The Iso-octane market is expected to grow from USD 4.827 billion in 2025 to USD 6.710 billion in 2030, at a CAGR of 6.81%.
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.
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.
Iso-Octane Market Segmentation: