Butadiene Market

Butadiene Market Size & Growth (2023-2028)

The butadiene market size has been estimated to Grow by 10.7 billion in 2022, and the market is expected to reach a CAGR of over 19.2% during the forecast period (2023-2028).

Butadiene is an organic component that is in colorless form and is a bonding medium between two vinyl groups. Butadiene is a molecule that contains two carbon atoms and is stirred as a total monomer in the manufacture of synthetic rubber. It buys the properties of rubber and can be by obtaining thermal decomposition of amyl alcohol. It is produced for several processes as the extraction of hydrocarbons, ethanol, or butenes and the dehydrogenation of n-butane. Some examples of applications of butadiene are polybutadiene rubber, acrylonitrile butadiene styrene, and nitrile rubber.

Butadiene Market Trends:

The automotive industry relies on PBR for applications other than tires, such as hoses, belts, seals, and other automotive components, because of its high resistance to low temperatures. However, the recent decline in car production and sales is likely to hamper the growth of the market. Western Europe and North America are the second most consuming regions of PBR. In the third quarter of 2019, around 67.47 million vehicles were produced worldwide, and this value reached around 52 million vehicles in the third quarter of 2020, registering a decline rate of around 23%. On the supply side, PBR factories in Asia is racing to meet strong demand. Deep water supplies from Europe and the Middle East are also expected to flow to Asia to help meet strong demand. Due to all these factors, the butadiene market is expected to grow globally during the forecast period. The automotive industry relies on PBR for applications other than tires, such as hoses, belts, seals, and other automotive components, because of its high resistance to low temperatures. PBR consumption is influenced by Northeast Asia, particularly China. Western Europe and North America are the second most consuming regions of PBR. On the supply side, PBR factories in Asia are operating at full capacity to meet high demand. Deep water supplies from Europe and the Middle East are also expected to flow to Asia to help meet strong demand. The main global producers of PBR are Lanxess, Korea Kumho, Michelin, Ncgromcx, Nippon Zeon, Petkim, Turkey, Petrochim, RcpsonOuimica, Taiwan Synthetic, Ube and Romania, and CIS.

Butadiene Market Drivers:

Growing demand from end-use industries is a vital factor for market growth, improving functionality at lower cost and an increasing number of cars in the world are the major factors, among others, which are boosting the butadiene market. . The rapid growth in automobile production is expected to boost the market. Butadiene is mainly used in the production of styrene-butadiene rubber (SBR) and polybutadiene rubber (PBR), which is used to produce tires and plastics.

Butadiene Market Restraints:

The recent decline in car production and sales is likely to hamper market growth hazardous effects caused by butadiene are expected to hamper the growth of the studied market.

Opportunities in the Butadiene Market:

The innovation of bio butadiene to manufacture products such as synthetic rubber, thermoplastic elastomers, nylon, etc., is likely to create opportunities for the market in the coming years.

Challenges in the Butadiene  Market:

The volatility of commodity prices, combined with a strict regulatory environment, should remain major challenge for market players. To overcome these challenges, the industry has focused on developing bio-based pathways to manufacture 1,3-butadiene.

BUTADIENE MARKET REPORT COVERAGE:

Butadiene Market Segmentation:

By Application :

• Polybutadiene (PBR)

• Chloroprene

• Styrene-butadiene (SBR)

• Nitrile Rubber (Acrylonitrile Butadiene NBR)

• Acrylonitrile Butadiene Styrene (ABS)

• Adiponitrile

• Sulfolane

• Ethylidene Norbornene,

• Styrene Butadiene Latex

• Other Applications

Synthetic butadiene has occupied most of the market in recent years, but due to increased rules and regulations imposed by the government for the use of biobased products in the current scenario, biobased butadiene is expected to experience significant growth in the market during the forecast period.

By End-user Industry:

• Plastic and Polymer

• Tire and Rubber

• Chemical

• Other End-user Industries 

The tire industry is developing due to the expansion of the automobile industry. It represented the majority of the general butadiene market.

 The Butadiene Market Report includes the segmentation of Regions:

• North America 

• Europe 

• Asia Pacific

• Latin America 

• Middle East & Africa 

The Asia-Pacific region dominated the global butadiene market. The Asia-Pacific downstream market has experienced a great boom in recent years as the demand for butadiene has increased rapidly due to its needs. China has made important milestones in shale gas exploration, both in terms of capacity and drilling techniques, making it one of the world's leading suppliers of shale gas. India, with the support of the United States, is working to develop exploration for shale gas in its coastal regions, and American companies are joining the exploration process. The Krishna-Godavari Basin, located in eastern India, contains the country's largest shale gas reserves, spanning over 7,800 gross square miles, with a potential area of ​​4,340 square miles. Apart from this, the Asia-Pacific region is the world's largest producer of vehicles. Butadiene is used to make intermediate products like styrene-butadiene (SBR) and others, which are also used to make automotive products like tires, conveyor belts, etc. In 2020, the total volume of tires produced in India was around 191.98 million, with a growth rate of around 7.5% over the previous year, which in turn is boosting the butadiene market. By the third quarter of 2019, China had produced 18.17 million vehicles and reached 16.96 million vehicles in the third quarter of 2020, registering a decline rate of around 6.66%, which in turn resulted in a decrease in the consumption of parts composed of styrene-butadiene. (SBR) and others thereby creating a negative effect on the growth of the regional butadiene market.

Impact of COVID-19 on the Butadiene Market:

In view of the ongoing pandemic scenario, automotive manufacturing units and building construction projects have been temporarily halted. Hence, this has negatively impacted the demand for styrene-butadiene and polybutadiene rubber, which is used in tires, construction crack fillers, concrete admixtures, etc., which has decreased the demand for the butadiene market. However, the use of protective nitrile rubber gloves has increased in the current situation, thus boosting the market demand for butadiene.

Recent Developments in the Butadiene  Market:

• In August 2019, Lion Elastomers completed the acquisition of the US-based Texas-based Firestone Orange plant, which produces polybutadiene, styrene-butadiene block copolymers, and styrene-butadiene rubber solutions, further enhancing the portfolio. of the company's products.

• In August 2018, Saudi Arabian Oil Co. agreed to acquire the remaining 50% of the ARLANXEO joint venture from LANXESS, which increased its C4 chemicals business, including butadiene.

• In April 2021, Trinseo and ETB will collaborate on the development of biobased 1,3 butadiene and ETB to Collaborate on Development of Bio-Based 1,3 Butadiene

Butadiene Market Key Players:

1. China Petroleum & Chemical Corporation

2. TPC Group

3. Exxon Mobil Corporation

4. Royal Dutch Shell PLC

5. LyondellBasell Industries Holdings BV

6. Sinopec (China)

7. BASF SE (Germany)

8. ExxonMobil Chemical Company (U.S.)

9. Braskem S.A. (Brazil)

10. ENI S.p.A (Italy).