The Global Market for Methyl Tert-Butyl Ether (MTBE) is Projected to Reach 20.7 Million Tons by 2022

Continued Use in Gasoline Blending in Developing Countries as an Affordable Solution to Reduce Vehicle Emissions Sustains Growth of MTBE, According to a New Report by Global Industry Analysts, Inc.

GIA launches comprehensive analysis of industry segments, trends, growth drivers, market share, size and demand forecasts on the global Methyl Tert-Butyl Ether (MTBE) market. The global market for Methyl Tert-Butyl Ether (MTBE) is projected to reach 20.7 million tons by 2022, sustained by the continued use of MTBE in gasoline blending in developing countries, despite its ban in developed markets, following the additive’s classification as a pollutant.   

Methyl tert-butyl ether (MTBE) is a form oxygenate produced from methanol and isobutylene. Based on its inherent properties, MTBE is blended in gasoline for producing cleaner burning fuels in most developing countries.  While use of MTBE in gasoline blending has been banned in most developed countries including the U.S., Japan and parts of Europe, consumption remains steady in developing countries such as China, Mexico and the Middle East. MTBE represents the second widely used gasoline oxygenates. Despite the effectiveness of MTBE to act as an octane enhancer and provide cost benefits, the additive has been banned in developed markets due to growing concerns over groundwater contamination. This is leading to the rapid substitution of MTBE by ethanol and Ethyl Tertiary Butyl Ether (ETBE). At present, ethanol represents the most widely used gasoline octane improver/oxygenate with significant consumption in the U.S. In Europe, led by the EU renewable fuels directive, bio-ETBE is widely used gasoline additive.

In developing markets, MTBE continues to be an attractive substitute to aromatics in gasoline, supported by the chemical’s widespread availability as a cheap feedstock and its ability to serve as the most immediate solution towards reducing vehicular emissions. Also, MTBE represents an affordable substitute for toxic fuel components such as lead, sulfur, olefins and benzene. MTBE demand in the Chinese chemical sector is also likely to rise in line with the expanding production capacity of isobutylene-isoprene rubber (IIR) and methyl methacrylate (MMA), the two downstream products of MTBE. Unlike other ethers, the compound does not form highly explosive peroxides and can be employed as an extraction agent or solvent in continuous processes. Bio-MTBE, an emerging niche segment, employs bio-methanol from renewable sources for production of oxygenate. Bio-MTBE is considered an attractive option in the 2nd generation biofuel landscape as it can be used as a blending compound without any compatibility issues.

As stated by the new market research report on Methyl Tert-Butyl Ether (MTBE) China represents the largest and the fastest growing market worldwide, with an estimated share of about 45.7% in 2016. Growing vehicular pollution, increasing demand for cleaner fuels, rise in vehicle population and increasing consumption of gasoline, represent key growth drivers in the country.

Key players covered in the report include  China Petrochemical Corporation (Sinopec Group), Emirates National Oil Company (ENOC), Eni S.p.A., Enterprise Products Partners L.P., Evonik Industries AG, Formosa Plastics Corporation, Huntsman International LLC, LyondellBasell Industries N.V., Panjin Heyun Industrial Group Co., Ltd., PetroChina Company Limited, Qatar Fuel Additives Company Limited, Saudi Basic Industries Corporation, Saudi Arabia Petrochemical Company, Shandong Yuhuang Chemical Co., Ltd., SIBUR, and TPC Group  among others.

The research report titled “Methyl Tert-Butyl Ether (MTBE): A Global Strategic Business Report” announced by Global Industry Analysts Inc., provides a comprehensive review of market trends, issues, drivers, mergers, acquisitions and other strategic industry activities of global companies. The report provides market estimates and projections for all major geographic markets such as the Europe, China, Middle East & Africa and Rest of World.

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