The global butanes market was worth more than USD xx billion in revenue in 2018 and is expected to cross USD xx billion in 2023, growing at a healthy CAGR of over xx% during the forecast period.
Butanes (n-butane and isobutene) are an aliphatic hydrocarbon produced from natural gas, petroleum refineries and heavy liquid feedstock cracking. It is a major feedstock for producing butadiene and other petrochemicals. However, the major usage of butanes is as fuel for residential or commercial heating and cooking, as industrial fuel, gasoline engine fuel, and other smaller fuel uses (farm, town gas, and refinery). It is also used in making ethylene, propylene oxide, MTBE, maleic anhydride and acetic acid in limited capacities.
As butanes are one of the major fuels for domestic and industrial purposes, demand for fuel is expected to increase the growth of this market. Demand for fuel based markets is actually increasing because of growing population and extra income in developing countries. Rising demand of downstream petrochemicals from various industries such as fuel additives, packaging, and construction industry is likely to drive butanes demand. Additionally, demand for butadiene and 1-buene is likely to increase at a greater rate because of an upsurge in demand from end-use markets, which in turn will boost butanes demand.
Drivers and Restraints of Butanes Market
Growing investments in downstream industries in regions like Asia and the Americas are likely to offer tremendous possibilities for butanes market in the future. As a result of accessibility to raw material, multinational businesses are investing in resource-rich regions to be able to limit the overall production cost. In the USA and China, the shale gas revolution has made the raw material cost much cheaper in the recent past until the global market was flooded with crude oil oversupply.
Butanes are exposed to the probability of volatility in supply and price of crude oil and natural gas. Butanes has an adverse effect on human body if exposed to it for a longer duration. Its acute toxicity and flammability often make environmental regulatory institutions to implement strict regulations on butanes usage. Existing and future regulations concerning the use of butanes and its derivatives in end products are likely to hinder the market growth.
Butanes Market by Region
Asia was the largest consumer of butanes and this pattern is anticipated to continue to be identical over the following few years. Consumption in China is showing upward trend because of increase in economic activity and due to abundant reserves of shale gas. Growing demand for fuel, packaging, construction and other industries will drive butanes market in China. With major production capacities in the China and South East Asia, the region is likely to grow in terms of global supply capability. Consumption of butanes in the Americas and the Middle East is likely to grow at a significant rate due to demand from fuel, packaging and construction industry. Demand from Europe and Africa was low relatively and is likely to stay same in the next few years.
Top players in this market include British Petroleum, ConocoPhillips Inc., Chevron Corporation and Exxon Mobil Corporation. Other companies having significant operations in butane market include Royal Dutch Shell PLC., China Petroleum and Chemical Corporation, Total S.A., China National Petroleum Corporation, Praxair, Linde and Air Liquide among others.
The report covers exhaustive analysis on:
- Global Market Segments
- Global Market Size
- Supply & Demand
- Global Market Competitive Landscape
- Production Technology
- Global Market Value Chain
Regional analysis includes:
- Middle-East and Africa
- In depth summary of parent market
- Altering market characteristics in the industry
- Detailed market segmentation
- Historical and forecast market size in terms of volume and value
- Current industry developments
- Competitive landscape
- Strategies of key players and products available
- Potential and niche segments, regions showing promising growth