Isobutane Market

Isobutane Industry Outlook

As per rigorous research by ChemView Consulting, our analysts forecast that the global isobutane market is expected to reach a valuation of USD 29731.7 million and will grow at a 5.6% CAGR during 2023 to 2033.

Key Findings on the Isobutane Sector

1. Which is the largest market for isobutane?

The biggest market is East Asia. As per our analysis, East Asia holds nearly 34.3% market share.

2. What is the largest application segment within the isobutane sector?

As per ChemView Consulting, the largest segment by application is refineries. As per our analysis, this segment accounts for nearly 46.3% of total revenues.

3. At what rate is the isobutane market expected to grow?

The industry size is expected to grow at a CAGR of 5.6% during the period 2023–2033.

4. What are the major trends influencing the isobutane industry growth?

• Technological Advancements: Continuous research and development is leading to the development of more efficient and environmentally friendly isobutane production techniques.
• Energy Industry: Isobutane is rapidly being employed in the energy sector to boost oil recovery, which is fueling market expansion.

5. Who are the leading players in the industry landscape?

The key companies in the isobutane market are Praxair Technology, BASF SE, ConocoPhillips, Air Liquide, KazMunayGas, Taiyo Nippon Sanso Corporation, Evonik, Thyssenkrupp Industrial Solutions, Valero Energy Corp., Ltd., ExxonMobil Chemical, Versalis S.p.A., Verni Gas Corporation, Total Petrochemicals & Refining, Shandong Yuean Chemical, LyondellBasell, TPC Group, Royal Dutch Shell, Chevron Phillips Chemical Company, INEOS, Sinopec, Praxair, Inc., PBF Energy, Sinopec, Linde LLC., Amcor, Matheson, Aditya Air Products, and Bhuruka Gases Limited.

Key Drivers for Isobutane Demand

• Isobutane is a refrigerant that is commonly found in domestic refrigerators and air conditioning equipment. Thus, the growing need for energy-efficient and environmentally friendly refrigeration systems will boost the isobutane market.
• In addition, isobutane is often used as a propellant in aerosol items such as personal care products and home cleaners. As the consumer products industry continues to develop and expand, the demand for isobutane in aerosols is expected to rise.
• Furthermore, isobutane is used in automotive air conditioning systems. As the global automobile industry increases and the demand for more energy-efficient vehicles rises, so will the demand for isobutane in automotive applications.

Key Challenges Inhibiting Demand for Isobutane

• As environmental concerns increase, there is a shift towards adopting more environmentally friendly refrigerants, such as hydrofluorocarbons (HFCs) and natural refrigerants. The change may lower isobutane usage in refrigeration applications.
• Moreover, the global push for renewable and sustainable energy sources may reduce the usage of isobutane in energy-related applications, such as the production of isobutane-powered engines or generators, which is expected to hamper market growth.

Key Challenges & Opportunities for Isobutane Market Manufacturers

• Ensuring the safe and effective transport of isobutane, often in compressed gas form, can be difficult due to strict safety rules, handling restrictions, and the need for specialized equipment.
• However, embracing innovative technologies for the production and distribution of isobutane can enhance efficiency and reduce costs, thereby creating a competitive advantage and market opportunities.

Country/Region-wise Insights

US Isobutane Industry Forecast 

• The growing importance of isobutane-based refrigerants in the HVAC business, as well as the increasing automobile sector in the US market, are projected to observe significant growth in the estimated period.
• In addition, growing environmental consciousness and the demand for eco-friendly alternatives are driving the industry towards isobutane as a more environmentally conscious solution.

Europe Isobutane Market Outlook 

• Rising consumer awareness of ecologically friendly products and a growing need for eco-friendly refrigeration systems in the Europe market are anticipated to drive sales in the market over the assessment period.
• In addition, the growing automobile sector and the requirement for efficient air conditioning systems are driving up demand for isobutane as a refrigerant.

Japan Isobutane Business Forecast

• Consistent growth in the automotive industry, particularly in the electric and hybrid car sectors, in the Japanese market is anticipated to drive the market over the forecasted period.
• Additionally, Japan’s growing emphasis on environmentally friendly energy sources, along with expanding demand for refrigeration and air conditioning systems, is driving higher demand for isobutane, a vital refrigerant and propellant gas.

China & India Isobutane Market Forecast

• Increasing urbanization, population growth, and the expansion of industrial sectors in the China & Indian markets are anticipated to fuel the market over the forecast period. China & India’s markets are likely to account for a leading share of the global industry.
• In addition, environmental laws and a trend towards eco-friendly refrigerants are expected to drive even further market expansion.

Isobutane Industry Outlook & Forecast by Segmentation

By Purity

Based on purity, the 99.5% segment is expected to remain at the forefront of the market share over the assessment period. The growth is mainly because high-purity isobutane, such as the 99.5% segment, is critical for applications that need low impurities or pollutants. Industries like refrigeration, which use isobutane as a refrigerant, require high-purity isobutane to ensure the effective and safe operation of their systems.

Furthermore, in many industries, there are strict regulations governing the quality and purity of the chemicals used. High-purity isobutane is more likely to meet certain regulatory criteria, making it the preferable choice for ensuring compliance and safety.

By Source

Based on the source, the synthetics segment is expected to remain at the forefront of the isobutane market size over the assessment period. The growth is mainly because synthetic isobutane can be manufactured consistently, aiding in the maintenance of reliable supply chains. This is critical for companies that rely on a consistent supply of isobutane for production.

In addition, synthetic isobutane costs may be more stable than natural isobutane prices, which might fluctuate due to variables such as supply limits. This can make synthetic isobutane appealing to industries seeking cost predictability.

Furthermore, synthetic isobutane may be produced at high purity, making it useful for applications where impurities could be detrimental, such as the production of specialty chemicals and pharmaceuticals.

By Application

Based on application, the refineries segment is set to account for 46.3% of the isobutane market section over the assessment period. The growth is because refineries are a major source of isobutane production. Isobutane is frequently produced as a byproduct of crude oil refining and natural gas processing. Refineries have well-established infrastructure and techniques for extracting isobutane, giving them a continuous and stable source of this hydrocarbon.

In addition, refineries have the capacity for large-scale isobutane manufacturing, which is critical for addressing the demands in various sectors. They can produce large amounts of isobutane, ensuring a stable supply for the market.

Which Company Owns the Largest Share in the Isobutane Industry?

The key companies in the isobutane business are Praxair Technology, BASF SE, ConocoPhillips, Air Liquide, KazMunayGas, Taiyo Nippon Sanso Corporation, Evonik, Thyssenkrupp Industrial Solutions, Valero Energy Corp., Ltd., ExxonMobil Chemical, Versalis S.p.A., Verni Gas Corporation, Total Petrochemicals & Refining, Shandong Yuean Chemical, LyondellBasell, TPC Group, Royal Dutch Shell, Chevron Phillips Chemical Company, INEOS, Sinopec, Praxair, Inc., PBF Energy, Sinopec, Linde LLC., Amcor, Matheson, Aditya Air Products, and Bhuruka Gases Limited.

Recent Developments:

• In April 2022, Evonik, a publicly traded German specialty chemicals firm, launched a “double-digit million euro” project to expand isobutane derivative output at its C4 Verbund plant in Marl, Germany, by more than 50%.
• In November 2022, KazMunayGas, the government-owned oil and gas firm, started building a new butadiene and synthetic rubber site.
• In July 2020, Thyssenkrupp Industrial Solutions, a prominent partner in the design, construction, and maintenance of industrial plants and systems, and BASF SE announced an agreement to expand their collaboration on the STAR process.

As per our analysis, the companies that hold the major share of the isobutane market are

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Praxair Technology  

Founded in 1907 and with headquarters in Danbury, Connecticut, United States, it is a global industrial gas corporation.

BASF SE

Founded in 1865 and headquartered in Ludwigshafen, Germany, it is a multinational corporation and the world’s largest chemical producer.

ExxonMobil Chemical

Established in 1966 with headquarters in Houston, Texas, United States, it is an international oil and gas company.

TPC Group

Founded in 1944 and based in Houston, Texas, it is a manufacturer of petrochemicals.

Amcor 

Founded in 1896 and with headquarters in Zurich, Switzerland, it is a multinational packaging company.

What Makes this Report More Insightful than Others?

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Summary

The isobutane market is projected to reach a significant value of $ 29731.7 M$n by 2033, driven by a robust 5.6% CAGR during the period 2023–2033. Key industry players actively contributing to its growth are Praxair Technology, BASF SE, ConocoPhillips, Air Liquide, KazMunayGas, Taiyo Nippon Sanso Corporation, Evonik, Thyssenkrupp Industrial Solutions, Valero Energy Corp., Ltd., ExxonMobil Chemical, Versalis S.p.A., Verni Gas Corporation, Total Petrochemicals & Refining, Shandong Yuan Chemical, LyondellBasell, TPC Group, Royal Dutch Shell, Chevron Phillips Chemical Company, INEOS, Sinopec, Praxair, Inc., PBF Energy, Sinopec, Linde LLC., Amcor, Matheson, Aditya Air Products, and Bhuruka Gases Limited. The largest market segment by application is refineries, while East Asia emerges as the dominant region in this market.

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