The market for methyl tertiary butyl ether (MTBE) is expected to register a CAGR of above 6%, during the forecast period.
The major factors driving the growth of the market studied are the increasing demand for use as an anti-knocking agent and as an octane booster in the fuel for gasoline engines, and growing usage in the production of pure isobutene. On the flipside, ethanol substituting the use of MTBE as an oxygenate additive to reduce the toxicity of exhaust emissions, and its classification as a pollutant and consequent ban of its use in gasoline blending in the United States and Canada serve as major restraints for the market studied.
The gasoline additive segment dominated the market and is expected to grow during the forecast period, with numerous new refinery projects likely to commence operations in the coming years.
Innovation in bio-based MTBE for gasoline is likely to provide opportunities for the market studied, during the forecast period.
Key Market Trends
Gasoline Additives Segment to Dominate the Market Demand
Methyl tertiary butyl ether (MTBE) is extensively used as a gasoline additive, which is used as an anti-knocking agent and an octane booster in the fuel for gasoline engines.
Lower cost and effectiveness of MTBE makes it the second-largest gasoline additive type, globally.
The demand for MTBE in countries, such as China, India, South Korea, Mexico, and Saudi Arabia, has been increasing due to increased demand for gasoline from the automotive industry, which has been leading to an increase in the gasoline production in the aforementioned countries, in order to cater to the rising demand.
However, due to the toxic emission concerns, the use of MTBE is banned in various developed countries, including the United States, Canada, Japan, and in parts of Europe.
Such stringent regulations and the presence of comparatively less toxic and/or eco-friendly substitutes have been affecting the growth of the MTBE market, globally.
Hence, the aforementioned concerns in the market studied have led to increased investment by market players into R&D, in order to innovate bio-based MTBE.
Asia-Pacific Region to Dominate the Market
The Asia-Pacific region dominated the global market share. MTBE demand in the region is majorly driven by the increasing gasoline demand.
Furthermore, the widespread availability of MTBE as a cheap feedstock, coupled with being an attractive substitute to aromatics in gasoline, further drives the growth of the MTBE market in the region.
Numerous countries, such as India, China, South Korea, and Indonesia, have been witnessing investments into refineries, in order to increase their production capacity.
Some of the new investments, planned and under consideration such as Phase 2 Petrochemical Project by S-Oil Corp. at Ulsan, South Korea; a USD 4 billion up-gradation project at Pertamina Balikpapan facility in Indonesia; an ongoing plan of Saudi Arabia and India, regarding the probable USD 44 billion joint venture for the West Coast Refinery and Petrochemical Project in Maharashtra, India; and Saudi Aramco's investment plan in a refinery-petrochemical project in Zhejiang province, China.
Hence, with the commencement of operations in such refineries, the market is expected to witness robust growth in the demand for MTBE, in the coming years.
The MTBE market is moderately consolidated, with few players accounting for a significant portion of the market demand. Some of the major players in the market include China Petroleum & Chemical Corporation, SABIC, Reliance Industries Ltd, Evonik Industries AG, and LyondellBasell Industries Holdings BV, among others.
Key Topics Covered:
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS 4.1 Drivers 4.1.1 Demand for Use as an Anti-knocking Agent and as an Octane Booster in the Fuel for Gasoline Engines 4.1.2 Increasing Use in the Production of Pure Isobutene 4.2 Restraints 4.2.1 Ethanol Substituting the Use of MTBE 4.2.2 Classification as a Pollutant and the Consequent Ban of its Use in Gasoline Blending in the United States and Canada 4.3 Industry Value Chain Analysis 4.4 Porter's Five Forces Analysis 4.5 Technological Snapshot 4.5.1 Production Process 4.5.2 Technology Licensing and Patent Analysis 4.6 Regulatory Policy Analysis