Iso-octene (Di-isobutylene) Market Outlook
The Global Iso-octene (Di-isobutylene) Market was estimated at USD 1,731.8 Million in 2022 and is anticipated to reach USD 3,783.3 Million by 2035, expanding at a CAGR of 6.3% during the forecast period.
Di-isobutylene (DIB) is an organic compound with the chemical formula C-8 H-16. The Chemical name (IUPAC) of di-isobutylene 2,4,4-trimethylpentene (2,4,4 TMP). It is a colorless liquid that is insoluble in water. DIB is used as a monomer in the production of synthetic rubber and plastics.
Di-isobutylene is used as a model system for kinetic studies of reactions involving methyl ketones in the presence of hydrogen fluoride. The concentration of di-isobutylene and the catalyst as well as the temperature and pressure affect the time required for the reaction process.
Di-isobutylene combines with hydrogen to create complexes containing hydrogen bonds that are reactive with other compounds. When hydrocarbons or hydrogen gas are involved in a chemical reaction, di-isobutylene is frequently used as a catalyst.
Di-isobutylene, a highly branched C8 olefin, is produced by dimerizing an isobutylene feedstock that has undergone pretreatment. Di-isobutylene (DIB) is one of the high-performing hydrocarbons that are easily made by dehydrating and dimerizing isobutylene, which is made by fermenting sugars generated from biomass.
Macro-economic Factors
Regulation
Di-isobutylene is a type of hydrocarbon that is used as a fuel additive and as an intermediate in chemical manufacturing. However, di-isobutylene has been considered harmful to aquatic life by Registration, Evaluation, Authorization, and Restriction of Chemicals (REACH). It is considered a highly flammable liquid and vapor that causes drowsiness or dizziness in humans. Therefore, the working environment should be maintained to lower the risk of exposure by having better ventilating systems.
Crude Oil Price
One of the raw materials used in the manufacturing of di-isobutylene is isobutylene. Isobutylene is a hydrocarbon gas that is derived from oil refinery streams. Isobutylene is subjected to price variations, as the demand and supply of isobutylene as well as the price of oil fluctuate. The changes in the oil prices affect the price of di-isobutylene.
Chemical Industry
Di-isobutylene is a type of hydrocarbon that is used as a chemical intermediate in different reactions such as in the production of resins and other chemicals as well as in antioxidants for packaging, plastics, and food. Furthermore, the increasing use of di-isobutylene as a fuel additive is also affecting its demand. Therefore, the increasing use of di-isobutylene by the chemical industry is affecting its growth.
Environment
Di-isobutylene (DIB) is one of the high-performing hydrocarbons that are easily made by dehydrating and dimerizing isobutanol, which is made by fermenting sugars supplied from biomass. Numerous tests have demonstrated di-isobutylene's excellent performance as a gasoline additive. The demand for di-isobutylene rise along with the demand for bio-blend feedstock used as a fuel additive. This bio-blend feedstock can be used in spark ignition engines for better efficiency and fuel use.
Iso-octene (Di-isobutylene) Market Dynamics
Market Driver- Rise in Global Automobile Industry
The expansion of the global automotive industry is directly fueling the global di-isobutylene market. Di-isobutylene is mainly used in the production of octyl phenol resin, acetylated diphenylamine, and isononyl derivatives, and in the production of automobile tires.
Growing trend of resource conservation and high awareness on safety while driving, is boosting the demand for high-performance automotive tires, thus driving the market. Di-isobutylene is employed as an additive in 2-stroke engines that does not produce harmful gases and deposits less soot. Increasing focus on reducing fuel costs is further driving the demand for di-isobutylene.
Market Driver- Rising demand in Rubber and Adhesive Production
Di-isobutylene is used as a raw material in the production of synthetic rubber and adhesive. The demand for rubber products, such as tires, seals, and gaskets. High use of di-isobutylene in the automotive and industrial applications drives the market.
According to the rubber board synthetic rubber production increased to 428,320 tons during 2020-2021 from 398,940 tones during 2019-2020, registering a growth of 7.4% as against a growth of 4.8% during 2019-2020, out of which auto tire manufacturers consumed 130,516 tones of synthetic rubber. The growth of the construction and packaging industries fuels the demand for adhesives, further fueling the market.
Market Driver- Growing Demand from chemical and Petrochemical Industry
The growth of the petrochemical industry is increasing the demand for the di-isobutylene. According to the International Energy Agency (IEA), petrochemicals are an important part of the world's energy system and their importance continues to rise.
Demand for plastics, the best-known group of petrochemicals products, has doubled since 2000, outstripping demand for all other bulk commodities (including steel, aluminum, cement). Developed countries such as the US and those in Europe use up to 20 times more plastic and up to 10 times more fertilizer per person than developing countries such as India and Indonesia.
Di-isobutylene is used as a monomer in the production of various plastics such as polybutene-1 and polyisobutylene, which is driving the iso-octene (di-isobutylene) market.
Market Restraint- Availabilities of Substitutes
The availability of alternative products or the potential for substitution restrains the di-isobutylene market. For instance, the emergence of electric vehicles or the use of alternative fuel additives hampers the demand for di-isobutylene. Di-isobutylene has various substitutes, which in turn hamper the demand for di-isobutylene. Some of the substitutes include isobutylene, butene-1, and isoprene.
Isobutylene is a structural isomer of di-isobutylene and can be used as a substitute in some applications. It is used as feedstock for the production of various chemicals including methyl methacrylate and antioxidants. Butene-1 is another potential substitute for di-isobutylene. Butene-1 is an alpha-olefin with similar properties as that of di-isobutylene. Butene-1 is used in the production of lubricants and fuel additives as a substitute of di-isobutylene.
Market Opportunity- Regulatory Environment for Emission and Improving Fuel Efficiency
Environmental regulations and policies aimed at reducing emissions and improving fuel efficiency have a direct impact on the demand for the di-isobutylene market. For instance, the requirement for blend oxygenates, such as MTBE, in gasoline to meet fuel specifications is expected to drive the demand for the di-isobutylene market during the forecast period. String regulations in various regions such as Europe and Asia are creating opportunities in the market.
Furthermore, governments are increasingly promoting renewable energy sources to reduce and mitigate environmental impacts. As part of renewable energy policies, biofuels, and bio-based additives are being encouraged. Di-isobutylene derived from bio-based feedstocks, demand may rise in the coming year as a substitute for conventional fuel additives, which is creating opportunities in the market in the coming years.
Scope of Iso-octene (Di-isobutylene) Market Report
The report on the global Iso-octene (Di-isobutylene) Market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Global Iso-octene (Di-isobutylene) Market– Global Industry Analysis, Size, Share, Growth, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016 and 2021
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Forecast Period
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2023–2035
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Segmentation
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By Purity (95% to 98%, And Above 98%), By Function (Fuel Additive, Chemical Intermediate, And Others), By Application (Lube Additives, Synthetic Rubber, Gasoline, Octylphenol Resins, Co-Monomers, And Others), By Distribution Channel (Direct Sales, Wholesaler/Distributor, Online Retail), By End-use Industry (Chemical, Oil & Gas, Automotive, And Others)
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Regional Scope
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North America, Europe, Asia Pacific, Latin America, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
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Key Players Covered
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A B ENTERPRISES, Evonik Industries AG, FUJIFILM Wako Pure Chemical Corporation, INEOS, Keyera, LyondellBasell Industries Holdings B.V., Maruzen Petrochemical, Merck KGaA, Ing. Petr Švec - PENTA s.r.o, Santa Cruz Biotechnology, Inc, TCI America, TPC Group, and Yufeng International Group Co., Ltd.
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Iso-octene (Di-isobutylene) Market Segmental Outlook
On the basis of purity, the market is divided into 95% to 98% and above 98%. The above 98% segment is further segmented into 98.0% to 99.0%, 99.1% to 99.5%, and 99.6% & above.
The above 98% segment is expected to expand at a CAGR of 6.6% during the forecast period, due to the increasing demand for highly pure di-isobutylene from the oil and gas industry for new gasoline blends. Gasoline requires highly pure blending and additive materials for less contamination. Thus, the demand from the oil and gas industry accelerates the growth of this segment.
Iso-octene (di-isobutylene) with higher than 98% purity is a highly refined version of the product.
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98.0% to 99.0%: Di-isobutylene is an intermediate for various chemical products where high compatibility, purity, and chemical stability are required. Thus, di-isobutylene with 99% purity is used in the chemical synthesis. Material purity is critical for all intermediates and precursors.
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99.1% to 99.5%: Di-isobutylene with such purity is utilized for various surfactants, epoxy resin modifiers, PVC stabilizers, and others.
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99.6% & Above: Such high purity product is preferred for fuel formations for the development of new gasoline blends. Gas purity is important to minimize product contamination. Therefore, iso-octene with high purity, which is above 99.5%, is used for gasoline applications.
Based on function, the iso-octene (di-isobutylene) market is categorized as fuel additive, chemical intermediate, and others.
The fuel additive segment held 32.0% market share in 2022, due to the growing need for gasoline, diesel, and aviation fuels. The fuel additive segment is expected to grow significantly, due to the increased demand for fuel from various industries.
One of the significant factors promoting the growth of this segment include the rising concerns about air pollution caused by incomplete and complete combustion of hydrocarbons. Therefore, governments across the world are imposing strict regulations to address the growing concerns regarding greenhouse gas emissions. All manufacturers are required to analyze the combustion and evaporative emissions generated by fuel and fuel additives. These factors together contribute to the growth of this segment.
Based on application, the iso-octene (di-isobutylene) market is categorized as lube additives, synthetic rubber, gasoline, octyl phenol resins, co-monomers, and others.
The gasoline segment is projected to expand at a 5.2% CAGR during the forecast period, due to the growing demand for di-isobutylene to enhance gasoline performance. The need for alkylate grows, as the demand for gasoline increases, particularly in the automotive sector.
This, in turn, drives the demand for di-isobutylene, as it is the crucial raw material for alkylate production. Iso-octene (di-isobutylene) is a valuable chemical compound that finds applications in various industries. In lubricant additives, di–isobutylene is used for its excellent properties that contribute to the performance and functionality of lubricants. Di-isobutylene act as a pour point depressant lubricant additive.
The pour point of a lubricant refers to the lowest temperature at which it can still flow. Adding di-isobutylene to the formulation helps reduce the pour point, allowing the lubricant to remain fluid at low temperatures. This property is particularly beneficial in cold weather conditions, where maintaining fluidity is crucial for proper lubrication.
On the basis of the distribution channel of iso-octene (di-isobutylene), the market is divided into direct sales, wholesaler/distributor, and online retail. The wholesaler/distributor segment is expected to expand at a CAGR of 6.8% during the forecast period. Wholesalers bulk purchase the order at a discounted price, which helps with profits for manufacturers.
In a non-retail setting, direct selling refers to the act of selling goods directly to customers. Manufacturers who use direct selling do not use middlemen in the supply chain, and instead sell products to consumers directly.
The regional distribution center and wholesaler are just two of the intermediaries that are removed when a product is sold directly to the consumer. The direct sales company receives products from the producer. The manufacturers of di-isobutylene directly sell the product to the manufacturer of chemicals and fuel additives. This helps the chemical manufacturers to check the quality, quantity needed, and price of the di-isobutylene.
Based on end-use industry, the iso-octene (di-isobutylene) market is categorized as chemical, oil & gas, automotive, and others.
The chemical segment held highest the market share in 2022. Rising standard of living and growing middle-class population in emerging economies are driving the strong demand for chemicals, as increasing number of consumers are purchasing appliances and consumer goods that contain various types of chemicals.
The growth of specialty chemicals is also attributed to the strong demand from the personal care and construction industry. Specialty chemicals help to improve the structural and decorative properties of building, while also extending its life. Thus, there is an increasing demand for specialty chemicals from various end-use industries, which further accelerates the growth of this segment.
The oil and gas segment is anticipated grow at a CAGR of 6.2%. The demand for primary energy is increasing significantly, due to the tremendous growth in population, increasing standard of living, and rising industrialization. Gasoline is one of the most used fuel currently. Thus, rising demand for automobiles directly impact the gasoline market. Increasing production of gasoline drives the market, as di-isobutylene is a fuel additive for gasoline. All these factors contribute to the growth of this segment.
Regional Outlook
On the basis of region, the global iso-octene (Di-isobutylene) market is divided into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.
Asia Pacific accounted for a market share of 49.9% in 2022. The market in Asia Pacific is expected to grow at a rapid pace during the forecast period, due to the high demand for gasoline and synthetic rubber in the region. Asia Pacific is the largest producer of synthetic rubber accounting for 58.3% of the total global production. Emerging economies such as India are focusing on increasing the production of automobiles and tires due to the high demand for vehicles in the region.
Europe significant share of the market in 2022 due to the growing Chemical and petrochemical industries in the region as Di-isobutylene is used in the production of many chemicals and petrochemical such as polyisobutylene, Octane boosters & fuel additives, and plasticizers.
The market in Latin America is anticipated to expand during the forecast period. Growing environmental concerns related to vehicle emissions and increasing oil & gas downstream activities are projected to increase the demand for iso-octane (DI-isobutylene).
Key Benefits for Industry Participants & Stakeholders
- In-depth Analysis of the Global Iso-octene (Di-isobutylene) Market
- Historical, Current and Projected Market Size in terms of Value
- Potential & Niche Segments and Regions Exhibiting Promising Growth Covered
- Industry Drivers, Restraints, and Opportunities Covered in the Study
- Recent Industry Trends and Developments
- Competitive Landscape & Strategies of Key Players
- Neutral Perspective on Global Iso-octene (Di-isobutylene) Market Performance
Segments
By Purity
- 95% to 98%
- Above 98%
- 98.0% - 99.0%
- 99.1% - 99.5%
- 99.6% & Above
By Function
- Fuel Additive
- Chemical Intermediate
- Others
By Application
- Lube Additives
- Synthetic Rubber
- Gasoline
- Octylphenol Resins
- Co-Monomers
- Others
By Distribution Channel
- Direct Sales
- Wholesaler/Distributor
- Online Retail
By End-use Industry
- Chemical
- Oil & Gas
- Automotive
- Others
By Region
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East & Africa
Key Market Players Profiled in the Report
- A B ENTERPRISES,
- Evonik Industries AG
- FUJIFILM Wako Pure Chemical Corporation
- INEOS
- Keyera
- LyondellBasell Industries Holdings B.V.
- Maruzen Petrochemical
- Merck KGaA
- Ing. Petr Švec - PENTA s.r.o
- Santa Cruz Biotechnology, Inc
- TCI America
- TPC Group
- Yufeng International Group Co., Ltd.VDM Metals
Competitive Landscape
Manufacturers operating in the global Iso-octene (Di-isobutylene) Market include A B ENTERPRISES, Evonik Industries AG, FUJIFILM Wako Pure Chemical Corporation, INEOS, Keyera, LyondellBasell Industries Holdings B.V., Maruzen Petrochemical, Merck KGaA, Ing. Petr Švec - PENTA s.r.o, Santa Cruz Biotechnology, Inc, TCI America, TPC Group, and Yufeng International Group Co., Ltd. Market Players are pursuing key strategies such as acquisitions, collaborations, and geographic expansion where a potential opportunity arises for the Iso-octene (Di-isobutylene) Market.
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