The global N-Butanol Market was valued at USD 3.2 Billion in 2022 and is projected to reach a value of USD 4.41 Billion by 2030 at a CAGR (Compound Annual Growth Rate) of 4.7% between 2023 and 2030.
N-Butanol or 1-butanol is a primary alcohol with the chemical formula C4H9OH. It follows a linear structure. The isomers of 1-butanol are isobuntanol, butan-2 and tert-butanol. The global N-Butanol market is expected to dominate during the forecast period owing to several contributing drivers. Due to its extensive use in the building and construction industry, N-Butanol is in high demand as a solvent, coating, and chemical intermediary for butyl acetate, ethers, and other compounds. This demand is fuelling the growth of the N-Butanol market. Also, the growing use of bio-based N-Butanol and biofuel for use in automobiles, chemicals, and other industries will increase demand for the market during the forecast period. Due to their better qualities, including higher energy, compatibility, and environmentally acceptable by-products, N-Butanol-based biofuel and bioderived butanol are becoming increasingly popular across key end-use sectors.
N-Butanol Market Size, 2022 To 2030 (USD Billion)
Given the rising demand for N-Butanol across various industries, including coatings, paints, adhesives, sealants, inks, and solvent products in nations like China, India, Mexico, Saudi Arabia, Germany, and the U.S. Over the next seven years, the market size will expand due to rising consumption in the food and beverage sector of artificial flavour due to strong demand for fruit, butter, milk, rum, ice cream and ices, candy, whisky, baked goods, and cordials. The increased demand for marine coatings, automotive coatings, engineering plastics, super absorbent polymers, and adhesives is anticipated to drive growing N-Butanol usage in butyl acrylate, butyl acetate, glycol ethers, direct solvent, and plasticizers over the projected period.
The near future will see increased use of N-Butanol in several industries, such as printing, polymers, pyroxylin plastics, medicines, herbicide esters, and polymers. Additionally, high usage as a reactant and diluent in producing urea- and melamine-formaldehyde resins is anticipated to generate significant growth potential in the coming years. The consumption of paints, coatings, varnishes, resins, and dyes is anticipated to rise along with rapid industrialization and increased disposable income, ultimately boosting the N-Butanol market demand. Industry growth is anticipated to be fuelled by increased investment from major players in nations including India, China, Malaysia, Sweden, Taiwan, Saudi Arabia, and South Africa. In contrast, over the following seven years, new market opportunities will arise due to product innovation and technological breakthroughs in bio-butanol development.
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- Demographic and Geographic Insights
When central banks raise interest rates, it has been predicted that a recession will occur in 2023. The recession mostly affects industrialized countries such as the United States and Europe. The recession is already hurting several countries, and it has been reported that there is a labour shortage. Manufacturing firms, in particular, are suffering as a result of the same companies. Due to the recession and increased cost of various items, the market is expected to rise slowly in 2023. Russia and Ukraine are expected to contribute around 30% of global commerce. The supply chain was severely harmed due to Russia's invasion of Ukraine. Numerous industrial enterprises reported labour scarcity and increased pricing of raw materials, particularly metals such as copper, steel, and iron.
Top Market Trends
1. Rising Demand from the Transportation Sector: The transportation industry has a high demand for N-Butanol due to its use in biofuel, braking fluids, ignition engines, and other uses. The market is expanding due to increased production in well-established transportation industries like locomotive, aircraft, marine, and automobile. The commercial, general, and corporate aviation services, for instance, are expected to be worth US$ 1.7 trillion by 2030, according to a prediction by Boeing. The increase influences the demand for N-Butanol in global transportation. The Bureau of Transportation Statistics (BTS) reports that transborder freight in North America increased by 23.8% in March 2022 compared to March 2022. As a result of its many applications in transportation, including engine ignition, biofuel, and others, N-Butanol is in high demand due to the expanding automotive, aerospace, marine, and other sectors of the transportation industry. As a result, the N-Butanol industry is experiencing significant growth opportunities.
2. Emerging Trends in Bio-Derived N-Butanol: As a biofuel, N-Butanol is in high demand and popular in many industries. Because of the increased focus on lowering VOC content, greenhouse gas emissions, and price instability of crude oil, the biofuel market is expanding quickly. Hence, the manufacturing of biofuel is becoming the newest trend. The International Energy Agency (IEA) predicts that between 2021 and 2026, the world's demand for biofuels will increase by 41 billion litres or 28%. By overexpressing aldehyde dehydrogenase, cellulose is converted to biobased N-Butanol. As a result, the demand for bio-derived N-Butanol fuels is growing rapidly in response to rising trends and the demand for biofuels, improving market growth prospects.
3. Increasing Utilization from a Variety of End-Users: The expanding construction and infrastructure sectors drive the global market. Also, the global N-Butanol output is also anticipated to expand due to increased coating demand from end-use industries. However, unstable raw material costs, anticipated scarcity, and potential health and environmental problems associated with solvent-based systems impede the demand for N-Butanol. Global infrastructure and building spending is increasing. The demand for N-Butanol has lately increased due to rapid industrialization and urbanization in important countries like China and India. The building and construction industry needs high-performance materials for protection and adornment. Paint, coatings, adhesives, and sealants, for example, that are based on N-Butanol must have extraordinarily high levels of consistency and efficiency.
The global N-Butanol market can be categorized into the following: Application, Commercial Manufacturing Process, End-User Industry, and Region. Based on Application, the market can be categorized into Butyl Acrylate, Butyl Acetate, Glycol Ethers, Direct Solvents, Plasticizers, and Other Applications. Furthermore, by Commercial Manufacturing Process, the market can be split between the Hydroformylation Reaction of Propene and Biosynthesis Using Clostridium acetobutylicum. Moreover, by End-User Industry, the market can be split between Varnishes, Paints, Coatings, Resins, Camphor, Dyes, Fats, Vegetable Oils, Waxes, Shellac, Rubbers, Alkaloids, and Others. Likewise, the market is segmented by Region into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.
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Based on Application
Butyl Acetate to Dominate Market Owing to Rising Applications in the Form of Various Co-Polymers
The global N-Butanol market is expected to be dominated by the segmental growth of butyl acetate in terms of revenue and share during the forecast period. Butyl acrylate is the most popular use of N-Butanol due to its expanding use in producing several copolymers. Some of the uses for these copolymers include paint resins and dispersions and aqueous dispersions for fabrics, varnishes, inks, glues, and adhesives. They can also produce plastics, other chemicals, paper, and textiles. As a result, the demand for butyl acrylate rises along with the growth of paints and coatings, adhesives, textiles, plastic, and other industries. Because of this, increased building activities and infrastructure development in emerging nations play a vital part in the butyl acrylate application, which increases demand for N-Butanol. These developments are brought about by rising disposable income and a higher standard of living among consumers. The Butyl acrylate is expected to grow with the fastest-growing CAGR during the forecast period owing to significant end-use sectors like automotive, construction, and others. Also, the market is expanding due to increased construction projects and infrastructure development.
Based on End-User Industry
Paints to Account for Largest Market Share Owing to a Budding Construction Sector
The paints sector is expected to dominate the global N-Butanol market regarding revenue and share during the forecast period. N-Butanol is a solvent widely used in the building and construction industry for residential and commercial structures and in coatings, paints, varnishes, and other products. It offers outstanding benefits like aesthetics, decor, and protection to the building and construction sector. The market is expanding due to rising investments and expansion in construction projects. The Office for National Statistics reports that in March 2022, the volume of Great Britain's monthly building output increased by 1.7%, reaching a level not seen since 2010. In addition, out of the 114.06 lakh dwellings approved in India, 52.55 lacs have been built as of November 2021 under the Pradhan Mantri Awas Yojna-Urban (PMAY-U) program of the Indian government's Made in India initiative. This is expected to expand the market for paints fuelling segmental growth. The coatings segment is expected to grow with the fastest growing CAGR during the forecast period owing to a rising inclination towards maintenance infrastructure.
Based on Region
Asia Pacific to Lead Global Sales Owing to a Budding Automotive and Pharmaceutical Sector
The global N-Butanol market is expected to be dominated by the region of Asia Pacific in terms of revenue and share during the forecast period. Rising population and increasing demand from end-use industries in Asia-Pacific. The rising demand for N-Butanol in making butyl acrylate, butyl acetate, glycol ethers & plasticizers and its use as a direct solvent contribute to market expansion. The better growth potential of N-Butanol in the automotive sector also contributes to market expansion in this region. Construction, pharmaceuticals, textiles, paints & coatings, and automotive industries are growing in Asia-Pacific, fueling demand for N-Butanol. Moreover, half of all vehicles produced in Asia-Pacific came from China, India, Japan, Malaysia, and South Korea. The region's demand for N-Butanol would be boosted by continued infrastructure development in these countries.
North America is expected to grow with the fastest-growing CAGR during the forecast period. The market is expanding due to increased production in well-established transportation industries like locomotive, aircraft, marine, and automobile. As a result of its many applications in transportation, including engine ignition, biofuel, and others, N-Butanol is in high demand due to the expanding automotive, aerospace, marine, and other sectors of the transportation industry. As a result, the N-Butanol industry is experiencing significant growth opportunities in the region.
The global N-Butanol market is expected to be dominated by a handful of players, which makes the market moderately fragmented. The market leaders invest heavily in their research and development departments to produce a wider portfolio. Additionally, the dominant players are looking to expand their presence on a global scale by focusing on regional and local manufacturing units. The global N-Butanol market is expected to be driven by constant innovations and optimizing supply chains.
The key players in the global N-Butanol market include - Green Biologics Inc. (U.S.), Eastman Renewable Materials LLC (U.S.), The Dow Chemical Company (U.S.), BASF SE (Germany), Mitsubishi Chemical Corporation (Japan), BASF Petronas Chemicals (Malaysia), Sinopec (China), KH Neochem (Japan), Oxochimie (France), Andhra Petrochemicals (India), Cobalt Technologies (U.S.), Green Biologics (UK), China National Petroleum Corporation (CNPC) (China), Formosa Plastics Corp (Taiwan), INEOS Oxide Ltd (UK), Perstorp Holding AB (Sweden), Saudi Kayan Petrochemical Company (Saudi Arabia) among others.
Recent Market Developments
· June 2020: SASOL announced 100.0% profitable operations of their Guerbot alcohol unit at the Lake Charles Chemical Project (LCCP) in Germany. The plant has a capacity of 173,000 tons of N-Butanol alcohol annually.
· February 2020: The DOW Chemical Company and Johnson Matthey announced that a China-based Guangxi Hyayi New Material Company selected LP SELECTOR 10 technology to produce butanol at their new manufacturing facility. The plant was built at Huayi’s integrated petrochemical complex in Qinzhou Port in China, with an annual N-Butanol capacity of 300,000 metric tons annually.
Segmentation of the Global N-Butanol Market
- Application (Butyl Acrylate, Butyl Acetate, Glycol Ethers, Direct Solvent, Plasticizers, Other Applications)
- Commercial Manufacturing Process (Hydroformylation Reaction of Propene, Biosynthesis Using Clostridium Acetobutylicum)
- End-User Industry (Varnishes, Paints, Coatings, Resins, Camphor, Dyes, Fats Vegetable Oils, Waxes, Shellac, Rubbers, Alkaloids, Other Industries)
- Region (North America, Europe, Asia Pacific, Latin America, Middle East & Africa)
|Regions & Countries Covered
- North America - (U.S., Canada, Mexico)
- Europe - (U.K., France, Germany, Italy, Spain, Rest Of Europe)
- Asia Pacific - (China, Japan, India, South Korea, South East Asia, Rest Of Asia Pacific)
- Latin America - (Brazil, Argentina, Rest Of Latin America)
- Middle East & Africa - (GCC Countries, South Africa, Rest Of Middle East & Africa)
- Green Biologics Inc. (U.S.)
- Eastman Renewable Materials LLC (U.S.)
- The Dow Chemical Company (U.S.)
- BASF SE (Germany)
- Mitsubishi Chemical Corporation (Japan)
- BASF Petronas Chemicals (Malaysia)
- Sinopec (China)
- KH Neochem (Japan)
- Oxochimie (France)
- Andhra Petrochemicals (India)
- Cobalt Technologies (U.S.)
- Green Biologics (UK)
- China National Petroleum Corporation (CNPC) (China)
- Formosa Plastics Corp (Taiwan)
- INEOS Oxide Ltd (UK)
- Perstorp Holding AB (Sweden)
- Saudi Kayan Petrochemical Company (Saudi Arabia)
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