Methyl Tertiary Butyl Ether Market

Methyl Tertiary Butyl Ether Market Size (2023-2028):

Methyl Tertiary Butyl Ether (MTBE) Market in the United States is anticipated at 8.2 million metric tons in 2028. China, the world's second-largest economy, is expected to reach a projected market size of 7.65 million metric tons by the year 2028 with a compound annual rate of 5.8% during the analysis period 2023-2028

Tertiary Butyl Methyl Ether (MTBE) is a component of gasoline made by the chemical reaction of methanol and isobutylene. It is a colorless, flammable, and volatile liquid with a faint distinctive odor. MTBE is miscible with all organic solvents and hydrocarbons in all proportions. It is poorly soluble in water and has a lower mixing density, lower mixing vapor pressure, and does not exhibit corrosion problems compared to other oxygenated fuels. Miscibility with gasoline and distillation properties are some of the main characteristics of MTBE. MTBE is used as a blending component in automotive fuels as a high-octane additive that helps gasoline burn cleaner and reduces emissions from automobiles. It is mainly used as an anti-knock agent and as an octane enhancer in gasoline engine fuel.

MTBE's lower cost and efficiency make it the second-largest type of gasoline additive in the world. In addition, MTBE is an affordable substitute for toxic fuel components such as olefins, lead, benzene, and sulfur. The MTBE demand in countries like China, India, South Korea, Mexico, and Saudi Arabia has grown due to the demand for gasoline from the automotive industry with the growing number of on-road vehicles. This has resulted in an increase in the demand for gasoline. Hence, the aforementioned factor, in turn, is expected to impact the growth of the methyl tertiary butyl ether market in the coming years.

Methyl tertiary butyl ether Market Drivers:

In the medium term, the main factors driving the growth of the studied market are the increasing demand for use as an anti-blocking agent and as an octane enhancer in gasoline engine fuel and the increasing use in gasoline engines—production of pure isobutene. The growth of the automotive industry in Asian markets is expected to lead to increasing demand from the MTBE market. In addition, the growing demand for gasoline and gasoline additives in the oil and gas and marine industries is expected to increase demand for MTBE. Market growth is driven by growing product demand in the automotive industry as MTBE reduces vehicle emissions and engine knock, increasing vehicle life. In addition, the growing demand for gasoline and gasoline additives in the marine and oil and gas industries is also positively contributing to the growth of the market. The methyl tert-butyl ether (MTBE) market was mainly driven by petrochemical applications. MTBE is preferred over others because of its lower cost and efficiency. 

Methyl tertiary butyl ether Market Restraints:

On the other hand, ethanol, which replaces the use of MTBE as an oxygenated additive to reduce the toxicity of exhaust emissions, and its classification as a pollutant and the consequent ban on its use in the mixture of gasoline with the United States and Canada, serve as important constraints for the market. The presence of strict regulations regarding groundwater contamination due to leaking gasoline containing MTBE is expected to be a key restraining factor for the growth of the methyl tert-butyl ether market. The health and environmental issues associated with MTBE may be a major constraint on the market for years to come.

Opportunities in the methyl tertiary butyl ether Market:

The main opportunity for the market is the growing petrochemical implementation of MTBE, like the production of high-purity isobutylene, highly reactive polyisobutylene, methyl methacrylate (MMA), and some smaller derivatives.

Challenges in the methyl tertiary butyl ether Market:

These products are growing at rates above world GDP. The replacement of MTBE by ethanol and ETBE is a major challenge for the growth of the market

METHYL TERTIARY BUTYL ETHER MARKET REPORT COVERAGE:

Methyl tertiary butyl ether Market Segmentation as per the research report until 2028.

By Manufacturing Process:

• Steam Cracker

• Fluid Liquid Cracker

• Others

Fluid liquid crackers and steam crackers are the most widely used manufacturing processes as they are refinery-based processes.

By Application:

• Gasoline

• Isobutene

• Others

Gasoline has the highest value in terms of market share. Initially, MTBE as gasoline was used as an alternative to metal additives such as lead and methylcyclopentadienyl manganese tricarbonyl (MMT). The prevalence of the number of vehicle fleets, majorly in developed and emerging economies, and increasing urbanization are propelling demand for MTBE in the gasoline segment.           

By Region:

•  North America 

•  Europe 

•  Asia Pacific 

•  Latin America 

•  Middle East & Africa 

The Asia-Pacific region dominated the global Methyl tertiary butyl ether market share. The demand for MTBE in the region is mainly driven by the growing demand for gasoline. The widespread availability of MTBE as an inexpensive raw material, besides being an attractive substitute for aromatics in gasoline, further stimulates the growth of the MTBE market in the region. Many countries, such as India, China, South Korea, and Indonesia, have witnessed investments in refineries to increase their production capacity. Some of the new investments are planned and under consideration, such as the S-Oil Corp. Phase 2 petrochemical project. In Ulsan, South Korea; a $ 4 billion improvement project at the Pertamina Balikpapan plant in Indonesia; an ongoing plan by Saudi Arabia and India for the likely $ 44 billion joint venture for the West Coast petrochemical and refinery project in Maharashtra, India; and Saudi Aramco's plan to invest in a petrochemical refinery project in Zhejiang province, China. Therefore, with the start of operations in these refineries, the market is expected to experience strong growth in the coming years.

South American countries like Brazil have high growth potential throughout the forecast period due to the upcoming refining sector in the region, which requires MTBE as an anti-knock agent to reduce machine wear. The United States, Canada, and the European Union have restricted the use of MTBE due to groundwater hazards and are promoting the use of bio-based fuel additives.

North America was the second-largest market in 2020 and is expected to maintain its dominant position during the review period. The presence of the developed automotive industry and leading MTBE manufacturing companies are contributing to the growth of the regional market. However, increasing restrictions on the use of MTBE due to environmental and health concerns are expected to hamper Methyl tertiary butyl ether market growth in the region. The markets in the Middle East & Africa, and Latin America are expected to make a substantial contribution to the global market during the forecast period due to the increase in gasoline requirements in these regions. In addition, lax regulations for the production of MTBE in the Middle East and Latin America are expected to positively impact the growth of the market.

 Covid-19 impact on methyl tertiary butyl ether Market:

Increasing levels of uncertainty in the market as responses to COVID-19 continue to develop; economic activity has slowed over the past year, the COVID-19 pandemic has led to changes in supply and energy demand. COVID-19 has also hit the auto industry, causing worldwide car sales to drop from nearly 74 million units in 2019 to 64 million units in 2020 due to the shutdown. This has affected the tertiary methyl butyl ether market. The opening of markets after the easing of the blockade is an encouraging sign.

Methyl tertiary butyl ether Market Key Players:

1. China Petroleum & Chemical Corporation

2. SABIC

3. Enterprise Products Partners L.P.

4. Evonik Industries AG

5. LyondellBasell Industries Holdings

6. Huntsman International (US)

7. ENI (Italy)

8. Royal Dutch Shell (Netherlands)

9. Emirates National Oil Company (UAE)

10. QAFAC (Qatar)

11. Gazprom (Russia)

12. Shandong Dongming Petrochemical Group (China)

13. Reliance Industries Limited (India)