Global Contained Isobutylene Market Study, Trends, Insights, and Forecast

As of 2024, the global Contained Isobutylene market was estimated to be worth approximately USD 29 billion. It is projected to experience steady growth, expanding at a CAGR of about 1.4% from 2025 to 2036. By the end of this forecast period, the market is expected to reach a valuation close to USD 34 billion. This gradual increase is largely attributed to rising demand in fuel-related uses as well as in the production of specialty chemicals.

Contained Isobutylene Production Processes

Contained Isobutylene is manufactured using several key methods: Fluid Catalytic Cracking (FCC), Butadiene Raffinate, Propylene Oxide/Tertiary Butyl Alcohol (PO/TBA), Isobutane Dehydrogenation, and C4s Hydrogenation. Among these, FCC remains the most widely used process, followed by Butadiene Raffinate and Isobutane Dehydrogenation. PO/TBA and C4s Hydrogenation together contribute a smaller share. LyondellBasell is currently the only major producer using the PO/TBA method, operating facilities in North America and Western Europe. The Butadiene Raffinate process accounts for over 25% of the global capacity and is expected to grow further, especially in Asia Pacific and North America, due to new butadiene production projects.

Global Supply Analysis

Global production capacity for Contained Isobutylene reached approximately 40,000 kilo tons in 2024, an increase of 6,000 kilo tons since 2016. By 2036, the production capacity of Contained Isobutylene is anticipated to surpass 46,000 kilotons, with significant expansion expected across Asia Pacific, North America, and Europe. At present, Northeast Asia accounts for the largest portion of global capacity, representing approximately 35%. This is followed by North America, which holds about 27%, while Western and Central Europe contribute roughly 20% to the total capacity. The remaining 18% is distributed across Southeast Asia, Latin America, and the Middle East & Africa.

Leading global producers of Contained Isobutylene include industry giants such as ExxonMobil, Shell, Texas Petrochemical, Chevron Corporation, Valero, PEMEX, Petrobras, Dow, Total, CEPSA, BASF, Reliance Industries, SIBUR, Rosneft, and Idemitsu Kosan. Together, these companies contribute to approximately 20% of the world's total production capacity. There are over 700 manufacturing facilities dedicated to Contained Isobutylene across the globe, with more than 40% situated in the Asia Pacific region. Additionally, North America and Western Europe combined host around 33% of these facilities.

Key Capacity Developments

Significant new capacity additions are planned over the forecast period, particularly in China and India. In China, major projects include Binhua New Materials (760 kilo tons), Huizhou Boeko Materials (500 kilo tons), and Zhenhua E-Materials (425 kilo tons), among others. In India, key upcoming projects include HPCL's Rajasthan Refinery with 70 kilo tons of capacity using the Butadiene Raffinate process, and the Ratnagiri Refinery, expected to add 230 kilo tons via FCC by 2025-2026. These expansions reflect strong investment in both existing and emerging production technologies to meet rising global and regional demand.

Demand by Application

Fuel-related applications, particularly the production of MTBE and ETBE, account for the largest portion of Contained Isobutylene consumption. This is followed by usage in High Purity Isobutylene and Polyisobutylene (PIB). The demand for fuel applications is expected to rise at a steady CAGR of around 1% through 2036, with market value projected to approach USD 29 billion by the end of the forecast period. Through 2036, reaching nearly USD 29 billion.

In contrast, High Purity Isobutylene is expected to see stronger growth due to rising investments in Asia Pacific. This material is used to produce Butyl Rubber, which is widely used in automotive tires, adhesives, sealants, and various industrial products. As a result, demand from industries such as automotive, construction, and pharmaceuticals is supporting long-term market expansion.

Regional Market Insights

Asia Pacific is the largest regional market, accounting for about 40% of global demand in 2024. The region is expected to grow at a CAGR of 2.4%, reaching around USD 14 billion by 2036. This growth is mainly driven by rising consumption of Contained Isobutylene in downstream products like High Purity Isobutylene, MMA, and PIB. The fuel applications segment alone, currently valued at USD 10 billion, is projected to grow at 2% annually. China, India, Japan, South Korea, Thailand, Malaysia, Indonesia, Singapore, Vietnam, and Australia together account for nearly 95% of Asia Pacific's Contained Isobutylene consumption, with China and India expected to witness the highest growth due to ongoing industrial expansions.

India Contained Isobutylene Market

In 2024, India's Contained Isobutylene market was valued at approximately USD 1 billion, accounting for around 4% of the global market. It is expected to expand at a CAGR of 1.5% through 2036. This growth is largely driven by increasing demand for Polyisobutylene and High Purity Isobutylene within the country. Key domestic manufacturers include Gujarat Polybutenes (a subsidiary of Gujarat Petrosynthese), Maharashtra Polybutenes Limited (formerly known as Herdillia Polymers), Reliance Industries, BPCL Kochi Refinery, and Kothari Petrochemicals. Notably, Kothari Petrochemicals has recently expanded its Polyisobutylene capacity from 24 kilo tons to 48 kilo tons to meet increasing domestic demand.