Iso-Octane Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Application (Gasoline, Paints, Adhesives, Solvents, Others), By Industry Vertical (Automotive, Aerospace, Pharmaceuticals, Chemicals, Others), And By Geography - Forecasts From 2023 To 2028

Iso-octane is a colorless liquid made from petroleum distillation and holds high chemical properties owing to which it is used as an important ingredient in paints, adhesives, and varnishes for quality and durability improvement. The growing demand for new vehicles has increased their production scale which is simultaneously boosting the paints & coatings application, thereby stimulating the market demand for iso-octane. Moreover, the rapid increase in military and civil aviation scale coupled with the economic expansion has provided a major boost to the aerospace sector, increasing aircraft production. For instance, according to the 2022 quarterly report published by the General Aviation Manufacturers Association, in Q1 of 2022, total aircraft production and shipment worldwide stood at 491 units which represented a 13.2% increase over 433 units produced and shipped in Q1 of 2021. Moreover, iso-octane as an inert solvent is used in the pharmaceutical sector for washing, recrystallization, and purification of active pharmaceutical substances. The growing demand for medicinal products coupled with favorable government schemes and policies for sector development has increased its productivity. For instance, according to Eurostat, in 2020, Europe’s pharmaceutical production reached a peak of €30.4 billion. Also, according to the Indian Brand Equity Foundation, in 2021, India’s domestic pharmaceutical market reached a valuation of US$42 billion and is expected to reach US$65 billion by 2024 and will further expand to US$120-130 billion by 2030.

Based on application, the iso-octane market is segmented into gasoline, paints, adhesives, solvents, and others. The gasoline application is projected to hold a decent market share during the forecast period of the iso-octane market. Iso-octane is added to gasoline to increase its octane number which simultaneously increases the knocking resistance of gasoline. High knocking resistance means more tendency of gasoline to resist auto-ignition. Moreover, its addition increases the burning point of gasoline and prevents it from freezing. Such high-performance features of iso-octane make it an integral component for aviation and automotive gasoline, and with the rapid increase in the productivity of these end-users, the demand for iso-octane for gasoline application is anticipated to increase in the future thereby, adding more to its market growth.

The bolstering growth in automotive production and sales is positively impacting the demand for iso-octane. Iso-octane forms an important component in gasoline, as an anti-knocking agent, it improves the knock resistance of the fuel which prevents its overburning during auto-ignition, thereby protecting the engine from overheating. Moreover, being rich in chemical resistance, the compound as an additive is used in automotive paints and adhesives for obtaining improved quality. Rapid urbanization and improvement in living standards coupled with growing demand for automotive vehicles with better fuel economies have provided a major boost to automotive production. For instance, according to the International Organization of Motor Vehicle Manufacturers, in 2021, global automotive production stood at 80.1 million units, showing an increase of 3% in production over the 2020s of 77.7 million units of production. Furthermore, as per the same source, global automotive sales also witnessed an increase of 4.9% reaching 82.6 million units in the same year. Such bolstering growth in automotive production and sales is expected to accelerate the demand and usage of iso-octane for gasoline, paints, and adhesives applications, thereby boosting overall-market growth of the compound during the forecast period.

Recent developments

• HCS Group which is an international leading supplier of high-value hydrocarbon, in February 2019, entered into a long-term sale and purchase agreement for renewable iso-octane with US-based Gevo Inc. The company will buy up to 10,000 metric tons of Gevo’s low-carbon renewable iso-octane for ten years. The product will be used in high-end applications ranging from specialty fuels to high-purity solvents.  

Covid-19 Impact on the Iso-Octane Market

The COVID-19 pandemic negatively impacted the iso-octane market as the industrial productivity of major end users of iso-octane such as aerospace and automotive contracted due to the lockdown restrictions, which simultaneously decreased its market demand. For instance, according to the General Aviation Manufacturers Association, in 2020, the worldwide aircraft shipment stood at 2,399 units which represents a 9.7% decrease in comparison to 2,658 aircraft shipped in 2019 globally. Furthermore, according to the International Organization of Motor Vehicle Manufacturers, in 2020, global automotive production at 77.7 million units showed a reduction of 15.7% in production volume. Iso-octane forms an integral ingredient in automotive and aviation-based fuel as well as in paints and adhesives applications. With such a decrease in the productivity of its major end-users, the demand for the product also contracted. However, the government showing ease in restrictions coupled with new investments and the establishment of plants has provided positive growth in the end users, thereby adding more to the overall market growth of iso-octane in the future.

Iso-Octane Market Scope:

 

Report Metric	Details
Growth Rate	CAGR during the forecast period
Base Year	2021
Forecast Period	2023–2028
Forecast Unit (Value)	USD Billion
Segments Covered	Application, Industry Vertical, And Geography
Regions Covered	North America, South America, Europe, Middle East and Africa, Asia Pacific
Companies Covered	HCS Group, ChemPoint, Central Drug House, SRL
Customization Scope	Free report customization with purchase

 

Segmentation

• By Application
  • Gasoline
  • Paints
  • Adhesives
  • Solvents
  • Others
• By Industry Vertical
  • Automotive
  • Aerospace
  • Pharmaceuticals
  • Chemicals
  • Others
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • Germany
    • France
    • United Kingdom
    • Italy
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • Israel
    • United Arab Emirates
    • Others
  • Asia Pacific
    • China
    • Japan
    • South Korea
    • India
    • Australia
    • Indonesia
    • Thailand
    • Taiwan
    • Others

1. INTRODUCTION

1.1. Market Overview

1.2. Market Definition

1.3. Market Segmentation

 

2. RESEARCH METHODOLOGY  

2.1. Research Data

2.2. Assumptions

 

3. EXECUTIVE SUMMARY

3.1. Research Highlights

 

4. MARKET DYNAMICS

4.1. Market Driver

4.2. Market Restraints

4.3. Porters Five Forces Analysis

4.3.1. Bargaining Power of End-Users

4.3.2. Bargaining Power of Buyers

4.3.3. Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4. Industry Value Chain Analysis

 

5. ISO-OCTANE MARKET, BY APPLICATION

5.1. Introduction

5.2. Gasoline

5.3. Paints

5.4. Adhesives

5.5. Solvents

5.6. Others

 

6. ISO-OCTANE MARKET, BY INDUSTRY VERTICAL

6.1. Introduction

6.2. Automotive

6.3. Aerospace

6.4. Pharmaceuticals

6.5. Chemicals

6.6. Others

 

7. ISO-OCTANE MARKET, BY GEOGRAPHY

7.1. Introduction

7.2. North America

7.2.1. USA

7.2.2. Canada

7.2.3. Mexico

7.3. South America

7.3.1. Brazil

7.3.2. Argentina

7.3.3. Others

7.4. Europe

7.4.1. Germany

7.4.2. France

7.4.3. United Kingdom

7.4.4. Italy

7.4.5. Spain

7.4.6. Others

7.5. Middle East and Africa

7.5.1. Saudi Arabia

7.5.2. Israel

7.5.3. United Arab Emirates

7.5.4. Others

7.6. Asia Pacific

7.6.1. China

7.6.2. Japan

7.6.3. South Korea

7.6.4. India

7.6.5. Australia

7.6.6. Indonesia

7.6.7. Thailand

7.6.8. Taiwan

7.6.9. Others

 

8. COMPETITIVE ENVIRONMENT AND ANALYSIS

8.1. Major Players and Strategy Analysis

8.2. Emerging Players and Market Lucrativeness

8.3. Mergers, Acquisitions, Agreements, and Collaborations

8.4. Vendor Competitiveness Matrix

 

9. COMPANY PROFILES

9.1. HCS Group

9.2. ChemPoint

9.3. Central Drug House

9.4. SRL

HCS Group

ChemPoint

Central Drug House

SRL