Global Bio-butanol Market 2024–2033

Reports Description

The CMI Team’s most recent market research predicts that from 2024 to 2033, the global bio-butanol market will grow at a CAGR of 8.9%. In 2024, the market size is projected to reach a valuation of USD 16.87 Billion. By 2033, the valuation is anticipated to reach USD 37.48 Billion.

Bio-butanol Market: Overview

A four-carbon alcohol known as bio-butanol is produced when biomass is fermented. It is non-polar due to its lengthy hydrocarbon chain. Facilities that produce ethanol can also be used to produce bio-butanol. Bio-butanol is used as a fuel in the internal combustion engines.

They exhibit similar properties as gasoline. They can also be used in some gasoline-powered vehicles without any changes. Concentrations of up to 11.5% by volume can be mixed with gasoline. However, a significant disadvantage of bio-butanol is that it has a lower energy content than gasoline, approximately 10–20%.

They are a feasible and appropriate option for gasoline and gasoline-ethanol blended fuels as they can decrease carbon emissions by 85%.

The bio-butanol market is driven by several factors, such as increasing demand for renewable energy sources, growing environmental regulations, advancements in production technology, growing demand in the chemical industry, shift towards the circular economy, rising automotive and transportation systems and rising government initiatives. However, the high cost of production and competition from its alternatives hamper the industry expansion.

• According to secondary analysis, India wants to achieve net-zero carbon emissions by 2070, a 45% reduction in carbon intensity by the end of the decade, and 50% cumulative renewable electric power installed by 2030.

Bio-butanol Market: Growth Factors

Growing demand for renewable energy sources

The rising demand for alternative energy sources is the major variable propelling the bio-butanol market. To address environmental changes, public and private entities are moving toward low-carbon energy sources as they have a lower carbon footprint than fossil fuels. Bio-butanol is playing a crucial role in this shift. Additionally, the transportation sector is the major cause of greenhouse gas emissions.

The market is growing rapidly with the increasing global demand to reduce this emission by blending with gasoline. It is becoming a favored renewable fuel due to its high energy content and properties to be combined with gasoline in higher quantities than ethanol. It does not require any changes to be used in internal combustion engines.

Increasing government initiatives

Favorable government initiatives drive the market growth for bio-butanol. The production, uptake and commercialization of bio-butanol are encouraged by these initiatives, including the depreciation of greenhouse gases and the adoption of renewable energy fuels.

According to the Renewable Fuel Standard (RFS), transportation sectors in the US must use a minimum amount of renewable fuels. This law encourages Gasoline manufacturers to incorporate biofuels into the gasoline supply. The RFS law promotes the use of bio-butanol by establishing yearly goals.

Bio-butanol Market: Recent Development

The bio-butanol industry adopted several strategies, including product launches, acquisitions, collaboration, and expansion. Some of the company strategies include:

• In January 2024, A joint venture was established by Cathay Biotech and 3P.COM to produce bio-based polyamide composites for environmentally friendly uses in building, transportation, and energy. This joint venture aims to create these composites for wind turbine blades, transportation, and hydrogen storage. This partnership aims to replace less sustainable materials and lower emissions.

These product launches and collaboration strategies have expanded the company’s market presence in the bio-butanol industry and gained its competitive edge. 

COMPARATIVE ANALYSIS OF THE RELATED MARKET

Bio-butanol Market: Challenge

High production cost

One major factor limiting the bio-butanol market expansion is its high production cost. Bio-butanol production costs depend on the price of biomass feedstocks, including non-food biomass (such as agricultural waste) and crops like corn and sugarcane. The dynamic pricing of these materials impacted the production cost of bio-butanol.

Furthermore, the complexity of processing and turning non-food biomass (lignocellulosic feedstocks) into fermentable sugars can raise production expenses. Also, the facilities for bio-butanol require a high capital investment. Therefore, the high production cost might be a major challenge for market expansion.

Bio-butanol Market: Category-Wise Insights

By Raw Material:

The cereal crops segment is expected to dominate the market owing to its abundant availability. The availability of cereal crops worldwide, particularly in nations with high agricultural productivity like the US, China, and regions of Europe, supports the large-scale production of bio-butanol. Widely grown commodities like corn and wheat provide a steady feedstock supply, which helps stabilize manufacturing costs and boost market revenue.

Besides, the sugarcane bagasse segment is growing rapidly as bagasse is an agricultural byproduct. It is typically less expensive to source than food-based products like corn or sugarcane juice.

By Application:

The acrylates segment captures a prominent market share in the bio-butanol industry. Owing to its wide application in the paints and coating industry. Due to its exceptional flexibility and adhesive qualities, the paint and coatings industry extensively uses butyl acrylate, generated from bio-butanol.

Besides, the biofuel segment shows a rapid expansion. The segment expansion is attributable to the market players’ increasing government initiatives and expansion activities.

By Industry Vertical:

The transportation segment captures a prominent market share in the bio-butanol industry. The segment expansion is attributable to the stringent regulations globally associated with increasing greenhouse gas emissions. Furthermore, its favorable properties drive the expansion of the market.

Besides, the power generation segment shows a rapid expansion. The segment’s expansion is attributable to the high density of bio-butanol compared to other fossil fuels.

Report Scope

Bio-butanol Market: Regional Analysis

The Asia Pacific dominates the bio-butanol market. The growth in the region is attributed to the rising automotive industry, especially in countries like India and China.

Additionally, strict environmental regulations in these nations are encouraging a move away from conventional fossil fuels, which makes the clean-burning qualities of bio-butanol quite alluring. Government initiatives supporting biofuel production strengthen Asia-Pacific’s market dominance and increase incentives for using bio-butanol.

However, Europe is growing significantly in the global bio-butanol industry due to rising circular economy trends.

List of the prominent players in the Bio-butanol Market:

• Abengoa
• Celtic Renewables
• Cathay Industrial Biotech
• Eastman Chemical Company
• Gevo Inc
• Green Biologics
• GranBio
• Metabolic Explorer
• Phytonix
• Working Bugs LLC
• Others

The Bio-butanol Market is segmented as follows:

By Raw Material

• Cereal Crops
• Sugarcane Bagasse
• Waste Biomass
• Others

By Application

• Acrylates
• Acetates
• Glycol Ethers
• Biofuel
• Others

By Industry Vertical

• Transportation
• Construction
• Medical
• Power Generation
• Others

Regional Coverage:

North America

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

• Germany
• France
• U.K.
• Russia
• Italy
• Spain
• Netherlands
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• New Zealand
• Australia
• South Korea
• Taiwan
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America