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

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).

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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.

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