Published: Jun, 2019

Tert-butanol Market: Key Highlights

  • The global tert-butanol market was valued at US$ 472.3 Mn in 2018, and is anticipated to expand at a CAGR of nearly 4% during the forecast period.
  • The global tert-butanol market is driven by the rise in the demand for solvents and co-solvents in the paints & coatings industry.
  • Asia Pacific accounts for a prominent share of the global tert-butanol market, led by rapid urbanization and industrialization in the region. 
tert butanol market segmentation

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Key Drivers of the Tert-butanol Market

  • Tert-butanol is used as a solvent or co-solvent in paints, coatings, inks, and adhesives. It is also used in varnishes, resins, gums, dyes, camphor, vegetable oils, dyes, waxes, resins, shellac, rubbers, and alkaloids. The demand for tert-butanol in Asia Pacific is expected to rise significantly during the forecast period, owing to the growth in the construction sector and automotive industry in the region.
  • Flavors and fragrances are extensively used in industries such as food, perfumes, toiletries, cosmetics, and chemicals. Rise in the demand for air fresheners and deodorizers, and increasing consumer preference for diverse tastes, ranging from traditional scents to international luxury brands and niche fragrances, are driving the global tert-butanol market.
  • Tert-butanol is employed as a denaturant in the denaturing of ethyl alcohol. It possesses excellent solvating properties and high oxidation stability. Denatured alcohol is employed in various end-use industries as a fuel additive, cleaning agent, exterminator, sanding aid, and solvent. Rise in the demand for denatured alcohol in various applications as a disinfectant and cleaning agent is projected to boost the demand for tert-butanol during the forecast period. 

Tert-butanol Market: Pharmaceutical Segment to Offer Attractive Opportunities

  • Tert-butanol has been identified as a potential freeze-drying agent in the manufacturing of pharmaceutical compounds, especially in the preparation of stable powdered products. Solutions that are used for freeze-drying are known as organic co-solvent systems. Tert-butanol dissolved in water is one of the most utilized co-solvent systems.
  • Increase in research activities on drug development and biopharmaceutical research across the globe is a major factor augmenting the growth of the tert-butanol market, as lyophilization or freeze-drying agents are widely used to improve stability and increase the shelf life of pharmaceuticals/biopharmaceuticals.
  • Rise in the demand for biopharmaceutical products such as special cancer treatment substances and antibodies, which require freeze-drying for attaining efficient outcomes in clinical trials, is anticipated to provide lucrative opportunities to manufacturers of tert-butanol in the market. 

Limited Availability of Propylene Oxide (PO)/Tert-butanol (TBA) Plants and Stringent Government Regulations on VOC Emitting Solvents to Hamper Market Growth

  • Propylene oxide is a chemical intermediate primarily used in the production of polyether polyols and propylene glycol. PO/TBA plants provide propylene derivatives and co-products such as tert-butanol and isobutylene. Tert-butanol is employed in the production of methyl tertiary butyl ether (MTBE), which is blended into gasoline to enhance the octane number, and thereby lower vehicle emissions.
  • The global tert-butanol market is impacted by the limited supply of propylene oxide, due to disruptions in operations between 2016 and 2017. Rise in the inclination toward biofuel and the restricted usage of MTBEs and ETBEs, typically in the U.S., are also hampering the overall sales of tert-butanol.
  • Increase in the number of regulations on VOC emissions from paints, coatings, printing inks, and industrial and domestic cleaning products; and rise in environment-related awareness have adversely affected the demand for petroleum-based solvents. Thus, the rise in environment-related regulations on VOC emissions is expected to hamper the global tert-butanol market during the next few years. 

Asia Pacific Prominent in the Tert-butanol Market

  • Based on region, Asia Pacific accounted for a major share of the global tert-butanol market in 2018. The demand for tert-butanol as a solvent in paints & coatings is high in the region, especially in developing economies such as China, India, and ASEAN, due to rapid urbanization and industrialization.
  • China is projected to lead the market in Asia Pacific in the next few years, due to the burgeoning construction and automotive industries in the country. Rise in the demand for efficient and long-lasting coatings for construction and automotive industries is likely to fuel the tert-butanol market in the country during the forecast period.
  • Total investments in real estate development in China stood at US$ 1,496.91 Bn from 2017 to 2018, an increase of 6.9% from the previous year. China has been consuming a significant amount of construction materials such as cement and paints & coatings over the last few years, due to the increase in construction output and growth in GDP. China’s economy has been expanding at a high pace. It is stimulated by rapid industrialization, imports and exports, consumer consumption, and capital investments. These factors are boosting the tert-butanol market in the country. 

Tert-butanol Market: Top Four Players Account for More than 50% Market Share

  • LyondellBasell Industries N.V. established a new propylene oxide (PO) and tertiary butyl alcohol (TBA) plant in Texas, the U.S., in 2018. The plant is expected to commence operations by 2021. It is anticipated to produce 1 million tons of tert-butanol, annually. The company is estimated to have invested US$ 2.4 Bn in the project due to the increase in export demand for polyurethanes and cleaner-burning oxyfuels.
  • In 2012, Huntsman Corporation and the Sinopec Jinling Petrochemical Corporation (Sinopec Jinling) established a joint venture to build a PO/MTBE plant in Nanjing, China, by utilizing the former’s proprietary PO/MTBE manufacturing technology. The plant became operational in 2017. It produces propylene oxide derivatives, MTBEs, and co-products such as tert-butanol. 

The tert-butanol market is dominated by a few large and medium players that operate across the globe. The top four players — LyondellBasell Industries N.V., Lotte Chemical Corporation, Wanhua Chemical Group Co., Ltd., and Evonik Industries AG — accounted for around 53% share of the tert-butanol market in 2018. Other major players operating in the global tert-butanol market are Tiande Chemical Holdings Limited, ZiBo Haizheng Chemical Co., Ltd., Sinopec Corp., and Maruzen Petrochemical Co., Ltd. 

Global Tert-butanol Market: Research Scope 

Global Tert-butanol Market by Application

  • Solvents & Intermediates
    • Paints & Coatings
    • Pharmaceuticals
    • Flavors & Fragrances
    • Others (including Floating Agents and Stabilizers)
  • Ethanol Denaturants
  • MTBEs & ETBEs
  • Methylmethacrylates (MMAs)
  • Others (Chromatography)

Global Tert-butanol Market by Region

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • France
    • U.K.
    • Italy
    • Spain
    • Russia & CIS
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • ASEAN
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Middle East & Africa
    • GCC
    • South Africa
    • Rest of Middle East & Africa        

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