Isobutene is a hydrocarbon used as a starting material for producing butyl rubber, polyisobutylene, & polybutene. It is a sustainable & environment-friendly substitute for isobutene exhibiting similar properties. The non-toxic nature of Bio-isobutene is leading to its wide application in multiple end-user industries to reduce their dependence on fossil fuels. In the coming years, the adoption of these chemicals is very likely to accelerate exponentially across the aviation, automotive, & cosmetic industries. Several leading players & governments of different countries are conducting notable research & development activities to expand the utilization of bio-isobutene and contribute toward environmental sustainability.
The Global Bio-Isobutene Market is projected to witness more than 100% CAGR during the forecast period, i.e., 2021-26. The growth of the market is likely to be driven primarily by the mounting concerns over environmental sustainability due to excess carbon emissions, depletion of natural resources, etc., i.e., compelling governments of different countries worldwide toward the production & utilization of environment-friendly & renewable products.
Additionally, these governments are laying out favorable policies & growth opportunities for the leading market players to develop alternatives like Bio-Isobutene. Several countries are also using these bio-chemicals as fuel alternatives to make the transportation & automotive industry amongst the prominent adopters of bio-isobutene.
Besides, the application of isobutene is extensive and spread across industries like transportation, cosmetic, butyl rubber, lubricants, green plastics, solvent industries, etc. Hence, an alternative like bio-isobutene with environment-friendly nature is anticipated to witness substantial acceptance & utilization in place of conventional streams, which, in turn, would drive the global market in the coming years.
Moreover, fluctuating prices of raw materials & changing dynamics of fuel standards, especially in the aviation industry, shall further stimulate the development & production of bio-isobutene & augment the overall market growth through 2026.
|Study Period||Historical Data: 2016-19|
|Base Year: 2020|
|Forecast Period: 2021-26|
|Regions Covered||North America: USA, Canada, Mexico|
|Europe: Germany, The UK, France, Spain, Italy|
|Asia-Pacific: China, India, Japan, South Korea|
|South America: Brazil|
|Middle East & Africa: GCC, South Africa|
|Key Companies Profiled||BASF SE, Exxon Mobil Corporation, LanzaTech Inc., Songwon Industrial, Butamax Advanced Biofuels, LLC, Clariant, Lanxess AG, Eastman Chemical Company, INEOS, Sinopec Corp, Dow Chemicals, Gevo, Inc., Butagaz, Global Bioenergies|
|Unit Denominations||USD Million/Billion|
Impact of Covid-19 on the Global Bio-Isobutene Market
In 2020, the Covid-19 pandemic severely impacted most industries worldwide. Since bio-isobutene is petroleum-based, the acutely hit oil & gas sector, with volatile crude oil prices, had a direct & simultaneous impact on the Global Bio-Isobutene Market. As a result, it introduced several growth challenges for the market like suspended or delayed research & development activities on bio-isobutene, hampered fuel transportation, etc., thereby causing massive financial losses to the leading players in the global market amidst the crisis.
Based on the Type:
Of them all, the demand for Straw Derived Bio-Isobutene is anticipated to demonstrate astronomical growth over the forecast years. It owes principally to the mounting focus of governments of different countries worldwide on addressing the alarming concerns over environmental depletion due to plastics & excessive use of fossil fuels. Hence, they are taking several initiatives for reducing excess wheat straws while generating growth opportunities for the leading market players to develop & upscale the production of bio-isobutene using these wheat straws.
On the other hand, Sugar Beet & Sugar Cane-derived Bio-Isobutene acquired a significant market share in recent years, mainly due to the increasing focus of governments on encouraging the production of sugar beet & sugar cane to derive sucrose for its further use in bio-isobutene production in order to reduce carbon emissions. Prominent companies like Global Bioenergies (GBE) are actively participating in increasing the production of sucrose due to escalating demand for fuel alternatives, especially from the aviation industry.
Based on End-Users:
Here, Fuel is anticipated to dominate the Global Bio-Isobutene Market with the largest share during the forecast period. It owes principally to the rapidly increasing demand for residuals like sugar, wood, & wheat straws, among others, to produce biofuel as an alternative to fossil fuels. In addition, with the growing focus on reducing carbon footprints and attaining the net Green House Gas (GHG) levels, different countries & industries are increasingly adopting sustainable fuels.
The aviation sector is increasingly collaborating with various sustainable aviation fuel producers to curb carbon emissions, which, in turn, is augmenting the demand for biofuels & generating profitability in bio-isobutene production. For instance:
Geographically, the Global Bio-Isobutene Market expands across:
Amongst all regions globally, Europe dominated the market with the largest share in recent years and would prevail the same trend during the forecast period. It owes principally to the mounting focus of governments in France, Germany, and the UK on curbing carbon emission levels & investing substantially in the production of different bio-based products, including bio-isobutene.
Additionally, favorable government policies for bio-isobutene production shall also generate lucrative opportunities for the leading players in the regional market through 2026. Besides, the abundant presence of wheat straws is instigating producers to optimize the conversion of residuals into bio-isobutene & make a positive influence on the regional market.
In Europe, France is likely to dominate the regional market in the coming years, owing to its massive cosmetic industry, i.e., propelling the demand for bio-isobutene as a replacement for petroleum-based ingredients. Additionally, the application of bio-isobutene for hairspray & deodorant shall also positively influence France's cosmetic industry and boost the regional market in the years to come.
On the other hand, the Bio-isobutene Market shall observe a significant growth rate across Asia-Pacific during 2021-26, owing primarily to the rapidly expanding automotive sector demonstrating an active procurement of bio-isobutene as an alternative to fossil fuels. Across the region, countries like China, India, Japan, & South Korea have massive automotive industries.
Additionally, the accelerating vehicle production & rapid upgrades would also positively influence the regional market growth in the coming years. Besides, the burgeoning focus of governments of different countries across the region on curbing carbon emissions & procuring greener products is another crucial aspect projected to generate remunerative opportunities for the regional market players during 2021-26. For instance:
Recent Developments by Leading Companies
Key Driver: Increasing Government Inclination toward Bringing Environmental Sustainability
With growing concerns over the depleting environmental conditions due to the rapidly increasing carbon emissions, governments of different countries worldwide are encouraging several industries to adopt bio-based products like bio-isobutene in order to achieve sustainability of resources & reduce dependency on fossil fuels.
Moreover, the aviation industry, the largest contributor to carbon emissions, is also conducting numerous research & development activities to develop sustainable aviation fuel & positively influence the growth of the Global Bio-Isobutene Market. In addition, the cosmetic industry is another prominent role player utilizing bio-isobutene as an alternative to petroleum and contributing to the overall market expansion.
Possible Restraint: Technical Barriers & Unavailability of Skilled Labor
Bio-isobutene production requires technical expertise. Hence, the unavailability of skilled professionals might act as a significant growth restraint for the Global Bio-isobutene Market during 2021-26. Additionally, the high initial cost incurred while procuring bio-isobutene may also limit the market growth for cost-sensitive or consolidated end-users through 2026.
Key Questions Answered in the Market Research Report:
Frequently Asked Questions
A. The Global Bio-Isobutene Market is expecting more than 100% CAGR during 2021-26.
A. Fuel is anticipated to emerge as an area of remunerative opportunities for the leading players in the Global Bio-Isobutene Market in the coming years.
A. The mounting concerns over the rapidly increasing carbon emission levels and the critical need to develop & utilize eco-friendly bio-based products like bio-isobutene across different end-user industries are the prime aspects anticipated to drive the Global Bio-Isobutene Market through 2026.