude oil. Globally, crude oil prices are constantly soaring and thus affecting the production of isopentane.

Pricing is constantly increasing for imports of key hydrocarbon compounds, including heavy, medium, and light crude oil, kerosene, diesel oil, fuel oil, propane, gasoline, jet fuel, ethylene, and others. The gasoline derivative isopentane has also witnessed significant shrinkage in its supply chain with increasing pricing.

Country-wise Insights

How is Geothermal Power Plants Driving Isopenatne Market in the US?

High oil & gas production in the US creates favorable opportunities for isopentane production. The majority of manufacturers have clustered their production bases here and prominently enjoy the global demand.

As of 1st January 2022, according to the US Energy Information Administration, the US had a production capacity of about 590 thousand barrels of isopentane per stream day.

Around 16 billion kWh of electricity was generated in the US in 2021 by the geothermal power plants in the country. Isopentane is used as a binary fluid in geothermal power stations to recover energy from geothermal fluids.

The United States isopentane market will expand at a CAGR of 4.8% over the projected period to reach a valuation of US$ 2.2 billion by 2033.

Will the Expanding Petrochemical Industry in China Drive Isopentane Demand?

China is one of the largest producers of crude oil and offers ~5 million barrels of oil per day. China’s 14th Five-year plan focuses on high-quality growth of chemical and petrochemical industries by upgrading such industries with investments that aim to reduce costs and generate more profits. The expanding chemical and petrochemical industries will contribute to increased consumption of isopentane in the country.

China is expected to register high gains due to an advancing economy and higher values in the innovation and mass-production oriented chemical, petrochemical business and lower values in the oil & gas, and hydrocarbon synthesis industries.

Due to such favorable factors, China’s market for isopentane is expected to register a CAGR of 6.1% over the forecast. China’s consumption of isopentane is expected to reach 2,172.6 kilo tons by 2033 with a CAGR of 5.3%.

Category-wise Insights

Which Type of Blending Agent is Set to Provide Lucrative Opportunities?

Pentane is the straight chain of an alkaline group containing five carbon atoms. These compounds are generally nonpolar and used as solvents and refrigerants. These compounds are often referred to as volatile organic compounds with petroleum-like odor.

Pentane-based blending agents are widely utilized by isopentane’s manufacturers to improve isopentane's usability and efficiency. The segment is fueled by growing innovation and research into high-end pentane compositions as a blending agent, which has huge potential to support the industry's soaring fortunes.

Pentane accounted for 38.2% of the total share in 2023 and is expected to expand at a CAGR of 6.0% to reach a valuation of US$ 2.7 billion by 2033.

How is Isopantane Usage as a Blowing Agent Driving the Market?

The global isopentane market is being driven by its use as a blowing agent during the manufacture of polyurethane and expanded polystyrene foams. For this application, a blended version of isopentane is used since it offers higher stability and makes foam production easier.

EPS and PU foams are utilized in various end-use industries and for insulation, packaging, and other applications. The isopentane market is anticipated to be driven by the increased demand for EPS and PU foams.

Due to all of these factors, the use of isopentane as a blowing agent is expected to be valued at US$ 1.3 billion by 2023 and is anticipated to grow at a CAGR of 5.1% over the forecast period.

Competitive Landscape

Prominent isopentane manufacturers are Aeropres, A-Gas, Belorusneft, Chemogas, Chevron Phillips, Daoqing Oilfields, ExxonMobil, Gazprom, Junyuan Petroleum Group, Phillips 66, Praxair, Rosneft, Shell, SIBUR, South Hampton Resources

Players operating in isopentane are looking to increase their production capacity to cater to the escalating demand. Players in the market should pivot their focus on emerging trends in the industry to prosper the isopentane business. Key players should look for offering the unexplored function of isopentane to witness prosperity in the market.

Also, it has been witnessed that key players are maintaining competitive price points for their product offerings in order to observe heightened sales bars for this potential business. This can even aid their future business potential with increased GVA.

Fact.MR has provided detailed information about the price points of key manufacturers of isopentane positioned across regions, sales growth, production capacity, and speculative technological expansion, in the recently published report.

Segmentation of Isopentane Industry Research

• By Grade :

  • <98%
  • >98%

• By Blending Agent :

  • Pentane
  • Cyclopentane
  • n-Pentane
  • Others

• By Function :

  • Blowing Agents
    • Polyurethane Foam Additives
    • EPS Additives
  • Solvents
  • Propellant
  • Viscosity Controlling Agents

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • MEA