Bio-Butanol Market Overview
Bio-Butanol market size is forecast to reach $18.3 billion
by 2026, after growing at a CAGR of 7.3%
during 2021-2026. Biobutanol or bio-based butanol fuel is a second-generation alcoholic fuel with a higher energy density and lower volatility compared to ethanol
, while it is also used as one of the important raw material for manufacturing glycol ethers. In addition, biobutanol is majorly used as plasticizers to improve plastic material chemical intermediate for butyl esters or butyl ethers. However, with the rise in demand for automotive, the fuel consumption will increase, as biobutanol includes high octane number, lower volatility, low vapor pressure, and flexible fuel blends, and hence bio-butanol market is witnessing an increase in demand. Whereas growing public interest towards sustainable and environment-friendly products will further enhance the overall market demand for bio-butanol industry during the forecast period.
The rapid spread of coronavirus had a major impact on global markets as, major economies of the world were completely in the lockdown mode. Hence, all the major manufacturing plants were shutdown and even when the lockdown is uplifted, many of the companies have yet not opened all of their manufacturing plants because of the shortage of manpower. Therefore, this has declined the demand for automotive glass bonding market.
The report: “Bio-Butanol Market – Forecast (2021-2026)”, by IndustryARC, covers an in-depth analysis of the following segments of the bio-butanol market.
By Raw Material – Cereals, Sugar Cane, Sugar Beet, Wood, Corn and Others.
By Application – Resins, Plasticizers, Food-Grade extractants, Chemical Intermediates, Herbicides, Acrylates, Glycol Ethers and Others.
By End Use Industry – Pharmaceuticals, Paints & Coatings, Automotive, Aviation and Others
By Geography - North America (U.S., Canada, and Mexico), Europe (U.K., Germany, Italy, France, Spain, Netherlands, Russia, Belgium, and Rest of Europe), Asia Pacific (China, Japan, India, South Korea, ANZ, Indonesia, Taiwan, Malaysia, and Rest of Asia Pacific), South America (Brazil, Argentina, Colombia, Chile, and Rest of South America) and RoW (Middle East and Africa).
- Asia-Pacific dominates the bio-butanol market owing to increasing demand from automotive and aviation industries as a transport fuel.
- The growing consumption of biofuels in the aviation industry, is likely to aid in the market growth of bio-butanol.
- Growing production of coatings, adhesives, resin and textile will increase the market demand for bio-butanol in the near future.
- Growing demand for electric vehicles will create hurdles for the bio-butanol market, as very large part of bio-butanol is used to make gasoline.
Figure: Asia Pacific Bio-Butanol Market Revenue, 2020-2026 (US$ Billion)
Bio-Butanol Market Segment Analysis – By Raw Material
Cereals segment has held a significant share in the bio-butanol market in the year 2020 and is expected to grow at a CAGR of 7.1% during the forecast period. Butanol can be made from a variety of agriculture and forestry residues, as well as some energy crops, including apple pomace, potato peel, brewer's spent malt, corn cobs, corn stover, and corn fibre, among others. Whereas the production process involves the pre-treatment of the wheat straw by dilute sulphuric acid to improve accessibility of cellulose to hydrolytic enzymes. The pretreated wheat straw then undergoes enzymatic hydrolysis using hydrolytic enzymes, to break down the cellulose into simple 5-carbon or 6-carbon sugars and a combined fed-batch fermentation/gas stripping process to convert the sugars into butanol without product inhibition. According to Food & Agriculture Organization of United States, the forecast for global cereal utilization in 2020/21 has been raised to 2,766 million tonnes, 4.3 million tonnes higher than in the previous report and 2.0 percent (54 million tonnes) above the 2019/20 level. Therefore, as cereals are the major raw material in processing bio-butanol, so with the increase in demand for raw materials for bio-butanol, the increased cereals production might help in the market growth for bio-butanol.
Bio-Butanol Market Segment Analysis – By Application
Automotive sector has been the primary market for Bio-Butanol in the year 2020 and is expected to grow at a CAGR of 7.3% over 2021-2026. Due to increase in the global middle-class spending and as an effective alternative to fossil fuels, the consumption of bio-butanol is rising as a transport fuel in auto in automotive application compared to other applications. A very large part of bio-butanol is used for blending in gasoline, hence there is a great demand in fuel for them. So, with the increase in number of fuel vehicles around the world, the bio-butanol market is also growing. According to the OICA (The International Organization of Motor Vehicle Manufacturers), production statistics, as compared to 2015, automotive production has increased by 0.9% in 2019. Hence this increase in production has also driven the market growth for bio-butanol.
Bio-Butanol Market Segment Analysis - By Geography
APAC dominated the bio-butanol market in the year 2020 and is projected to grow at a CAGR of 7.2% during the forecast period. The economy of APAC is mainly influenced by the economic dynamics of countries such as China and India. The growing construction and automotive industry in this region are driving the market growth for bio-butanol market. According to the OICA’s sales statistics, the automotive sales in Asia/Oceania/Middle East region has increased by 1.34% from 2015 to 2019. However, China was the largest producer of automotive in the world, while India was the 5th largest of automotive in the year 2019. Hence, with the growing demand for automotive will eventually lead to the market growth the bio-butanol during the aforementioned period. Whereas in India, according to the Department for Promotion of Industry and Internal Trade (DPIIT), FDIs in the construction development sector (townships, housing, built up infrastructure and construction development projects) and construction (infrastructure) activities stood at US$ 25.78 billion and US$ 17.22 billion respectively between April 2000 and September 2020. The logistics sector in India is growing at a CAGR of 10.5% annually. Therefore with growing construction industry in India, the demand for paints & coatings, adhesives and others will also grow, owing to this the bio-butanol market is also expected to rise.
Bio-Butanol Market Drivers
Growing Demand from Construction Industry
The rise in construction sector for better infrastructure around the world will drive the bio-butanol market as it is used as a key raw material in the production of paints, coatings, plasticizers, and adhesives. For an instance, in US, the Baltimore-Washington Rapid Rail – D.C. and Maryland, this is a $15.0 billion superconducting magnetic levitation train project, it construction has been started in the year 2020. Hence, these projects will drive the demand for bio-butanol, as this will led to the increase in demand for adhesives, coatings and others.
Governments globally are focusing on boosting their economy. But to do that they need a better infrastructure to attract tourism and investment in their countries. These investments may led to the increase in market growth for bio-butanol, owing to the demand for paints, resins, adhesives among others. For an instance, the U.K government’s part of the wider Birmingham development plan 2031, Birmingham’s big city plan, is a 20-year master plan that will transform the city into a world-class destination as well as attracting businessman, investors and enterprises. This mega project construction work will led to the increase in demand for construction and will drive the demand for bio-butanol.
Bio-Butanol Market Challenges
Growing demand for battery electric vehicles
The shift towards electric vehicles in the developed and developing nations would hamper the growth of existing fueled vehicles and also impact the bio-butanol market over the forecast timeframe. According to IEA’s global electric vehicle outlook 2020, as compared to 2018, in 2019 there is an increase in 1.52 million reaching 4.79 battery electric vehicles around the world. This data shows the growing demand for electric vehicles owing to this the bio-based market demand could decline.
Bio-Butanol Market Landscape
Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Bio-Butanol market. Major players in the bio-butanol market are Butalco Gmbh, Butamax, Butyl Fuel Llc, Celanese, Cobalt Technology, Eastman Chemical, Energy Quest, Gevo, Green Biologics, Metabolic Explorer, N Technology among others.
- In April 2020, Celanese Corporation, a global chemical and specialty materials company, has completed the acquisition of Nouryon’s redispersible polymer powders business offered under the Elotex® brand.
- In April 2019, Eastman Chemical Company has acquired from Sasol, a global chemical and energy company, the Marlotherm heat transfer fluids manufacturing assets located in Germany and related formulations, intellectual property and customer contracts. This acquisition enables Eastman to expand its heat transfer fluids product offerings to customers around the globe.
Report Code: CMR 0296
Report Code: CMR 15651
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