Market Size (2015)
2015
$6.28B
Vertical: CNMBase Year: 201711 Sections
Market Size (2015)
2015
$6.28B
Projected (2023)
2023
$10.68B
CAGR (2015–2023)
6.9%
6.9%Key Players
111+
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.
The High Purity Isobutylene HPIB Market market is projected to grow at a CAGR of 6.9% from 2015 to 2023.
Historical performance and future projections (2020–2030, USD Billion)
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View Subscription PlansHigh purity isobutylene (HPIB) is an olefinic hydrocarbon produced from dehydration of tert-butanol. Pure isobutylene is obtained by the controlled dehydration of a feed stream containing tertiary butyl alcohol and some traces of butenes. The main process by decomposition of methyl tertiary butyl ether (MTBE) to isobutylene and methanol has gained high importance during the forecast period. The other is the dehydrogenation of isobutane is practiced primarily in petrochemical market. High purity isobutylene is further synthesized to produce butyl rubber and polyisobutylene. HPIB is also used as chemical intermediate for production of Trimethylacetic acid and Methyl-ally-chloride.
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View Subscription PlansResearch Process
Market Research Future analysis is conducted by industry experts who offer insight into industry structure, market segmentation, technology assessment, competitive landscape (CL), and market penetration, as well as on emerging trends. Besides primary interviews (~80%) and secondary research (~20%), their analysis is based on years of professional expertise in their respective industries. Our analysts also predict where the market will be headed in the next five to 10 years, by analyzing historical trends and current market positions. Furthermore, the varying trends of segments and categories in different regions are estimated based on primary and secondary research.
Primary Research
Extensive primary research was conducted to gain a deeper insight into the market and the industry performance. For this particular report, we have conducted primary surveys (interviews) with the key level executives (VPs, CEOs, marketing directors, and business development managers, among others) of the major players active in the market. In addition to analyzing the current and historical trends, our analysts predict where the market is headed over the next five to 10 years.
Secondary Research
Secondary research was conducted to collect and identify information useful for an extensive, technical, market-oriented, and commercial study of the high purity isobutylene (HPIB) market. It was also used to obtain key information about major players, market classification and segmentation according to industry trends, regional markets, and developments related to the market and technology perspectives. For this study, analysts have gathered information from various credible sources, such as annual reports, SEC filings, journals, white papers, corporate presentations, company websites, international organizations of chemical manufacturers, and paid databases.
Market Size Estimation
Both the top-down and bottom-up approaches were used to estimate and validate the size of the market and to estimate the size of various other dependent sub-markets of the overall high purity isobutylene (HPIB) market. The key players in the market were identified through secondary research, and their market contributions in the respective regions were determined through primary and secondary research. This entire process included the study of the annual and financial reports of the top market players and extensive interviews for key insights with industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares, splits, and breakdowns were determined using secondary sources and verified through primary sources. All the possible parameters that affect the market covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to arrive at the final quantitative and qualitative data. This data has been consolidated, and detailed inputs and analysis by Market Research Future added before being presented in this report. The following figure shows an illustrative representation of the overall market size estimation process employed for the purpose of this study.
Base Year
2017
Historical Period
2015 – 2017
Forecast Period
2017 – 2023
Primary Interviews
150+
Historical data (2015–2017) and forecast period (2017–2023)
Our research process spans primary interviews with industry stakeholders combined with comprehensive secondary data analysis, validated through triangulation across multiple independent sources.
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View Subscription PlansThreat 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.
Market estimates by geography (2023)
InsightAsia Pacific leads with $4.38B by 2023.
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View Subscription Plans| REGION | 2015 | 2017 | 2023 | CAGR | SHARE |
|---|---|---|---|---|---|
| Middle East and Africa | $563.20M | $734.80M | $985.60M | 7.2% | 9% |
| North America | $1.59B | $1.96B | $2.49B | 5.8% | 23% |
| Asia Pacific | $2.36B | $3.17B | $4.38B | 8.0% | 41% |
| Europe | $1.07B | $1.36B | $1.78B | 6.6% | 17% |
| South America | $702.20M | $846.10M | $1.05B | 5.1% | 10% |
| Total | $6.28B | $8.07B | $10.68B | 6.9% | 100% |
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View Subscription PlansTotal Market Size
$9.98B
| APPLICATION | REVENUE ($B) | GROWTH RATE | MARKET PENETRATION |
|---|---|---|---|
| MTBE Decomposition Method | $3.60B | 6.9% | 46% |
| C4 Fraction Separation Method | $3.24B | 6.9% | 73% |
| Isobutane Dehydrogenation Method | $2.03B | 6.9% | 67% |
| Others | $1.11B | 6.9% | 53% |
* Revenue projections based on 2025 estimates. Growth rates represent CAGR 2024–2030. Market penetration indicates current adoption rate within addressable market segments.
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Analytical insights on High Purity Isobutylene HPIB Market covering market dynamics, competitive landscape, and strategic outlook.
The High Purity Isobutylene HPIB Market market is projected to reach $10.68B by 2023, growing at 6.9% CAGR. The MTBE Decomposition Method segment holds the largest share.
Introduction
The global high purity isobutylene (HPIB) market is expected to grow at a healthy CAGR of 7.16% during the forecast period. The widespread use of rubber in the automotive industry and the increasing application in fuel and lubricant additives are driving the growth of the global high purity isobutylene (HPIB) market. Increasing automobile production in developing countries, along with the rising use of HPIB in butyl rubber is expected to propel market growth during the forecast period. However, rising environmental and health problems due to isobutylene production is likely to hamper market growth. This has led to the production of bio-based alternatives using sustainable technology.
The growth of the automotive industry is expected to be the strongest driver for the growth of the global high purity isobutylene (HPIB) market. According to the Organization Internationale des Constructeurs d'Automobiles (OICA), worldwide passenger car sales were around 76 million units in 2017. China emerged as the leading manufacturer of commercial and consumer vehicles at 24.72 million units in 2017. It was followed by the US, India, France, Japan, and Spain, which are home to some of the largest automotive manufacturers. These companies are focusing on the development of high performance, lightweight materials to increase fuel efficiency and reduce flue gas emissions to meet increasingly stringent regulations. Consequently, the rising automotive production has led to the need for automobile tires and other synthetic rubber products, which is expected to augment the demand for HPIB.
According to the US Tire Manufacturers Association, 75% of the rubber produced in the world is used in the production of tires. Isobutylene is used to manufacture synthetic rubber such as butyl rubber and polyisobutylene. With excellent chemical and mechanical properties such as high damping capability and low permeability to air and moisture, the demand for butyl rubber is expected to grow exponentially in the automotive industry. According to MRFR analysis, the global synthetic rubber production accounted for 15.0 million tons in 2016 and is expected to grow substantially due to the rising demand for lightweight vehicle components and preference for tubeless tires that are durable with low maintenance costs.
Along with the booming automotive industry, the increasing production of tires in automotive has led to the growing demand for rubber, which, in turn, is expected to drive the growth of the global high purity isobutylene (HPIB) market during the assessment period. Furthermore, the rising demand for OEM tires and replacement of old tires is projected to fuel market growth.
Environmental impact and sustainability are the major issues faced by industry players as isobutylene is produced from petrochemicals. When isobutylene is released as a liquid, it may cause eye and nasal irritation. Isobutylene gas is highly flammable with prolonged exposure resulting in nausea and headaches.
Isobutylene is also used in the production of MTBE which is a gasoline-blending component for cleaner burning fuels. With rising concerns about harmful emissions from passenger and commercial vehicles, the use of octane boosters is growing at a fast rate to improve the performance of car engines. MTBE derivatives of isobutene or isobutylene are used as octane enhancers; however, their leaching into the groundwater results in the contamination of public water systems. Thus, the toxic effects of MTBE have resulted in their limited use as a fuel additive in gasoline. The US Environmental Protection Agency (EPA) has banned the use of MTBE as a lubricant additive. It also compels public water systems to be continuously monitored for MTBE levels to maintain the safe supply of drinking water. Thus, the hazardous effects of isobutylene derivatives are likely to hamper market growth in the coming years.
Near-term growth will likely concentrate in modular bioreactor lines and closed-system media workflows that shorten validation cycles while preserving batch traceability.
Partnerships between CDMOs and instrumentation vendors should accelerate standard datasets for comparability across sites, improving forecasting models used in capacity planning.
Longer horizon, organoid and microphysiological adoption may reshape segment mix; teams that invest early in assay interoperability and cloud QC hooks are better positioned to capture upside without fragmenting their analytics stack.
Profiles of 111 companies operating in the High Purity Isobutylene HPIB Market market, including revenue, employee count, and market positioning where available.
Showing 111 of 111 companies
Shandong Chambroad Petrochemicals Co. Ltd
Company Headquarters: Shandong Province, China Founded: 1988 Workforce: ~2500 Company Working: Shandong Chambroad Petrochemicals Co. Ltd (Shandong Chambroad) is a fully owned subsidiary of Shandong Chambroad Holding Co., Ltd. The company is involved in the production and supply of petrochemicals and operates through the gasoline and diesel oils, petrochemicals, and materials segments. The company is the first local refining enterprise in the Shandong province and sells its products in over 16 provinces and cities in China. Shandong Chambroad has 11 technical innovation alliances with over 19 universities and research institutes globally.
Global Bioenergies
Company Headquarters: France Founded: 2008 Workforce: ~200 Company Working: Global Bioenergies is a technology-driven company that develops processes to convert renewable resources into hydrocarbons through fermentation. The company primarily focuses on the conversion of sugar, crops, and agricultural and forestry waste into isobutene. It has four subsidiaries, namely, Global Bioenergies GmbH, Syngip, IBN-One SA, and IBN-Two. Global Bioenergies GmbH, based in Germany, builds and operates an industrial-scale demonstrator at its refinery and focuses on specialized engineering services in gas fermentation. Syngip was founded in 2014 and has developed a process for the conversion of gaseous carbon sources into various valuable chemical compounds such as light olefins and petrochemical molecules, including isobutene. IBN-One SA was a wholly owned subsidiary of Global Bioenergies but was converted into a 50/50 joint venture with Cristal Union in May 2015. The company has obtained a license from Global Bioenergies to operate an isobutene process plant producing 50,000 tonnes annually. IBN-Two is based in Germany and has been established as a vehicle for bringing together German industry players to raise financing for building and operating the first bio-sourced isobutene production facility in the country.
Evonik Industries AG
Company Headquarters: Essen, Germany Founded: 2007 Workforce: ~36,043 Company Working: Evonik Industries AG (Evonik Industries) is one of the leading producers of sodium methylate in the world. It is the largest specialty chemical company and has production sites in 28 countries across the globe. Evonik Industries operates through the following business segments—resource efficiency, nutrition & care, services, and performance materials. The company produces sodium methylate under the performance materials business segment. The company marks presence in 100 countries across Asia-Pacific, North America, Europe, and Africa. It has three major production sites in the US, Germany, and Argentina, with an annual production capacity of approximately 200 kilotons to ensure optimal deliveries of sodium methylate. The company held assets worth USD 23,952.13 million in 2018.
PJSC Nizhnekamskneftekhim
Company Headquarters: Russia Founded: 1967 Workforce: NA Company Working: PJSC Nizhnekamskneftekhim engages in the production of petrochemical products. The company is the leading producer of synthetic rubbers and plastic in Russia. It offers more than 120 products including specialty synthetic rubber, polystyrene, polypropylene, ABS-plastics, and other petrochemical products such as ethylene oxide, propylene oxide, alpha-olefins, and surfactants.
Exxon Mobil Corporation
Company Headquarters: Texas, US Founded: 1882 Workforce: ~71,200 Company Working: Exxon Mobil Corporation majorly deals in the exploration, development, and distribution of oil, gas, and petroleum products. It operates through three business segments: upstream, downstream, and chemical. The upstream segment produces crude oil and natural gas. The downstream segment manufactures and trades petroleum products. The chemical segment offers petrochemicals such as polyethylene, olefins, aromatics, and polypropylene plastics, along with a range of specialty products. It has 136 cross-functional sites located in 39 countries across the world. Gas treatment solvents are offered under the chemical business segment under the brand “FLEXSORB SE”. ExxonMobil’s FLEXSORB SE or SE Plus solvents are used in a wide variety of acid gas enrichment (AGE) design for the selective removal of H2S. This gas treatment technology has been used in over 100 commercial units worldwide and is considered as the best available technology in many regions across the globe.
LyondellBasell Industries Holdings BV
Company Headquarters: Netherlands Founded: 2007 Workforce: ~13000 Company Working: LyondellBasell Industries Holdings BV (LyondellBasell) is the foremost plastics, chemicals, and refining company in the world. It manufactures materials and products that are key solutions to modern challenges such as enhancing food safety through lightweight and flexible packaging, water purity protection through stronger and versatile pipes, and improving the safety, comfort, and fuel efficiency of automobiles. The company’s operating segments are olefins and polyolefins, intermediates and derivatives, refining, and technology. It is also the world’s largest global licensor of polyolefin technologies and a leading producer of high purity isobutylene.
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High Purity Isobutylene HPIB Market