Methyl Tertiary Butyl Ether (MTBE) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Methyl Tertiary Butyl Ether (MTBE) Market is segmented by Application (Gasoline Additive, Isobutene, Solvent, and Other Applications) and Geography (Asia-Pacific, North America, Europe, South America, and Middle-East and Africa).

Market Snapshot

Methyl Tertiary Butyl Ether (MTBE) Market - Market Summary
Study Period: 2016 - 2026
Base Year: 2020
Fastest Growing Market: Asia Pacific
Largest Market: Asia Pacific
CAGR: >6 %

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Market Overview

The methyl tertiary butyl ether (MTBE) market is expected to register a CAGR of above 6% during the forecast period.

Heightened levels of uncertainty in the market because responses to COVID-19 continue to develop, economic activity reduced over the past year, and the COVID-19 pandemic has caused changes in energy demand and supply. COVID-19 has also affected the automobile industry, and the fall in car sales around the world from nearly 74 million units in 2019 to 64 million units in 2020 was because of the lockdown. This affected the methyl tertiary butyl ether market. The markets opening after the relaxation of the lockdown is an encouraging sign.

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

Scope of the Report

Methyl tertiary butyl ether (MTBE) is a volatile, flammable, and colorless liquid that is sparingly soluble in water. The methyl tertiary butyl ether market is segmented by application, namely, gasoline additive, isobutene, solvent, and other applications. The gasoline additive segment has a major market share, as it is required in the fuel to improve the oxygen content of gasoline. 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).

Application
Gasoline Additive
Isobutene
Solvent
Other Applications
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
South Africa
Rest of Middle-East and Africa

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Key Market Trends

Gasoline Additives Segment to Dominate the Market Demand

  • Methyl tertiary butyl ether (MTBE) is extensively used as a gasoline additive, which is 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.
  • The demand for MTBE in countries such as China, India, South Korea, Mexico, and Saudi Arabia, has been increasing due to increased demand for gasoline from the automotive industry with the growing number of on-road vehicles. This has been leading to an increase in demand for gasoline.
  • The consumption of gasoline has fallen by 93.9 million barrels per day in January 2021, down by over 2.8 million barrels per day globally because of COVID-19. However, the demand for gasoline would likely rebound by 5.7 million barrels per day to reach around 97.7 million barrels per day for the year 2021.
  • Such 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 show an impact on the market growth in the coming years.
Methyl Tertiary Butyl Ether (MTBE) Market - Segmentation Trends

Asia-Pacific Region to Dominate the Market

  • The Asia-Pacific region dominated the global market share. MTBE demand in the region is majorly driven by the increasing gasoline demand.
  • The widespread availability of MTBE as a cheap feedstock, coupled with being an attractive substitute to 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 witnessing investments into refineries in order to increase their production capacity.
  • India has consumed around 674 thousand barrels of gasoline per day in the year 2019, while China consumed around 3.08 million barrels per day in 2019, while the global consumption of gasoline was 24.32 million barrels per day.
  • Some of the new investments planned and under consideration such as Phase 2 Petrochemical Project by S-Oil Corp. at Ulsan, South Korea; a USD 4 billion up-gradation project at Pertamina Balikpapan facility in Indonesia; an ongoing plan of 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.
  • Hence, with the commencement of operations in such refineries, the market is expected to witness robust growth in the coming years.
Methyl Tertiary Butyl Ether (MTBE) Market - Regional Trends

Competitive Landscape

The MTBE market is moderately consolidated, with a few players accounting for a significant portion of the market demand. Some of the major players in the market include China Petroleum & Chemical Corporation, SABIC, Enterprise Products Partners LP, Evonik Industries AG, and LyondellBasell Industries Holdings BV, among others.

Recent Developments

  • In June 2020, Aramco successfully completed its share acquisition of a 70% stake in Saudi Basic Industries Corporation (SABIC) from the Public Investment Fund (PIF), the sovereign wealth fund of Saudi Arabia, for a total purchase price of SAR 259.125 billion (USD 69.1 billion).

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Drivers

      1. 4.1.1 Demand for Use as an Anti-knocking Agent and as an Octane Booster in the Fuel for Gasoline Engines

      2. 4.1.2 Increasing Use in the Production of Pure Isobutene

    2. 4.2 Restraints

      1. 4.2.1 Availability of Substitutes, like Ethanol and Ethyl Tertiary Butyl Ether

      2. 4.2.2 Classification as a Pollutant and the Consequent Ban of its Use in Gasoline Blending in the United States and Canada

      3. 4.2.3 Unfavorable Conditions Arising Due to the Impact of COVID-19

    3. 4.3 Industry Value Chain Analysis

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Suppliers

      2. 4.4.2 Bargaining Power of Buyers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitute Products and Services

      5. 4.4.5 Degree of Competition

    5. 4.5 Technological Snapshot

      1. 4.5.1 Production Process

      2. 4.5.2 Technology Licensing and Patent Analysis

    6. 4.6 Regulatory Policy Analysis

  5. 5. MARKET SEGMENTATION

    1. 5.1 Application

      1. 5.1.1 Gasoline Additive

      2. 5.1.2 Isobutene

      3. 5.1.3 Solvent

      4. 5.1.4 Other Applications

    2. 5.2 Geography

      1. 5.2.1 Asia-Pacific

        1. 5.2.1.1 China

        2. 5.2.1.2 India

        3. 5.2.1.3 Japan

        4. 5.2.1.4 South Korea

        5. 5.2.1.5 Rest of Asia-Pacific

      2. 5.2.2 North America

        1. 5.2.2.1 United States

        2. 5.2.2.2 Canada

        3. 5.2.2.3 Mexico

      3. 5.2.3 Europe

        1. 5.2.3.1 Germany

        2. 5.2.3.2 United Kingdom

        3. 5.2.3.3 Italy

        4. 5.2.3.4 France

        5. 5.2.3.5 Rest of Europe

      4. 5.2.4 South America

        1. 5.2.4.1 Brazil

        2. 5.2.4.2 Argentina

        3. 5.2.4.3 Rest of South America

      5. 5.2.5 Middle-East and Africa

        1. 5.2.5.1 Saudi Arabia

        2. 5.2.5.2 South Africa

        3. 5.2.5.3 Rest of Middle-East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Market Share/Ranking Analysis**

    3. 6.3 Strategies Adopted by Leading Players

    4. 6.4 Company Profiles

      1. 6.4.1 ENOC Company

      2. 6.4.2 Enterprise Product Partners LP

      3. 6.4.3 Evonik Industries AG

      4. 6.4.4 Formosa Plastics Corporation

      5. 6.4.5 Gazprom Neft PJSC

      6. 6.4.6 LyondellBasell Industries Holdings BV

      7. 6.4.7 QAFAC

      8. 6.4.8 SABIC

      9. 6.4.9 SIBUR International GmbH

      10. 6.4.10 VINATI ORGANICS LIMITED

      11. 6.4.11 Eni SpA

      12. 6.4.12 China Petroleum & Chemical Corporation

      13. 6.4.13 Exxon Mobil Corporation

    5. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

    1. 7.1 Innovation in Bio-based MTBE for Gasoline

**Subject to Availability

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Frequently Asked Questions

The Methyl Tertiary Butyl Ether (MTBE) Market market is studied from 2016 - 2026.

The Methyl Tertiary Butyl Ether (MTBE) Market is growing at a CAGR of >6% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

Asia Pacific holds highest share in 2020.

China Petroleum & Chemical Corporation., Evonik Industries AG , SABIC , Enterprise Products Partners L.P., LyondellBasell Industries Holdings B.V. are the major companies operating in Methyl Tertiary Butyl Ether (MTBE) Market.

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