The market for bio-butanol is expected to register a CAGR of greater than 7%, during the forecast period. Major factors driving the market studied are the reduction of carbon emission to a great extent and gaining prominence as a building block for chemical manufacturing. Technological challenges in production are expected to hinder the growth of the market studied.
- The acrylates segment dominated the market, and is expected to grow at a significant rate during the forecast period, owing to the increasing production of butyl acrylates.
- Increasing consumption of biofuels in the aviation industry is likely to act as an opportunity in the future.
- The Asia-Pacific region was the largest consumer of bio-butanol. Growing production of coatings, adhesives, resin and textile in countries, such as China, India, and Japan, are driving the market growth.
Key Market Trends
Acrylates to Dominate the Market
- Acrylates dominated the market studied, and is expected to maintain its position over the forecast period.
- Bio-butanol is used as an intermediate in the production of butyl acrylates, which are further used in the production of paints and coatings, adhesives, and textiles, among others. Increasing demand for such products from various end-user industries is likely to result in a demand pull from every phase in the value chain, thereby driving the growth of the market studied.
- The production of paints and coatings is rising steadily in the global market, owing to its demand from the construction, automotive, and industrial coating applications.
- Adhesives demand is also rising, driven majorly by the growing construction and infrastructural activities, rising automotive production, increasing need for furniture, etc.
- Asia-Pacific is the major consumer of butyl acrylates, majorly dominated by Japan, followed by North America and Europe. The demand for butyl acrylate is expected to be the highest in Asia-Pacific, owing to the increasing production of adhesives, textiles, and coatings, followed by the Middle East & African region.
- The aforementioned factors are expected to drive the demand for bio-butanol, over the forecast period.
Asia-Pacific Region to Dominate the Market
- In the Asia-Pacific region, China accounts for the largest market share in bio-butanol consumption. The country is the largest producer of paints and coatings in the Asia-Pacific region, with an estimated coating production of more than 15 million metric ton, which is expected to increase significantly in the near future.
- The increasing coatings, adhesive, and resin production is primarily supported by the growing construction, and infrastructural and automotive industries. China is promoting and undergoing urbanization, with a 60% target rate by 2020.
- The increased living spaces required in urban areas, resulting from urbanization, and the desire of middle-class urban residents to improve their living conditions are expected to have a profound effect on the housing market.
- Additionally, various paint manufacturers are expanding their product line, owing to the increasing demand for coatings. Major adhesive manufacturers are expanding their product line in India.
- Such aforementioned factors are expected to drive the market growth, over the forecast period.
The bio-butanol market is in the nascent stage and is apparently a consolidated one. The key players include Cathay Industrial Biotech, Gevo inc., and Butamax Advanced Biofuels, LLC, among others.
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