What Factors Propelled The Growth Of The Butadiene Market In The Past?
The butadiene market has seen considerable growth due to a variety of factors.
•The scale of the butadiene market has rapidly escalated in the past years. It is predicted to expand from a market size of $14.86 billion in 2024 to $17.79 billion in 2025, exhibiting a compound annual growth rate (CAGR) of 19.7%.
The historical growth can be accredited to factors such as the demand from the auto industry, growth in the petrochemical industry, fluctuations in economic cycles, the surge in consumer electronics, and the variation in the prices of oil and gas.
What Is The Projected Growth And Market Size For The Butadiene Sector?
The butadiene market is expected to maintain its strong growth trajectory in upcoming years.
• Over the coming years, the butadiene market is set for accelerated expansion, with a projected value of $35.5 billion in 2029. This value represents an impressive compound annual growth rate (CAGR) of 18.9%.
This remarkable growth during the predicted period may be attributed to several factors such as the increased use of renewable feedstocks, the boom in the electric vehicle sector, the implementation of circular economy strategies, the emphasis on lightweight materials, and the growth of the healthcare industry. The forecast period will also be characterized by significant trends like supply chain localization, market mergers and collaborations, the emergence of intelligent materials, the adoption of sophisticated manufacturing methods, strategies for resilience planning, and the provision of customized, tailored solutions.
What Factors Are Driving Growth In The Butadiene Market?
The butadiene market is predicted to flourish in line with the growth of the automotive industry, which plays a significant role in designing, manufacturing, selling, and maintaining automotive vehicles. Butadiene-derived materials, renowned for their unbeatable durability, flexibility, and resistance to heat, chemicals, and mechanical stress, are preferably used in automobile components like seals, gaskets, hoses, belts, and under-the-hood parts. The Department of Infrastructure, Transport, Regional Development, Communications, and the Arts reported that, as of January 31, 2022, registered motor vehicles in Australia hit 20.7 million. This marks a 2% rise compared to January 2021. On the other hand, Battery Electric Vehicles (BEV) witnessed a doubling in numbers from 2021 with about 40,000 in 2022. Within this figure, 34,200 were passenger cars, a surge by 118% from 2021. The tally of Hybrid-electric vehicles (HEV) in 2022 was approximately 277,000, a 35% climb from 2021. This escalating growth of the automotive sector is propelling the evolution of the butadiene market.
What Are The Main Segments Of The Global Butadiene Market?
The butadiene market covered in this report is segmented –
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
Subsegments:
1) By Polybutadiene (PBR): High-Cis Polybutadiene, Low-Cis Polybutadiene
2) By Styrene-Butadiene (SBR): Emulsion Styrene-Butadiene Rubber (ESBR), Solution Styrene-Butadiene Rubber (SSBR)
3) By Chloroprene: Neoprene Rubber
4) By Nitrile Rubber: High Acrylonitrile Nitrile Rubber, Low Acrylonitrile Nitrile Rubber
5) By Acrylonitrile Butadiene Styrene (ABS): Standard ABS, Impact-Modified ABS
6) By Adiponitrile: High-Purity Adiponitrile, Technical-Grade Adiponitrile
7) By Sulfonale: Sulfonated Butadiene Copolymers
8) By Ethylidene Norbornene: Dicyclopentadiene Copolymers
9) By Styrene Butadiene Latex: Standard Styrene Butadiene Latex, Specialty Styrene Butadiene Latex
10) By Other Products: Butadiene Rubber Blends, Specialty Butadiene Products
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What Emerging Trends Are Influencing The Growth Of The Butadiene Market?
The rise in product innovations is becoming a significant trend in the butadiene market. To meet the demand and retain their market standing, key companies in the butadiene sector are concentrating on the introduction of novel products. For example, Evonik Industries AG, a German firm specializing in unique chemicals, introduced an innovative sustainable liquid polybutadienes lineup called POLYVEST eCO in June 2022. This product can decrease the utilization of fossil-based raw materials by an impressive 99.9%. It caters to the growing demand for sustainability without compromising the physiochemical characteristics of products derived from fossils. POLYVEST eCO is a valuable raw material used in several industries, including automotive, electronics, and construction, for creating adhesives and sealants. It also finds application in tire manufacturing as a rubber additive.
Who Are the Key Players in the Butadiene Market?
Major companies operating in the butadiene market include:
• 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
• 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
What Is The Most Dominant Region In The Butadiene Market?
Asia-Pacific was the largest region in the butadiene market in 2024. 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.
