Butadiene Market to Cross $25 billion Revenue by 2030

Butadiene Market Overview

“The Butadiene Market Predictable at $10 billion in 2022, is estimated to increase at a CAGR of 8.90% from $12.10 billion in 2023 to $25 billion by 2030.”

The demand for synthetic rubbers in the automobile sector significantly influences the butadiene market, while the supply of ethylene, a crucial component for steam cracking, affects the butadiene sector. Factors driving the global market include the development of environmentally friendly polymer emulsions, the rise in demand for water-based coatings and solvents, and the growth of industrial sectors like automotive and consumer durables.

Butadiene is a colorless, reactive gas used in the production of synthetic rubber and plastic, used in various industries like automotive, construction, packaging, consumer goods, and protective apparel. It is found in various materials and products like polybutadiene, chloroprene, styrene-butadiene, nitrile rubber, SB latex, acrylonitrile butadiene styrene, adiponitrile, sulfolane, and ethylidene norbornene.

The butadiene market is driven by increasing demand from end-use industries, cost-effective functionality, and an increase in cars. Its excellent elastic properties make it an ideal insulation solution for wires and cables in the electrical industry. However, these factors are expected to restrain the market's growth during the forecast period.

The growth of the butadiene market is expected to be hampered by its use in various industries, such as golf balls, shoes, industrial parts, automotive components, rubber isolators, and sandblasting hose inner tubes. The butadiene market is also expected to experience a drop in production due to the discovery of shale oil and adverse effects. The market's expansion is also expected to be hindered by unstable raw material pricing and strict regulatory environments.

The increasing demand for nylon 66 resin in automotive and electronics industries, coupled with manufacturers' focus on bio-based manufacturing processes for 1,3 butadiene, presents numerous market opportunities. However, the recent automobile sector collapse is expected to hinder the expansion of the butadiene market.

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Key Takeaways

In 2022, Asia Pacific accounted for 47% of total sales.

Acrylonitrile butadiene rubber will account for 31% of global revenue in 2022.

In terms of production method, the market leader in 2022 was n-butane dehydrogenation.

Market Dynamics

Growth Factors

Butadiene is a crucial raw material for creating various elastomers like acrylonitrile butadiene styrene, polybutadiene, latex, styrene-butadiene, and nitrile rubber. It is primarily produced through steam cracking, but can also be dehydrated using butane or butene dehydrogenation.

Use of butadiene, which is expanding.

Rising demand from the automobile sector.

Various Market Factors

An increase in demand for synthetic rubber

The increasing global demand for consumer products, footwear, and tires has led to a greater reliance on synthetic rubber due to its superior performance and lower cost compared to natural rubber, primarily due to the increased production and consumption of butadiene.

ABS, a strong, lightweight, heat-resistant, and easily processed material, is commonly used in commercial and industrial applications like automotive, electronics, and communications. The growth in these sectors would increase demand for ABS, thereby driving up butadiene prices.

When butadiene-based rubber is used as the starting material, the main component of acrylonitrile-butadiene-styrene (ABS) resin, which has numerous uses, is utilized to manufacture plastics. Polybutadiene is typically used in tire manufacture. Tire production is believed to consume over 70% of the world's polybutadiene production. It is mostly used in tires as a sidewall to lessen strain caused by continual bending when running. In addition to this, butadiene is utilized in other parts of vehicles.

Trends

Market to be dominated by tires and rubber

Butadiene is the primary ingredient in the production of synthetic rubbers and elastomers like PBR, SBR, NR, and Neoprene, which are then utilized in various products and materials.

Tires are made from PBR and SBR, while neoprene and nitrile rubber are used in gloves, seals, gaskets, hoses, wetsuits, foams, and water, while styrene-butadiene latex is used for paper and carpet coatings.

Polybutadiene rubber (BR, PBR) is a synthetic elastomer used occasionally to replace natural rubber due to its low cost and high volume.

Opportunities

Creation of butadiene based on biomaterials

Manufacturers are focusing on bio-based production processes for butadiene due to rising demand in industries like automotive and electronics. Numerous academics are also researching bio-based substitutes, and governments are supporting their use in their respective countries. This presents numerous market opportunities.

Competitive Landscape of the Butadiene Market

• China Petroleum & Chemical Corporation
• Royal Dutch Shell Plc
• Borealis AG.
• Versalis S.p.A.
• Eni S.p.A.
• Evonik Industries AG
• Ineos Group AG
• LANXESS
• LG Chem
• LyondellBasell Industries Holdings B.V.
• Repsol
• SABIC
• The Dow Chemical Company
• TPC Group
• Formosa Plastics Corporation
• ZEON Corporation.
• Shanghai Petrochemical

Recent Developments in Butadiene Market

In July 2022, Sinopec and INEOS Group announced agreements to collaborate on three joint ventures aimed at expanding the production of petrochemicals to help meet rising demand in China’s market. INEOS acquired 50% of Sinopec subsidiary SECCO Petrochemical Co. Ltd. (which produces butadiene). INEOS and Sinopec will form a new 50-50 joint venture to focus on increasing China’s production capacity of acrylonitrile butadiene styrene (ABS) by up to 1.2 million tons per year (tpy) via the construction of two new 300,000-tpy ABS plants.

In June 2022, BASF extended its series of Licity anode binders for Li-ion battery manufacturing. The second-generation styrene-butadiene rubber (SBR) binder Licity 2698 X F facilitates the use of silicon contents exceeding 20%. The product also offers higher capacity, an increased number of charge/discharge cycles, and reduced charging times.

In February 2019 – Petrochemical business Bangkok Synthetics Co. Ltd. has declared plans to increase production of butadiene to 80 kilotons per year in 2021.

Regional Insights

In 2022, the Asia-Pacific region held the majority of the global butadiene market due to rapid industrialization and increasing demand for butadiene in rubber and automotive applications. China, India, and other South-East Asian countries saw the fastest growth, driven by increased auto production, making the region a dominant player in the global butadiene market.

The China Association of Automobile Manufacturers reported a 91% and 73.8 percent increase in commercial vehicle sales and production in April 2021, respectively, indicating financial benefits for butadiene market participants. This growth is attributed to the textile industry's increasing use of butadiene derivatives in shoe, glove, and belt production.

In 2022, North America dominated the butadiene derivatives market due to the increasing demand in industries like paints and coatings and polymer, with major firms like Exxon, Dow, and TPC Group playing a significant role.

Europe is expected to experience significant growth due to the widespread use of butadiene and its derivatives in auto parts production, with Germany leading the way due to its expanding vehicle exports.

Segments Covered in the Butadiene Market

Butadiene Market By Product Type

• Butadiene Rubber
• Styrene Butadiene Rubber
• Acrylonitrile Butadiene Rubber
• Nitrile Butadiene Rubber
• Styrene Butadiene Latex
• Hexamethylenediamine

Butadiene Market By Production Process

• C4 hydrocarbon extraction
• n-butane dehydrogenation
• From ethanol
• From butenes 

Butadiene Market By End-User

• Automobile Industries
• Chemical
• Plastics and Polymers
• Building & Construction
• Consumer Products Industries
• Healthcare
• Others

Butadiene Market By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa (MEA)

Frequently Asked Questions:

What is the current size of butadiene market?

The S Butadiene Market Predictable at $10 billion in 2022, is estimated to increase at a CAGR of 8.90% from $12.10 billion in 2023 to $25 billion by 2030.

What will be the CAGR of global butadiene market?

The global butadiene market is poised to grow at a CAGR of 8.90% from 2023 to 2030.

Who are the prominent players operating in the butadiene market?

The major players operating in the butadiene market are China Petroleum & Chemical Corporation, Royal Dutch Shell Plc, Borealis AG., Versalis S.p.A., Eni S.p.A., Evonik Industries AG, Ineos Group AG, LANXESS, LG Chem, LyondellBasell Industries Holdings B.V., Nizhnekamskneftekhim., Repsol, SABIC, The Dow Chemical Company, TPC Group, Formosa Plastics Corporation, ZEON Corporation., Shanghai Petrochemical

Which are the driving factors of the butadiene market?

Increasing demand from automotive industry, rising demand for water-based solvents & coatings and rising demand of synthetic rubber these are driving the growth of the butadiene market.

1. Introduction

1.1. Research Objective

1.2. Scope of the Study

1.3. Definition

2. Research Methodology

2.1. Research Approach

2.2. Data Sources

2.3. Assumptions & Limitations

3. Executive Summary

3.1. Market Snapshot

4. Market Variables and Scope 

4.1. Introduction

4.2. Market Classification and Scope

4.3. Industry Value Chain Analysis

4.3.1. Raw Material Procurement Analysis 

4.3.2. Sales and Distribution Channel Analysis

4.3.3. Downstream Buyer Analysis

5. COVID 19 Impact on Butadiene Market 

5.1. COVID-19 Landscape: Butadiene Industry Impact

5.2. COVID 19 - Impact Assessment for the Industry

5.3. COVID 19 Impact: Global Major Government Policy

5.4. Market Trends and Opportunities in the COVID-19 Landscape

6. Market Dynamics Analysis and Trends

6.1. Market Dynamics

6.1.1. Market Drivers

6.1.2. Market Restraints

6.1.3. Market Opportunities

6.2. Porter’s Five Forces Analysis

6.2.1. Bargaining power of suppliers

6.2.2. Bargaining power of buyers

6.2.3. Threat of substitute

6.2.4. Threat of new entrants

6.2.5. Degree of competition

7. Competitive Landscape

7.1.1. Company Market Share/Positioning Analysis

7.1.2. Key Strategies Adopted by Players

7.1.3. Vendor Landscape

7.1.3.1. List of Suppliers

7.1.3.2. List of Buyers

8. Global Butadiene Market, By Product Type

8.1. Butadiene Market, by Product Type, 2022-2030

8.1.1 Butadiene Rubber

8.1.1.1. Market Revenue and Forecast

8.1.2. Styrene Butadiene Rubber

8.1.2.1. Market Revenue and Forecast

8.1.3. Acrylonitrile Butadiene Rubber

8.1.3.1. Market Revenue and Forecast

8.1.4. Nitrile Butadiene Rubber

8.1.4.1. Market Revenue and Forecast

8.1.5. Styrene Butadiene Latex

8.1.5.1. Market Revenue and Forecast

8.1.6. Hexamethylenediamine

8.1.6.1. Market Revenue and Forecast

9. Global Butadiene Market, By Production Process

9.1. Butadiene Market, by Production Process, 2022-2030

9.1.1. C4 hydrocarbon extraction

9.1.1.1. Market Revenue and Forecast

9.1.2. n-butane dehydrogenation

9.1.2.1. Market Revenue and Forecast

9.1.3. From ethanol

9.1.3.1. Market Revenue and Forecast

9.1.4. From butenes

9.1.4.1. Market Revenue and Forecast

10. Global Butadiene Market, By End-User 

10.1. Butadiene Market, by End-User, 2022-2030

10.1.1. Automobile Industries

10.1.1.1. Market Revenue and Forecast

10.1.2. Chemical

10.1.2.1. Market Revenue and Forecast

10.1.3. Plastics and Polymers

10.1.3.1. Market Revenue and Forecast

10.1.4. Building & Construction

10.1.4.1. Market Revenue and Forecast

10.1.5. Consumer Products Industries

10.1.5.1. Market Revenue and Forecast

10.1.6. Healthcare

10.1.6.1. Market Revenue and Forecast

10.1.7. Others

10.1.7.1. Market Revenue and Forecast

11. Global Butadiene Market, Regional Estimates and Trend Forecast

11.1. North America

11.1.1. Market Revenue and Forecast, by Product Type

11.1.2. Market Revenue and Forecast, by Production Process

11.1.3. Market Revenue and Forecast, by End-User

11.1.5. Rest of North America

11.1.5.1. Market Revenue and Forecast, by Product Type

11.1.5.2. Market Revenue and Forecast, by Production Process

11.1.5.3. Market Revenue and Forecast, by End-User

11.2.7. Rest of Europe

11.2.7.1. Market Revenue and Forecast, by Product Type

11.2.7.2. Market Revenue and Forecast, by Production Process

11.2.7.3. Market Revenue and Forecast, by End-User

11.3. APAC

11.3.1. Market Revenue and Forecast, by Product Type

11.3.2. Market Revenue and Forecast, by Production Process

11.3.3. Market Revenue and Forecast, by End-User

11.3.7. Rest of APAC

11.3.7.1. Market Revenue and Forecast, by Product Type

11.3.7.2. Market Revenue and Forecast, by Production Process

11.3.7.3. Market Revenue and Forecast, by End-User

11.4. MEA

11.4.1. Market Revenue and Forecast, by Product Type

11.4.2. Market Revenue and Forecast, by Production Process

11.4.3. Market Revenue and Forecast, by End-User

11.4.7. Rest of MEA

11.4.7.1. Market Revenue and Forecast, by Product Type

11.4.7.2. Market Revenue and Forecast, by Production Process

11.4.7.3. Market Revenue and Forecast, by End-User

11.5. Latin America

11.5.1. Market Revenue and Forecast, by Product Type

11.5.2. Market Revenue and Forecast, by Production Process

11.5.3. Market Revenue and Forecast, by End-User

11.5.5. Rest of LATAM

11.5.5.1. Market Revenue and Forecast, by Product Type

11.5.5.2. Market Revenue and Forecast, by Production Process

11.5.5.3. Market Revenue and Forecast, by End-User

12. Company Profiles

12.1. China Petroleum & Chemical Corporation

12.2. Royal Dutch Shell Plc

12.4. Versalis S.p.A.

12.5. Eni S.p.A.

12.6. Evonik Industries AG

12.7. Ineos Group AG

12.8. LANXESS

12.9. LG Chem

12.10. LyondellBasell Industries Holdings B.V.

13. Research Methodology

13.1. Primary Research

13.2. Secondary Research

13.3. Assumptions

14. Appendix

14.1. About Us

14.2. Glossary of Terms

Segments Covered in the Butadiene Market

Butadiene Market By Product Type

• Butadiene Rubber
• Styrene Butadiene Rubber
• Acrylonitrile Butadiene Rubber
• Nitrile Butadiene Rubber
• Styrene Butadiene Latex
• Hexamethylenediamine

Butadiene Market By Production Process

• C4 hydrocarbon extraction
• n-butane dehydrogenation
• From ethanol
• From butenes 

Butadiene Market By End-User

• Automobile Industries
• Chemical
• Plastics and Polymers
• Building & Construction
• Consumer Products Industries
• Healthcare
• Others

Butadiene Market By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa (MEA)

Research Methodology