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Global Highly Reactive Polyisobutylene (HR-PIB) Market is estimated to reach valuation of ~US$ 550 Mn by 2030

Highly Reactive Polyisobutylene (HR-PIB) Market: Introduction

In terms of value, the global highly reactive polyisobutylene (HR-PIB) market is anticipated to expand at a CAGR of 5% from 2020 to 2030 and reach value of ~US$ 550 Mn by 2030. In terms of demand, Asia Pacific led the global HR-PIB market in 2019 and the same trend is anticipated to continue between 2020 and 2030. In recent years, key players have been progressively opting for environmentally sustainable additives. This factor is expected to augment the demand for HR-PIB during the forecast period, for its effectiveness and greener profile as compared to the conventional polyisobutylene (PIB).

Highly Reactive Polyisobutylene (HR-PIB) Market: Key Drivers and Restraints

HR-PIB forms the basis for production of high-performance lubricant additives, which allows for more fuel-efficient engine designs. HR-PIB serves as an important intermediate in the manufacture of high-performance fuel and lubricant additives for engine oils, transmission oils, hydraulic fluids, greases, emulsifiers, adhesives, etc. HR-PIB-based lubricants and fuel additives have the ability to improve the overall performance of vehicles by reducing emissions. Thus, the global HR-PIB market is expected to be driven by the rising demand for high-performance fuel additives in automotive and aviation industries between 2020 and 2030. HR-PIB offers barrier properties, high damping and heat aging, and resistance to ozone, which makes it ideal for control of vibrations in automobiles. HR-PIB is projected to emerge as an effective substitute for the conventional PIB during the forecast period. Both conventional PIB and HR-PIB have similar applications, including adhesives and sealants, lubricants and greases, metalworking, cosmetics, and mining. However, HR-PIB has been increasingly sought after in modern manufacturing practices, owing to its higher effectiveness as compared to conventional PIB. The demand for HR-PIB is rising at a rate higher than polyisobutylene (PIB), due to performance advantages associated with HR-PIB.

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Highly Reactive Polyisobutylene (HR-PIB) Market: Key End-use Industries

HR-PIB is used across a broad array of applications. However, fuel & lubricant additives, hydraulic fluids, and greases & emulsifiers were the key application segments in 2019.  The adhesives & sealants segment is estimated to hold a significant share of the global HR-PIB market, in terms of demand, by 2030. Hot melt adhesives are widely employed in packaging applications such as corrugated boards, case sealing, carton sealing, container labeling, and tray forming. Based on end use, the global HR-PIB market has been segmented into automotive, industrial, packaging, and others. The industrial segment dominated the global HR-PIB market in 2019. HR-PIB is likely to witness high demand from key industries such as construction, aviation, marine, healthcare, and cosmetics & personal care during the forecast period.

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Asia Pacific to be Highly Lucrative Region of Highly Reactive Polyisobutylene (HR-PIB) Market

In terms of value, Asia Pacific held more than 30% share of the global HR-PIB market in 2019. With the growth of automotive, healthcare, and personal care industries and the increase in infrastructure development activities in China, Japan, India, Malaysia, Vietnam, and Indonesia, Asia Pacific is likely to constitute a major share of the global HR-PIB market between 2020 and 2030.

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Competition Landscape

Major manufacturers of HR-PIB include: BASF SE, PETRONAS, TPC Group, Daelim, and KEMAT Polybutenes. HR-PIB manufacturers have made notable investments in the recent years. For instance, in January 2019, Aramco and Total announced to have concluded a memorandum of understanding (MoU) with Daelim, a South Korea-based company. As per the MoU, Daelim would build a polyisobutylene (PIB) downstream plant with the capacity of 80,000 tons/year for the Amiral project by 2024.

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