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  • Published On : Dec 2022
  • Code : CMI5448
  • Industry : Bulk Chemicals
  • Pages : 132
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The global butadiene market size is estimated to account for 12682.5 kilo MT in 2021 and is anticipated to witness a compound annual growth rate (CAGR) of 3.60% from 2022 to 2030. Butadiene market has witnessed significant growth in recent years. The industry is expected to continue expanding during the forecast period. This is due to a number of factors including increased demand from the automotive industry and rising demand for water-based solvents. In addition, technological innovations are expected to aid in the production of butadiene. These factors are driving the global butadiene market growth.

Global Butadiene Market: Regional Insights

Regionally, Asia-Pacific is the largest producer of butadiene and it is projected to continue to lead the global butadiene market in the coming years. The major driving force for this region is the growing demand for butadiene-based products from the automotive and construction sectors. The market is also anticipated to benefit from increasing demand from the paints and coatings industry. Its demand in China is expected to rise significantly. The country is expected to experience strong growth in the automobile industry. This is due to the growing need for tires and other products made from butadiene. The demand for butadiene is also expected to increase in India and Japan.

The United States is another major contributor to the butadiene market. This is because of the high number of tire manufacturers and the large demand for butadiene-based products. In addition, the rising need for butadiene in these countries is driven by the rapid development of the downstream industries. In addition, the industry is likely to benefit from favorable investment policies.

Figure 1. Global Butadiene Market Value Share (%), By Region, 2021

Butadiene  | Coherent Market Insights

Global Butadiene Market Drivers:

Rise in downstream market across Asia Pacific region is projected to drive growth of the global butadiene market. According to the Coherent Market Insights analysis, the Asia-Pacific region has dominated the oil and gas downstream market, with China, Southeast Asia, and India accounting for the majority of demand. State refiners in India are likely to invest USD 26.96 billion by 2025 to increase oil refining capacity by 20%. By 2023-24, the government of India plans to produce 40 million ton (MT) of crude oil and 50 billion cu. m. (BCM) of natural gas domestically. India, the world's third-largest importer and user of oil, has a refining capacity of around 249 million ton per year, or around 5 million barrels per day (bpd). By 2025, the refining capacity in the country is estimated to reach 298 million ton per year.

Increasing sale of electric vehicle is creating demand for automobile tires. This in turn augmenting demand for butadiene. According to IEA (International Energy Agency), after a decade of rapid growth, the global electric car stock reached ten million units in 2020, a 43% increase over 2019 and a 1% stock share. In 2020, battery electric vehicles amounted to two-third of new electric car registrations and two-third of the stock.in 2030, global electric vehicle sales are expected to reach 23 million as per the New Policies Scenario (excluding two-/three-wheelers). In the EV30@30 Scenario, in 2030, around 70% of the vehicle sales in China are likely to be EVs. Also, it is estimated that the global market share of EVs will reach 30% (245 million vehicles) by 2030.

Global Butadiene Market Opportunities:

Expanding chemical sector is expected to offer significant growth opportunities over the forecast period. According to the India Brand Equity Foundation, The Indian chemicals industry stood at US$ 178 billion in 2019 and is expected to reach US$ 304 billion by 2025 registering a CAGR of 9.3%. The demand for chemicals is expected to expand by 9% per annum by 2025. The chemical industry is expected to contribute US$ 300 billion to India’s GDP by 2025.

Growing demand from water-based solvents is again anticipated to serve major growth opportunities. Moreover, increasing use of butadiene as a substitute for ethylene in the production of ethylene crackers is again projected to augment market growth. This has reduced the operating rates of ethylene crackers.

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Butadiene Market Report Coverage

Report Coverage Details
Base Year: 2021 Market Size in 2021: 12682.54 Kilo MT
Historical Data for: 2017 to 2020 Forecast Period: 2022 to 2030
Forecast Period 2022 to 2030 CAGR: 3.60% 2030 Value Projection: 17002.6  Kilo MT
Geographies covered:
  • North America: U.S. and Canada
  • Latin America: Brazil, Argentina, Mexico, and Rest of Latin America
  • Europe: Germany, U.K., Spain, France, Italy, Russia, and Rest of Europe
  • Asia Pacific: China, India, Japan, Australia, South Korea, ASEAN, and Rest of Asia Pacific
  • Middle East: GCC Countries, Israel, and Rest of Middle East
  • Africa: South Africa, North Africa, and Central Africa
Segments covered:
  • By Application: Polybutadien, Chloroprene, Styrene-Butadiene, Nitrile Rubber, SB Latex, Acrylonitrile Butadiene Styrene, Adiponitrile, Sulfolane, Ethylidene Norbornene, Other Applications
  • End-User Industry: Plastic and Polymer, Tire and Rubber, Chemical, Others
Companies covered:

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

Growth Drivers:
  • Rise in downstream market across Asia Pacific region 
  • Increasing sale of electric vehicle
Restraints & Challenges:
  • Health hazards associated with the butadiene 
  • Unfavourable condition arising due to the outbreak of Covid-19

Global Butadiene Market Trends:

Increasing penetration of household appliances due to improving standard of living is projected to uplift the market growth. Acrylonitrile styrene-butadiene is used in the consumer goods, electronic housings, and toys sector, and others. According to the National Bureau of Statistics of China, in December 2020, retail sales of household appliances and consumer electronics in China had amounted to about CNY 100 billion.

Growing focus of key players on adopting business growth strategy to expand their reach is another major trend observed in the market. For instance, in January 2021, Dow signed a sales contract between Dow Europe GMBH being a seller and Trinseo Europe GMBH being a buyer. The contract involves selling and buying of butadiene and came into act on January 1, 2021 and is valid for next 5 years.

Global Butadiene Market Restraints:

Health hazards associated with the butadiene is expected to hinder the market growth. Several studies have shown that butadiene can cause cancer. It can contaminate the blood and may have a negative effect on the immune system, as it may be capable of producing free radicals. This may lead to the development of allergies. Affected individuals should be examined for blood abnormalities and for any other medical problems.

Unfavorable condition arising due to the outbreak of Covid-19 pandemic is again expected to curtail the market growth. Shutdown of many factories, disruptions in supply chain, and reducing purchasing power of consumers has significantly impacted the market growth.

Figure 2. Global Butadiene Market Value Share (%), By End User Industry, 2021

Butadiene  | Coherent Market Insights

Global Butadiene Market Segmentation:

The global butadiene market report is segmented into application¸ end-user industry, and geography

Based on application, the market is segmented into Polybutadiene, Chloroprene, Styrene-Butadiene, Nitrile Rubber, SB Latex, Acrylonitrile Butadiene Styrene, Adiponitrile, Sulfolane, Ethylidene Norbornene, and Other Applications. Out of which, Polybutadiene is expected to dominate the global market over the forecast period and this is attributed to their strong resistance toward abrasion, superior toughness, and also it shows low vulnerability to degradation and cracking.

Acrylonitrile Butadiene Styrene segment is also expected to witness significant growth in the near future and this is owing to the growing demand from injection molding application. It is a popular engineering plastic that has toughness, superior hardness, gloss, and electrical &chemical resistance property

Based on end-user industry, the market is segmented into Plastic and Polymer, Tire and Rubber, Chemical, and Others. Out of which, Plastic and Polymer is expected to dominate the global market over the forecast period and this is attributed to the fact that butadiene is an important feedstock in polymer production. It is used as a monomer for producing different types of plastics and polymers

Tire and Rubber segment is also expected to witness significant growth in the near future. Polybutadiene rubber (PBR) and styrene-butadiene rubber (SBR) are widely used in the manufacturing of tires and rubber.

Global Butadiene Market: Key Developments

In April 2021, Sinopec-SK Petrochemical Co., Ltd., a joint venture of SK Global Chemical (a subsidiary of SK Innovation) and Sinopec, planned to complete its expansion of new petrochemical facilities and start commercial operations in the second half of 2021. In October 2017, Sinopec-SK Petrochemical announced an additional investment plan valued at KRW740 billion (USD657.4 million) to expand petrochemical facilities for 300,000 tons of ethylene, 300,000 tons of polyethylene, 300,000 tons of polypropylene, and 60,000 tons of butadiene. This investment money came from the revenues that Sinopec-SK Petrochemical had raised independently.

In January 2021, Dow signed a sales contract between Dow Europe GMBH being a seller and Trinseo Europe GMBH being a buyer. The contract involves selling and buying of butadiene and came into act on January 1, 2021 and is valid for next 5 years.

In June 2021, ENEOS Corporation, the oil company in Japan, acquired JSR Corporation global elastomers business, which includes the manufacture and sale of synthetic rubber, which is manufactured by butadiene. JSR will establish a new company and will transfer the elastomer business and the shares of international subsidiaries and affiliates related to this business to the new company by splitting the company. ENEOS will subsequently acquire all of the shares of the new company, making it a wholly-owned subsidiary.

In January 2021, Lotte Chemical has recently completed its due diligence on potential acquisition of JSR’s elastomers business.

Global Butadiene Market: Key Companies Insights

The global butadiene market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis. Some of the key players in the global 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

*Definition: Butadiene is a non-corrosive, flammable, colorless, liquid hydrocarbon. It is soluble in benzene, acetone, and ethanol. Butadiene is a ligand for low-valent metal complexes. It is used as an auxiliary agent in the production of engineering plastics and as a key ingredient in polybutadiene rubber.

One of the most widely used chemicals in the rubber industry is butadiene. It is used in a variety of applications including the production of rubbers and the manufacturing of styrene-butadiene rubbers. Its chemical properties make it a potential human carcinogen. 1, 3-butadiene is a relatively reactive chemical. It has a high vapor pressure and is expected to volatilize from water surfaces, as well as from dry soil. Its solubility is calculated as 735 mg/L. Its vapor pressure is calculated as 2052 mm Hg. This makes it heavier than air, and if it is released into water, it is expected to boil and float on the water surface.

Market Dynamics:

Rising demand for butadiene-based products from the automotive and construction sectors. The market is also anticipated to benefit from increasing demand from the paints and coatings industry. The butadiene market is an important building block for manufacturing various chemical products, including synthetic rubber and plastics. This commodity is produced through the process of anionic polymerization. This chemical is used in a variety of industrial and consumer goods such as plastics, tires, and automotive parts. It is also used in the production of insulation solutions for wires and cables. All these factors are projected foster market growth.

On the other hand, health hazards associated with the butadiene is expected to restrict the market growth.

Key features of the study:

  • This report provides in-depth analysis of the global butadiene market, and provides market size (Kilo MT) and compound annual growth rate (CAGR%) for the forecast period (2022–2030), considering 2021 as the base year
  • It elucidates potential revenue opportunities across different segments and explains attractive investment proposition matrices for this market
  • This study also provides key insights about market drivers, restraints, opportunities, new product launches or approval, market trends,  regional outlook, and competitive strategies adopted by key players
  • It profiles key players in the global butadiene market based on the following parameters – company highlights, products portfolio, key highlights, financial performance, and strategies
  • Key companies covered as a part of this study include 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
  • Insights from this report would allow marketers and the management authorities of the companies to make informed decisions regarding their future product launches, type up-gradation, market expansion, and marketing tactics
  • The global butadiene market report caters to various stakeholders in this industry including investors, suppliers, product manufacturers, distributors, new entrants, and financial analysts
  • Stakeholders would have ease in decision-making through various strategy matrices used in analyzing the global butadiene market

Detailed Segmentation:

  • Global Butadiene Market, By Application
    • Polybutadiene
    • Chloroprene
    • Styrene-Butadiene
    • Nitrile Rubber
    • SB Latex
    • Acrylonitrile Butadiene Styrene
    • Adiponitrile
    • Sulfolane
    • Ethylidene Norbornene
    • Other Applications
  • Global Butadiene Market, By End-User Industry
    • Plastic and Polymer
    • Tire and Rubber
    • Chemical
    • Others
  • Global Butadiene Market, By Geography
    • Asia-Pacific
    • North America
    • Europe
    • Latin America
    • Middle East & Africa
  • Company Profiles
    • 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
    • China National Petroleum Corporation

Frequently Asked Questions

The global butadiene market size is estimated to account for 12682.54 Kilo MT in 2021 and is expected to exhibit a CAGR of 3.60% between 2022 and 2030.
Rise in downstream market across Asia Pacific region and increasing sale of electric vehicle are fuelling the market.
The Tire and Rubber segment is the leading component segment in the market.
Health hazards associated with the butadiene and unfavorable condition arising due to the outbreak of Covid-19 are the major factors restraining market.
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

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