Methyl Tertiary Butyl Ether Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

The Global Methyl Tertiary Butyl Ether (MTBE) Market Report Segments the Industry by Grade (Industrial Grade and Pharmaceutical Grade), Distribution Channel (Direct Sales, Distributors, and Online Sales), Application (Gasoline Additives, Isobutene, and More), End-User Industry (Automotive, Oil and Gas, and More), and Geography (Asia-Pacific, North America, Europe, South America, and Middle East and Africa).

Methyl Tertiary Butyl Ether (MTBE) Market Size and Share

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Methyl Tertiary Butyl Ether (MTBE) Market Analysis by Mordor Intelligence

The Methyl Tertiary Butyl Ether Market size is estimated at USD 18.20 billion in 2025, and is expected to reach USD 23.68 billion by 2030, at a CAGR of 5.40% during the forecast period (2025-2030). Demand is rooted in the shift toward cleaner-burning, high-octane gasoline, mounting petro-refinery expansion in the Middle East, and steady uptake in pharmaceutical extraction processes. Integrated refinery-petrochemical complexes give producers flexibility to balance gasoline additive volumes with rising requirements for high-purity isobutylene used in synthetic rubber. Asia Pacific emission standards, such as China-6, continue to lift average MTBE blend rates in premium fuel grades, while methanol-to-gasoline projects across China extend the addressable pool for MTBE as an intermediate. 

Key Report Takeaways

  • By grade, industrial grade held 90% of the methyl tertiary butyl ether market size in 2024, while pharmaceutical grade is expanding at a 5.98% CAGR over the same horizon. 
  • By distribution channel, direct sales accounted for 70% of 2024 volumes; online channels record the highest projected CAGR at 6.40% through 2030. 
  • By application, gasoline additives commanded 73% of the methyl tertiary butyl ether market share in 2024, whereas the solvents segment is projected to advance at a 6.10% CAGR through 2030. 
  • By end-user industry, the automotive sector led with 61% revenue share in 2024; pharmaceuticals is the fastest-growing end-use, climbing 6.03% annually to 2030. 
  • By geography, Asia Pacific captured 42% of 2024 revenue and is forecast to rise at a 6.23% CAGR to 2030.

Segment Analysis

By Grade: Industrial Grade Dominates, Pharmaceutical Grade Accelerates

Industrial grade accounted for 90% of tonnage in 2024, driven by bulk gasoline additive demand and large-scale chemical intermediates. Material typically carries a purity of 98.50% and is routed through dedicated tank infrastructure at coastal terminals. Pharmaceutical grade, although just 10% by volume, is set to climb faster on a 5.98% CAGR as continuous drug manufacturing plants adopt MTBE for controlled crystallisations. 

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By Distribution Channel: Direct Sales Prevail, Digital Platforms Expand

Direct contracts covered 70% of 2024 shipments as refineries and major chemical companies source barge or railcar lots via long-term agreements. This structure reduces logistical handoffs and aligns quality control with blend-stock specifications. Distributors supply mid-sized paint, rubber, and pharma firms that purchase pallet quantities, accounting for 25% of volumes. Online portals exhibit a 6.40% CAGR as buyers leverage digital tenders and compliance documentation tools. The methyl tertiary butyl ether market is thus moving gradually toward hybrid fulfillment models that integrate e-commerce ordering with regional tank farm delivery.

By Application: Gasoline Additives Retain Scale, Solvents Deliver Growth

Gasoline blending represented 73% of 2024 consumption, anchoring the methyl tertiary butyl ether market despite evolving fuel policies. At USD 12.61 billion, the segment benefits from stable octane demand in regions lacking ethanol infrastructure. The solvents segment is modest in value yet is forecast to rise at 6.10% CAGR through 2030 as pharmaceutical extraction grows. MTBE’s role in high-purity isobutylene production also expands; advanced cracking units enable suppliers to serve tire elastomer makers, adding resilience against fuel-centric regulatory headwinds.

By End-user Industry: Automotive Commands Volume, Pharmaceuticals Shows Momentum

Motor fuel blending within the automotive sector led 2024 demand with 61% consumption share, underpinning stability for integrated refineries. Stricter particulate targets in densely populated Asian megacities maintain the relevance of high-octane fuels, where MTBE outperforms aromatics on vapour pressure. Pharmaceuticals, in contrast, record the steepest ascent at 6.03% CAGR on the back of solvent and extraction use. 

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Note: Segment shares of all individual segments available upon report purchase

Geography Analysis

Asia Pacific held 42% of global revenue in 2024, and is forecast to grow at 6.23% CAGR to 2030. China’s expanded Euro-VI equivalent fuel standard mandates, coupled with domestic MTG projects, raise structural demand for octane boosters. India follows a similar trajectory as Bharat Stage VI norms widen nationwide. 

North America reflects subdued consumption after state-level bans, yet the US Gulf Coast retains substantial export capacity. Europe presents a mixed picture. While partial restrictions exist, certain Mediterranean blenders still use MTBE in premium unleaded formulations, maintaining niche demand. 

Meanwhile, Middle Eastern producers continue to target European summer demand gaps with competitive FOB pricing. South America and Africa remain smaller but growing as Brazil and Nigeria widen unleaded gasoline pooling that benefits MTBE over aromatics in terms of vapour pressure compliance.

Methyl Tertiary Butyl Ether (MTBE) Market
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Competitive Landscape

Global supply is highly fragmented. Mid-tier Asian players invest in on-purpose units co-located with FCC and reformer complexes, narrowing delivered-cost gaps. Technology licensing represents a differentiator. Axens’ exclusive rights to ExxonMobil’s MTBE Decomposition Technology give adopters access to high-purity isobutylene streams for downstream tire polymers. Producers pursuing bio-routes explore fermented isobutene integration; studies indicate potential carbon intensity cuts of 80% but unfavourable cost parity at prevailing crude values, signalling a longer-dated opportunity set.

Methyl Tertiary Butyl Ether (MTBE) Industry Leaders

  1. SABIC

  2. Reliance Industries Limited

  3. LyondellBasell Industries Holdings B.V.

  4. Evonik Industries AG

  5. China Petrochemical Corporation

  6. *Disclaimer: Major Players sorted in no particular order
Methyl Tertiary Butyl Ether Market - Market Concentration.png
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Recent Industry Developments

  • March 2025: SABIC confirmed that mechanical completion of its 1,000 ktpa MTBE project at Petrokemya remains on schedule for Q4 2025, positioning the plant as the world’s largest single-train unit.
  • February 2025: Sipchem and LyondellBasell have initiated a front-end study for a Jubail complex, which aims to produce 1.5 million tons of ethylene and 1.8 million tons of derivatives, including MTBE. This development is expected to significantly influence the Methyl Tertiary Butyl Ether (MTBE) market by enhancing supply capabilities and meeting growing demand.
  • January 2025: Axens entered an exclusive global licence with Exxon Mobil Corporation for MTBE Decomposition Technology to produce 99.99 wt% isobutylene for polyisobutylene and butyl rubber markets.

Table of Contents for Methyl Tertiary Butyl Ether (MTBE) Industry Report

1. Introduction

  • 1.1 Study Assumptions and Market Definition
  • 1.2 Scope of the Study

2. Research Methodology

3. Executive Summary

4. Market Landscape

  • 4.1 Market Overview
  • 4.2 Market Drivers
    • 4.2.1 Surging Low-Aromatic, High-Octane Gasoline Mandates in Asia Pacific
    • 4.2.2 Petro-refinery Expansion in Middle-East Integrated with On-purpose MTBE Units
    • 4.2.3 Methanol-to-Gasoline (MTG) Route Adoption in Asia Elevating MTBE Demand
    • 4.2.4 Rising Demand for Iso-octene (via MTBE Dehydrogenation) in High-performance Tires
    • 4.2.5 Growing Use of MTBE as Co-solvent in Specialty Extraction for Pharma APIs
  • 4.3 Market Restraints
    • 4.3.1 Availability of Substitutes
    • 4.3.2 Classification as Pollutant and Consequent Ban of Use in Gasoline Blending in North America
    • 4.3.3 Volatility in C4 Raffinate Availability from Steam Crackers
  • 4.4 Value Chain Analysis
  • 4.5 Porter's Five Forces Analysis
    • 4.5.1 Bargaining Power of Suppliers
    • 4.5.2 Bargaining Power of Buyers
    • 4.5.3 Threat of New Entrants
    • 4.5.4 Threat of Substitute Products and Services
    • 4.5.5 Degree of Competition

5. Market Size and Growth Forecasts (Volume)

  • 5.1 By Grade
    • 5.1.1 Industrial Grade
    • 5.1.2 Pharmaceutical Grade
  • 5.2 By Distribution Channel
    • 5.2.1 Direct Sales
    • 5.2.2 Distributors
    • 5.2.3 Online Sales
  • 5.3 By Application
    • 5.3.1 Gasoline Additives
    • 5.3.2 Isobutene
    • 5.3.3 Solvents
    • 5.3.4 Other Applications
  • 5.4 By End-user Industry
    • 5.4.1 Automotive
    • 5.4.2 Oil and Gas
    • 5.4.3 Chemicals
    • 5.4.4 Pharmaceuticals
    • 5.4.5 Other End-user Industries
  • 5.5 By Geography
    • 5.5.1 Asia-Pacific
    • 5.5.1.1 China
    • 5.5.1.2 India
    • 5.5.1.3 Japan
    • 5.5.1.4 South Korea
    • 5.5.1.5 Rest of Asia-Pacific
    • 5.5.2 North America
    • 5.5.2.1 United States
    • 5.5.2.2 Canada
    • 5.5.2.3 Mexico
    • 5.5.3 Europe
    • 5.5.3.1 Germany
    • 5.5.3.2 United Kingdom
    • 5.5.3.3 Italy
    • 5.5.3.4 France
    • 5.5.3.5 Rest of Europe
    • 5.5.4 South America
    • 5.5.4.1 Brazil
    • 5.5.4.2 Argentina
    • 5.5.4.3 Rest of South America
    • 5.5.5 Middle East and Africa
    • 5.5.5.1 Saudi Arabia
    • 5.5.5.2 United Arab Emirates
    • 5.5.5.3 Qatar
    • 5.5.5.4 Turkey
    • 5.5.5.5 South Africa
    • 5.5.5.6 Nigeria
    • 5.5.5.7 Rest of Middle East and Africa

6. Competitive Landscape

  • 6.1 Market Concentration
  • 6.2 Strategic Moves
  • 6.3 Market Share Analysis
  • 6.4 Company Profiles (includes Global-level Overview, Market-level Overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share, Products and Services, Recent Developments)
    • 6.4.1 BP plc
    • 6.4.2 Chevron Phillips Chemical Company LLC
    • 6.4.3 China Petrochemical Corporation
    • 6.4.4 CNPC
    • 6.4.5 Eni S.p.A
    • 6.4.6 ENOC Company
    • 6.4.7 Enterprise Products Partners L.P.
    • 6.4.8 ETRONAS Chemicals Group Berhad
    • 6.4.9 Evonik Industries AG
    • 6.4.10 Exxon Mobil Corporation
    • 6.4.11 Formosa Plastics Corporation, U.S.A.
    • 6.4.12 Gazprom
    • 6.4.13 Huntsman International LLC
    • 6.4.14 LUKOIL
    • 6.4.15 LyondellBasell Industries Holdings B.V.
    • 6.4.16 QAFAC
    • 6.4.17 Reliance Industries Limited
    • 6.4.18 SABIC
    • 6.4.19 Shell plc
    • 6.4.20 Vinati Organics Limited
    • 6.4.21 Wanhua

7. Market Opportunities and Future Outlook

  • 7.1 White-space and Unmet-need Assessment
  • 7.2 Innovation in Bio-based MTBE for Gasoline
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Global Methyl Tertiary Butyl Ether (MTBE) Market Report Scope

Methyl tertiary butyl ether (MTBE) is a volatile, flammable, and colorless liquid sparingly soluble in water. The methyl tertiary butyl ether market is segmented by application and geography. By application, the market is segmented into gasoline additives, isobutene, solvents, and other applications. The report also covers the market size and forecasts for the methyl tertiary butyl ether market in 15 countries across major regions. For each segment, the market sizing and forecasts have been done based on volume (kiloton).

By Grade Industrial Grade
Pharmaceutical Grade
By Distribution Channel Direct Sales
Distributors
Online Sales
By Application Gasoline Additives
Isobutene
Solvents
Other Applications
By End-user Industry Automotive
Oil and Gas
Chemicals
Pharmaceuticals
Other End-user Industries
By Geography Asia-Pacific China
India
Japan
South Korea
Rest of Asia-Pacific
North America United States
Canada
Mexico
Europe Germany
United Kingdom
Italy
France
Rest of Europe
South America Brazil
Argentina
Rest of South America
Middle East and Africa Saudi Arabia
United Arab Emirates
Qatar
Turkey
South Africa
Nigeria
Rest of Middle East and Africa
By Grade
Industrial Grade
Pharmaceutical Grade
By Distribution Channel
Direct Sales
Distributors
Online Sales
By Application
Gasoline Additives
Isobutene
Solvents
Other Applications
By End-user Industry
Automotive
Oil and Gas
Chemicals
Pharmaceuticals
Other End-user Industries
By Geography
Asia-Pacific China
India
Japan
South Korea
Rest of Asia-Pacific
North America United States
Canada
Mexico
Europe Germany
United Kingdom
Italy
France
Rest of Europe
South America Brazil
Argentina
Rest of South America
Middle East and Africa Saudi Arabia
United Arab Emirates
Qatar
Turkey
South Africa
Nigeria
Rest of Middle East and Africa
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Key Questions Answered in the Report

What is driving growth in the methyl tertiary butyl ether market to 2030?

MTBE demand rises mainly from stricter octane standards in Asia Pacific, integration of on-purpose units in Middle Eastern refineries, and expanding pharmaceutical solvent applications, supporting a 5.40% CAGR forecast.

How large will the methyl tertiary butyl ether market size become by 2030?

It is projected to reach USD 23.68 billion by 2030 based on current capacity additions and demand trajectories.

Why does Asia Pacific dominate the methyl tertiary butyl ether market?

The region enforces tight emission rules, hosts multiple methanol-to-gasoline projects, and benefits from rapid car parc expansion, giving it 42% revenue share in 2024 with the fastest regional CAGR of 6.23%.

Which application segment is expanding fastest within the methyl tertiary butyl ether industry?

Solvent use in pharmaceuticals shows the strongest growth at 6.1% CAGR because MTBE improves crystallisation and extraction efficiency for active pharmaceutical ingredients.

How are producers diversifying beyond gasoline additives?

Companies deploy MTBE decomposition technologies to generate high-purity isobutylene for synthetic rubber and explore bio-based feedstocks to lower carbon intensity, creating additional revenue streams less exposed to fuel regulations.

What regulatory challenges affect MTBE usage in North America?

Groundwater contamination concerns led 18 states to ban MTBE in gasoline, with EPA registration requirements under 40 CFR 79 adding compliance costs that shift North American production toward export markets.

Page last updated on: June 17, 2025

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