Bio-Isobutene Market - A Global and Regional Analysis, 2024-2034: Focus on Application, Product, and Country-Wise Analysis

The Global Bio-Isobutene Market is valued at 3.5 million in 2024, and is forecast to reach 74.5 million by 2034, registering a CAGR of 35.8% during the forecast period.

The desire for sustainable and renewable chemical alternatives is rising, and production technology developments are fueling the considerable growth and development of the global bio-isobutene market. Companies such as Global Bioenergies have made significant strides in expanding the procedures used to make bio-isobutene, making effective use of the infrastructure already in place for fermentation to generate enormous volumes of the chemical. Owing to this breakthrough, bio-isobutene is now being used in industries such as fuels, plastics, rubbers, and cosmetics, with a focus on low carbon footprint and sustainability. Regulatory incentives and growing consumer demand for environment-friendly products are driving the bio-isobutene market, thus assisting in the shift toward a more sustainable chemical sector.

The bio-isobutene market appears to have a very bright future, given several important characteristics. The potential to scale up operations and maintain a constant level of cost-effectiveness in production will probably result in a wider acceptance of bio-isobutene in a variety of industries. Further supporting the bio-isobutene market growth is anticipated from the increased awareness of sustainable practices and the governmental backing for them. Demand will be fueled by advancements in biotechnological procedures as well as the creation of new uses for bio-isobutene, which will entice investors. Bio-isobutene is positioned to become an essential component in lowering environmental impact and promoting the expansion of the bio-based economy as industry place a greater emphasis on sustainability.

Industrial Impact

Due to its adaptability and environment-friendly manufacturing techniques, bio-isobutene has the potential to have a revolutionary industrial impact on several important industries. Bio-isobutene is a key component in the cosmetics industry's production of renewable isododecane, which combines a high natural content with exceptional performance attributes such as long-wear and waterproof qualities. Owing to this development, cosmetic producers can now satisfy the increasing demand from consumers for sustainable and natural cosmetics without sacrificing quality.

Additionally, bio-isobutene presents a viable fuel substitute in the automobile and aviation industries. It can greatly lower greenhouse gas emissions and dependency on fossil fuels as a precursor to bio-based fuels, aiding in international efforts to tackle climate change. Furthermore, its usage in the production of high-performance polymers and rubbers raises the sustainability profile of the materials used in these sectors, assisting in the shift to more environmentally friendly production techniques.

Furthermore, as companies such as Global Bioenergies have shown, the cost efficiency and scalability of bio-isobutene production processes make it a viable choice for large-scale industrial applications. Since it is possible to use current fermentation capabilities for the first phases of production, switching to bio-based manufacturing is more economically appealing due to the large reduction in capital expenditure and operating costs.

Market Segmentation:

Segmentation 1: by End-Use Application

• Fuel
• Bio-Based Cosmetic Ingredients
• Others (Plastic, Organic Glass, Butyl Rubber, and Lubricant Additives)

Bio-Based Cosmetic Ingredients to Dominate the Global Bio-Isobutene Market (by End-Use Application)

The bio-isobutene market is dominated by the bio-based cosmetic ingredients segment. This is because of their ability to meet the increasing demand from consumers for natural and sustainable products. The cosmetics business is moving toward more environment-friendly and renewable materials due to governmental restrictions as well as consumer awareness of environmental issues. Since it is made from renewable resources, bio-isobutene is a sustainable substitute for components based on petrochemicals, which lessens the environmental effects of cosmetic products. Leading the way in this regard are companies such as Global Bioenergies, which increase the natural content of cosmetics without sacrificing performance attributes such as lifespan and durability by incorporating bio-isobutene into their production methods.

Segmentation 2: by Raw Material

• Straw Derived
• Sugar Beet and Cane-Derived
• Others

Sugar Beet and Cane-Derived Segment to Witness the Highest Growth between 2023 and 2033

The sugar beet and cane-derived segment dominated the global bio-isobutene market (by raw material) in 2023. This is because of their greater yield efficiency and sustainability advantages. Since sugar cane and sugar beets are abundant in fermentable sugars, they are excellent feedstocks for producing bio-isobutene, which lowers production costs and increases output. The production and durability of these crops have greatly risen due to advances in agricultural practices and genetic changes, which further increase their viability as a feedstock. The well-established market and strong supply chain infrastructure for products produced from sugar further support the expansion of this industry by facilitating a more seamless integration into current industrial processes.

Segmentation 3: by Region

• North America - U.S. and Canada
• Europe - Germany, France, and Rest-of-Europe
• Rest-of-the-World

Europe was the highest-growing market among all the regions, registering a CAGR of 41.42%. Europe is anticipated to gain traction in terms of bio-isobutene adoption owing to a very developed infrastructure for the manufacturing and development of bio-isobutene along with companies such as Global Bioenergies, a French company, which is globally the only company capable of manufacturing bio-isobutene.

In Europe, Rest-of-Europe is anticipated to show the highest growth in the bio-isobutene market among other countries in the region, growing at a CAGR of 48.55%. The growth of the Netherlands in the bio-isobutene market is mainly because it benefits from extensive government support and innovative companies and start-ups.

Recent Developments in the Global Bio-Isobutene Market

• In January 2024, to advance the development of low-carbon road fuels, the French industrial biotechnology business Global Bioenergies and Shell signed a new development contract. The goal is to concentrate on a single path since the earlier stages of the partnership, which began at the end of 2022, were devoted to investigating many viable solutions based on Global Bioenergies' exclusive technology.
• In October 2023, to help finance the development of the first bio-sourced isobutene plant in the world, Global Bioenergies was granted $17.7 million (EUR 16.4 million) by the French government. The money came in the form of a 60% subsidy and a 40% repayable advance. The start-up focused on creating chemical compounds from resources derived from plants. The new facility is expected to begin production in 2027 and can produce 10,000 tons of isobutene and its derivatives annually. Before producing aviation fuels, Global Bioenergies declared in August 2023 that it was quickening the ramp-up of its production facilities to better meet the demands of the cosmetics business.
• In June 2022, as part of a partnership including Cristal Union, the agro-business for beet production, and L'Oréal, the cosmetics giant, $9.7 million (€9 million) was provided to both Global Bioenergies and IBN-One by the Investissements d’Alene program, a French government initiative. Together, they developed the world's first commercial facility that produces isobutene derived from biomass. Divided into $6.1 million (€5.7 million) for Global Bioenergies and $3.5 million (€3.3 million) for IBN-One, the two companies began a 44-month industrial and commercial initiative with L'Oréal and Cristal Union that centered on the first bio-isobutene facility.

Demand - Drivers and Limitations

Market Demand Drivers: Environmental Regulations and Policies

Environmental laws and regulations are important market drivers for businesses involved in the global bio-isobutene market because they foster an environment that is both economically and legally advantageous for the adoption of bio-based goods. For example, member states are required under the European Union's renewable energy directive (RED II) to attain a minimum of 14% renewable energy in transportation by 2030. The development and consumption of biofuels, such as bio-isobutene, which can be combined with conventional fuels to lower carbon emissions, are encouraged by this regulation. Businesses such as Global Bioenergies, which align their product offers with regulatory criteria and profit from subsidies and tax incentives, have taken advantage of these restrictions to create and market bio-isobutene.

Market Restraints: High Costs of Development and Production

One of the biggest obstacles for companies in the global bio-isobutene market is the high cost of development and production. The complex biotechnological procedures needed to turn renewable feedstocks into bio-isobutene are one of the main expense factors. These procedures frequently entail complicated fermentation, genetic engineering of microorganisms, and subsequent purification stages, all of which call for large research and development expenditures. As an illustration, Global Bioenergies, a significant leader in the bio-isobutene market, has made significant investments in the advancement of its unique fermentation technology. The company stated that despite its achievements, it has taken a lot of resources to scale up production to a commercial level, underscoring the financial obstacles to bio-isobutene market entry and growth.

Market Opportunities: Integration with Circular Economy Initiatives

Companies in the global bio-isobutene market and related sectors within the bio-based chemicals ecosystem have a large market opportunity when they integrate with circular economy efforts. The principles of bio-isobutene manufacturing are well aligned with the circular economy, which emphasizes the sustainable use of resources through material reuse and recycling. Companies can use industrial emissions, municipal solid waste, and agricultural leftovers as feedstocks to produce bio-isobutene. They can also use waste and by-products from other sectors. This lessens the need for primary resources and helps to address waste management problems. Enerkem's method, for instance, turns municipal solid waste into syngas, which can be utilized to make bio-isobutene. This illustrates how waste materials can be converted into useful chemical products.

How can this report add value to an organization?

Product/Innovation Strategy: The product segment helps the reader understand the different types of products and applications for bio-isobutene. Moreover, the study provides the reader with a detailed understanding of the bio-isobutene market by application based on end-use application (fuel, bio-based cosmetic ingredients, and others (plastic, organic glass, butyl rubber, and lubricant additives) and product on the basis of raw material (straw derived, sugar beet and cane-derived, and others).

Growth/Marketing Strategy: The bio-isobutene market has seen major development by key players operating in the market, such as business expansion, partnership, collaboration, and joint venture. The favored strategy for the companies has been partnerships, contracts, and business expansion to strengthen their position in the bio-isobutene market. For instance, in May 2024, the fundamental engineering stage of Global Bioenergies' plant project, which is geared toward the cosmetics sector and is slated for commissioning in the middle of 2027, was completed.

The precise definition of each unit is necessary for the fully integrated manufacture of isobutene derivatives suitable for cosmetic use, which was achieved through the engineering work completed as part of the fundamental engineering program. The project timetable and nominal capital expenditure of $70.3 million (65 million euros), that is, maximum capital expenditure of $86.5 million (80 million euros) accounting for contingencies, are also confirmed.

Competitive Strategy: Key players in the bio-isobutene market analyzed and profiled in the study involve major companies offering bio-isobutene designed for various applications. Additionally, comprehensive competitive strategies such as partnerships, agreements, and collaborations will aid the reader in understanding the untapped revenue pockets in the market.

Methodology: The research methodology design adopted for this specific study includes a mix of data collected from primary and secondary data sources. Both primary resources (key players, market leaders, and in-house experts) and secondary research (a host of paid and unpaid databases), along with analytical tools, are employed to build the predictive and forecast models.

Data and validation have been taken into consideration from both primary sources as well as secondary sources.

Key Considerations and Assumptions in Market Engineering and Validation

• Detailed secondary research has been done to ensure maximum coverage of manufacturers/suppliers operational in a country.
• Exact revenue information, up to a certain extent, has been extracted for each company from secondary sources and databases. Revenues specific to product/service/technology have been estimated for each market player based on fact-based proxy indicators as well as primary inputs.
• Based on the classification, the average selling price (ASP) has been calculated using the weighted average method.
• The currency conversion rate has been taken from the historical exchange rate of Oanda and/or other relevant websites.
• Any economic downturn in the future has not been taken into consideration for the market estimation and forecast.
• The base currency considered for the market analysis is US$. Currencies other than the US$ have been converted to the US$ for all statistical calculations, considering the average conversion rate for that particular year.
• The term “product” in this document may refer to “solution” as and where relevant.
• The term “manufacturers/suppliers” may refer to “systems providers” or “technology providers” as and where relevant.

Primary Research

The primary sources involve experts from various industries, including the chemicals industry, bio-isobutene manufacturers, and other biotechnology providers, among others. Respondents such as CEOs, vice presidents, marketing directors, and technology and innovation directors have been interviewed to obtain and verify both qualitative and quantitative aspects of this research study.

Secondary Research

This study involves the usage of extensive secondary research, company websites, directories, and annual reports. It also makes use of databases, such as Businessweek, to collect effective and useful information for a market-oriented, technical, commercial, and extensive study of the global market. In addition to the data sources, the study has been undertaken with the help of other data sources and websites.

Secondary research was done to obtain critical information about the industry’s value chain, the market’s monetary chain, revenue models, the total pool of key players, and the current and potential use cases and applications.

Key Market Players and Competition Synopsis

The companies that are profiled have been selected based on thorough secondary research, which includes analyzing company coverage, product portfolio, market penetration, and insights gathered from primary experts.

The bio-isobutene market comprises key players who have established themselves thoroughly and have the proper understanding of the market, accompanied by start-ups who are looking forward to establishing themselves in this highly competitive market. In 2023, the bio-isobutene market was dominated by established players, accounting for 98% of the market share, whereas start-ups managed to capture 2% of the market. With the increasing focus on adopting a more sustainable solution across various industries, more players will enter the global bio-isobutene market with each passing year.

Some prominent names established in this market are:

• Global Bioenergies