Isobutene Market size is estimated at USD 31.1 billion in 2024 and is expected to reach USD 56.7 billion by the end of 2037, growing at around 4.7% CAGR during the forecast period i.e., between 2025-2037. In 2025, the industry size of isobutene is evaluated at USD 32.7 billion. Isobutene also known as 2-methylpropene or isobutylene is exhibiting widespread usage in sectors such as automobile, pharma, aerospace, antioxidants, and household products. The rise in the use of isobutene in the production of fragrance and gas odorization products is projected to boost market growth in the coming years. For instance, the gas odorant market is estimated to be valued at USD 480.8 million in 2025 and is foreseen to expand at a CAGR of 6.5% through 2037.
The increasing demand for high-octane fuels in modern car engines is driving the use of isobutene as a key ingredient in octane enhancers. The growing popularity of premium fuels including octane to improve engine efficiency and performance, and mitigate maintenance needs is positively influencing the isobutene market growth. Also, the rising focus on high-octane fuel production is driving investments in refining processes that optimize isobutene extraction. For instance, the U.S. Office of Energy Efficiency & Renewable Energy reveals that the sales of premium gasoline refiners took a hike to 30% in 2023 from 8% in 2008.
Growth Drivers
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
4.7% |
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Base Year Market Size (2024) |
USD 31.1 billion |
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Forecast Year Market Size (2037) |
USD 56.7 billion |
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Regional Scope |
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Product (Methyl Tert-Butyl Ether (MTBE), Ethyl Tert-Butyl Ether (ETBE))
Methyl tert-butyl ether (MTBE) segment is estimated to dominate over 85.5% isobutene market share by 2037, owing to its high demand in the gasoline sector. MTBE is widely used as an octane boosting and anti-knocking agent in the fuel for gasoline engines. Methyl tert-butyl ether is a cost-effective alternative to toxic fuels and is highly used as a gasoline additive across the world. For instance, the U.S. Energy Information Association estimates that the consumption of motor gasoline is expected to be 8.91 million barrels per day in 2025. The same source also reveals that the global consumption of petroleum and other liquids was 99.3 million barrels per day in 2022.
Application (Automotive, Aerospace, Antioxidants, Pharmaceuticals)
By 2037, automotive segment is poised to dominate over 40.5% isobutene market share, owing to its high use in hoses, adhesives, sealants, and tire production. Isobutene is used in the production of butyl rubber, which is a key ingredient in car tire manufacturing. High-quality tires are important for any automobile considering the safety and durability factors. Butyl rubber offers superior air retention and toughness that reduces the risk of tire blowouts, enhancing the vehicle and driver’s safety.
Our in-depth analysis of the global market includes the following segments:
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Product |
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Application |
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North America Market Forecast
North America in isobutene market is estimated to dominate over 47.5% revenue share by 2037. The rapid advancements in the pharma and aerospace sectors are contributing to the increasing sales of isobutene. The ongoing innovations in isobutene production technologies and the increasing number of chemical manufacturing plants in the region are also fuelling the market growth.
Increasing at a CAGR of 5.5%, the U.S. isobutene market is estimated to be valued at USD 10.7 billion in 2025. The rising popularity of super and high-performance cars is driving the demand for isobutene. Isobutene is primarily exhibiting a swift application in the production of high-octane gasoline and fuel additives, which aids in improving vehicle performance and efficiency.
In Canada, the sales of isobutene are directly influenced by the swiftly expanding petrochemical sector. Isobutene is a key material for the production of polymers and chemicals, and the rising demand for specialty chemicals is anticipated to boost the market growth in the country.
APAC Market Statistics
Asia Pacific isobutene market is poised to grow at over 5.5% CAGR between 2025 and 2037, owing to the increasing infrastructure development activities. The increasing number of chemical manufacturing plants is anticipated to aid Asia Pacific in capturing 25.5% of the global market share by 2037. India, China, Japan, and South Korea are some high-growth marketplaces in Asia Pacific.
The chemical industry in India is expanding rapidly driven by the increasing investments in new facilities and technologies. Isobutene is essential in the production of synthetic rubber, plastics, and other chemicals, boosting its demand growth. India is the 3rd largest chemical producer in Asia Pacific, contributing 7% to its GDP. The India Brand Equity Foundation estimates that the India chemical market is projected to reach USD 1.0 trillion by 2040.
Key players in the isobutene market are employing several organic and inorganic tactics such as the introduction of new products, strategic collaborations and partnerships, regional expansion, and more to earn more. Leading companies are investing heavily in R&D to introduce advanced isobutene derivatives and tap into different markets. They are also collaborating with other players and research organizations to innovate their product folio and attract a wider customer base.
Some of the key players include:
Author Credits: Rajrani Baghel
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