The global bio-butanol market is expected to reach USD 17.78 billion by 2022, according to a new report by Grand View Research, Inc. Bio-butanol market is expected to witness significant growth in the next seven years owing to rising need for bio-based chemicals in place of petroleum based chemicals owing to their similar material characteristics, in addition to lower carbon footprints.
Tight raw material supply on account of food consumption being primary focus of corn and sugarcane is expected to be a major concern over the forecast period. Bio-butanol can be used as a drop-in replacement to petroleum-based butanol in all its applications. Depleting petroleum resources coupled with volatile oil prices has contributed towards the increasing need for bio-butanol.
Glycol ethers are expected to grow at a CAGR of 10.9% from 2015 to 2022, in terms of revenue. Rising demand for glycol ethers on account of their various applications including solvents in liquid soaps, cosmetics, cleaning compounds, resins, paints, perfume and inks is expected to fuel growth in the next seven years.
Further key findings from the study suggest:
- Prevalence of favorable government support for use of bio-based products coupled with stringent environment regulations on synthetically derived products is expected to augment growth in North America and Europe over the forecast period. Growing demand for greener paints and coatings in Asia Pacific has resulted in stimulating demand over the last few years. Low manufacturing cost and ease of refining is driving demand from various end use industries.
- Bio-butanol demand in acetates exceeded 780 kilo tons in 2014. Growing demand from the textile industry is expected to stimulate growth over the next seven years. They are increasingly being used in detergents, cleaners and polishes which has augmented growth.
- Europe bio-butanol market accounted for over 25.0% of the global market volume share in 2014. Government initiatives and stringent environment regulations has resulted in driving demand over the past few years and the trend is expected to continue over the forecast period. Presence of numerous manufacturers in Western Europe has been a major factor propelling growth.
- Green Biologics, Solvay, Butamax, Cobalt Technologies and Gevo dominated the global industry in 2014. These companies are integrated across various stages of the value chain. Integration across numerous stages of the value chain results in continuous raw material supply as well as low manufacturing cost.
- Advancement in fermentation and cellulosic extraction technology over the last few years has been a major reason for shifting trend towards bio-butanol. Joint ventures and alliances among various manufacturers and suppliers is a key feature of this market.