India High Purity Isobutylene market size is forecast to reach $222.6 million by 2026, after growing at a CAGR of 8.4% during 2021-2026. High Purity Isobutylene (HPIB) demand is on the rise owing to its increased application in butyl rubber which is further used in the manufacturing of rubber products. Most of the growth in HPIB demand can be attributed to the expansion of end-use sectors such as rubber manufacturing and fuel additives. High Purity Isobutylene is used as an intermediate in the production of a variety of products in the chemical industry. Rising demand of butyl rubber and PIB is the prime factor fueling the demand of high purity isobutylene market in India.
Global economies are currently recovering from the consequences of the globe-sweeping COVID-19 pandemic. As a result of the outbreak, various additive manufacturers across regions had to shut down their manufacturing activities. Also, some delays, due to the COVID-19 pandemic and related contingencies, occurred in the production and manufacturing of high purity isobutylene. The trade wars among major countries, uncertain trade policies, and the outbreak of COVID-19 pandemic, due to which almost every sector witnessed a significant slowdown in financial year 2020 across the country and also has a impact on the market growth.
India High Purity Isobutylene Market Segment Analysis – By Application
Butyl Rubber segment held the largest share of 77% in the India High Purity Isobutylene market in 2020 and is growing at a CAGR of 8.6% during 2021-2026. Butyl Rubber has superior product properties in comparison to natural rubber, in terms of tear strength, aging, and heat resistance are anticipated to provide a positive scope for market growth over the forecast period. India being one of the major pharmaceutical manufacturers is expected to drive the demand for butyl rubber in the pharmaceutical closures application. Also, butyl rubber demand remains concentrated in the Indian tire making industry. Butyl rubber tics most of the boxes as a raw material for tire manufacturing hence is a sought-after material in the industry. Tires made of butyl rubber have excellent inflation pressure retention, which makes them a preferred tire solution for various types of vehicles including passenger and commercial vehicles. More than 90% of HPIB along with isoprene is consumed to manufacture butyl rubber, the growing demand for automobile tires for new vehicles and the replacement of old tires is driving the industry growth.
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India High Purity Isobutylene Market Segment Analysis – By Region
South India held the largest share in the India High Purity Isobutylene market in 2020 up to 35%. In 2019, Andhra Pradesh government has revived the petroleum, chemicals and petrochemical investment region (PCPIR) project along the Bay of Bengal coast between Visakhapatnam and Kakinada to attract investments to the tune of Rs 2 lakh crore to make the state the largest petrochemical hub of the country. High purity based Tertiary butyl acetate solvent is majorly consumed in petrochemical industry sector. Consumption of Synthetic Rubber is primarily determined by the composition of the final product, the technical transition and the relative prices. Furthermore, the tire industry and presence of tire manufacturers in South India has augmented the consumption of butyl rubber as it is a raw material for manufacturing tires. Thus, with the rise in consumption of butyl rubber there is immense chance for growth of high purity isobutylene (HPIB) as it is used as a raw ingredient to manufacture butyl rubber.
India High Purity Isobutylene Market Drivers
Growing Demand from Rubber Industry
High purity isobutylene (HPIB) is extensively used in manufacturing various rubbers including butyl rubber, polyisobutylene, and others. Butyl rubber is used in adhesives, consumer products, and healthcare sectors. Apart from this, the product is extensively used in the manufacturing of tires. Apparently, the escalating use of the product for repairing roofs has prompt the growth of the butyl rubber industry. Other product applications include sporting equipment, automotive & mechanical goods, vibration isolation, and pharmaceutical closure.
According to Automotive Tyre Manufacturers’ Association (ATMA), tyre production in India in 2019 increased by 8% up to 1,919.81 Lakh/Nos from the previous year. In addition, India exported US$1,853,720,000 rubber tire in 2019 that is 1.6% higher than the previous year. In addition, anti-dumping duties imposed on Chinese tyres by the US will help India’s tyre exports to grow in the coming years, which in turn will drive high purity isobutylene market growth in India for butyl rubber production. In addition, with a booming automotive industry, tire production is increasing exponentially in India. Therefore, the growth in India’s automotive production is driving high purity isobutylene demand in the country.
Increased usage of HPIB in fuel and lubricant additives
High purity isobutylene vapors are heavier than air and a flame can flashback to the source of leak very easily. The leak can either be a liquid or a vapor leak. It can asphyxiate by the displacement of air. Therefore, HPIB is used in the production of isooctane, a high octane aviation gasoline. High purity isobutylene are used as an additive to gasoline it improves octane performance. In addition, high purity isobutylene is extensively used in manufacturing poly-isobutylene (PIB) which is primarily used in products such as fuel and lube additives, as viscosity modifiers, and in two-stroke motor oil, monograde engine oils, marine oils, gear, and transmission fluids and metalworking fluids, among other applications.
According to the Petroleum Planning and Analysis Cell (PPAC) in November 2019, India’s fuel demand rose 10.5% in compared with the same month in 2018. The consumption of fuel totaled 18.77 million tons.
India High Purity Isobutylene Market Challenges
Hazardous Effects on the Environment and Human Health.
Although isobutene derivatives are used in automotive, aerospace, pharmaceuticals, and other sectors, they have been known to have mildly hazardous effects on the environment. High Purity Isobutylene (HPIB) is highly flammable and forms explosive mixtures with air. HPIB is heavier than air and may travel along the ground or accumulate in spaces with low ceiling height, potentially reducing oxygen levels. Heating to decomposition may release carbon oxides and other potentially toxic gases. In addition, direct contact with liquid HPIB to humans may result in tissue freezing or severe cold burns similar to frostbite.
Inhalation of high purity isobutylene may result in central nervous system depression with symptoms of drowsiness, dizziness, nausea, and anesthesia. At extremely high levels, high purity isobutylene is a simple asphyxiant and can cause death. In addition, chronic exposure to HPIB may result in central nervous system damage. Therefore, the hazardous effects on the environment and adverse effects on humans may restrict India’s high purity isobutylene market growth.
India High Purity Isobutylene Market Landscape
Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the India High Purity Isobutylene market. Major players in the India High Purity Isobutylene market are Vinati Organics Limited, RX Marine International, and Reliance Industries Ltd.
South India dominates the India High Purity Isobutylene market, owing to the region being major hub for automotive and its components.
The Indian Tyre Industry is an integral part of the automotive sector. It contributes to ~3% of the manufacturing GDP of India and ~0.5% of the total GDP directly. MRF Ltd. which is the largest manufacturer of tires in India is situated in the South.
Moreover, In Jan 2018, Apollo tyres laid foundation for their fifth Indian facility in Andhra Pradesh which they will manufacture passenger vehicle tyres. Apollo also planned to expand its T&B capacity at the Chennai plant which is expected to commence operations in this financial year.
Hence, growing investments in the tire industry by major companies in South is expected to drive the high purity isobutylene market.
A. Isobutene Market
B. High Purity Chemicals Market
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