The global Butadiene Market is valued at USD 11.83 Billion in 2023 and is projected to reach a value of USD 38.35 Billion by 2030 at a CAGR (Compound Annual Growth Rate) of 18.3% between 2023 and 2030.
Butadiene is an important industrial chemical that serves as a raw material in producing various products, including synthetic rubber, plastics, resins, and other specialty chemicals. The global butadiene market is expected to grow significantly over the next few years, driven primarily by increasing demand for synthetic rubber in Asia and other emerging markets.
One of the key drivers of the butadiene market is the increasing demand for synthetic rubber, which is used in various applications, from tires and automotive parts to consumer goods and industrial products. This demand is expected to grow as developing nations in the Asia Pacific and other regions continue to industrialize and urbanize, driving the need for transportation and infrastructure. In addition to synthetic rubber, butadiene is also used to produce a variety of other chemicals and products. These include styrene-butadiene rubber (SBR), which is used in the production of tires and other automotive components; acrylonitrile-butadiene-styrene (ABS) resins, which are used in a variety of plastic products; and adiponitrile (ADN), which is used in the production of nylon. Moreover, the butadiene market is highly cyclical, with prices and demand fluctuating significantly. Factors affecting the market include supply and demand fundamentals, changes in feedstock prices, geopolitical events, and other factors.
One of the major trends in the butadiene market in recent years has been the shift towards lighter feedstocks, such as propane and butane, as opposed to heavier feedstocks like naphtha. This trend has been driven by several factors, including rising demand for flexible petrochemical feedstocks, which can help producers reduce their exposure to volatile prices for naphtha and other heavier feedstocks. Another key trend in the butadiene market has been the rising focus on sustainability and environmental concerns. This trend has led to a growing interest in bio-based and renewable sources of butadiene and efforts to develop more sustainable production processes and reduce waste and emissions.
Butadiene Market Size, 2022 To 2030 (USD Billion)
The butadiene market will remain a key driver of global chemical and industrial production in the coming years. While the market is expected to be subject to cyclical fluctuations and other uncertainties, the growing demand for synthetic rubber and other vital products will likely ensure steady demand for butadiene in the coming years. As companies strive to develop more sustainable and efficient production processes and seek out new sources of feedstocks and raw materials, the butadiene market is expected to evolve and adapt to changing market conditions and technological innovations.
The Russo-Ukrainian conflict has had a significant impact on the butadiene market. Butadiene, often used in the production of synthetic rubber, is produced primarily in Russia and Ukraine. Due to the ongoing conflict, butadiene production and transportation have been disrupted, causing prices to increase. The conflict's uncertainty has also made it difficult for companies to plan and invest, further impacting the butadiene market.
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- Market Trends Heatmap
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- Market Sentiment Analysis
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Top Market Trends
1. Growing Demand in the Automotive Industry: The global butadiene market has witnessed a growing demand from the automotive industry in recent years. Butadiene is a key raw material used in the production of synthetic rubber, which is extensively used in the automotive sector for making tires, hoses, engine mountings, and other components. The rising demand for personal and commercial vehicles and the growing infrastructure and transportation industries have increased the global demand for butadiene. The automotive industry is the largest consumer of butadiene, accounting for over 60% of the total demand. The increasing demand for fuel-efficient and lightweight vehicles has also boosted the use of synthetic rubber in the automotive industry. In addition, emerging economies such as China and India have witnessed significant growth in their automotive industries, creating a substantial demand for butadiene and other raw materials. The increasing disposable income and growing population in these countries have boosted the demand for automobiles, further fueling the demand for butadiene in the automotive industry. Moreover, the trend toward electric vehicles has also contributed to the growing demand for butadiene in the automotive sector. Electric vehicles require specialized tires that are durable, lightweight, and provide high levels of grip and stability. Synthetic rubber made from butadiene offers these properties and is increasingly used to produce electric vehicle tires.
2. Increasing Use of Butadiene in the Construction Industry: Butadiene is a versatile chemical compound that has been increasingly used in the construction industry in recent years. The global butadiene market is witnessing a significant rise in demand from the construction sector due to its ability to enhance the properties of various construction materials. Butadiene is used as a raw material for the production of multiple polymers and elastomers, including styrene-butadiene rubber (SBR) and polybutadiene rubber (PBR). These materials are used to produce a wide range of construction products, such as adhesives, sealants, roofing, insulation, flooring, and coatings. SBR is a popular material used in the construction industry for its excellent adhesion properties, durability, and resistance to weather and chemical exposure. It is commonly used to produce adhesive tapes, sealants, and roofing materials. PBR is widely used in concrete production for its high impact resistance and low shrinkage. It also produces insulating materials for its excellent thermal insulation properties. The increasing use of butadiene in the construction industry can be attributed to its ability to enhance the properties of various construction materials, such as durability, strength, and weather resistance. In addition, butadiene-based products are cost-effective and environmentally friendly compared to traditional ones. The growth of the construction industry is expected to drive the demand for butadiene in the coming years, especially in developing regions such as Asia-Pacific and Latin America. The increasing infrastructure development and urbanization in these regions are expected to fuel the demand for construction materials, which will drive the demand for butadiene.
3. Shift towards Bio-Based Feedstocks: There has been a significant shift towards bio-based feedstocks in the global butadiene market in recent years. Butadiene is a key raw material used in the production of synthetic rubber, used in a wide range of applications such as tires, footwear, and automotive components. Traditionally, butadiene has been produced from crude oil through steam cracking. However, with the increasing concerns about the environmental impact of crude oil production and the availability of bio-based feedstocks, the industry is gradually shifting towards bio-based alternatives. Bio-based butadiene can be produced from renewable sources such as corn, sugarcane, and beetroot. The production of bio-based butadiene is typically achieved through the process of fermentation, which converts biomass into butadiene. One of the key advantages of bio-based butadiene is its lower carbon footprint compared to traditional butadiene. In addition, bio-based butadiene has the potential to offer more significant supply chain security since it is not dependent on crude oil reserves. The surge in demand for sustainable and environmentally friendly products drives the shift towards bio-based feedstocks in the global butadiene market. Many companies now focus on reducing their carbon footprint and incorporating sustainability into their business strategies.
The global Butadiene market can be categorized on the following: Product Type, Production Process, End-User, and Region. Based on Product Type, the market can be categorized into Styrene Butadiene Latex, Styrene Butadiene Rubber, Butadiene Rubber, Acrylonitrile Butadiene Rubber, Nitrile Butadiene Rubber, and Hexamethylenediamine. Based on the Production Process, the market can be split between Extractive Distillation and Steam Cracking. Based on End-User, the market can be further split into Automobile Industries, Building & Construction, Chemicals, Plastics & Polymers, Consumer Products Industries, Healthcare, and Other End Users. Likewise, based on Region, the market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.
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Based on Product Type
Styrene Butadiene Latex to Accommodate Maximum Market Share
The Styrene Butadiene Latex (SB latex) segment is crucial in the global butadiene market. SB latex is a synthetic emulsion polymer produced by copolymerizing butadiene and styrene monomers. Due to its excellent adhesive and water-resistant properties, it is widely used in various applications, such as paper coating, carpet backing, adhesives, and sealants. The increasing demand for SB latex in the construction and automotive industries is propelling the growth of this segment. Moreover, the growing trend of green and sustainable products pushes the demand for SB latex as it is a more eco-friendly alternative to traditional adhesives and coatings. However, fluctuations in raw material prices and strict environmental regulations could hinder the growth of this market segment.
Based on the Production Process
Steam Cracking to Express High Market Share
The Steam Cracking segment in the global butadiene market is one of the major processes used to manufacture butadiene. Steam cracking involves breaking down natural gas liquids (NGLs) such as naphtha, propane, or ethane at high temperatures and pressures to produce butadiene. The process is highly energy-intensive and requires advanced technologies to ensure efficient production and optimal yields. Technological advancements and the development of new catalysts have made steam cracking a viable and economically feasible method of large-scale butadiene production. The steam cracking segment accounts for a significant share of the global butadiene market and is expected to continue growing in the foreseeable future.
Based on End-User
Automobile Industries to Have Largest Revenue
The automobile industry is a major segment in the global butadiene market. Butadiene is used for the production of synthetic rubber, which is an essential component in the manufacture of tires of automobiles. The growing demand for automobiles in developing economies such as India, China, and Brazil is expected to boost the demand for butadiene in the industry. Moreover, increased awareness about fuel-efficient vehicles has led to the development of fuel-efficient tires, which require high-performance butadiene-based synthetic rubber. Additionally, the growing trend of electric vehicles is expected to raise the demand for butadiene in producing battery components. The automobile industry is expected to remain a significant driver of the global butadiene market.
Based on Region
Asia Pacific Region to Dominate Global Market
The Asia Pacific region is one of the largest and fastest-growing markets for butadiene, a key ingredient in producing synthetic rubber, plastics, and other chemical products. The region accounts for a significant share of global butadiene demand due to its expanding manufacturing sector and rapid urbanization. Japan, China, and South Korea are the region's leading producers and consumers of butadiene. China alone accounts for more than half of Asia Pacific butadiene demand. Butadiene is widely used in the production of synthetic rubber, which finds applications in the automotive, construction, and consumer goods industries. The growing demand for synthetic rubber in these sectors is driving the butadiene market growth in the region. The increasing popularity of electric vehicles and tire retreading industries is expected to boost the regional demand for butadiene further. Additionally, the growing investments by global chemical players in the region further drive market growth. However, the market is prone to price volatility due to its dependence on crude oil prices, which can challenge the butadiene manufacturers and consumers in Asia.
North America is the second-largest market for butadiene owing to the increasing demand for synthetic rubber for the production of tires and other industrial rubber products. The region's expanding construction and automotive industries have also increased market growth. Increasing investments in infrastructure development and construction activities will also likely drive market growth. However, the market is challenged by factors such as volatility in crude oil prices and the availability of substitutes such as natural rubber. The major North American butadiene market players include ExxonMobil, Shell, LyondellBasell, and TPC Group.
The global butadiene market is highly competitive, with various players operating in the industry. The leading companies in the market are LyondellBasell Industries Holdings B.V., Dow Chemical Company, ExxonMobil Corporation, Royal Dutch Shell Plc, and BASF SE. These companies have a significant market share due to their strong brand presence and broad geographic reach. They invest heavily in research and development to introduce new products and expand their portfolio. They are also adopting various strategies such as mergers, acquisitions, partnerships, and collaborations to strengthen their position in the market.
Apart from the leading companies, other players, such as Sinopec, TPC Group Inc., Evonik Industries AG, and Formosa Plastics Corporation, are also contributing to the market growth. These players are investing in upgrading their production facilities and expanding their geographic reach to gain a larger market share. With the rising demand for butadiene and the growing concerns over the depletion of natural resources, new entrants are expected to enter the market in the coming years. This will intensify the competition further, leading to innovation and introducing new and advanced products in the market. Overall, the competitive landscape of the global butadiene market is dynamic, and the market is expected to witness healthy competition in the coming years.
The key players in the global Butadiene market include - China Petroleum & Chemical Corporation (China), Royal Dutch Shell PLC (UK), Borealis AG (Austria), Versalis S.P.A. (Italy), Eni S.P.A. (Italy), Evonik Industries AG (Germany), Ineos Group AG (UK), LANXESS (Germany), LG Chem (South Korea), LyondellBasell Industries Holdings B.V. (U.S.), Nizhnekamskneftekhim (Russia), Repsol (Spain), SABIC (Saudi Arabia), The Dow Chemical Company (U.S.), TPC Group (U.S.), Formosa Plastics Corporation (Taiwan), ZEON Corporation (Japan), Shanghai Petrochemical (China) among others.
Recent Market Developments
- July 2022: According to agreements made public, Sinopec and INEOS Group will work together on three joint ventures to increase the production of petrochemicals to assist in satisfying the country's burgeoning market demand. SECCO Petrochemical Co. Ltd., a Sinopec subsidiary that makes butadiene, was purchased by INEOS for 50%. By building two additional 300,000-TPY ABS plants, INEOS and Sinopec will create a new 50/50 joint venture to boost China's ABS manufacturing capacity by up to 1.2 million tonnes per year (TPY).
- June 2022: BASF expanded its line of Licity anode binders to produce Li-ion batteries. Licity 2698 X F, a second-generation styrene-butadiene rubber (SBR) binder, makes using silicon contents above 20% possible. The device also offers a bigger capacity, more charge/discharge cycles, and quicker charging periods.
Segmentation of the Global Butadiene Market
- Product Type (Butadiene Rubber, Styrene Butadiene Rubber, Acrylonitrile Butadiene Rubber, Nitrile Butadiene Rubber, Styrene Butadiene Latex, Hexamethylenediamine)
- Production Process (Extractive Distillation , Steam Cracking)
- End-User (Automobile Industries, Chemical, Plastics & Polymers, Building & Construction, Consumer Products Industries, Healthcare, Other End Users)
- Region (North America, Europe, Asia Pacific, Latin America, Middle East & Africa)
|Regions & Countries Covered
- North America - (U.S., Canada, Mexico)
- Europe - (U.K., France, Germany, Italy, Spain, Rest Of Europe)
- Asia Pacific - (China, Japan, India, South Korea, South East Asia, Rest Of Asia Pacific)
- Latin America - (Brazil, Argentina, Rest Of Latin America)
- Middle East & Africa - (GCC Countries, South Africa, Rest Of Middle East & Africa)
- China Petroleum & Chemical Corporation (China)
- Royal Dutch Shell PLC (UK)
- Borealis AG (Austria)
- Versalis S.P.A. (Italy)
- Eni S.P.A. (Italy)
- Evonik Industries AG (Germany)
- Ineos Group AG (UK)
- LANXESS (Germany)
- LG Chem (South Korea)
- LyondellBasell Industries Holdings B.V. (U.S.)
- Nizhnekamskneftekhim (Russia)
- Repsol (Spain)
- SABIC (Saudi Arabia)
- The Dow Chemical Company (U.S.)
- TPC Group (U.S.)
- Formosa Plastics Corporation (Taiwan)
- ZEON Corporation (Japan)
- Shanghai Petrochemical (China)
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