Tert Butanol Market Size, Trends and Growth Analysis by 2027

The tert-butanol market is anticipated to grow significantly, reaching an estimated US$ 6,149.11 million by 2028, up from US$ 4,955.64 million in 2021. This growth represents a compound annual growth rate (CAGR) of 3.0% from 2021 to 2028.

Tert-butanol is primarily produced as a byproduct during the production of propylene oxide from isobutane. This compound serves as a crucial chemical intermediate in the manufacturing of various products. Its versatility allows it to be utilized as a solvent across multiple applications, including its role as a paint remover and an alcohol denaturant. Additionally, tert-butanol acts as an alkylating agent for aromatics and phenols, leading to the formation of tert-butyl aromatics and tert-butyl esters. These derivatives are essential precursors in the synthesis of antioxidants, phenolic resins, pharmaceuticals, and fragrances.

The market for tert-butanol is categorized based on its applications, which include solvents and intermediates, ethanol denaturants, methyl tert-butyl ethers (MTBEs), ethyl tert-butyl ethers (ETBEs), methyl methacrylates (MMAs), and other uses. In 2020, the solvents and intermediates segment held the largest share of the market. However, the ethanol denaturants segment is projected to experience the highest CAGR during the forecast period from 2021 to 2028. Tert-butanol is widely employed as a solvent for paints, lacquers, and varnishes, and it serves as an intermediate in the production of various pharmaceuticals and chemicals, including tert-butyl chloride, tert-butyl phenol, tert-butyl hydroperoxide, isobutylene, and methyl methacrylate, as well as MTBEs and ETBEs. Furthermore, it is utilized in the synthesis of flavors and perfumes.

Regionally, the tert-butanol market is divided into North America, Europe, Asia Pacific (APAC), South and Central America (SAM), and the Middle East & Africa (MEA). Among these regions, South and Central America is expected to witness the highest CAGR during the forecast period. This market segment is further divided into Brazil, Argentina, and the Rest of South and Central America. Key players in the South and Central America tert-butanol market include Evonik Industries AG, LyondellBasell Industries Holdings B.V., and Tokyo Chemical Industry Co., Ltd. Notably, Brazil stands out as the largest automotive producer in the region, with market participants catering to industries such as fragrances, paints, and coatings.

The COVID-19 pandemic has significantly impacted the chemicals and industrial sectors, adversely affecting the growth of the tert-butanol market. Measures implemented to curb the spread of SARS-CoV-2 have exacerbated the situation, leading to operational inefficiencies and disruptions in supply chains due to the abrupt closure of national and international borders. This has hindered the performance of industries such as flavors and fragrances, paints and coatings, and pharmaceuticals. The pandemic also resulted in order cancellations and backlogs, contributing to a notable decline in demand for tert-butanol. Nevertheless, the compound is gradually gaining traction as a preferred freeze desiccant in the biomedical sector. The ongoing increase in research activities necessitates the preservation of vaccines, blood samples, purified proteins, and various biological materials, which is positively influencing the growth of the tert-butanol market. Tert-butanol is recognized for its high vapor pressure, low toxicity, and low melting point, making it a popular choice as a freeze-drying agent. As economies begin to recover and resume operations, the global demand for tert-butanol is expected to rise. However, the emphasis on just-in-time production remains a challenge that could impede market growth.

Prominent players in the global tert-butanol market include Alfa Aesar, Evonik Industries AG, Finar Limited, Kuraray Co., Ltd., Lotte Chemical Titan Corporation, LyondellBasell Industries Holdings B.V., Merck KGaA, Sisco Research Laboratories Pvt. Ltd., Tiande Chemical Holdings Limited, and Tokyo Chemical Industry Co., Ltd. (TCI).

The global tert-butanol market size has been determined through a combination of primary and secondary research methods. The research process began with extensive secondary research utilizing both internal and external sources to gather qualitative and quantitative data related to the market. Additionally, numerous primary interviews were conducted with industry participants and experts to validate the findings and gain deeper analytical insights. Participants included industry professionals such as VPs, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in the tert-butanol market.