According to Custom Market Insights (CMI), The Global Bio-Butanol Market size was estimated at USD 15.83 billion in 2021 and is expected to reach USD 16.55 billion in 2022 and is expected to hit around USD 22.32 billion by 2030, poised to grow at a compound annual growth rate (CAGR) of 8.5% from 2022 to 2030.
Bio-butanol is also referred to as bio-based butanol fuel and is primarily formed by the fermentation process of sugar in organic and biomass feedstocks. In addition, ethanol and acetone is a by-product of biobutanol, and it carries more similar function to gasoline. Biobutanol has a higher density and molecular similarity to gas and acts as an alternative substitute for gasoline. It is extensively used in the automotive and transportation sector as conventional fuel. In addition, it finds various applications in various end-use industries, including construction, power generation, medical, automotive, and many others.
Browse the full “Bio-butanol Market Size, Trends and Insights By Raw Material (Cereal Crops, Sugarcane Bagasse, Waste Biomass, Others), By Application (Acrylates, Acetates, Glycol Ethers, Solvents, Plasticizers), By End User (Automotive, Textile, Paints & Coatings , Building and construction , Oil & Gas, Others), and By Region – Global Industry Overview, Statistical Data, Competitive Analysis, Share, Outlook, and Forecast 2023–2032” report at https://www.custommarketinsights.com/report/bio-butanol-market/
Market Dynamics.
Drivers.
Wide range of applications in various end-use industries
The demand for bio-butanol has witnessed significant growth during the forecast period owing to its diversified range of applications in various end-use industries such as oil & gas, transportation, consumer sector, automotive, and others. Furthermore, the ease of availability of raw materials and suitability of bio-butanol in various end-use industries has driven the market in the upcoming years.
Restraints
High production cost
Bio-based butanol has a wide range of applications in various end-use industries. However, the refining cost of butanol is high; this may hamper the market. In addition, fluctuation in the prices of raw materials is likely to restrain the market during the forecast period.
Opportunities
Robust demand from the automotive industry
Increased logistics and transportation activity and a rise in well-established manufacturing units have enhanced the auto manufacturing industry. For instance, according to an article published by September 2022, the Indian auto components after market is expected to grow at 10.5 percent to touch $13 billion by 2019-20, compared to $8.4 billion in 2016-17. In addition, bio-based butanol is extensively used. These factors are responsible for increasing bio-butanol sales in several end-use sectors, thus creating lucrative opportunities for the market.
Challenges.
Toxic substances
Refining process of bio-based butanol release toxic substances which may hurt human health. These factors are expected to hamper the growth of biobutanol in the market.
Report Highlights.
The segments cereal crops, sugarcane bagasse, waste biomass, and others are based on grade. The cereal crops segment dominated the market in 2021 and is expected to grow over the forecast period with a total market share of 52%.
Cereal crops such as wheat, corn feedstock, sugar, and others are extensively used for bio-based butanol formulation, which ultimately enhances cereal production and helps expand the biobutanol production industry.
Based on Application, the segment includes acrylates, acetates, glycol ethers, solvents, and plasticizers. It is expected that the global acrylates application segment to hold a dominant position during 2022 -2031 and account for 45% of the total market share during the forecast period.
Acrylate finds various applications in end-use industries such as paints & coatings, textiles, and lubricants. In addition, bio-based butanol is extensively used in the production of butyl acrylates. Furthermore, acrylate is an excellent source of absorbent owing to which it is extensively used in personal care and consumer products. It is also used as raw material for fiber processing agents, textiles, adhesives, coatings, plastic, rubber sector, and others. These factors are anticipated to increase the potential sales of the bio-butanol market.
Based on end-use, the bio-butanol market is segmented into automotive, textile, building and construction, paints & coatings, personal care, oil & gas, and others. It is expected that the automotive segment to hold a dominant position during 2022 -2031 with a market share of 24.56%.
Factors such as the rise in the population, urbanization, increase in demand for personal vehicles, and growing logistics and transportation activity have witnessed a significant increase in the butanol production rate. In addition to the rise in auto manufacturing plants, components have enhanced the performance of bio-based butanol, predominantly used in internal combustion engines. In response, butanol resembles gasoline’s properties, an alternative substitute for other conventional fuels. This is augmented to increase the demand for biobutanol in the automotive industry.
Regional Snapshots.
Region-wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA.
Asia-Pacific is the dominant region in the bio-butanol market, with a total market share of 38% during the forecast period.
The utilization of bio-butanol has increased in the sectors such as personal care, automotive, oil and gas sector, and others. China is the topmost producer of vehicles in the world, where butanol is widely used as an alternative source over conventional fuel and also used in internal combustion engines, which propels the market growth. In addition, countries such as Japan and Taiwan are constantly engaged in expanding their electrical & automation manufacturing output, which has enhanced bio-based butanol performance.
For instance, according to a report published by Hennessy Funds, Japan accounts for around 30% market for supplying factory automation products in the world. Furthermore, the rise in pollution and government support and investment in the generation of renewable sources in the countries such as South Korea, India, China, Southeast Asia, and others have enhanced the demand for bio-based butanol during the forecast period in the Asia-Pacific region.
Report Scope
| Feature of the Report | Details |
| Market Size in 2021 | USD 15.83 Billion |
| Projected Market Size in 2030 | USD 22.32 Billion |
| CAGR Growth Rate | 8.5% CAGR (2022-2030) |
| Base Year | 2023 |
| Forecast Period | 2024-2033 |
| Prominent Players | Abengoa, Celtic Renewables, Cathay Industrial Biotech, Eastman Chemical Company, Gevo Inc, Green Biologics, GranBio, Phytonix, Metabolic Explorer, Working Bugs LLC, and Others |
| Key Segment | By Raw Material, Application, End User, and Region |
| Report Coverage | Revenue Estimation and Forecast, Company Profile, Competitive Landscape, Growth Factors and Recent Trends |
| Regional Scope | North America, Europe, Asia Pacific, Middle East & Africa, and South & Central America |
| Buying Options | Request tailored purchasing options to fulfill your requirements for research. |
Key Players
- Abengoa
- Celtic Renewables
- Cathay Industrial Biotech
- Eastman Chemical Company
- Gevo Inc
- Green Biologics
- GranBio
- Phytonix
- Metabolic Explorer
- Working Bugs LLC
Key Findings:
- The cereal crops raw material segment dominated the market in 2021 and is expected to grow over the forecast period with a total market share of 52%.
- Global acrylates application segment to hold a dominant position during 2022 -2031 and accounted for 45% of the total market share during the forecast period.
- The automotive end-use segment holds a dominant position during 2022 -2031, with a market share of 24.56%.
- Asia-Pacific is the dominant region in the bio-butanol market, with a total market share of 38% during the forecast period.
Key development:
- September 2021; Gevo Inc. has entered into a strategic agreement with Butamax Advance LLC Biofuel, which will be actively engaged in the production of Gevo/Butamax isobutanol and IsoButanol derivatives patent estate in the fields of fuels and chemicals. This strategic agreement will strengthen Gevo Inc’s product portfolio.
Segments covered in the report
By Raw Material
- Cereal Crops
- Sugarcane Bagasse
- Waste Biomass
- Others
By Application
- Acrylates
- Acetates
- Glycol Ethers
- Solvents
- Plasticizers
By End User
- Automotive
- Textile
- Paints & Coatings
- Building and Construction
- Oil & Gas
- Others
On the basis of Geography
North America
- The U.S.
- Canada
- Mexico
Europe
- France
- The UK
- Spain
- Germany
- Italy
- Rest of Europe
Asia Pacific
- China
- Japan
- India
- Australia
- South Korea
- Rest of Asia Pacific
The Middle East & Africa
- Saudi Arabia
- UAE
- Egypt
- Kuwait
- South Africa
- Rest of the Middle East & Africa
Latin America
- Brazil
- Argentina
- Rest of Latin America