Butadiene Market

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The Butadiene Market is expected to grow significantly in the next few years. The main reason behind this growth is the increasing demand for synthetic rubber. Synthetic rubber is made from Butadiene and is used in a variety of applications, such as tires, hoses, belts, and various other rubber products. Butadiene is also used to make plastics and resins, which are used in a wide range of products, including automobiles, packaging, electronics, and construction materials. The growing demand for these products is driving the growth of the Butadiene Market. In addition, the increasing use of butadiene-based biofuels is another factor that is expected to boost the growth of the Butadiene Market. Biofuels made from Butadiene have a higher energy content than traditional fossil fuels and can be used in a variety of applications, such as transportation and power generation. The growing demand for butadiene-based products is expected to lead to a significant increase in production capacity over the next few years. Several companies have already announced plans to build new plants or expand existing ones to meet the rising demand.

The major drivers forButadiene Market are rising demand from the tire industry, growth in automobile production, and increasing use of synthetic rubber. The leading consumers of Butadiene are the tire and rubber industry, accounting for more than 60% of the total demand. Butadiene is used as a raw material for various Vulcanization accelerators, resins, and synthetic rubbers such as styrene-Butadiene rubber (SBR), nitrile rubber (NBR), and polyButadiene (PBD). SBR is the largest application segment for butadiene, followed by NBR and PBD. SBR is widely used in passenger car tires owing to its resistance to abrasion, while NBR is used in fuel hoses and fuel tanks because of its resistance to oil, gasoline, and chemicals. PBD is mostly used in tires as an inner liner compound owing to its low-temperature flexibility. The automotive industry is the major end-use market for Butadiene as around 70% of the total demand is attributable to synthetic rubber used in tires. The rise in vehicle production and sales across the globe is anticipated to propel the growth of this market segment over the forecast years.

It is used as a monomer in the production of synthetic rubber. The major applications of synthetic rubber are tires, hoses, conveyor belts, and gaskets. Butadiene is also used as a fuel additive and as a comonomer in certain plastics such as polystyrene and acrylonitrile-butadiene-styrene (ABS). The increasing demand from the tire industry is one of the key driving factors of the Butadiene market. The worldwide tire market reached 2,321.3 Million Units in 2022 and is projected to grow at a CAGR of 2.8% during the forecast period. An increasing number of vehicles on road coupled with rising disposable incomes is fueling the demand for tires globally. This, in turn, is anticipated to drive the Butadiene Market during the forecast period. Rapid growth in the automotive sector is also one of the key driving factors for Butadiene Market growth. The automotive sector is witnessing strong growth due to favorable government regulations, increasing investment by major automakers, and growing demand from emerging economies such as China and India. The trend of increased passenger car manufacturing is expected to continue during the forecast period, which would result in increased demand for butadiene.

The rise in raw material prices is one of the major restraints of Butadiene Market. The volatile nature of raw material prices makes it difficult for manufacturers to fix their product prices, which ultimately affects their profitability and revenue. Another restraint of Butadiene Market is the stringent environmental regulations in developed countries. These regulations have made it difficult for manufacturers to expand their production facilities in developed countries. As a result, they have been forced to set up production units in developing countries, where environmental regulations are not as stringent. The Global Butadiene Market is also affected by the fluctuating demand from the tire industry. The fluctuations in the demand from the tire industry are largely due to the changes in the trends in the automotive industry. For instance, the growing popularity of SUVs and crossovers has led to a decrease in the demand for passenger car tires, which is one of the major applications of Butadiene rubber. All these factors are expected to restrain the growth of Butadiene Market during the forecast period.

Top Market Trends

The Butadiene Market is constantly evolving, and new trends are emerging all the time. Here are some of the top market trends that you need to be aware of:

1. Increasing demand for butadiene-based products: There is an increasing demand for products that contain butadiene, such as tires, rubber, and plastics. This is being driven by the growing automotive industry and the need for these products in many different industries.

2. New applications for butadiene: Butadiene is being used in a variety of new applications, such as adhesives, sealants, and coatings. This offers new opportunities for companies that produce butadiene-based products.

3. Rising price of butadiene: The price of Butadiene has been rising in recent years, due to the increased demand for butadiene-based products. This trend is expected to continue in the future as the demand for these products continues to grow.

4. Growing production of butadiene: Global production of Butadiene has been growing in recent years, due to the increasing demand for butadiene-based products. This trend is expected to continue in the future as the demand for these products continues to grow.

5. Trade wars have driven up prices: The trade war between the United States and China has been one of the biggest factors driving up Butadiene prices this year. The tariffs imposed by each country on each other's imports have made it more expensive to ship Butadiene from China to the US, and this has in turn driven up prices in the US market.

6. Increased demand from Asia: Asia is one of the biggest markets for butadiene, and this year we've seen increased demand from countries like India and South Korea. This is largely due to the growing automotive industry in these countries, as Butadieneis used to make tires and other rubber products.

7. Tightness in supply: Another factor that has contributed to higher Butadiene prices is the tightness in supply. Several planned and unplanned production outages have caused disruptions in the market, leading to less Butadiene available for purchase.

8. One of the biggest trends in the Butadiene Market is the shift from traditional petroleum-based sourcing to alternative sources such as bio-butadiene. This trend is being driven by concerns about the environmental impact of traditional Butadiene production, as well as the high cost of crude oil. As a result, many companies are investing in research and development of alternative Butadiene sources.

9. Another major trend in the Butadiene Market is the increasing demand for high-performance polymers. These polymers are used in a variety of applications, including automotive parts, construction materials, and consumer goods. The growing popularity of these polymers is due to their superior properties, such as strength, durability, and heat resistance.

10. Finally, another major trend in the Butadiene Market is consolidation. A number of large chemical companies have acquired or merged with smaller firms in recent years, resulting in a smaller number of larger suppliers. This consolidation has led to increased competition and pressure on prices.

Market Segmentation

The market is segmented on the basis of Products, End-Users, Applications, and Region. On the basis of Products, the market is segmented into Butadiene Rubber, Styrene Butadiene Rubber, Acrylonitrile Butadiene Rubber, Nitrile Butadiene Rubber, Nitrile Butadiene Rubber, and Hexamethylenediamine. Based on End-Users, the market is segmented into Automobile Industries, Building & Construction, Consumer Products Industries, Healthcare, and Other End Users. On the basis of Applications, the market is segmented into Polybutadiene, Chloroprene, Styrene-Butadiene, Nitrile Rubber, SB Latex, Acrylonitrile Butadiene Styrene, Adiponitrile, Sulfolane, Ethylidene Norbornene, and Other Applications.

Based on Products

During the forecast period, the styrene-Butadiene (SB) latex category is predicted to experience the highest rate of expansion. The principal component made from Butadiene is called styrene-Butadiene rubber, or SBR for short. It is created from Butadiene and is blended with rubber that comes from natural sources when it is manufactured into tires. The physical and chemical qualities of these rubber polymers are what give tires their performance-enhancing characteristics, such as rolling resistance, wear, and traction. SBR rubber frequently serves as a straight replacement for natural rubber in industrial applications. Excellent durability properties, crack endurance, and abrasion resistance is just some of the benefits that this material offers. Additionally, styrene-Butadiene possesses good resistance to both water and compression sets. Initially, in order to substitute natural rubber in tires, a synthetic copolymer that was given the name SBR was produced. The formation of SBR is accomplished by reacting BD with styrene. It currently accounts for, together with natural rubber, 90% of the total amount of rubber that is consumed globally. SBR is frequently utilized in settings that involve the presence of water, hydraulic fluids, or alcohol. Because of this, SBR can be found in a variety of places, including tires, tubes, compressors, and the coverings of conveyor belts.

Latex made of styrene-butadiene, also known as SB latex, is a popular example of an emulsified polymer that has a wide range of applications in both commercial and industrial settings. SB latex is considered to be a type of polymerization because of the fact that it is composed of two different monomers, namely styrene, and butadiene. Butadiene is a byproduct of the synthesis of ethylene, whereas styrene is formed when benzene and ethylene are combined to form a compound. In addition to data capture papers like pneumatic paper and infrared paper, which are used in brochures, journals, and SB latex, styrene-Butadiene latex is used to create paper coverings and products that are transparent, glossy, and luminescent. Examples of these types of paper coverings and products include coated canvas and white chipboard. In addition, SB latex is utilized in the production of the back coats for tufted carpets. SB latex is a well-liked option for use in adhesives across a variety of industries, including the flooring business.

Based on End Users

The automobile industry holds the largest market share due to the rising demand for butadiene-based synthetic rubber in tire manufacturing. The footwear industry is another major consumer of butadiene-based synthetic rubber. Synthetic rubber made from Butadiene provides good abrasion resistance and toughness, which make it an ideal material for shoe soles. Moreover, it offers good elasticity and flexibility, which helps shoes to retain their shape even after extended use. Butadieneis the primary component in the production of the vast majority of synthetic rubbers and elastomers, such as polychloroprene, polyButadiene rubber (PBR), nitrile rubber (NR), and styrene-Butadiene rubber (SBR) (Neoprene). These are then put to use in the manufacturing of a variety of different commodities and primary components. When butadiene-based rubber is employed as the beginning material, the primary component of acrylonitrile-butadiene-styrene (ABS) resin, which may be utilized in a variety of settings, is incorporated into the production of plastics. The production of tires frequently involves the usage of polybutadiene. It is claimed that the manufacture of polyButadiene is responsible for more than 70 percent of all tires produced around the world. Its primary application is as a sidewall in tires, where it helps reduce the strain that is brought on by the running motion's constant bending. As a consequence of this, it is anticipated that the use of Butadiene in the automotive sector will grow during the period under consideration.

Based on Applications

Tires are made from a combination of natural rubber and SBR, which is primarily synthesized from 1,3-BD. Tires' performance in areas like rolling resistance, wear, and traction is enhanced by the rubber polymers' physical and chemical properties. In most industrial contexts, SBR rubber has completely supplanted natural rubber. Some of its many advantages include high levels of resistance to wear, cracking, and aging. Styrene-Butadiene is impervious to both water and compression sets. When natural rubber became scarce, the synthetic copolymer SBR was developed to fill the void. SBR can be created from styrene and BD. Along with natural rubber, it now accounts for 90% of the world's total rubber consumption. Typically, SBR is used in conjunction with liquids like water, hydraulic fluids, or even alcohol. In other words, you can find SBR in things like tires, tubes, compressors, and conveyor belt covers.

Based on Region

The Asia-Pacific Butadiene Market is expected to grow at the highest CAGR during the forecast period. The region includes countries such as China, Japan, and India, which are some of the largest consumers of Butadiene in the world. The high growth of the Asia-Pacific Butadiene Market is attributed to the growing demand from end-use industries such as tires, synthetic rubber, and plastics in the region. China is one of the leading consumers of Butadiene in the world. The country is a major producer and exporter of chemicals and polymers. The country's production capacity of Butadiene was 4.6 million metric tons in 2021. The country's polymer industry has been growing at a rapid pace due to the growing demand from various end-use industries. This is expected to drive the demand for Butadiene in China over the forecast period. Japan is another major consumer of Butadiene in Asia-Pacific. The country's polymer industry has been growing steadily over the past few years due to factors such as government support and initiatives to promote domestic manufacturing. This is expected to drive the demand for Butadiene in Japan over the forecast period. India is one of the fastest-growing markets for Butadiene in Asia-Pacific. The country's polymer industry is expected to grow at a CAGR of 9% in the forecast period. This is attributed to factors such as favorable government policies, and the growing automotive industry.

Competitive Landscape

The key players in the Global Butadiene Market include- China Petroleum & Chemical Corporation (China), Shell PLC (UK), Eni Corporations (Italy), Evonik Industries (Germany), INEOS Group Ltd. (UK), LANXESS Chemicals Company (Germany), LG Chemicals Company (South Korea), LyondellBasell Industries Holdings BV (Netherlands), PJSC "Nizhnekamskneftekhim" (Russia), Repsol S. A. (Spain), Saudi Basic Industries Corporation (Saudi Arabia), The Dow Chemical Company (US), TPC Group (US), Formosa Plastics Corporation (Taiwan), ZEON Corporation (Japan), China Petrochemical Corporation Borealis AG (China), Versalis S.P.A. (Italy) and others.

Recent Market Developments

● Bangkok Synthetics Co. Ltd., a petrochemical company, announced in February 2019 that it intends to double annual Butadiene production to 80 kilotons by 2021.

● The Japanese oil corporation ENEOS Corporation bought the worldwide elastomers division of JSR Corporation in June 2021. This division produces and sells synthetic rubber. Through a corporate split, JSR plans to establish a new company to which it would transfer its elastomer business and the shares of its overseas subsidiaries and affiliates associated with this business. Eventually, ENEOS will buy out the rest of the new company's shareholders, turning it into a completely owned subsidiary.

● To begin commercial operations in the second half of 2021, Sinopec-SK Petrochemical Co. Ltd, a joint venture of SK Global Chemical (a subsidiary of SK Innovation) and Sinopec, aimed to finish expanding its new petrochemical facilities in April 2021.

Segmentation of the Global Butadiene Market