PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1877422
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1877422
The Liquid Polybutadiene Market size was valued at US$ 3,456.78 Million in 2024, expanding at a CAGR of 4.5% from 2025 to 2032.
Liquid Polybutadiene (LPBD) is a synthetic liquid rubber derived from polybutadiene. It is widely used in tires, adhesives, coatings, sealants, and polymer modification, supporting automotive, construction, and industrial applications. Additionally, demand for liquid polybutadiene is primarily driven by tire manufacturing due to its excellent elasticity and abrasion resistance properties. A key trend is the shift to bio-based and low-VOC formulations, reflecting industry sustainability efforts and regulatory changes. The electric vehicle sector offers a significant opportunity, as liquid polybutadiene is used in high-performance, lightweight components. However, fluctuating raw material costs and environmental regulations restrain market growth.
Liquid Polybutadiene Market- Market Dynamics
Rising demand from the automotive and tire manufacturing industry
LPBD is widely used in tire production due to its excellent elasticity, abrasion resistance, and low rolling resistance, which directly contribute to better fuel efficiency, enhanced durability, and improved vehicle performance. As governments worldwide tighten fuel economy and emission standards, automakers are under increasing pressure to use advanced materials that can optimize performance while reducing energy consumption. This has significantly boosted the adoption of LPBD in tire formulations. Additionally, EVs are generally heavier than traditional vehicles because of their batteries, which places higher stress on tires. They also deliver instant torque, which increases wear and tear. These conditions require high-performance tires that can withstand greater loads and maintain durability without compromising rolling resistance. Thus, Liquid Polybutadiene's unique properties make it especially well-suited for applications in electric vehicle tires, establishing it as a preferred material among tire manufacturers catering to the EV market. Moreover, the growing shift toward electric vehicles (EVs) is further amplifying this demand for LPBD. According to the data published by the Joint Office of Energy & Transportation of the U.S. government on 2nd January 2025, by the end of November 2024, a total of 1,412,298 plug-in electric vehicles (PEVs), which include both battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs), had been sold, reflecting continued growth.
The Global Liquid Polybutadiene Market is segmented on the basis of Product Type, Application, End-use Industry, Distribution Channel, and Region.
The market is divided into four categories based on Product Type: Hydroxyl-terminated, Carboxyl-terminated, Amino-terminated, and Others. Hydroxyl-terminated types enhance bonding with other materials, carboxyl-terminated improve chemical resistance, and amino-terminated offer strong adhesive properties, making each suitable for specific industrial uses.
The market is divided into two categories based on Application: Polymer Modification, Adhesives & Sealants, Coatings & Protective Films, Tire & Rubber Manufacturing, Electrical Encapsulant, Chemicals, and Others. Liquid Polybutadiene finds broad industrial use, including enhancing flexibility in polymer modification, boosting durability in adhesives and sealants, providing resistance in coatings and protective films, strengthening tire and rubber manufacturing, offering insulation in electrical encapsulants, and serving specialty roles in chemicals and other diverse sectors.
Liquid Polybutadiene Market- Geographical Insights
The global liquid polybutadiene (LPBD) market exhibits distinct regional dynamics shaped by industrial development, regulatory environments, and manufacturing capacities. Asia Pacific leads the market, driven by rapid industrialization and automotive growth in China, India, and Southeast Asia. The region benefits from low production costs and expanding rubber processing, adhesive, and tire manufacturing sectors. North America follows with steady growth fueled by automotive, adhesives, sealants, and aerospace demand, especially in the US. Strict environmental regulations in this region drive uptake of low-VOC, functionally-terminated LPBD. Europe also holds a significant share due to sustained automotive and electronics industry presence, with manufacturers focusing on sustainability and bio-based formulations to comply with REACH and other regulations. The liquid polybutadiene market in the Middle East & Africa is expanding, driven by rapid industrialization and rising demand for oil-based products. Latin America demonstrates moderate growth, mainly driven by the automotive and construction sectors.
Liquid Polybutadiene Market- Country Insights
China's automotive industry is the primary demand driver for LPBD, as LPBD is extensively used in tire manufacturing because of its superior elasticity, abrasion resistance, and cold temperature flexibility. The rise of electric vehicles (EVs) in China further enhances demand, as LPBD is critical in producing fuel-efficient, durable, and high-performance tires suitable for EVs. Beyond automotive, China's rapidly expanding construction and infrastructure sectors contribute to the demand for LPBD-based adhesives, sealants, and coatings. These products benefit from LPBD's mechanical strength and chemical resistance, making them ideal for modern construction applications such as polyurethane systems, insulation materials, and protective coatings.
The competitive landscape of the global liquid polybutadiene (LPBD) market is dominated by several key players focusing on innovation, capacity expansion, and strategic collaborations to capture growing demand. For instance, in June 2023, Cray Valley (TotalEnergies) announced its first commercialization of certified renewable liquid polybutadiene resins for the tire industry using the ISCC PLUS mass balance approach. The company's certified renewable resins, marketed under brands like Ricon, Krasol, and Cleartack, are performance-enhancing additives for tire applications, known for improving traction, rolling resistance balance, and performance in winter or wet conditions. The market is also witnessing increased focus on environmentally friendly products due to stringent global regulations, pushing companies towards sustainable LPBD manufacturing processes. Innovations in polymer chemistry and advanced composite applications steer future growth opportunities. Competitive strategies include mergers and acquisitions, technological advancements, capacity expansions, and diversification into emerging end-use sectors like electric vehicles and electronics.
In June 2025, Evonik Industries AG is expanding its polybutadiene production capacity by localizing and increasing the final production step of its silane-functionalized polybutadiene product, POLYVEST ST-E 60, in Shanghai, China. This expansion is expected to be fully operational by Q3 2025.