The bio-based 1,4-butanediol market is expected to witness a CAGR of above 7% during the forecast period. The major factors driving the growth of market studied are the increasing demand for polybutylene terephthalate (PBT) from various industries and stringent government regulations. On the flipside, huge competition from fossil-fuel products remains a concern for the market studied.
- The automotive segment dominated the market. With the increase in demand for the application in vehicles, the bio-based 1,4-butanediol market is likely to grow during the forecast period.
- The shift in focus toward eco-friendly products, increasing research to develop bio-based PBT, and technological advancements are likely to provide opportunities for the market studied during the forecast period.
- Asia-Pacific dominated the market across the world. The demand in the region is driven by the growing usage of bio-based 1,4-butanediol in industries, such as automotive, electronics, and consumer appliances.
Key Market Trends
Increasing Applications in the Automotive Industry
- 1,4-butanediol is heavily required in the production of PBT, which is then used in automotive production.
- With the growing environmental regulations and focus on developing eco-friendly products, the 1,4-butanediol market has also been turning to bio-based materials for the production of 1,4-butanediol.
- Thus, bio-based 1,4-butanediol application in the production of PBT has also been increasing simultaneously.
- PBT is a semi-crystalline, white or off-white thermoplastic polyester with higher impact strength, better electrical resistance, and exceptional chemical resistance. Such properties of PBT make it widely suitable for application in the automotive industry.
- PBT is used in both interior and exterior applications, especially in electrical systems of the automotive industry.
- The automotive industry has been witnessing strong growth in investment and production in Asia-Pacific countries, such as India, Indonesia, Malaysia, and Thailand.
- Besides, regions, such as North America and Europe have been investing in innovation and development of cars with efficient and more environmentally friendly materials.
- Such practices in the automotive industry are expected to drive the demand of PBT for automotive application across the world, which is likely to further increase the demand for the market studied in the coming years.
Asia-Pacific Region to Dominate the Market
- The Asia-Pacific region dominated the global market share. The demand for market studied is driven by the growing demand from industries, such as automotive, electronics, and consumer appliances.
- In Asia-Pacific, automotive production has been increasing in countries, such as India, Indonesia, Malaysia, and Thailand. China is the largest automotive producer in the world and it is now focusing on the development of electric vehicles.
- The region is witnessing numerous investments by the global automakers, like BMW, Hyundai Motors, and Honda, into the automotive industry to increase production and cater to the increasing automotive demand of the masses in the region.
- Besides, China has the world's largest electronics production base. Electronic products, such as smartphones, OLED TVs, tablets, wires, cables, earphones, etc., have the highest growth in the electronics segment. With the increase in disposable income of the middle-class population and increasing demand for electronic products from countries importing electronic products from China, the production of electronics has increased.
- In India, the government has also been pushing the growth of the electronics industry through initiatives, such as a Phased Manufacturing Programme (PMP), to add more smartphone components under the "Make in India" initiative, to push the domestic manufacturing of mobile handsets.
- Besides, with the increasing income of the population, the demand for consumer appliances, such as air-conditioners, fridge, washing machines, microwaves, etc., have noticeably increased, which is further driving the growth of the consumer appliances market.
- Hence, all such favorable market trends are expected to drive the demand for bio-based 1,4-butanediol for raw material applications in the region during the forecast period.
The bio-based 1,4-butanediol market is partially fragmented market, where numerous players hold an insignificant share of the market demand to affect the market dynamics individually. Some of the noticeable players in the market include DSM, BASF SE, Novamount S.p.A, Ashland, and Mitsubishi Chemical Corporation, among others.
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