by Butadiene serves as an important precursor in manufacturing synthetic rubbers such as styrene-butadiene rubber and polybutadiene rubber that find widespread applications in automotive tires, footwear, packaging and industrial goods due to their excellent properties including flexibility, resilience and tensile strength. It serves as a co-monomer along with styrene in production of various impact-resistant and temperature-resistant polymers such as polystyrene for applications in construction materials, electronics packaging and piping. Butadiene derived polymers exhibit superior thermal stability and chemical resistance making them suitable substitutes for conventional petroleum-derived plastics. Rising consumption of automotive tires driven by surging vehicle production as well as footwear will majorly drive the demand for butadiene in synthetic rubber synthesis over the forecast period.
The global Butadiene Market is estimated to be valued at US$ 15681.17 Bn in 2024 and is expected to exhibit a CAGR of 28% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Climate change concerns have necessitated shift towards more sustainable fuel sources with lower emission profiles. Development of advanced biofuels produced from non-food biomass has emerged as a viable solution to reduce dependence on petroleum fuels. Butadiene can be produced through fermentation of plant-based feedstocks such as corn, sugarcane and cellulosic biomass, offering a renewable alternative to conventional naphtha cracking process. Major players are investing in bio-based butadiene production technologies to cater to the growing demand for greener chemicals and materials. For instance, Genomatica has developed bio-based 1,3-butadiene from sugars using bacterial fermentation that provides a sustainable substitute for petroleum-derived butadiene without comprising on performance.
Porter’s Analysis
Threat of new entrants: The butadiene market requires high capital investments in production facilities and R&D which poses barrier for new entrants. Bargaining power of buyers: Large buyers like major manufacturers have strong bargaining power due to availability of substitutes while smaller buyers have weak bargaining power. Bargaining power of suppliers: Major players worldwide control supply making substitution difficult leading to higher supplier bargaining power. Threat of new substitutes: Alternatives like propylene are posing moderate threat. Competitive rivalry: Market dominators like BASF and Ineos focus on expanding production capacity intensifying competition.
Key Takeaways
The Global Butadiene Market Share is expected to witness high growth.
Regional analysis: Asia Pacific is expected to dominate the market during the forecast period led by countries like China and India. Countries in the region spend heavily on construction and automotive industries driving butadiene demand.
Key players: Key players operating in the butadiene market are Thermo Fisher Scientific, Synbio Technologies, Merck KGaA, Agilent Technologies, Inc., GenScript, Amyris, Eurofins Genomics GmbH, Integrated DNA Technologies, Inc., Codexis, Inc., EnBiotix, Inc., Synthego, New England Biolabs (UK) Ltd., Scarab Genomics, LLC and Genomatica, Inc. Increasing R&D expenditures to develop innovative production technologies will help these players strengthen their market presence.
