APAC is the key region in Methyl Tertiary Butyl Ether Market
Posted by Robin White on July 2nd, 2019
Global Methyl Tertiary Butyl Ether (MTBE) market was valued at USD 14.33 Billion in 2016 and projected to reach USD 18.99 Billion by 2022, at a CAGR of 4.8% during the forecast period. The use of MTBE as oxygenate is rising rapidly in Asian and Middle Eastern & African countries due to environmental restrictions to curb air pollution.
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In terms of volume, the APAC region MTBE market is projected to grow at the highest CAGR between 2017 and 2022, due to the increased demand for gasoline in the region. This is a result of rapid economic expansion and an increase in foreign direct investment in countries, such as China and South Korea, the MTBE market is expected to grow significantly during the next five years. Most of the countries in the APAC region are emerging and cannot afford costly oxygenates, such as Ethanol and ETBE, due to which there are no restrictions on blending MTBE with gasoline in the region. Some of the world’s largest MTBE producers, such as Sinopec (China), China National Petroleum Corporation (China), and Petronas (Malaysia) are headquartered in the APAC region. China is the largest consumer of MTBE and also has the highest production capacity in the world.
Significant capital is required to set up MTBE producing plants. MTBE is mostly produced at refinery-based plants due to which it is difficult to set up new plants as the cost of setting up a new refinery is very high. In addition, there are legal and regulatory barriers in many countries due to environmental and health issues related to the use of MTBE as an oxygenate. Due to this, the threat of new entrants in the MTBE market is low. The intensity of competitive rivalry is moderate because MTBE used for gasoline blending is undifferentiated due to which there is high competition in the market. However, the presence of a few large MTBE producers in the market is leading to low competition in the market.
Some of the leading producers of MTBE are SABIC (Saudi Arabia), Evonik (Germany), China National Petroleum Corporation (China), Huntsman International (US), Eni (Italy), Sinopec (China), LyondellBasell (Netherlands), Shell (Netherlands), Emirates National Oil Company (UAE), and Qafac (QATAR). These players adopted various organic and inorganic developmental strategies between 2013 and 2017.
