According to Fortune Business Insights, The global isobutane market was valued at USD 20.18 billion in 2024 and is anticipated to increase from USD 21.15 billion in 2025 to USD 30.39 billion by 2032, registering a CAGR of 5.3% over the forecast period. In 2024, Asia Pacific led the market, accounting for a 39.59% share. Isobutane, also known as 2-methylpropane, is a colorless and odorless gas under standard temperature and pressure, though it is typically compressed into a liquid for easier storage and transportation. Classified as a branched-chain alkane with the chemical formula C₄H₁₀, isobutane finds extensive use in refrigerants, aerosol propellants, and as a feedstock in petrochemical processes. Its low global warming potential and zero ozone-depleting properties make it a more environmentally sustainable alternative to conventional hydrocarbons.
The isobutane market is witnessing steady growth, driven by its wide applications in the petrochemical, refrigeration, and fuel sectors. Isobutane, also known as methylpropane, is a colorless, flammable gas derived from crude oil refining and natural gas processing. It plays a crucial role in the production of isooctane, an important blending component in gasoline, as well as in aerosol propellants, refrigerants, and feedstock for chemical manufacturing. With increasing demand for cleaner energy solutions and eco-friendly refrigerants, the global isobutane market is set to expand significantly in the coming years.
AIR LIQUIDE (France)
Exxon Mobil Corporation (U.S.)
Evonik (Germany)
YEOCHUN NCC CO., LTD. (Korea)
Mitsui Chemicals India Pvt. Ltd. (India)
The TotalEnergies Company (France)
Linde LLC (Ireland)
Valero (U.S.)
MATHESON TRI-GAS, INC. (U.S.)
Vernigastech (India)
Rising Demand for Refrigerants
Isobutane is widely used in household refrigerators and freezers as a refrigerant (R-600a). With growing environmental concerns, its low Global Warming Potential (GWP) and zero Ozone Depletion Potential (ODP) make it a preferred alternative to conventional refrigerants.
Growth in the Petrochemical Industry
The production of isooctane from isobutane boosts its demand in the fuel industry, as it improves the octane number in gasoline and reduces engine knocking.
Increasing Demand in Aerosol Propellants
Rising use of isobutane in personal care, pharmaceuticals, and household products as a propellant is fueling market growth.
Shift Toward Cleaner Fuels
With the global focus on reducing emissions, isobutane is gaining traction as a cleaner-burning fuel compared to other hydrocarbons.
Volatility in Crude Oil Prices: Since isobutane is derived from crude oil, fluctuations in oil prices directly impact production costs.
Stringent Regulations: Regulations regarding flammable hydrocarbons and storage safety may affect large-scale adoption in certain regions.
Competition from Alternatives: Alternatives like propane and synthetic refrigerants may pose challenges to isobutane adoption.
Sustainable Refrigerants: Growing adoption of green refrigeration technologies presents lucrative opportunities.
Emerging Economies: Rapid urbanization and industrialization in Asia-Pacific and Latin America will create significant market potential.
Innovation in Petrochemicals: Technological advancements in refining and petrochemical processes are expected to enhance isobutane production efficiency.
Asia-Pacific (APAC):
The fastest-growing region, driven by strong demand in refrigeration, petrochemicals, and fuels. Countries like China, India, and South Korea are leading contributors.
North America:
The U.S. is a major player due to high demand for fuel additives and refrigerants. Stringent environmental policies encourage the adoption of eco-friendly refrigerants like isobutane.
Europe:
Focus on sustainable cooling technologies and stringent environmental norms make Europe a strong market for isobutane.
Middle East & Africa (MEA):
Rich crude oil reserves and growing petrochemical investments fuel market growth in this region.
AIR LIQUIDE, Exxon Mobil Corporation, Evonik, Mitsui Chemicals India Pvt. Ltd., and Linde LLC are the largest players in the market. Companies are making major investments in developing additives to address the evolving demands for sustainability and performance.
The global isobutane market is expected to witness steady growth during the forecast period, driven by rising demand in refrigeration, petrochemicals, and energy sectors. Increasing awareness of eco-friendly refrigerants, coupled with government regulations promoting sustainable alternatives, will shape the industry landscape.
The isobutane market is on a growth trajectory, fueled by demand in multiple industries and the shift toward sustainable solutions. With continuous investments in petrochemical infrastructure, innovation in green refrigeration, and growing demand in emerging economies, the market is poised for long-term expansion.