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Isobutanol Market

ID: MRFR/CnM/4110-HCR
139 Pages
Anshula Mandaokar
October 2025

Isobutanol Market Research Report Information By Type (Bio-Based And Synthetic), Application (Intermediate, Solvent, Solubilizer, Extracting Agent, Additive, And Others), End-Use Industry (Pharmaceuticals, Oil & Gas, Paint & Coatings, Textiles, Chemicals, And Others) Region – Forecast Till 2035

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Isobutanol Market Infographic
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Isobutanol Market Summary

The global isobutanol market is projected to grow significantly from 3.47 USD billion in 2024 to 8.53 USD billion by 2035.

Key Market Trends & Highlights

Isobutanol Market Key Trends and Highlights

  • The market is expected to achieve a compound annual growth rate (CAGR) of 8.52 percent from 2025 to 2035.
  • By 2035, the market valuation is anticipated to reach 8.53 USD billion, indicating robust growth potential.
  • In 2024, the market is valued at 3.47 USD billion, reflecting a strong foundation for future expansion.
  • Growing adoption of bio-based solvents due to increasing environmental regulations is a major market driver.

Market Size & Forecast

2024 Market Size 3.47 (USD Billion)
2035 Market Size 8.53 (USD Billion)
CAGR (2025-2035) 8.52%

Major Players

BASF SE (Germany), Eastman Chemical Company (U.S.), Gevo (U.S.), Butamax® Advanced Biofuels LLC (U.S.), Sahara PCC (Saudi Arabia), The Dow Chemical Company (U.S.), Mitsubishi Chemical Corporation (Japan), OXEA GmbH (Germany), INEOS (UK), SIBUR (Russia), Lesaffre Advanced Fermentations (France)

Isobutanol Market Drivers

Market Growth Projections

The Global Isobutanol Market Industry is poised for substantial growth, with projections indicating a rise from 3.47 USD Billion in 2024 to 8.53 USD Billion by 2035. This growth trajectory suggests a compound annual growth rate of 8.52% from 2025 to 2035, reflecting the increasing adoption of isobutanol across various sectors. The market dynamics are influenced by factors such as rising demand for biofuels, expanding applications in chemicals, and regulatory support for green initiatives. These projections highlight the potential for isobutanol to play a pivotal role in the transition towards sustainable industrial practices.

Growing Demand for Biofuels

The increasing emphasis on renewable energy sources is driving the Global Isobutanol Market Industry. Isobutanol Market, being a versatile biofuel, is gaining traction due to its potential to reduce greenhouse gas emissions. In 2024, the market is projected to reach 3.47 USD Billion, reflecting a growing preference for sustainable alternatives in the transportation sector. Governments worldwide are implementing policies to promote biofuels, which further enhances the demand for isobutanol. This trend is expected to continue, with the market potentially expanding as consumers and industries alike seek greener energy solutions.

Expanding Applications in Chemicals

Isobutanol Market is increasingly utilized as a solvent and intermediate in the production of various chemicals, which is propelling the Global Isobutanol Market Industry. Its role in manufacturing paints, coatings, and adhesives is particularly noteworthy, as these sectors are experiencing growth due to rising construction activities globally. The versatility of isobutanol allows it to be integrated into numerous formulations, enhancing product performance. As industries continue to innovate and expand, the demand for isobutanol as a key ingredient is likely to rise, contributing to the market's projected growth to 8.53 USD Billion by 2035.

Rising Demand from Automotive Sector

The automotive industry is a significant driver of the Global Isobutanol Market Industry, as isobutanol is increasingly being used as a fuel additive. Its properties enhance engine performance and reduce emissions, aligning with the industry's shift towards more environmentally friendly solutions. As the global automotive market evolves, the demand for isobutanol is expected to grow, particularly in regions focusing on stringent emission regulations. This trend may contribute to a compound annual growth rate of 8.52% from 2025 to 2035, reflecting the automotive sector's commitment to sustainability and innovation.

Regulatory Support for Green Chemicals

Government regulations promoting the use of green chemicals are significantly impacting the Global Isobutanol Market Industry. Policies aimed at reducing carbon footprints and encouraging the adoption of bio-based products are creating a favorable environment for isobutanol. These regulations often provide incentives for industries to transition towards more sustainable practices, thereby increasing the demand for isobutanol as a renewable alternative. As regulatory frameworks evolve, the market is likely to see a surge in interest and investment, contributing to its growth trajectory and aligning with global sustainability goals.

Technological Advancements in Production

Advancements in production technologies are enhancing the efficiency and cost-effectiveness of isobutanol manufacturing, thereby influencing the Global Isobutanol Market Industry positively. Innovations such as fermentation processes and catalytic conversion methods are being developed to optimize yields and reduce production costs. These technological improvements not only make isobutanol more accessible but also align with the increasing demand for sustainable chemical processes. As production becomes more efficient, the market is expected to benefit from lower prices and increased availability, further driving growth in the coming years.

Key Companies in the Isobutanol Market market include

Industry Developments

Due to recent rising demand and supply problems, OQ Chemicals issued a sales control for US oxo intermediates in January 2021. Following the lockout, demand for these chemicals soared across the United States due to increasing demand from the construction and textile industries. The DOW Chemical Company and Johnson Matthey (UK) announced in February 2020 that Guangxi Huayi New Material Company (China), a Chinese company, had chosen LP SELECTOR 10 technology to generate butanol at a new manufacturing site.

The facility, which has a capacity of 300,000 metric tonnes of butanol per year, was developed in Huayi's integrated petrochemical complex in Qinzhou Port, China.

Intended Audience:

    • Isobutanol Market manufacturers
    • Traders and Distributors of isobutanol
    • Production Process Industries
    • Potential Investors
    • Raw Material Suppliers
    • Nationalized Laboratory

Future Outlook

Isobutanol Market Future Outlook

The Global Isobutanol Market is projected to grow at an 8.52% CAGR from 2024 to 2035, driven by increasing demand in solvents, fuels, and chemical intermediates.

New opportunities lie in:

  • Invest in bio-based isobutanol production to meet sustainability goals.
  • Develop advanced applications in pharmaceuticals and cosmetics for niche markets.
  • Leverage technological innovations to enhance production efficiency and reduce costs.

By 2035, the Isobutanol Market is poised for robust growth, reflecting evolving industry dynamics and increased application diversity.

Report Scope

Report Attribute/Metric Details
  Market Size   2030: USD 6.91 Billion
  CAGR   (2022-2030): 4.30% CAGR
  Base Year   2021
  Forecast Period    2022 to 2030
  Historical Data   2019 & 2020
  Forecast Units   Value (USD Million)
  Report Coverage   Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
  Segments Covered   By Type, Application, End-Use Industry and Region
  Geographies Covered    North America, Europe, Asia-Pacific, and Rest of the World (RoW)
  Key Vendors   BASF SE (Germany), Eastman Chemical Company (U.S.), Gevo (U.S.), Butamax® Advanced Biofuels LLC (U.S.), Sahara PCC (Saudi Arabia), The Dow Chemical Company (U.S.), Mitsubishi Chemical Corporation (Japan), OXEA GmbH (Germany), INEOS (UK), SIBUR (Russia), Lesaffre Advanced Fermentations (France) among others.
  Key Market Opportunities   Increasing consumption of isobutanol in the production of antibiotics, vitamins, and camphor along with the expansion of pharmaceutical & medical sector
  Key Market Drivers   The rising automotive production & sales, increasing consumption of coatings in woodworking & marine application,

Market Highlights

Author
Anshula Mandaokar
Team Lead - Research

Anshula Mandaokar holds an academic degree in Chemical Engineering and has been contributing to the field for more than 5 years. She has expertise in Market Research and Business Consulting and serves as a Team Lead for a reputed Market Research firm under the Chemicals and Materials domain spectrum. She has worked on multiple projects, generating explicit results in a quick turnaround time. Her understanding of data interpretation justifies her role as a leader.

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FAQs

What is the forecast period of Isobutanol Market research report?

The forecast period for Isobutanol Market research report is 2025-2035.

Which region will lead the global Isobutanol Market?

Global Isobutanol Market is dominated by APAC region.

Who are the key players in the Isobutanol Market?

BASF SE (Germany), Eastman Chemical Company (U.S.), Gevo (U.S.), Butamax® Advanced Biofuels LLC (U.S.), Sahara PCC (Saudi Arabia), The Dow Chemical Company (U.S.), Mitsubishi Chemical Corporation (Japan), OXEA GmbH (Germany), INEOS (UK), SIBUR (Russia), Lesaffre Advanced Fermentations (France)

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