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Methyl Tertiary Butyl Ether (MTBE) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

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  • 150 Pages
  • August 2022
  • Region: Global
  • Mordor Intelligence
  • ID: 5616611
The methyl tertiary butyl ether (MTBE) market is expected to register a CAGR greater than 6% during the forecast period (2022-2027).

The market was negatively affected due to COVID-19 in 2020, with production halts and supply disruptions, thus affecting the market growth. However, the condition has started to recover in 2021, which is expected to drive the market during the forecast period.

Key Highlights

  • Over the mid-term, the major factors driving the growth of the market studied are the increasing demand for MTBE as an anti-knocking agent and as an octane booster in the fuel for gasoline engines.
  • 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 significant restraints for the market studied.
  • Innovation in bio-based MTBE for gasoline will likely provide opportunities for the market studied during the forecast period.

Key Market Trends

Gasoline Additives Segment to Dominate the Market

  • Methyl tertiary butyl ether (MTBE) is extensively used as an anti-knocking agent and an octane booster in the fuel for gasoline engines.
  • The lower cost and effectiveness of MTBE make it the second-largest gasoline additive type globally. Besides this, MTBE represents an affordable substitute for toxic fuel components, such as olefins, lead, benzene, and sulfur.
  • According to U.S Energy Information Administration (EIA), the consumption of gasoline is estimated to be 99 million barrels per day globally in January 2022, an increase of 6.6 million barrels per day from January 2021.
  • The EIA also forecasts that global gasoline consumption will average 100.6 million b/d throughout 2022, up by 3.5 million barrels per day from 2021.
  • The demand for MTBE has been increasing due to increased demand for gasoline from the automotive industry. According to the OICA data, global automotive production increased by around 10%. It reached 57.26 million units in the first nine months of 2021 compared to 52.15 million units in the same period in 2020, hence driving the market studied in the forecast period.
  • Furthermore, 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 factors, in turn, are projected to impact the market growth in the coming years.

Asia-Pacific Region to Dominate the Market

  • The Asia-Pacific region dominated the global market share. The increasing gasoline demand majorly drives MTBE demand in the region.
  • The widespread availability of MTBE as a cheap feedstock, coupled with being an attractive substitute for aromatics in gasoline, further drives the growth of the MTBE market in the region.
  • Many countries, such as India, China, South Korea, and Indonesia, have been investing in refineries to increase their production capacity.
  • India consumed around 4.65 million barrels of petroleum and other liquid fuel per day in 2021, while China consumed around 15.25 million barrels per day in 2021, while the global consumption of petroleum and liquid fuel was 97.07 million barrels per day.
  • Some of the new investments planned and under consideration are the Phase 2 Petrochemical Project by S-Oil Corp. at Ulsan, South Korea, and a USD 4 billion upgradation project at the Pertamina Balikpapan facility in Indonesia.
  • In India, Nayara Energy is setting up an expansion project of a 200,0000-tonne MTBE plant in Vadinar Gujarat, which is targeted to be completed by 2022-end.
  • Furthermore, an ongoing plan between 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, will boost the market studied.
  • Hence, with the commencement of operations in such refineries, the market is expected to witness robust growth in the coming years.

Competitive Landscape

The MTBE market is semi-consolidated, with a few players accounting for a significant portion of the market demand. Some of the major players (in no particular order) in the market include SABIC, Enterprise Products Partners LP, Evonik Industries AG, LyondellBasell Industries Holdings BV, and China National Petroleum Corporation.

Additional Benefits:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support

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Table of Contents

1.1 Study Assumptions
1.2 Scope of the Study
4.1 Drivers
4.1.1 Demand for Use as an Anti-knocking Agent and as an Octane Booster in Fuel for Gasoline Engines
4.1.2 Increasing Use in the Production of Pure Isobutene
4.2 Restraints
4.2.1 Availability of Substitutes
4.2.2 Classification as Pollutant and Consequent Ban of Use in Gasoline Blending in the United States and Canada
4.3 Industry Value Chain Analysis
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Buyers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products and Services
4.4.5 Degree of Competition
4.5 Technological Snapshot
4.6 Regulatory Policy Analysis
5.1 Application
5.1.1 Gasoline Additives
5.1.2 Isobutene
5.1.3 Solvents
5.1.4 Other Applications (Medical)
5.2 Geography
5.2.1 Asia-Pacific China India Japan South Korea Rest of Asia-Pacific
5.2.2 North America United States Canada Mexico
5.2.3 Europe Germany United Kingdom Italy France Rest of Europe
5.2.4 South America Brazil Argentina Rest of South America
5.2.5 Middle-East and Africa Saudi Arabia South Africa Rest of Middle-East and Africa
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Market Share(%)**/Ranking Analysis
6.3 Strategies Adopted by Leading Players
6.4 Company Profiles
6.4.1 China National Petroleum Corporation
6.4.2 Eni SpA
6.4.3 ENOC Company
6.4.4 Enterprise Product Partners LP
6.4.5 Evonik Industries AG
6.4.6 Formosa Plastics Corporation
6.4.7 Gazprom Neft PJSC
6.4.8 LyondellBasell Industries Holdings BV
6.4.9 QAFAC
6.4.10 Reliance Industries Ltd.
6.4.11 SABIC
6.4.12 SIBUR International GmbH
7.1 Innovation in Bio-based MTBE for Gasoline

Companies Mentioned

A selection of companies mentioned in this report includes:

  • China National Petroleum Corporation
  • Eni SpA
  • ENOC Company
  • Enterprise Product Partners LP
  • Evonik Industries AG
  • Formosa Plastics Corporation
  • Gazprom Neft PJSC
  • LyondellBasell Industries Holdings BV
  • Reliance Industries Ltd.
  • SIBUR International GmbH