High Purity Isobutylene HPIB Market

High purity isobutylene (HPIB) is a coproduct of catalytic cracking operations and olefins hydrocarbons. The primary processes of producing the pure form of isobutylene are the decomposition of methyl tertiary butyl ether (MTBE) into isobutylene and methanol and the dehydrogenation of isobutane. With rising concerns regarding the harmful effects of isobutylene production, manufacturers have shifted to bio-based high purity isobutylene. The C4 fraction separation method is gaining importance in the market due to its low manufacturing costs and limited energy consumption. The various companies using this technology include Honeywell International Inc., Shandong Chambroad Petrochemicals Co.Ltd, Tasco Group, TPC Group, and Evonik Industries AG.

The primary factor driving market growth is the growing demand for rubber in the automotive industry. HPIB is used in the production of synthetic rubber such as butyl rubber, which is used extensively in tires and tubes. The increasing demand for automobile tires for new vehicles and the replacement of old tires is expected to drive market growth. Moreover, rising automobile production in BRICs countries has largely impact market growth. Isobutylene is used as a chemical intermediate in the production of fuel and lubricant additives. HPIB is also used as an antioxidant in fuel and lubricant additives for prolonged use of oil in engines and gearboxes.

Countries such as Thailand, Malaysia, and Vietnam are expected to drive market growth in Asia-Pacific. Higher consumer spending on passenger cars and light commercial vehicles is likely to offer lucrative opportunities to market players. However, the volatility in crude oil prices has led to a shift in production to bio-based processes. Environmental impact and sustainability are the key issues being addressed by industry players. Companies such as Evonik Industries AG, Global Bioenergies, and LyondellBasell Industries Holdings BV have started the commercial production of isobutylene using bio-based methods.

The global high purity isobutylene (HPIB) market was valued at USD 7,097.1 million in 2017 and is expected to register a CAGR of 7.06% to reach USD 10,684.2 million by 2023. The market has been segmented on the basis of method and application. Based on method, the market has been segregated into MTBE decomposition, C4 fraction separation, isobutane dehydrogenation, and others. The MTBE decomposition segment held the largest market share of 36.7% in 2017 and is expected to reach USD 3,847.9 million by 2023. Growing concerns about the toxicity of MTBE derivatives of isobutylene and a ban in the US are expected to result in reduced demand during the forecast period. The production of isobutylene by fermentation of glucose is gaining importance in the global high purity isobutylene (HPIB) market. The C4 fraction separation segment is projected to register the highest CAGR of 7.81% during the assessment period. Based on application, the butyl rubber segment is expected to dominate the global high purity isobutylene (HPIB) market. Increasing tire production has had a positive impact on the demand for butyl rubber, which, in turn, drives product demand. The trimethylacetic acid segment is expected to register a CAGR of 6.09% during forecast period.

Based on region, Asia-Pacific is projected to dominate market growth. The regional market is expected to reach USD 4,377.1 million by 2023 at a CAGR of 8.30% during the forecast period. The rising production of automobiles, low labor costs, and production capacity expansions by regional players are expected to positively impact market growth. Changing government policies on trade liberalization and new policy frameworks are expected to offer new avenues to regional players.