Global Bio-butanol Market 2024 – 2033

Reports Description

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.

Growth Factors.

The growing use of bio-butanol in the automotive and paint & coatings sectors will aid the market growth.

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.

The key elements such as an increase in the population, growing demand for vehicles, and rise in awareness towards carbon dioxide emission have driven the use of bio-based butanol, which has significant properties as gasoline. For example, it has low vapour pressure and is corrosive, which allows its transportation and storage in the same infrastructure existing for gasoline.

On the contrary, an increase in 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 aftermarket is expected to grow at 10.5 per cent to touch $13 billion by 2019-20, compared to $8.4 billion in 2016-17. Moreover, 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.

Bio-butanol Market Segmentation.

Bio-butanol market, segmented by Raw Material 

Depending upon the grade, is segmented into cereal crops, sugarcane bagasse, waste biomass, and others. 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.

Bio-butanol market, a segment based on the Application

The global bio-butanol market is studied across 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 fibre processing agents, textiles, adhesives, coatings, plastic, rubber sector, and others. These factors are anticipated to increase the potential sales of the bio-butanol market.

Furthermore, acetates, glycol ethers, and others have shown positive growth during the forecast period. This is attributed to the growing demand for consumer products, paints and coatings, building and construction, and the oil& gas sector has witnessed the growth of other types of bio-butanol.

• Bio-butanol Market, segmented by End Use

Depending upon the 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, which is 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.

Furthermore, the aerospace, paints and coating, textile and other end-user segments have shown considerable growth during the forecast period. Bio-based butanol is an excellent source of absorbent, due to which it is used in the textile dyeing process and personal care products such as creams, lotion, and others. These factors are expected to increase the overall market growth in the upcoming years.

In addition, bio-butanol has increased in the paint & coatings sector due to the rising population across the globe, growing demand for the residential and commercial sector, and increased demand from various end-use industries where it is predominately used as a solvent. This is anticipated to drive the demand for alcohol-based ethoxylates in the paints and coatings industry.

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 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.

Regional Insights

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. For example, 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 the performance of bio-based butanol. 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.

Also, the region has well-established with oil and gas, paint and coating, the textile industry, and other sectors where demand for bio-butanol has increased.

The Europe and North American regions are also anticipated to maintain dominance throughout the forecast period. Countries such as the U.S., Canada, and Mexico have significantly contributed to the growth of the bio-butanol market in the region. Critical factors for the development in the North American area are the growing population, increase in the chemical manufacturing industry, and government initiation and investment in renewable energy sources, has provided the way for the growth of the bio-butanol market.

Key Players 

• Abengoa
• Celtic Renewables
• Cathay Industrial Biotech
• Eastman Chemical Company
• Gevo Inc
• Green Biologics
• GranBio
• Photonics
• Metabolic Explorer
• Working Bugs LLC

Recent 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.

COVID-19 Analysis

The novel coronavirus is an incomparable global pandemic that has spread to over 180 countries and caused huge losses of lives and the economy around the globe. As a result, the guidelines and policies of the logistics and supply chain of the bio-but no products were affected slightly.

In the first quarter of 2020. Furthermore, to control the surge of novel coronavirus cases, there is a drastic shift of investments from other sectors toward agrochemical, paint and coatings, pharmaceutical, and household consumer products. Also, several bio-butanol product manufacturing companies have shut down or reduced their operations due to the risk of infection among the workforce.

There was a decrease in the number of covid-19 cases in the fourth quarter of 2020 due to a surge in demand for personal care, consumer products, and hygiene-related products. In addition, as the restrictions imposed due to lockdowns are being lifted in the fourth quarter of the pandemic, the pharmaceutical, personal care, and cosmetics, paint and coatings, oil& gas manufacturing sector are expected to recover soon owing to the record of a production unit in both developed and developing economies. In the first quarter of 2021, the market for bio-butanol has experienced an increase in the demand for bio-butanol chemicals worldwide compared to 2020.

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

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

• Germany
• France
• U.K.
• Italy
• Spain
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• New Zealand
• 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