Butadiene Global Market Report 2024

Butadiene is a colorless and highly flammable gaseous hydrocarbon, C4H6, derived from petroleum. It belongs to the class of organic compounds known as dienes, characterized by having two carbon-carbon double bonds. This highly reactive and versatile compound is primarily utilized as a monomer in the production of synthetic rubbers.

The main types of butadiene products include polybutadiene (PBR), styrene-butadiene (SBR), chloroprene, nitrile rubber, acrylonitrile-butadiene-styrene (ABS), adiponitrile, sulfonale, ethylidene norbornene, styrene-butadiene latex, and others. Polybutadiene, a synthetic rubber produced through the polymerization of butadiene, is renowned for its high resilience, excellent abrasion resistance, and flexibility at low temperatures. Various production processes, such as C4 hydrocarbon extraction, N-butane dehydrogenation, ethanol production, and butene production, contribute to the synthesis of these butadiene-based products. These products are distributed through channels such as direct sales and indirect sales and find applications in end-user industries including plastic and polymer, tire and rubber, chemical, among others.

The butadiene market research report is one of a series of new reports from The Business Research Company that provides butadiene market statistics, including butadiene industry global market size, regional shares, competitors with a butadiene market share, detailed butadiene market segments, market trends and opportunities, and any further data you may need to thrive in the butadiene industry. This butadiene market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The butadiene market size has grown exponentially in recent years. It will grow from $12.41 billion in 2023 to $14.95 billion in 2024 at a compound annual growth rate (CAGR) of 20.4%. The growth observed during the historic period can be attributed to various factors, including demand from the automotive industry, expansion in the petrochemical sector, economic cycles, the boom in consumer electronics, and fluctuations in oil and gas prices. These factors collectively influenced the consumption and demand for butadiene, given its significant role as a key raw material in the production of synthetic rubbers, which are widely used in various industries, including automotive manufacturing, petrochemicals, and consumer electronics. Economic conditions, industry trends, and energy prices played crucial roles in shaping the demand landscape for butadiene during this period.

The butadiene market size is expected to see rapid growth in the next few years. It will grow to $29.48 billion in 2028 at a compound annual growth rate (CAGR) of 18.5%. The anticipated growth in the forecast period can be linked to factors such as the increasing use of renewable feedstocks, the expansion of electric vehicles, initiatives promoting circular economy practices, a focus on lightweight materials, and the growing footprint of the healthcare sector. Key trends expected in the forecast period include the localization of supply chains, strategic market consolidation through partnerships, the emergence of smart materials, the adoption of advanced manufacturing techniques, proactive resilience planning, and a heightened emphasis on customization and tailored solutions. These trends signify the evolving business landscape, with businesses aligning strategies to capitalize on sustainability, innovation, and strategic collaborations.

The anticipated growth within the automotive industry is set to significantly impact the butadiene market. This industry encompasses the entire process of designing, producing, and maintaining automotive vehicles. Butadiene-derived materials, renowned for their durability, flexibility, and resistance to heat, chemicals, and mechanical stress, play a pivotal role in various automotive applications, including seals, gaskets, hoses, belts, and under-the-hood components. Notably, in 2021, Canada observed a surge in registered road motor vehicles, reaching a total of 26.2 million, while global electric car sales soared by 4%, totaling 6.6 million and raising the overall number of electric vehicles on the road to 16.5 million in September 2022. The expansion of the automotive industry continues to be a driving force behind the growth of the butadiene market.

The burgeoning demand within the rubber industry is anticipated to serve as a catalyst for the escalation of the butadiene market. This industry encompasses the production, processing, and utilization of rubber, whether derived naturally or synthesized through chemical processes, which is a highly elastic substance obtained from various plants' latex. Butadiene's contribution to rubber development, characterized by its exceptional elasticity, flexibility, resilience, enhanced tensile strength, resistance to abrasion, improved impact resistance, and sustained performance even at low temperatures, is significant. Forecasts from September 2022 by Apple Rubber Products Inc., a US-based company specializing in custom rubber seals, indicate a projected 2.8% increase in global rubber demand in 2023, with subsequent average annual growth of 2.4% from 2023 to 2031. The escalating demand within the rubber industry remains a driving factor behind the burgeoning butadiene market.

The adoption of product innovations stands out as a prominent trend in the butadiene market. Major companies within this sector are heavily invested in developing novel products to address demand dynamics and fortify their market presence. A noteworthy example occurred in June 2022 when Evonik Industries AG, a German specialty chemicals company, unveiled POLYVEST eCO, an innovative line of sustainable liquid polybutadienes. This groundbreaking range substantially reduces reliance on fossil-based materials by an impressive 99.9%, catering to the burgeoning sustainable market while maintaining identical physiochemical properties to their fossil-based counterparts. Functioning as a crucial raw material in diverse industries such as automotive, electronics, and construction, POLYVEST eCO finds applications in adhesives, sealants, and as a rubber additive in tire manufacturing.

Prominent players in the butadiene market are strategically directing their focus towards pioneering products such as expanded polystyrene (EPS) to bolster their market revenues. A case in point is the introduction of 124LR expandable polystyrene (EPS) by Epsilyte LLC, a US-based firm specializing in advanced construction materials, in April 2023. Engineered specifically for molded pieces requiring a refined finish and chiefly utilized in packaging, 124LR incorporates at least 50% post-consumer recycled material (PCR). This strategic utilization of PCR content contributes significantly to sustainability objectives by diminishing the necessity for new raw materials, preserving resources, and diverting plastic waste from landfills. Notably, the performance of Epsilyte's 124LR matches or exceeds that of a reactor-made virgin product, underlining its efficacy in sustainability without compromising quality.

In May 2021, ENEOS Corporation, a Japanese oil and gas company, successfully acquired the elastomers business of JSR Corporation for an estimated $828 million. This strategic move enables ENEOS Corporation to enhance and expand its technological capabilities, fostering overall business growth. Additionally, the acquisition positions ENEOS to provide high-performance materials with applications across diverse industries, particularly in the mobility sector. JSR Corporation, a Japanese synthetic rubber manufacturer, specializes in the production of butadiene and its derivative products, including styrene-butadiene rubber (SSBR).

Major companies operating in the butadiene market report are Exxon Mobil Corporation, China Petroleum & Chemical Corporation, Shell plc., Eni S.p.A., Reliance Industries Limited, BASF SE, Repsol S.A., The Dow Chemical Company, Saudi Arabia's Basic Industries Corporation, Lyondellbasell Industries Holdings B.V., LG Chem Ltd., Ineos Group AG, INEOS Group Ltd., China National Petroleum Corporation, Evonik Industries AG, Borealis AG, Lanxess AG, Formosa Plastics Corporation, Zeon Corporation, Nova Chemicals Corporation, JSR Corporation, Lotte Chemical Titan Holding Berhad, Nizhnekamskneftekhim, TPC Group, Mallard Creek Polymers Inc., AirBoss Rubber Solutions

Asia-Pacific was the largest region in the butadiene market in 2023. The Middle East and Africa are expected to be the fastest-growing regions in the forecast period. The regions covered in the butadiene market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the butadiene market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The butadiene market consists of sales of polychloroprene and 1,3 butadiene, synthetic rubber, polybutadiene, elastomer. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

Butadiene Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses on butadiene market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.

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Where is the largest and fastest growing market for butadiene ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The butadiene market global report from the Business Research Company answers all these questions and many more.

The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

• The market characteristics section of the report defines and explains the market.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include:

The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.

The impact of higher inflation in many countries and the resulting spike in interest rates.

The continued but declining impact of covid 19 on supply chains and consumption patterns.

• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth. It covers the growth trajectory of COVID-19 for all regions, key developed countries and major emerging markets.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The trends and strategies section analyses the shape of the market as it emerges from the crisis and suggests how companies can grow as the market recovers.

Scope

Markets Covered:

• 1) By Product: Polybutadiene (PBR); Styrene-Butadiene (SBR); Chloroprene; Nitrile Rubber; Acronitrile Butadiene Styrene (ABS); Adiponitrile; Sulfolane; Ethylidene Norbornene; Styrene Butadiene Latex; Other Products
• 2) By Production Process: C4 Hydrocarbon Extraction; N-Butane Dehydrogenation; From Ethanol; From Butenes
• 3) By Sales Channel: Direct Sale; Indirect Sale
• 4) By End-User Industry: Plastic And Polymer; Tire And Rubber; Chemical; Other End-User Industries
• Companies Mentioned: Exxon Mobil Corporation; China Petroleum & Chemical Corporation; Shell plc.; Eni S.p.A.; Reliance Industries Limited
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Russia; South Korea; UK; USA; Canada; Italy; Spain
• Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
• Delivery format: PDF, Word and Excel Data Dashboard.