Gasoline: fastest-growing application for Methyl Tertiary Butyl Ether Market
Posted by Robin White on February 10th, 2020
An increase in the use of gasoline is expected to drive the Methyl Tertiary Butyl Ether Market. The gasoline application segment led the MTBE market, in terms of value, in 2016. This can be attributed to the high demand for gasoline from APAC, Middle East & Africa, and Latin American countries such as China, Saudi Arabia, and Mexico. The MTBE market has witnessed several changes in the past few decades. The use of MTBE as oxygenate has been completely banned in the US after 2006 due to the contamination of groundwater. MTBE, as oxygenate, is being replaced by Ethanol and ETBE in Japan, Brazil, and some Western European countries due to certain environmental and legal regulations. The CAGR of other applications of MTBE, such as high purity isobutene and medical intermediates is increasing at rates well above global GDP.
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More than 90% MTBE is used for gasoline blending due to its high consumption in terms of volume. When used in gasoline engines, it enables reduction in the knocking effect that leads to inefficient burning and engine damage. MTBE has been used in gasoline since 1979 due to environmental and health concerns. The use of MTBE as gasoline additive started with the replacement of metallic additives, such as lead and Methylcyclopentadienyl Manganese Tricarbonyl (MMT). APAC is the largest consumer of MTBE for gasoline blending due to the expanding vehicle fleets and growing urbanization in the region.
The Methyl Tertiary Butyl Ether (MTBE) market is projected to reach USD 18.99 Billion by 2022 from an estimated USD 14.99 Billion in 2017, at a CAGR of 4.8% from 2017 to 2022. Major factors fueling the growth of the MTBE market are the growing demand from the gasoline application, increasing demand for the MTBE oxygenate from the APAC region, and stringent environmental regulations in the emerging economies.
SABIC is the world’s largest producer of MTBE, and has a production capacity of 3200 KT per annum. In the fiscal year 2016, the company generated total sales of USD 35.40 billion. The company has been producing MTBE since 1987 and has been producing MTBE through the TBA and fluid liquid cracker processes. The MTBE produced by the company is mainly used for gasoline blending. The company has adopted the acquisitions strategy to increase its market share around the globe. It supplies MTBE to various regions, such as Europe, Americas, Asia, and MEA.
