High Purity Isobutylene Market Analysis

In-depth Analysis of High Purity Isobutylene Market Industry Landscape

The automotive industry is driving up the demand for high purity isobutylene (HPIB), a key ingredient in synthetic rubber used for tires and other automotive components. In 2017, global passenger car sales reached around 76 million units, with China leading the way as the top manufacturer of both commercial and consumer vehicles. Major automakers are investing in the development of high-performance, lightweight materials to improve fuel efficiency and reduce emissions. As a result, the rising production of automobiles has led to a surge in demand for tires and other synthetic rubber products, which in turn is driving up the demand for HPIB.

Synthetic rubber, such as butyl rubber and polyisobutylene, is made using isobutylene. Butyl rubber's outstanding chemical and mechanical properties, such as its high damping capability and low permeability to air and moisture, make it particularly sought-after in the automotive industry. According to market research firm MRFR, global synthetic rubber production reached 15.0 million tons in 2016 and is expected to continue growing significantly due to the increasing demand for lightweight vehicle components and the preference for tubeless tires that are durable and require minimal maintenance.

The booming automotive industry and the associated rise in tire production are the primary drivers of growth for the global HPIB market. The increasing demand for both original equipment manufacturer (OEM) tires and replacement tires is further fueling market expansion.

In addition to the automotive industry, HPIB is also used in a variety of other applications, including:

Fuel and lubricant additives: HPIB serves as an antioxidant in fuel and lubricant additives, extending the lifespan of oil in engines and gearboxes.

Pharmaceutical intermediates: HPIB is used in the production of certain pharmaceutical intermediates, such as ibuprofen and trimethylacetic acid.

Plastics and resins: HPIB is a component of certain plastics and resins, including polyisobutylene and butyl rubber.

Other applications: HPIB is also used in a variety of other applications, such as adhesives, sealants, and coatings.

The global HPIB market is expected to reach a value of USD 10,684.2 million by 2023, growing at a CAGR of 7.06%. The market is segmented based on production method and application. MTBE decomposition was the dominant method in 2017, holding a market share of 36.7%. However, concerns about the toxicity of MTBE derivatives and the ban in the US are expected to drive a shift towards other methods like C4 fraction separation and isobutane dehydrogenation.

In terms of application, butyl rubber is expected to remain the primary driving force behind HPIB demand, as its use in tire production continues to expand. The trimethylacetic acid segment is also projected to experience steady growth, with a CAGR of 6.09% during the forecast period.

The Asia-Pacific region is expected to dominate market growth, with its regional market reaching a value of USD 4,377.1 million by 2023. The factors contributing to this growth include the rising production of automobiles, low labor costs, and production capacity expansions by regional players. Changing government policies on trade liberalization and new policy frameworks are also expected to create new opportunities for regional market players.

In conclusion, the global HPIB market is poised for continued growth, driven by the increasing demand for synthetic rubber in the automotive industry, the shift towards bio-based production methods, and the expanding market in the Asia-Pacific region. Technological advancements, environmental considerations, and government policies will continue to shape the future of HPIB production and consumption.

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