Bio-Butanol Market - Forecast(2023 - 2028)

Report Code: CMR 37968 Report Format: PDF + Excel

Bio-Butanol Market Overview

Bio-Butanol Market size is estimated to reach US$1.8 billion by 2027 after growing at a CAGR of around 7.3% from 2022 to 2027. Bio-Butanol is a second-generation liquid alcohol fuel that is produced by the fermentation of biomass and provides higher energy content and low volatility in comparison with ethanol. Hence, due to its rich chemical and anti-corrosive properties, Bio-Butanol is used as a chemical intermediate in the manufacturing of plasticizers and solvents such as acrylates, acetates, and glycol ethers. Bio-Butanol has applicability in sectors like construction, automotive, aerospace, paints & coating, and chemicals. Factors such as the high efficiency of Bio-Butanol as fuel, growth in the construction sector, and an increase in aircraft deliveries for tackling growing air traffic are driving the growth of the Bio-Butanol Market. However, the growing demand for fuel-efficient electric vehicles can lead to Bio-Butanol’s replacement, which can hamper the growth of the Bio-Butanol industry. COVID-19 caused disruptions in activities of the automotive sector, as there was a lack of labor & raw material availability. For instance, according to the International Organization of Motor Vehicle Manufacturers, in 2020, global production of automotive was 77.7 million units showing a 15.6% decrease in comparison with 2019. Bio-Butanol is primarily used as fuel for internal combustion engines in automobiles. The decrease in production output of the automotive sector reduced Bio-Butanol usage in them, which negatively impacted Bio-Butanol industry growth.

Report Coverage

The report: “Bio-Butanol Market Report – Forecast (2022 – 2027)”, by IndustryARC covers an in-depth analysis of the following segments of the Bio-Butanol Industry:

By Feedstock – Corn, Sugar Cane, Sugar Beet, Wood, Cereals, and Others.
By Packaging – Drums, Bottles, Bags, and Others.
By Application – Industrial Solvents, Fuel & Lubricants, Resins, Food Grade-Extractants, Chemical Intermediates, Herbicides, Plasticizers, and Others.
By End-Use Industry – Paints & Coatings, Chemical & Petrochemical, Textile, Building & Construction (Commercial, Residential, Industrial, and Infrastructure), Food & Beverages, Transportation [Aerospace, Automotive (Passenger Vehicle, Light Commercial Vehicle, and Heavy Commercial Vehicle), Marine, and Locomotive], Pharmaceutical, Personal Care, Cleaning Industry, Plastics & Rubber Industry, and Others.
By Geography - North America (USA, Canada, and Mexico), Europe (UK, Germany, France, Italy, Netherlands, Spain, Belgium, and Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Australia, New Zealand, Indonesia, Taiwan, Malaysia, and Rest of APAC), South America (Brazil, Argentina, Colombia, Chile, and Rest of South America), and Rest of the World (Middle East, and Africa)

Key Takeaways

  • Asia-Pacific dominates the Bio-Butanol industry as the region consists of major economies like China which is the leading producer of paints and automotive and is the main end user of Bio-Butanol.
  • Biobutanol is perceived as a suitable replacement for conventional petroleum-based fuels because of its higher energy density and molecular similarity to gasoline which makes it more readily usable for the current fuel engines.
  • Bio-butanol finds high application in the agriculture sector where it is used as food grade solvents during the manufacturing and extraction of food items, especially for processed food such as cheese and meat products.
  • The growing consumption of textile items namely clothing and apparel will create growth opportunities for the Bio-Butanol industry as Bio-Butanol-based resins are used in the textile sector to impart wrinkle-resistance to fabrics.

Figure: Asia-Pacific Bio-Butanol Market Revenue, 2021-2027, (US$ Million)

Bio-Butanol Market

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Bio-Butanol Market Segment Analysis – By Packaging

The drum segment held the largest share in the Bio-Butanol Market in 2021 and is forecasted to grow at a CAGR of 7.1% during the forecast period 2022-2027. Bio-Butanol being used as a chemical intermediate, solvent, and fuel is mainly found in liquid form due to which it is mainly stored in big PVC drums and is used in sectors like automotive and aerospace. Rapid development in these sectors and an increase in demand for new automobiles and aircraft have positively impacted the usage of Bio-Butanol as fuel in them. For instance, according to European Automobile Manufacturer Association, in 2021, South America car production grew by 11% while US car production grew by 3.1%. Further, according to the annual report of Boeing, in 2021, the company delivered 340 commercial aircraft showing a 116% increase in deliveries in comparison with 2020. Hence, such an increase in productivity of the automotive and aerospace sector will create more usage of Bio-Butanol as fuel in them, resulting in more usage of drums for storing Bio-Butanol as fuel. This extensive factor will increase the drum segment growth during the forecast period.

Bio-Butanol Market Segment Analysis – By End-Use Industry

The automotive segment held the significant share in the Bio-Butanol Market in 2021 and is forecasted to grow at a CAGR of around 6.8% during the forecast period 2022-2027. Bio-Butanol has high energy content in comparison with ethanol, and when at high concentration it is mixed with gasoline, the motor fuel produced is used in spark ignition engines and it produces less combustion. Moreover, as an intermediate, Bio-Butanol is used in the manufacturing of plasticizers which are used in seats, underbody coatings, and passenger compartment parts of vehicles. The increase in production of passenger cars on account of high demand from the middle-class segment has positively impacted the usage of Bio-Butanol in the automotive sector. For instance, according to the International Organization of Motor Vehicle Manufacturers, in 2021, global passenger car production was 57 million units showing a 2% increase in comparison with the 2020 production volume. Such an increase in the production of passenger cars will create more usage of Bio-Butanol in the automotive sector as fuel and plasticizers, resulting in a positive impact on the growing automotive segment, which will further boost the market growth of the Bio-Butanol Market.

Bio-Butanol Market Segment Analysis – By Geography

Asia-Pacific held the largest share in the Bio-Butanol Market in 2021 and is forecasted to grow at a CAGR of around 8.6% during the forecast period 2022-2027. The region consists of major manufacturing countries like China, India, Japan, and South Korea which consists of major end users of Bio-Butanol such as automotive and construction. The rapid economic development in these countries and growing investments in industrial sectors have increased their industrial production output of them. For instance, according to the International Organization of Motor Vehicle Manufacturers, in 2021, from 80 million units produced globally, Asia-Pacific held a 50% share in global automotive production with major countries like China producing 26 million units, India 4.4 million units, and South Korea 3.4 million. Further, according to Japan’s Ministry of Land, Infrastructure, Transport, and Tourism, in June 2021, construction orders for new houses increased to 32.3% in comparison with 2020 orders for the same month. An increase in automotive production will increase Bio-Butanol usage as fuel, while the increase in housing construction will create more usage of Bio-Butanol-based plasticizers. This will result in a positive growth of the Bio-Butanol industry in the Asia-Pacific region.

Bio-Butanol Market Drivers

High efficiency of Bio-Butanol as Fuel

Biobutanol is fuel and an oxygenate that can be mixed with gasoline in spark-ignition engines. Hence, Bio-butanol in comparison with ethanol is less explosive & corrosive, has lower vapor pressure, high energy content, and low volatility on account of which fewer emissions are generated with the use of biobutanol fuel. Moreover, as bio-butanol is produced by fermentation of lignocellulosic biomass, as a renewable fuel bio-butanol has high octane number, flexible fuel blends, and fewer ignition problems. The growing demand for biofuel on account of rising oil prices and government policies to reduce greenhouse gas emissions will create more demand for renewable fuel in the transportation sector, which will have a positive impact on the usage of bio-butanol as a transportation fuel.

Growing Construction Activities

Bio-Butanol finds high applicability in the construction sector as acrylates and plasticizers derived from bio-butanol are majorly used in construction applications. Plasticizers are used in cement to improve its quality, while acrylates due to lightweight and shatter resistance are used in window panels of buildings besides glass. The development in economies coupled with a constant increase in population has led to an increase in the scale of construction activities. For instance, according to Germany’s Federal Statistical Office, in January 2022, the construction of 29,951 dwellings was permitted in Germany, showing an increase of 8.3% compared to 2021 same month. Further, according to Statistics Canada, in December 2021, investment in Industrial Construction increased by 1.6% while investment in commercial construction increased by 1.7%. Such, an increase in construction activities will create more usage of bio-butanol-based acetates and plasticizers in the construction sector, resulting in a positive growth of the bio-butanol industry.

Bio-Butanol Market Challenge

Growing demand for Electric Vehicles

Due to rising environmental concerns and growing technological advancements consumers have started shifting their demand from fuel combustion vehicles to electric hybrid vehicles. Hence, this has caused an increase in the share of electric vehicle consumption. For instance, according to European Automobile Manufacturer Association, in 2021, hybrid electric vehicles accounted for 19.6% of all new passenger cars registered across the EU, compared to 11.9% in 2020, and electrically-chargeable vehicles also saw a strong increase in sales, making up 18.0% of total car registrations, up from a 10.5% share in 2020. Such an increase in electric vehicle sales will have a negative impact on the usage of bio-butanol as fuel, thereby limiting its applications in the automotive market. Hence, this will have a negative impact on the growth of the bio-butanol industry.

Bio-Butanol Industry Outlook

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the Bio-Butanol Market. In the Bio-Butanol Market report, the bio-butanol top 10 companies are:

  1. Butalco Gmbh
  2. Energy Quest
  3. Butyl Fuel LLC
  4. Eastman Chemical Company
  5. Cobalt Technology
  6. Gevo
  7. Cathy Industrial Biotech Limited
  8. Cobalt Technology
  9. Granbio
  10. Abengoa 

Recent Developments

  • In September 2021, Gevo has entered into an asset purchase agreement with Butamax Advance LLC Biofuel, which will make Gevo the sole entity with full rights to sublicense the entire Gevo/Butamax isobutanol and isobutanol derivatives patent estate in the fields of fuels and chemicals.
  • In May 2021, the U.S. Department of Energy’s Advanced Research Projects Agency-Energy (ARPA-E) awarded US$$1.6 million to researchers from The Grainger College of Engineering to develop engineered microbial consortia for advanced and efficient biofuel production from renewable biomass.
  • In November 2020, Researchers at Imperial College developed a membrane-based extraction system for the production of cheap and efficient biofuels by using thin-film composites membranes.

Relevant Reports

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Report Code – CMR 0274 

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1. Bio-Butanol Market - Market Overview
    1.1 Definitions and Scope
2. Bio-Butanol Market - Executive Summary
    2.1 Key Trends by Feedstock
    2.2 Key Trends by Packaging
    2.3 Key Trends by Application
    2.4 Key Trends by End-Use Industry
    2.5 Key Trends by Geography
3. Bio-Butanol Market – Comparative analysis
    3.1 Market Share Analysis - Major 10 Companies
    3.2 Product Benchmarking- Major 5 Companies
    3.3 Top 5 Financials Analysis
    3.4 Patent Analysis - Major Companies
    3.5 Pricing Analysis (ASPs will be provided)
4. Bio-Butanol Market - Startup companies Scenario Premium Premium 
    4.1 Major startup company analysis:
        4.1.1 Investment
        4.1.2 Revenue
        4.1.3 Product portfolio
        4.1.4 Venture Capital and Funding Scenario
5. Bio-Butanol Market – Industry Market Entry Scenario Premium Premium 
    5.1 Regulatory Framework Overview
    5.2 New Business and Ease of Doing Business Index
    5.3 Successful Venture Profiles
    5.4 Customer Analysis – Major 10 companies
6. Bio-Butanol Market - Market Forces
    6.1 Market Drivers
    6.2 Market Constraints
    6.3 Porters Five Force Model
        6.3.1 Bargaining Power of Suppliers
        6.3.2 Bargaining Powers of Buyers
        6.3.3 Threat of New Entrants
        6.3.4 Competitive Rivalry
        6.3.5 Threat of Substitutes
7. Bio-Butanol Market – Strategic Analysis
    7.1 Value/Supply Chain Analysis
    7.2 Opportunity Analysis
    7.3 Product/Market Life Cycle
    7.4 Distributor Analysis – Major Companies
8. Bio-Butanol Market – By Feedstock (Market Size - US$ Million/Billion)
    8.1 Corn
    8.2 Sugar Cane
    8.3 Sugar Beet
    8.4 Wood
    8.5 Cereals
    8.6 Others
9.  Bio-Butanol Market – By Packaging (Market Size - US$ Million/Billion)
    9.1 Drums
    9.2 Bottles
    9.3 Bags
    9.4 Others
10. Bio-Butanol Market – By Application (Market Size - US$ Million/Billion)
    10.1 Industrial Solvents
    10.2 Fuel & Lubricants
    10.3 Resins
    10.4 Food-Grade Extractants
    10.5 Chemical Intermediates
    10.6 Herbicides
    10.7 Plasticizers
    10.8 Others
11. Bio-Butanol Market – By End-Use Industry (Market Size - US$ Million/Billion)
    11.1 Paints & Coatings
    11.2 Chemical and Petrochemical
    11.3 Textile
    11.4 Agriculture
    11.5 Building & Construction
        11.5.1 Commercial
        11.5.2 Residential
        11.5.3 Industrial
        11.5.4 Infrastructure
    11.6 Food & Beverages
    11.7 Transportation
        11.7.1 Aerospace
        11.7.2 Automotive Passenger Vehicle Light Commercial Vehicle Heavy Commercial Vehicle
        11.7.3 Marine
        11.7.4 Locomotive
    11.8 Pharmaceutical
    11.9 Personal Care
    11.10 Cleaning Industry
    11.11 Plastics & Rubber Industry
    11.12 Others
12. Bio-Butanol Market - By Geography (Market Size - US$ Million/Billion)
    12.1 North America
        12.1.1 USA
        12.1.2 Canada
        12.1.3 Mexico
    12.2 Europe
        12.2.1 UK
        12.2.2 Germany
        12.2.3 France
        12.2.4 Italy
        12.2.5 Netherlands
        12.2.6 Spain
        12.2.7 Belgium
        12.2.8 Rest of Europe
    12.3 Asia-Pacific
        12.3.1 China
        12.3.2 Japan
        12.3.3 India
        12.3.4 South Korea
        12.3.5 Australia and New Zeeland
        12.3.6 Indonesia
        12.3.7 Taiwan
        12.3.8 Malaysia
        12.3.9 Rest of APAC
    12.4 South America
        12.4.1 Brazil
        12.4.2 Argentina
        12.4.3 Colombia
        12.4.4 Chile
        12.4.5 Rest of South America
    12.5 Rest of the World
        12.5.1 Middle East
   Saudi Arabia
   Rest of the Middle East
        12.5.2 Africa
   South Africa
   Rest of Africa
13. Bio-Butanol Market – Entropy
    13.1 New Product Launches
    13.2 M&As, Collaborations, JVs and Partnerships
14. Bio-Butanol Market – Industry/Segment Competition Landscape Premium
    14.1 Company Benchmarking Matrix – Major Companies
    14.2 Market Share at Global Level - Major companies
    14.3 Market Share by Key Geography - Major companies
    14.4 Market Share at Country Level - Major companies
    14.5 Market Share by Application - Major companies
15. Bio-Butanol Market – Key Company List by Country Premium Premium
16. Bio-Butanol Market Company Analysis - Business Overview, Product Portfolio, Financials, and Developments
    16.1 Company 1
    16.2 Company 2
    16.3 Company 3
    16.4 Company 4
    16.5 Company 5
    16.6 Company 6
    16.7 Company 7
    16.8 Company 8
    16.9 Company 9
    16.10Company 10 and more
"*Financials would be provided on a best efforts basis for private companies"