by The Butadiene Market is estimated to be valued at US$ 12682.54 Kilo MT in 2022 and is expected to exhibit a CAGR of 3.6% over the forecast period 2022 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Butadiene or 1,3-butadiene is a colorless gas that is produced through extraction of petroleum and natural gas. It is widely used as a chemical intermediate to produce synthetic rubbers such as styrene-butadiene rubber (SBR) and polybutadiene rubber (PBR). These synthetic rubbers find major applications in manufacturing of automobile tires, footwear, and industrial rubber goods. Butadiene is also used to manufacture nylon tyre cord, plastic, and latex. Rising demand for synthetic rubbers from automotive and construction industries are the major factors driving growth of the butadiene market over the forecast period.
Market Dynamics:
The increasing demand for synthetic rubber from the automotive industry is a major factor driving growth of the butadiene market. According to the Organisation Internationale des Constructeurs d’Automobiles, around 1.5 billion vehicles were produced globally in 2019. Butadiene is predominantly used to manufacture SBR which is further used in the production of automobile tires. Another major driver for the market is the growing demand for butadiene from the construction industry. Building and construction activities are booming across developing nations like China and India which is translating to increased use of PBR and latex made of butadiene. Additionally, rapid urbanization around the globe has accelerated infrastructure development projects further fueling market growth.
Segment Analysis
The butadiene market is dominated by tire and rubber segment which holds around 60% of the total market share. Butadiene is predominantly used in tire manufacturing owing to its excellent resistance to abrasion and temperature. It provides strength and elasticity to tires, making them durable. With growing automobile sales globally, the demand for tires is increasing rapidly thereby propelling the growth of tire and rubber segment.
PEST Analysis
Political: Trade barriers and environmental regulations impact the market dynamics. Favorable government policies boosting automotive industry drives the butadiene demand.
Economic: Higher vehicle ownership rate, rising disposable income levels across developing nations support the automotive manufacturing and construction industries in turn augmenting the market.
Social: Increasing health awareness is prompting manufacturers to reduce use of toxic butadiene in various products.
Technological: Development of bio-based butadiene offers opportunities for sustainable production. Novel production technologies help lower costs.
Key Takeaways
The global Butadiene Market size was valued at USD 12682.54 kilo MT in 2022. It is expected to witness high growth, exhibiting a CAGR of 3.6% over the forecast period, driven by increasing automotive production worldwide.
Asia Pacific dominated the global market in 2022 and is projected to maintain its leading position during the analysis period. This can be primarily attributed to growing vehicle fleet, rapidly expanding construction industry and improving economic conditions in major countries such as China and India.
Key players operating in the butadiene market are BASF SE, Braskem, China Petroleum & Chemical Corporation, Dow, Evonik Industries AG, Exxon Mobil Corporation, Formosa Plastics Corporation, INEOS, JSR, Corporation, LG Chem, LOTTE CHEMICAL TITAN HOLDING BERHAD, LyondellBasell Industries Holdings BV, Reliance Industries Limited., Repsol, Royal Dutch Shell Plc, SABIC, TPC Group, and China National Petroleum Corporation. Competition in the market is intense with these major manufacturers battling it out through cost optimization and new product development.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
