Market Research Report
Bio-butanol Market - Growth, Trends, and Forecast (2019 - 2024)
|Published by||Mordor Intelligence LLP||Product code||391707|
|Published||Content info||80 Pages
Delivery time: 2-3 business days
|Bio-butanol Market - Growth, Trends, and Forecast (2019 - 2024)|
|Published: March 1, 2019||Content info: 80 Pages||
The market for bio-butanol is expected to register a CAGR of 8.36%, during the forecast period of 2019-2024. 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 in 2017, 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 in 2018. Growing production of coatings, adhesives, resin and textile in countries, such as China, India, and Japan, are driving the market growth.
Demand from Biofuel to Expand at the Fastest Rate
Bio-butanol is a four-carbon alcohol made by the fermentation of biomass feedstock. As butanol provides nearly as much energy as gasoline, it does not decrease the gas mileage, as compared to ethanol. Additionally, bio-butanol can be pumped straight to the tank, without making modifications to the engine.
Bio-butanol is generating interest as a potential green alternative to petroleum fuels. It is preferred as a superior automobile fuel, as compared to bioethanol, owing to its high energy content. Furthermore, it is less corrosive in nature, and can be blended with any concentration with gasoline (petrol). Moreover, bio-butanol has low vapor pressure, thus lower volatility and evaporative emissions. Bio-butanol also reduces greenhouse gas emissions, as it exhibits fewer emissions compared to other transport fuels. The United States and the European countries have started with fleet-testing of bio-butanol, in order to further promote the usage of bio-butanol.
Growing number of cars on road and increasing sales of vehicles are expected to drive the market for motor fuel, which, in turn, may boost the market studied through the coming years.
The number of cars on the road is expected to rise by up to 2 billion, by 2050.
According to OICA, the total sales of all vehicles, including passenger and commercial, reached 96,804,390 million units, in 2017, from 93,905,634 million units, in 2016. This increase is leading to more usage of motor fuels in cars, which, in turn, may drive the market for bio-butanol as an alternative to transport fuel.
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. According to the China Adhesives and Tape Industry Association, the Chinese adhesive market grew by 7.5%, in terms of volume, and was valued at 7.887 million metric ton in 2017. The market grew further in 2018, and is expected to witness a positive trend through the forecast period. 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. The 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. Currently, Cathay Industrial Bio produces corn-based n-butanol for chemical applications at its biorefinery in Jilin Province, China. The company claimed to be the world's largest bio-butanol producer, based on active production capacity, in 2017. The potential entrants to the market include Microvi Biotechnologies, Cobalt Technologies, and ButaNext.