Methyl Isobutyl Ketone Market - Forecast(2023 - 2028)

Overview

Methyl Isobutyl Ketone Market is forecast to reach $750.94 Million by 2025, after growing at a CAGR of 4.25% during 2020-2025. The thriving global automotive industry has increased demand for rubber manufacturing solvents and surface coatings chemicals that increased the industry's consumer demand. Additionally, increasing construction expenditure has increased the use of methyl isobutyl ketone (MIBK) in the form of solvents and paint & coatings extraction solvents.

Report Coverage

The “Methyl Isobutyl Ketone Market report – Forecast (2020-2025)”, by IndustryARC, covers an in-depth analysis of the following segments of the Methyl Isobutyl Ketone Market.

Key Takeaways

• The shift to the bio-based substitute will stimulate product demand to increase the market size of methyl isobutyl ketone over the projected period.
• MIBKs based on petroleum are assumed to be highly toxic when exposed to air that can cause mucous membrane irritation and fragile effects on the human central nervous system will hamper the market growth.
• Methyl isobutyl ketone is widely used in the production of insecticides that control insects in the garden and various fertilizers in order to keep crops safe before harvest.
• In addition, due to its high solvency and excellent stability, it is also an extraction solvent for antibiotics and pharmaceutical products.

Application - Segment Analysis

Rubber Processing Chemicals segment held the largest share in the Methyl Isobutyl Ketone Market is growing at a CAGR 5.07%. MIBK's large use as a solvent in nearly 40 industrial applications is expected during the forecast period to support market growth. It is used in the de-waxing and de-oiling of rubber products as a denaturant in many ethanol formulations and as an extractive agent. With increased construction activities in developing economies, the increasing demand for surface coatings is likely to affect market growth. The booming global automotive industry has led to increased use of solvents for chemical surface coatings and rubber processing chemicals, resulting in increased use of MIBK in the automotive industry.

End-Use Industry - Segment Analysis

Paints and Coatings sector has been the primary market for Methyl Isobutyl Ketone for many years. It is used as chemical intermediate and as a solvent and is very efficient at dissolving resins and paints, other types of surface coatings.

Geography - Segment Analysis

APAC dominated the Methyl Isobutyl Ketone Market share with more than 23%, followed by North America and Europe. The growing demand from end-use industries, including construction, automobiles, and agrochemicals. Due to increased automotive production and sales, demand for methyl isobutyl ketone is projected to increase in developing countries such as China, India, and Malaysia. In addition, encouraging the availability of cheap labour costs, raw materials, and implementing new production strategies to meet the demand for methyl isobutyl ketone in the rising applications are key factors in regional market growth.

Drivers – Methyl Isobutyl Ketone Market

• Bio-based MIBK is expected to have the Highest Growth

Exposure to synthetic MIBK in close proximity to the material can have a serious impact on the environment and inhabitants. This factor is anticipated during the forecast period to fuel the global demand for bio-based MIBK. Compared to the petroleum-based method, the cost of the bio-based MIBK processing method is less. In the case of spillage during transport and storage, petroleum-based MIBK may also form explosive peroxides when exposed to air. Therefore, for a number of industries, the adoption of bio-based MIBK is considered both an economic and an ecologically viable option. The bio-based MIBK is expected to gradually replace the MIBK based on petroleum by 2024 to a large extent.

 Challenges – Methyl Isobutyl Ketone Market

• Increasing Awareness about Toxic Effects of MIBK on Environment

Because of its high toxicity level, most regulatory bodies around the globe impose strict regulations and guidelines on MIBK production. Although its negative effects on the environment and human health, on the other hand, have resulted in increased adoption of bio-based methyl isobutyl ketone. MIBK was subject to further restrictions on 28 March 2014, when it was added to the Proposition 65 list of chemicals reported to the State of California by the Office of Environmental Health Hazard Assessment (OEHHA). MIBK's listing in Proposition 65 had not yet had a significant impact on its use as of May 2018.

 Market Landscape

Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Methyl Isobutyl Ketone Market. In 2018, the market of Methyl Isobutyl Ketone has been consolidated by the top five players accounting for xx% of the share. Major players in the Methyl Isobutyl Ketone Market are Royal Dutch Shell, The Dow Chemical Company, Sasol, Kumho P&B Chemicals Inc., Mitsubishi Chemicals, Arkema Group, Sigma-Aldrich, Celanese Corporation, Mitsui Chemicals, Eastman Chemical Company, Lee Chang Yung Chemical, Jilin Chemicals, LCY Group, among others.

Acquisitions/Technology Launches

• In November 2017, a South Korean chemical firm was hit with anti-dumping tariffs by China's Commerce Ministry, for its exports of methyl isobutyl ketone (MIBK).
• In August 2017, a fire and power outage at Europe’s largest refinery, Pernis in the Netherlands, has resulted in the shutdown of MIBK plant.