The global polyvisobutylene (PIB) market exhibits a consolidated vendor landscape with a few companies dominating the vendor landscape, finds Transparency Market Research (TMR) in a new study. However, the entry of new participants especially in Asia Pacific over the next few years is likely to alter the scenario. This will in turn intensity the competition witnessed in the global polyvisobutylene market. As per TMR, the leading market players are likely to focus on expanding their product portfolio to edge over competition. Also many companies are investing their time and resources in mergers and acquisitions in a bid to strengthen their foothold in the global polyisobutylene market.
Furthermore, some of the leading players are motivated towards capacity expansion in order to improve the output of their core products. Such strategies are likely to help companies to gain competitive strength in the coming years. Some of the leading players operating in the global polyisobutylene market are BASF SE, Kothari Petrochemicals Limited, INEOS Group Ltd., The Lubrizol Corporation, TPC Group Inc., and Shanndong Hongrui Petrochemical Co. Ltd. Strategies adopted by these companies are likely to have a significant impact on the global market.
According to TMR, the global polyisobutylene market is expected to reach US$6.39 bn by 2025 as against US$3.92 bn in 2016. If these figures hold true, the global polyisobutylene market will exhibit a CAGR of 5.6% between 2017 and 2025. In terms of molecule, the high molecular weight segment held the dominant share of 70% in the global market in 2016. Regionally, Asia Pacific emerged dominant with volume-wise share of 45% in the overall market in the same year. Besides this, the demand from North America and Europe is expected to rise at a steady pace through the course of the forecast period. x
Expansion Witnessed in Automotive Sector to Create Lucrative Opportunities
The polyisobutylene market will primarily gain from the demand stemming from the automotive sector in Latin America, the Middle East and Africa, and Asia Pacific. Against this backdrop, expansion of automotive industry will bode well for the overall market. This is because polyisobutylene is used to manufacture tire linings and tubeless tires. With predictions regarding steady growth of the global tire market, experts have forecast a positive outlook for the overall polyisobutylene market.
In addition to this, polyisobutylene is used as an additive while deriving lubricant oils and motor fuels. This coupled with environmental benefits it offers is expected to create lucrative prospects for the market’s growth. Furthermore, using PIB as an additive can help improving the viscosity of products. These factors are likely to create an environment conducive to the growth of the global polyisobutylene market.
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Environmental Concerns Related to PIB can Negatively Impact Demand
On the downside, environmental concerns related to PIB spills is a key threat to the market players. Nonetheless, the increasing acceptance of recyclable polyisobutylene material is projected to create growth opportunities for the market in the coming years. Furthermore, it will continue gaining from the rising high value application of polyisobutylene. Considering this, the rising demand from manufacturing industries and medical and pharmaceutical sectors will offer lucrative growth prospects to the global polyisobutylene market.