North American Polyisobutylene Market - Forecast(2023 - 2028)

The North American Polyisobutylene Market size is estimated to reach US$500 million by 2027, after growing at a CAGR of 6.0% during the forecast period 2022-2027. The increasing requirement for North American polyisobutylene in the electrical & electronics industry as an encapsulant to be used with electronic components and to provide insulation to electrical appliances is anticipated to boost the growth of the North American polyisobutylene industry during the forecast period. From 2000 to 2020, the U.S. semiconductor industry's R&D expenditures grew at a compound annual growth rate of 7.2 percent. Also, in 2020, the total U.S. semiconductor industry investment in R&D was US$44.0 billion, contributing 18.6 percent to R&D expenditures as a percentage of sales, globally. Polyisobutylene is a category of organic polymers produced by the polymerization of isobutene. The growing transportation sector is driving the growth of the North American polyisobutylene market, to be utilized in the manufacturing of tires and automotive body parts as sealants, lubricants, adhesives, rubber and other applications. The global economic downturn caused by the COVID-19 pandemic resulted in a huge drop in building & construction, electronic devices, transportation and other end-use industries all across the world, which had a significant impact on the growth of the North American Polyisobutylene market size.

The “North American Polyisobutylene Market Report – Forecast (2022-2027)” by IndustryARC, covers an in-depth analysis of the following segments in the North American Polyisobutylene industry.

By Molecular Weight: Low Molecular Weight, Medium Molecular Weight, High Molecular Weight and Others.

By Product: Non-reactive Polyisobutylene and Highly Reactive Polyisobutylene

By Application: Paints & Coatings, Adhesives and Sealants, Tires, Agrochemicals, Lubricant Additives, Fuel Additives, Laboratory Chemicals, Metal Working Fluids, Packaging and Others.

By End-use Industry: Food & Beverages, Pharmaceutical & Healthcare, Building & Construction (Residential, Commercial, Industrial, Infrastructure), Transportation (Aerospace, Marine, Automotive, Locomotive), Electrical & Electronics, Textile & Apparel, Personal Care & Cosmetics, Sports & Leisure and Others.

By Country: The USA, Canada and Mexico

The paints & coatings segment held the largest share of the North American Polyisobutylene Market in 2021 and is estimated to grow at a CAGR of 5.2% during the forecast period 2022-2027. Polyisobutylene, which is a category of organic polymers produced by the polymerization of isobutene, is utilized in paints & coatings to provide longevity and durability and is non-flammable. These are utilized in paints and coatings to increase adhesion. Polyisobutylene enhances UV and thermal stability, chemical resistance, surface strength and corrosion and scratch resistance. On application to permeable substrates such as concrete and wood, they offer waterproofing protection. The market for the paints and coatings segment is anticipated to rise, owing to rapidly rising non-residential construction activities. According to the Statistics Department of Canada, capital expenditures on non-residential construction and machinery and equipment are expected to rise 8.6% to US$298.2 billion in 2022, with a 10.4% increase in 2021. Thus, the rising construction activities require more paints & coatings, which is driving the growth of the North American Polyisobutylene market.

The building & construction industry held the largest share of the North American Polyisobutylene Market in 2021 and is estimated to grow at a CAGR of 6.7% during the forecast period 2022-2027. In the building & construction industry, polyisobutylene is utilized in adhesives & sealants, paints and coatings to increase the bonding between polymer matrix and fiber surface and other applications. This helps significantly reduce porosity in renders, concrete and wood, making them water-repellent. In Mexico, according to the International Trade Administration (ITA), the construction industry value reached US$82.6 billion in 2021 from US$72.9 billion in 2020. Thus, the growing building and construction industry would require more polyisobutylene for paints and coatings, adhesives & sealants and other applications due to their major characteristics. This would drive the demand for the North American Polyisobutylene market during the forecast period.

The US led the North American Polyisobutylene market in 2021 with a share of up to 72%, due to the increasing requirement for polyisobutylene in the building & construction industry. It is a category of organic polymers produced by the polymerization of isobutene. The construction spending during May 2022 was estimated at a seasonally adjusted annual rate of US$1,779.8 billion, which is 9.7% higher compared to May 2021, according to the U.S. Department of Commerce. Moreover, the privately owned housing units authorized by building permits in March 2022 were around 1,873,000 which was 0.4% above February 2022 of 1,865,000 units and 6.7% above March 2021 of around 1,755,000 units according to the U.S. Department of Commerce. Such increasing building & construction activities in the USA are anticipated to increase the demand for polyisobutylenes applications in the forecast period and are proving to be a market booster for the North American Polyisobutylene market size in this region.

The electrical and electronics industry uses Polyisobutylene as an encapsulant to be used with electronic components and to provide insulation to electrical appliances. According to the Government of Canada, in 2022, the government announced the Semiconductor Challenge Callout, a fund of US$150 million through the Strategic Innovation Fund. Moreover, Intel Mexico, in 2021, invested US$20 billion to build two advanced chip factories in Arizona. Thus, the growing electrical and electronic industry would require more polyisobutylene. Therefore, it is estimated to increase the growth of the North American Polyisobutylene industry.

Polyisobutylene is essential in manufacturing automotive body parts in the transportation industry. It is utilized in the form of sealants, lubricants, adhesives, rubber and in other applications. According to the government of Canada, in 2020, in Atlantic Canada, Alifax Shipyards, won a contract of US$25 billion from the Department of National Defense for over the next 30 years, in order to build 21 combat ships. Moreover, in 2021, the Government of Quebec and the Government of Canada, funded US$2 billion in the aerospace industry to drive the recovery of the sector. With the increasing production of ships and the growing aerospace sector, it is estimated that the requirement for North American Polyisobutylene in the transportation industry would rise in the upcoming years, leading to market growth.

Polyisobutylene exhibits various advantages and applications in different end-use industries. However, there is a potential danger to human health and the environment from its usage. The toxic effects on human health include respiratory infection, kidney damage and increased risk of high blood pressure. It is also carcinogenic. Environmental rules and regulations continue to implement limitations on the utilization and disposal of toxic chemicals and force the industrial sector to search for an environment-friendly and safer substitute. Polyisobutylene produces flammable gases on burning. Therefore, its transporting is challenging in the industries. Thus, the health and environmental issues associated with Polyisobutylene would create hurdles for markets growth.

Technology launches, acquisitions and R&D activities are key strategies players adopt in the North American Polyisobutylene market. The top 10 companies in the North American Polyisobutylene market are:

In February 2021, BASF launched OPPANOL C in North America, a new, easier-to-process form of polyisobutylene. The product is produced as one-inch chips and can reduce the product development time and minimize the manufacturing process for customers by facilitating simpler and faster processing.