Polyisobutylene Market

Market Definition

Polyisobutylene (PIB) is a synthetic polymer derived from isobutylene. It is widely used for its flexibility, chemical resistance, and impermeability. The market includes low, medium, high molecular weight PIB, and highly reactive PIB (HR-PIB), each tailored for different requirements. 

It covers different forms such as liquid, solid, and granules or flakes, depending on processing and handling needs. The report explores key drivers of the market, offering detailed regional analysis and a comprehensive overview of the competitive landscape shaping future opportunities.

Polyisobutylene Market Overview

The global polyisobutylene market size was valued at USD 2,678.2 million in 2024 and is projected to grow from USD 2,833.1 million in 2025 to USD 4,377.5 million by 2032, exhibiting a CAGR of 6.41% during the forecast period. 

This growth is attributed to rapid expansion in the construction industry globally, which increases the demand for PIB-based sealants and adhesives due to their durability and weather resistance. The market is registering a shift toward the use of polyisobutylene to improve the performance and efficiency of next-generation batteries, particularly in electric vehicles (EVs) and energy storage systems.

Major companies operating in the polyisobutylene industry are HC Kothari Group, Kemipex, Chevron Oronite Company LLC., Braskem, RB Products, Inc., ENEOS Corporation, Reliance Industries Limited, BASF, TPC Group, and The Lubrizol Corporation.

The growing environmental regulations are encouraging the development of bio-based and low-emission PIB products. Manufacturers are focusing on sustainable production methods to meet these requirements while maintaining product performance. This shift supports the market’s move toward greener and eco-friendlier solutions.

Key Highlights:

1. The polyisobutylene industry size was valued at USD 2,678.2 million in 2024.
2. The market is projected to grow at a CAGR of 6.41% from 2025 to 2032.
3. Asia Pacific held a market share of 45.09% in 2024, with a valuation of USD 1,207.6 million.
4. The low molecular weight PIB segment garnered USD 760.6 million in revenue in 2024.
5. The liquid PIB segment is expected to reach USD 2,386.6 million by 2032.
6. The automotive segment is expected to reach USD 1,367.5 million by 2032.
7. The market in Europe is anticipated to grow at a CAGR of 7.51% during the forecast period.

Market Driver

Rapid Growth in the Construction Industry

The polyisobutylene market is driven by the rapid growth in the construction industry globally. Infrastructure development and urbanization have created strong demand for sealants and adhesives with high durability, weather resistance, and flexibility. 

These properties make PIB-based solutions essential for roofing, sealing, and waterproofing applications. This growing need for reliable and long-lasting materials is leading to the increased adoption of polyisobutylene solutions across the construction sector.

• In April 2025, the U.K. Office for National Statistics reported that six out of nine construction sectors registered growth. The main contributors were private housing repair and maintenance, and infrastructure new work, which increased by 2.0% and 1.5%, respectively.

Market Challenge

Compliance with Strict Environmental Regulations Across Regions

A major challenge in the polyisobutylene market is the increasing pressure to comply with strict environmental regulations across regions. Regulations such as EPA’s standards for federal greenhouse gas emissions require manufacturers to reduce emissions and develop eco-friendly formulations, which can raise production costs and complicate manufacturing processes. This limits the market growth, as companies need to balance regulatory compliance with profitability.

Manufacturers are investing in green chemistry and sustainable production technologies. They are also enhancing R&D efforts to develop bio-based and low-emission PIB grades. Additionally, companies are adopting efficient process controls and collaborating with regulatory bodies to ensure compliance while maintaining cost-effectiveness.

Market Trend

Use of Polyisobutylene for Better Performance & Efficiency of Batteries

The polyisobutylene market is registering a shift toward the use of PIB to improve the performance and efficiency of next-generation batteries. This shift is backed by the growing adoption of EVs and energy storage systems, which demand advanced battery technologies. 

• In 2024, the International Energy Agency (IEA) reported that global electric car sales surpassed 17 million, representing over 20% of total vehicle sales. The year-over-year increase of 3.5 million units alone exceeded the total global electric car sales recorded in 2020. 

The unique chemical properties of PIB enhance battery stability, electrolyte compatibility, and lifespan. As a result, manufacturers are increasingly incorporating PIB in battery components to meet the rising need for efficient and durable energy solutions.

Polyisobutylene Market Report Snapshot

Segmentation	Details
By Product Type	Low Molecular Weight PIB, Medium Molecular Weight PIB, High Molecular Weight PIB, Highly Reactive PIB (HR-PIB)
By Form	Liquid PIB, Solid PIB, Granules/Flakes
By Application	Automotive, Industrial (Lubricants, Additives), Construction (Sealants, Roofing), Adhesives & Sealants, Personal Care & Cosmetics, Food & Pharma
By Region	North America: U.S., Canada, Mexico
	Europe: France, UK, Spain, Germany, Italy, Russia, Rest of Europe
	Asia-Pacific: China, Japan, India, Australia, ASEAN, South Korea, Rest of Asia-Pacific
	Middle East & Africa: Turkey, U.A.E., Saudi Arabia, South Africa, Rest of Middle East & Africa
	South America: Brazil, Argentina, Rest of South America

Market Segmentation:

• By Product Type (Low Molecular Weight PIB, Medium Molecular Weight PIB, High Molecular Weight PIB, and Highly Reactive PIB (HR-PIB)): The low molecular weight PIB segment earned USD 760.6 million in 2024, due to its widespread use in lubricants, dispersants, and viscosity modifiers.
• By Form (Liquid PIB, Solid PIB, and Granules/Flakes): The liquid PIB segment held 54.20% share of the market in 2024, due to its ease of blending, superior flow properties, and high demand in adhesive and lubricant formulations.
• By Application (Automotive, Industrial (Lubricants, Additives), Construction (Sealants, Roofing), Adhesives & Sealants, Personal Care & Cosmetics, and Food & Pharma): The automotive segment is projected to reach USD 1,367.5 million by 2032, owing to rising vehicle production and increasing use of PIB in engine oils, fuel additives, and undercoating applications.

Polyisobutylene Market Regional Analysis

Based on region, the market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and South America.

Asia Pacific polyisobutylene market share stood at around 45.09% in 2024, with a valuation of USD 1,207.6 million. This dominance is driven by rapid industrialization, growth in the automotive and construction sectors, and expanding manufacturing capacities across China, India, and Southeast Asia. 

The region benefits from the robust demand for lubricants, sealants, and adhesives, supported by infrastructure projects and rising vehicle production. Cost-effective raw materials and labor, along with increasing foreign investment, have strengthened the region’s production base, contributing to its market dominance.

The polyisobutylene industry in Europe is poised to grow at a significant CAGR of 7.51% over the forecast period. The market growth is supported by strict environmental standards and growing emphasis on high-performance materials. 

The regional market is fueled by the automotive industry’s transition toward lightweight and energy-efficient solutions, increasing use of PIB in EV-compatible lubricants and sealing components, and advancements in construction materials. Rising investments in research and industrial innovation across Germany, France, and the UK are further supporting the market expansion.

• In August 2023, BASF announced a 25% increase in production capacity for its medium-molecular weight PIB at its Ludwigshafen site in Germany. The expansion, aimed at meeting rising global demand, is set to enhance BASF’s supply reliability and support customer needs across the automotive, construction, electronics, and food packaging industries.

Regulatory Frameworks

• In the U.S., polyisobutylene (PIB) is regulated under the Environmental Protection Agency (EPA) through the Toxic Substances Control Act (TSCA). Manufacturers and importers must ensure that PIB is listed on the TSCA Inventory and comply with reporting and safety requirements for chemical substances.
• In the European Union (EU), PIB falls under the Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH) regulation, administered by the European Chemicals Agency (ECHA).

Competitive Landscape

Key players in the polyisobutylene industry are focusing on capacity expansion to meet rising demand from the automotive and construction industries. Strategic collaborations with downstream manufacturers are helping to strengthen distribution networks and secure long-term contracts. Companies are investing in R&D to develop highly reactive PIB grades and environmentally compliant formulations, aligning with evolving regulatory standards. 

Market participants are targeting geographic expansion through joint ventures and acquisitions in emerging markets, aiming to enhance their regional footprint and production flexibility. Customization of product grades based on molecular weight and form helps companies differentiate themselves and serve niche applications.

List of Key Companies in Polyisobutylene Market:

• HC Kothari Group
• Kemipex
• Chevron Oronite Company LLC.
• Braskem
• RB Products, Inc.
• ENEOS Corporation
• Reliance Industries Limited
• BASF
• TPC Group
• The Lubrizol Corporation

Recent Developments (Product launch)

• In June 2024, BASF showcased OPPANOL at The Battery Show Europe 2024 in Stuttgart, Germany. OPPANOL is a highly versatile polyisobutylene used as a binder for automotive battery applications. It minimizes electrochemical disturbances, due to its chemical inertness, and enhances mechanical stability through superior elasticity and elongation, reducing the risk of physical damage during battery operation.