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Isopropanol Market

Isopropanol Market

Isopropanol Market Share Analysis, By Grade Type (Technical Grade, Pharmaceutical Grade, Cosmetic Grade), By Manufacturing Process (Indirect, Direct Hydration of Propylene, Catalytic Hydrogenation of Acetone), By Primary Function, By Application - Regional Forecast 2022-2032

Isopropanol Market

Isopropanol Market Outlook

The Global Isopropanol market valuation is anticipated to grow at a CAGR 2.5% over the forecast period of 2022 to 2032. As per the latest study by Fact.MR- a market research and competitive intelligence provider, global isopropanol consumption set to reach over 3,747 kilo tons by 2032 end which amounts to around 1% share of the global organic chemical consumption.

The compound witnessed robust demand as a popular cleaner in the semiconductor and electronics industries, as it readily dissolves ionic flux residues, light organic contaminants, and dirt particles. Referred to rubbing alcohol, isopropanol is increasingly being used as a sterilizer and disinfectant in home applications.

Demand for isopropanol will remain modest, as the industry matures and witnesses confinements in innovations & developments. A recent Fact.MR report estimates nearly isopropanol market value worldwide anticipated reach over US$ 4.8 Bn by 2032-end.

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Report Scope

Attribute Details
Market size value in 2021 USD 3.2 Billion
Market forecast value in 2032 USD 4.8 Billion
Global Growth Rate CAGR 2.5%
Top 5 Companies Market Share 40%
Key Companies Profiled
  • Dow Chemical Company
  • Exxon Mobil Corporation
  • Shell Chemicals
  • Mitsui Chemicals, Inc
  • Tokuyama Corporation
  • LG Chem Ltd.
  • Perrigo Company plc
  • Sasol Limited
  • LyondellBasell Industries N.V.

Demand Analysis of Isopropanol from 2016 to 2021 Vs Market Outlook for 2022 to 2032

According to Fact.MR, historically, from 2016 to 2021, utilization of isopropanol increased at around 1.8% CAGR, wherein, countries such as United States, China, Japan, Germany and UK held a significant share in the global market. 

The global isopropanol market has evolved significantly in recent years, on the back of increasing investments in new technologies to overcome performance and quality issues associated with the manufacturing of isopropanol.

Over the past-half decade, isopropanol has gained immense significance as an effective solvent across various industrial sectors in light of its complete miscibility in most of the solvents including water. Isopropanol has been deemed as an accurate solvent for compounds such as natural & epoxy resins, alkaloids, ethyl cellulose, and essential oils.

Moreover, fast evaporating property of isopropyl alcohol that leaves zero oil traces, and its lower toxicity, coupled with the estimated future phase out of ethanol will continue to augur well for its market growth in the near future.

Based on the aforementioned trends, the global isopropanol market is anticipated to grow at a CAGR of 2.5% over the long-term forecast period (2021-2031).

Below keypoints summarize the isopropanol market over the long-run forecast period

  • Isopropanol as dissolving agent hold over 43% of global consumption in during 2021 and anticipated to grow at a CAGR 1.8% over the forecast period.
  • US isopropanol market accounted for the largest market value across the globe and anticipated to create an absolute dollar opportunity of US$ 190 Mn over the forecast period.
  • Isopropanol application in chemical intermediates anticipated to be valued over US$ 1.7 Bn by 2032 end.
  • Pharmaceutical application of isopropanol anticipated to grow at a CAGR of 2.2% over the forecast period.

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What are the Prominent Driving Factors of the Isopropanol?

Isopropanol forms an integral ingredient in the production of rubbing alcohol, disinfecting pads, and hand sanitizer. The compound also serves as an efficacious skin soother, and pain reliever.

Banking on these attributes of isopropanol, pharmaceutical companies highly seek pharmaceutical-grade variant for use as a solvent during the API (Active Pharmaceutical Ingredients) production that comprise 67-70% isopropanol in water. In addition, isopropanol observes robust adoption in the DNA extraction process during research & development activities of the biopharmaceutical industry.

Semiconductor- or electronic-grade isopropanol is sought-after for use as an exclusive cleaner and solvent in the industry. Demand for electronic-grade isopropanol has witnessed a significant surge, backed by the proliferation in semiconductor ICs and consumer electronics. Leading stakeholders are adopting capacity extension strategies to keep up with the rising demand. In 2017, Sumitomo Chemical commenced construction of new plant for production of high purity isopropanol in China.

Isopropanol market forecast by Fact.MR

Country-wise Analysis

What makes China a Prominent Market for Isopropanol?

China isopropanol market is largely driven by the expansion of chemical, pharmaceutical, automotive, and construction sectors. China solvent market is growing steadily and the country reported for the highest consumption of isopropanol among all Asia Pacific countries during 2021.

Growth of the pharmaceutical sector in China, is another factor driving the growth of isopropanol market. In addition, owing to the progressive demand for personal care, household cleaning and other consumer products, isopropanol is likely to remain in high demand during the review period.

Why Germany is still being the Prominent Destination for Isopropanol Business across Europe?

Germany is estimated to be one of the prominent countries for the isopropanol consumption in Europe, which is largely driven by the established automotive industry. Isopropanol as a cleaning agent is highly sought after for various automotive applications.

Further, positive growth of the construction industry has proportionally increased the consumption of Isopropanol in paints and coating production. The market for isopropanol in Germany is expected to grow at a steady pace due to the rising levels of consumption in these multiple industries.

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Category-wise Analysis

Why Isopropanol is considered as the Universal Cleaning Agent?

Due to its miscibility in most non-polar solvents, isopropanol readily dissolves dirt, light organic contaminants, and ionic flux residues. These properties are prerequisites for cleaning minute pores present in the electronic components, making it suitable cleaner for the electronic industry.

Moreover, it removes ionic salts from the printed circuit boards and dissolves organic acids in rosin-based soldering fluxes. Isopropyl alcohol is also known as rubbing alcohol and is largely used as disinfectant or sterilizer in home applications.

Following the huge demand for isopropanol, manufacturers deliver multiple purity grades of isopropanol cleaners for variety of industrial as well as household applications.

 Why Isopropanol as a Biofuel have Futuristic Market Potential?

Isopropanol can be produced from microbes such as clostridium strain of bacteria. Studies have been carried out to device engineered synthetic pathway for isopropanol production from microbes that can be used as a biofuel to partially replace gasoline. This isopropanol can also be used in place of methanol to esterify fat and oil to produce biodiesel.

In addition, production of isopropanol using lignocellulosic waste has shown promising result for economically feasible production of isopropanol. Such biological methods are estimated to gain traction in the upcoming era of green chemicals that promote the use of bio-based chemicals. In conclusion, bio-based methods of isopropanol production present future opportunities for the isopropanol market.

Competitive landscape

Isopropanol market competitive landscape shows top manufacturers including Dow Chemical Company, Exxon Mobil Corporation, Shell Chemicals, Mitsui Chemicals, Inc, Tokuyama Corporation, LG Chem Ltd., Perrigo Company plc, Sasol Limited and LyondellBasell Industries N.V

IPA shortages are witnessed in the semiconductor industry, to fill the supply demand gap, manufacturers are focusing on the construction of new isopropanol production plants. Additionally, isopropanol manufacturers pushing for long terms supply contracts, since, they understand the likelihood of price correction during next two years

Furthermore, the manufacturers rely on access to international markets or are planning to increase investments on offshore operations might find themselves on the receiving end. Pressure has continued to build on review and modernization of NAFTA (North America Free Trade Agreement) to boost job creation and economic growth in the region.

Isopropanol Market Key Segments

  • By Grade Type

    • Technical Grade
      • Direct Solvent Grade
      • Chemical Derivatives  Grade
    • Pharmaceutical Grade
    • Cosmetic Grade
    • Electronic Grade
  • By Manufacturing Process

    • Indirect Hydration of Propylene
    • Direct Hydration of Propylene
    • Catalytic Hydrogenation of Acetone
  • By Application

    • Pharmaceuticals
    • Homecare
    • Cosmetic & Personal Care
    • Chemical Intermediates
    • Electronics
    • Others
  • By Primary Function

    • Dissolving Agent
    • Cleaning & Drying Agent
    • Disinfectant
    • Anti - freezing Agent
    • Synthetic Flavoring Adjuvant
    • Antiseptics
    • Anti-adhesives
    • Others

- FAQs -

In 2021, the isopropanol market surpassed consumption of 3,242 Kilo Tons
Sales of isopropanol are projected to increase at a CAGR of over 2.5% during 2022 – 2032.
Sales of isopropanol increased at a CAGR of over 1.8% during 2016 – 2021.
Gaining popularity as solvent across several application is the primary reason driving the sales for isopropanol.
The top 4 countries driving demand for Isopropanol are the United States, China, Japan, Germany and UK
The European market for Isopropanol is projected to expand at a CAGR of 1.5% during 2022 – 2032.

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