Global Isobutane Market Size, Share, and COVID-19 Impact Analysis, By Feedstock (Petroleum Refinery and Natural Gas Processing), By Application (Fuel Blending, Refrigerant, Aerosol Propellant, and Chemical Intermediate), By End-Use Industry (Automotive, Refrigeration & Air Conditioning, Aerosols & Personal Care, and Chemical & Pharmaceutical), and By Region (North America, Europe, Asia-Pacific, Latin America, Middle East, and Africa), Analysis and Forecast 2023 - 2033.

Global Isobutane Market Insights Forecasts to 2033

• The Global Isobutane Market Size was Estimated at USD 25.90 Billion in 2023
• The Market Size is Expected to Grow at a CAGR of around 3.14% from 2023 to 2033
• The Worldwide Isobutane Market Size is Expected to Reach USD 35.30 Billion by 2033
• Asia Pacific is expected to grow the fastest during the forecast period.

The Global Isobutane Market Size is projected to reach USD 35.30 Billion by 2033, growing at a CAGR of 3.14% from 2023 to 2033. The growing use of isobutane as a key raw material for producing a wide range of products, the rising isobutane need for petrochemicals, and its use as a refrigerant with the increasing environmental regulations are driving the market for isobutane.

Market Overview

The isobutane market is the commercial exchange and trade of isobutane which is a hydrocarbon gas primarily used as a feedstock for producing various petrochemicals such as isobutylene which is further used for manufacturing products including synthetic rubber, gasoline additives, and plastic components. Isobutane, an isomer of butane, is a colorless, flammable gas with a faint odor of gasoline or natural gas. It is usually shipped as a liquid under pressure and used as a refrigerant, fuel, and aerosol propellant, and in rubber. A common isobutane market trend that supports industry demand is the encouragement of its usage as a low-GWP refrigerant by rising environmental legislation. Isobutanes are frequently chosen as alternatives to other hydrocarbons because of their minimal ability to cause global warming and their zero ozone depletion. This characteristic aids in the isobutane market expansion, especially as researchers look for environmentally benign chemical compounds in an effort to fight global warming. The technological advancements in bio-based isobutane production and its adoption in automotive air conditioning systems are providing lucrative market growth opportunities for isobutane.

Report Coverage

This research report categorizes the isobutane market based on various segments and regions forecasts revenue growth and analyses trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the Isobutane market. Recent market developments and competitive strategies such as expansion, type launch, development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the isobutane market.

Driving Factors 

The growing need for eco-friendly refrigerants in HVAC systems that leads to the adoption of isobutane is driving the isobutane market. The expanding aerosol industry is responsible for driving market demand for isobutane as a propellant. Further, the growing petrochemical refineries and preference for bio-based isobutane that support sustainability are propelling the global isobutane market. The growing use of isobutane as a clean and effective fuel in industrial and automotive applications is propelling the market growth. Additionally, the development in the isobutane production technologies, such as the creation of more economical and efficient procedures is anticipated to bolster the market growth.

Restraining Factors

The flammability concerns and stringent safety regulations associated with the use of isobutane are limiting the isobutane market. The fluctuation in the raw material prices which impact the production cost and profitability of the products are restraining the market growth. In addition, the availability of alternative refrigerants negatively affects the isobutane market.

Market Segmentation

The global isobutane market share is classified into feedstock, application, and end-use industry.

• The petroleum refinery segment dominated the market with a major market share in 2023 and is anticipated to grow at a significant CAGR during the forecast period.

Based on the feedstock, the isobutane market is classified into petroleum refinery and natural gas processing. Among these, the petroleum refinery segment dominated the market with a major market share in 2023 and is anticipated to grow at a significant CAGR during the forecast period. A variety of petrochemicals, such as isobutylene, isobutene, and methyl tert-butyl ether (MTBE), are made from isobutane as a feedstock. Numerous products, such as synthetic textiles, fertilizers, and plastics, are made using these petrochemicals. The increasing need for gasoline and other refined products is driving the market in the petroleum refinery segment.

• The fuel blending segment dominates the market with the largest market share of over 55% in 2023 and is anticipated to grow at a significant CAGR through the forecast timeframe.

Based on the application, the isobutane market is classified into fuel blending, refrigerant, aerosol propellant, and chemical intermediate. Among these, the fuel blending segment dominates the market with the largest market share of over 55% in 2023 and is anticipated to grow at a significant CAGR through the forecast timeframe. Isobutane is primarily used in fuel blending as a key component to produce high-octane “alkylates” which is responsible for improving its combustion characteristics and making it a valuable blendstock for gasoline production. The growing need for cleaner fuels and isobutane adoption in gasoline are propelling the market growth in the fuel blending segment.

• The automotive segment dominated the market with the largest market share in 2023 and is expected to grow at a significant CAGR during the forecast period.

Based on the end-use industry, the isobutane market is classified into automotive, refrigeration & air conditioning, aerosols & personal care, and chemical & pharmaceutical. Among these, the automotive segment dominated the market with the largest market share in 2023 and is expected to grow at a significant CAGR during the forecast period. Isobutane is used to produce gasoline and other compounds for improving engine performance and reducing emissions. The growing automotive industry owing to the rising vehicle production is contributing to driving the market in the automotive segment.

Regional Segment Analysis of the Isobutane Market

• North America (U.S., Canada, Mexico) 
• Europe (Germany, France, U.K., Italy, Spain, Rest of Europe)
• Asia-Pacific (China, Japan, India, Rest of APAC)
• South America (Brazil and the Rest of South America) 
• The Middle East and Africa (UAE, South Africa, Rest of MEA)

North America is anticipated to hold the largest share of the isobutane market over the predicted timeframe.

North America is anticipated to hold the largest share of the isobutane market over the predicted timeframe. This is attributed to the adoption of isobutane as a gasoline fuel addition in the automotive industry as well as government incentives and permits promoting its use as a feed additive. Government laws that aim at lowering the emissions levels of hazardous chemicals, such as chlorofluorocarbons (CFCs) are supporting the market for isobutane.

Asia Pacific is expected to grow at the fastest CAGR growth of the isobutane market during the forecast period. The increasing need for manufacturing personal care products and the adoption of isobutane as a refrigerant in domestic applications are driving the isobutane market. The growing inclination towards cleaner energy sources by government policies and regulations is significantly contributing to propelling the isobutane market.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the isobutane market along with a comparative evaluation primarily based on their type of offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes type development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• ExxonMobil
• Total Petrochemicals & Refining
• LyondellBasell
• Shell
• TotalEnergies
• Reliance Industries
• Chevron
• TPC Group
• Saudi Aramco
• INEOS
• BP
• Sinopec
• Petrobras
• CNOOC
• Versalis S.p.A.
• Others

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting And Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Market Segment

This study forecasts revenue at global, regional, and country levels from 2023 to 2033. Spherical Insights has segmented the isobutane market based on the below-mentioned segments:

Global Isobutane Market, By Feedstock

• Petroleum Refinery
• Natural Gas Processing

Global Isobutane Market, By Application  

• Fuel Blending
• Refrigerant
• Aerosol Propellant
• Chemical Intermediate

Global Isobutane Market, By End-Use Industry

• Automotive
• Refrigeration & Air Conditioning
• Aerosols & Personal Care
• Chemical & Pharmaceutical

Global Isobutane Market, By Regional Analysis

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of the Middle East & Africa