by The global Butadiene Market is estimated to be valued at US$ 12682.54 Kilo MT in 2022 and is expected to exhibit a CAGR of 3.6% over the forecast period 2022 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Butadiene is an important petrochemical which is majorly used as a monomer in synthetic rubber industry. The most common synthetic rubber produced from butadiene is styrene-butadiene rubber (SBR), which is used in various applications such as automotive, footwear, adhesives and sealants. Butadiene-based rubbers offer advantages like good mechanical properties, oil and chemical resistance, flexibility and durability over natural rubber. The growing demand for synthetic rubber from various end-use industries is driving the butadiene market.
Market key trends:
One of the key trends in the butadiene market is growing demand from tire industry. Tires are the largest end-use segment for butadiene-based synthetic rubbers like SBR. With rapid urbanization and rising vehicle ownership around the world, demand for tires has been increasing substantially. According to Global Tire Industry Report, global tire production reached ~3.6 billion units in 2021 and is projected to grow at a rate of 3-4% during 2022-2027. This continuous growth in tire demand acts as a major volume driver for butadiene market. Another trend is increasing penetration of butadiene derivatives. Research and development is exploring new applications of derivatives like n-butanol and n-butyl acrylate in various industries including coatings, electronics and plastics. This is expected to offer new market opportunities for butadiene producers during the forecast period.
Porter’s Analysis
Threat of new entrants: Low capital requirements for production process and availability of raw materials reduces barriers to entry in the butadiene market.
Bargaining power of buyers: Large number of buyers in various end-use industries increases their bargaining power against butadiene producers.
Bargaining power of suppliers: Few dominant global players control the supply of raw materials like naphtha for butadiene production increasing their bargaining power.
Threat of new substitutes: Continued R&D has led to new substitutes like renewable butadiene posing threat to existing butadiene producers.
Competitive rivalry: Intense competition among global petrochemical players leads to pricing pressures in the butadiene market.
Key Takeaways
The global Butadiene Market size is expected to witness high growth, exhibiting CAGR of 3.6% over the forecast period, due to increasing demand from tires and rubber industry. The global butadiene demand was around 12682.54 kilo metric tons in 2022.
Asia Pacific dominates the global butadiene market owing to presence of large rubber and tire manufacturing industries in China and India. China accounts for over 50% of global butadiene demand due to robust tire production in the country. Other Asian markets like India are also expanding rapidly creating high demand for butadiene.
North America is another major region for butadiene due to huge automotive industry. Recovery in automotive market post COVID is driving butadiene consumption in the region.
Key players operating in the butadiene market are BASF SE, Braskem, China Petroleum & Chemical Corporation, Dow, Evonik Industries AG, Exxon Mobil Corporation, Formosa Plastics Corporation, INEOS, JSR, Corporation, LG Chem, LOTTE CHEMICAL TITAN HOLDING BERHAD, LyondellBasell Industries Holdings BV, Reliance Industries Limited., Repsol, Royal Dutch Shell Plc, SABIC, TPC Group, and China National Petroleum Corporation.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
