10.1 Introduction
The competitive landscape offers an analysis of the degree of competition among industry players as well as industry growth and the market scenario. Over the past few years, the global high purity isobutylene (HPIB) market has witnessed healthy product demand in various applications such as butyl rubber and polyisobutylene. However, the degree of competition among market players is high as there are only a few companies providing high purity isobutylene worldwide. Asia-Pacific is projected to be the largest revenue-generating market during the forecast period.
10.2 Market Strategy Analysis
The prominent players in the global high purity isobutylene (HPIB) market are Saipem SpA, TPC Group, Sinopec Beijing Yanshan Company, Tasco Group, Songwon, Honeywell International Inc., LyondellBasell Industries Holdings B.V., Sumitomo Chemical Co., Ltd, Exxon Mobil Corporation, Global Bioenergies, Evonik Industries AG, Zibo Qixiangtengda Chemical Co., Ltd., Shandong Chambroad Petrochemicals Co. Ltd, and Zhejiang Shunda New Material Co., Ltd.
Sinopec Beijing Yanshan Company, LyondellBasell Industries Holdings B.V, Tasco Group, Songwon, Honeywell International Inc., and Sumitomo Chemical Co., Ltd collectively hold the majority share of the market.
The key market players are focused on increasing profitability, expanding their product portfolios, and gaining a competitive edge through the adoption of organic and inorganic growth strategies such as expansions and licensing agreements.
Threat of New Entrants
Taking all the past and present global market trends, forces, and scenarios into consideration, the global high purity isobutylene (HPIB) market is estimated to have a moderate threat of new entrants. The production of HPIB is energy intensive which adds to manufacturing costs. The capital requirement is also high due to environmental regulations on isobutylene production. The price-volume relationship is fluctuating as most of the raw materials are produced from crude oil. Thus, high cost and the price-volume relationship are likely to impact the entry of new industry players.
Threat of Rivalry
The global high purity isobutylene (HPIB) market is likely to witness a moderate-to-high threat of rivalry due to the presence of a significant number of proficient manufacturers. These players account for a fair share of the market and are constantly looking to expand their presence. Major players are targeting emerging economies such as India, Singapore, Thailand, Brazil, and Indonesia. Additionally, tier-1 players are present in almost all regions and are mostly adopting expansions and agreements as strategies to maintain their dominance. Moreover, the competition in this market is mostly based on the quality and price of the products.
Threat of Substitutes
The threat of substitutes in the global high purity isobutylene (HPIB) market is observed to be low. Major companies are involved in the R&D of different types of HPIB to expand the scope of application. The key players are investing in bio-based production technologies. For instance, Global Bioenergies has started the commercial production of isobutylene using gaseous fermentation. In time, research may lead to the development of natural, sustainable, and efficient substitutes for petroleum-based materials; however, the threat of substitutes is expected to remain low during the assessment period.
Bargaining Power of Suppliers
The bargaining power of suppliers is estimated to be low to moderate. The presence of a large number of tier-1 and small regional industry players reduces the switching cost for buyers, resulting in a low bargaining power for suppliers. However, the limited presence of substitutes for HPIB places the suppliers in a strong position; hence, the bargaining power of suppliers is slated to be low to moderate.
Bargaining Power of Buyers
The bargaining power of buyers is estimated to be moderate to high as the switching cost for buyers is low. Moreover, the majority of consumers are price sensitive and quality oriented.
