Butadiene market forecast at $29 billion by 2028

Washington, DC – The Butadiene Market is expected to grow significantly to $29 billion by 2028 according to Vantage Market Research. The main reason behind this growth is the increasing demand for synthetic rubber. Synthetic rubber is made from Butadiene and is used in a variety of applications, such as tires, hoses, belts, and various other rubber products. Butadiene is also used to make plastics and resins, which are used in a wide range of products, including automobiles, packaging, electronics, and construction materials. The growing demand for these products is driving the growth of the Butadiene Market. In addition, the increasing use of butadiene-based biofuels is another factor that is expected to boost the growth of the Butadiene Market. Biofuels made from Butadiene have a higher energy content than traditional fossil fuels and can be used in a variety of applications, such as transportation and power generation. The growing demand for butadiene-based products is expected to lead to a significant increase in production capacity over the next few years. Several companies have already announced plans to build new plants or expand existing ones to meet the rising demand.

The major drivers for Butadiene Market are rising demand from the tire industry, growth in automobile production, and increasing use of synthetic rubber. The leading consumers of Butadiene are the tire and rubber industry, accounting for more than 60% of the total demand. Butadiene is used as a raw material for various Vulcanization accelerators, resins, and synthetic rubbers such as styrene-Butadiene rubber (SBR), nitrile rubber (NBR), and polyButadiene (PBD). SBR is the largest application segment for butadiene, followed by NBR and PBD. SBR is widely used in passenger car tires owing to its resistance to abrasion, while NBR is used in fuel hoses and fuel tanks because of its resistance to oil, gasoline, and chemicals. PBD is mostly used in tires as an inner liner compound owing to its low-temperature flexibility. The automotive industry is the major end-use market for Butadiene as around 70% of the total demand is attributable to synthetic rubber used in tires. The rise in vehicle production and sales across the globe is anticipated to propel the growth of this market segment over the forecast years. According to OICA data, approximately 97 million vehicles were produced globally in 2016 which is expected to increase.

The rise in raw material prices is one of the major restraints of Butadiene Market. The volatile nature of raw material prices makes it difficult for manufacturers to fix their product prices, which ultimately affects their profitability and revenue. Another restraint of Butadiene Market is the stringent environmental regulations in developed countries. These regulations have made it difficult for manufacturers to expand their production facilities in developed countries. As a result, they have been forced to set up production units in developing countries, where environmental regulations are not as stringent. The Global Butadiene Market is also affected by the fluctuating demand from the tire industry. The fluctuations in the demand from the tire industry are largely due to the changes in the trends in the automotive industry. For instance, the growing popularity of SUVs and crossovers has led to a decrease in the demand for passenger car tires, which is one of the major applications of Butadiene rubber. All these factors are expected to restrain the growth of Butadiene Market during the forecast period.

The market is segmented on the basis of Products, End-Users, Applications, and Region. On the basis of Products, the market is segmented into Butadiene Rubber, Styrene Butadiene Rubber, Acrylonitrile Butadiene Rubber, Nitrile Butadiene Rubber, Nitrile Butadiene Rubber, and Hexamethylenediamine. Based on End-Users, the market is segmented into Automobile Industries, Building & Construction, Consumer Products Industries, Healthcare, and Other End Users. On the basis of Applications, the market is segmented into Polybutadiene, Chloroprene, Styrene-Butadiene, Nitrile Rubber, SB Latex, Acrylonitrile Butadiene Styrene, Adiponitrile, Sulfolane, Ethylidene Norbornene, and Other Applications.

The principal component is called styrene-Butadiene rubber, or SBR for short. It is created from Butadiene and is blended with rubber that comes from natural sources when it is manufactured into tires. The physical and chemical qualities of these rubber polymers are what give tires their performance-enhancing characteristics, such as rolling resistance, wear, and traction. These characteristics are provided by the rubber. SBR rubber frequently serves as a straight replacement for natural rubber in industrial applications. Excellent aging properties, crack endurance, and abrasion resistance is just some of the benefits that this material offers. Additionally, styrene-Butadiene possesses good resistance to both water and compression sets. Initially, in order to substitute natural rubber in tires, a synthetic copolymer that was given the name SBR was produced. The formation of SBR is accomplished by reacting BD with styrene. It currently accounts for, together with natural rubber, 90% of the total amount of rubber that is consumed globally. SBR is frequently utilized in settings that involve the presence of water, hydraulic fluids, or alcohol. Because of this, SBR can be found in a variety of places, including tires, tubes, compressors, and the coverings of conveyor belts.

During the period covered by the projections, the styrene-Butadiene (SB) latex category is predicted to experience the highest rate of expansion. Latex made of styrene-butadiene, also known as SB latex, is a popular example of an emulsified polymer that has a wide range of applications in both commercial and industrial settings. SB latex is considered to be a type of polymerization because of the fact that it is composed of two different monomers, namely styrene, and butadiene. Butadiene is a byproduct of the synthesis of ethylene, whereas styrene is formed when benzene and ethylene are combined to form a compound. In addition to data capture papers like pneumatic paper and infrared paper, which are used in brochures, journals, and SB latex, styrene-Butadiene latex is used to create paper coverings and products that are transparent, glossy, and luminescent. Examples of these types of paper coverings and products include coated canvas and white chipboard. In addition, SB latex is utilized in the production of the back coats for tufted carpets. SB latex is a well-liked option for use in adhesives across a variety of industries, including the flooring business.

Automobile industry holds the largest market share due to rising demand for butadiene-based synthetic rubber in tire manufacturing. The footwear industry is another major consumer of butadiene-based synthetic rubber. Synthetic rubber made from Butadiene provides good abrasion resistance and toughness, which make it an ideal material for shoe soles. Moreover, it offers good elasticity and flexibility, which helps shoes to retain their shape even after extended use. Butadieneis the primary component in the production of the vast majority of synthetic rubbers and elastomers, such as polychloroprene, polyButadiene rubber (PBR), nitrile rubber (NR), and styrene-Butadiene rubber (SBR) (Neoprene). These are then put to use in the manufacturing of a variety of different commodities and primary components. When butadiene-based rubber is employed as the beginning material, the primary component of acrylonitrile-butadiene-styrene (ABS) resin, which may be utilized in a variety of settings, is incorporated into the production of plastics. The production of tires frequently involves the usage of polybutadiene. It is claimed that the manufacture of polyButadiene is responsible for more than 70 percent of all tires produced around the world. Its primary application is as a sidewall in tires, where it helps reduce the strain that is brought on by the running motion’s constant bending. As a consequence of this, it is anticipated that the use of Butadiene in the automotive sector will grow during the period under consideration.

Tires are made from a combination of natural rubber and SBR, which is primarily synthesized from 1,3-BD. Tires’ performance in areas like rolling resistance, wear, and traction is enhanced by the rubber polymers’ physical and chemical properties. In most industrial contexts, SBR rubber has completely supplanted natural rubber. Some of its many advantages include high levels of resistance to wear, cracking, and aging. Styrene-Butadiene is impervious to both water and compression sets. When natural rubber became scarce, the synthetic copolymer SBR was developed to fill the void. SBR can be created from styrene and BD. Along with natural rubber, it now accounts for 90% of the world’s total rubber consumption. Typically, SBR is used in conjunction with liquids like water, hydraulic fluids, or even alcohol. In other words, you can find SBR in things like tires, tubes, compressors, and conveyor belt covers.

The Asia-Pacific Butadiene Market is expected to grow at the highest CAGR during the forecast period. The region includes countries such as China, Japan, and India, which are some of the largest consumers of Butadiene in the world. The high growth of the Asia-Pacific Butadiene Market is attributed to the growing demand from end-use industries such as tires, synthetic rubber, and plastics in the region. China is one of the leading consumers of Butadiene in the world. The country is a major producer and exporter of chemicals and polymers. The country’s production capacity of Butadiene was 4.6 million metric tons in 2018. The country’s polymer industry has been growing at a rapid pace due to the growing demand from various end-use industries. This is expected to drive the demand for Butadiene in China over the forecast period.Japan is another major consumer of Butadiene in Asia-Pacific. The country’s polymer industry has been growing steadily over the past few years due to factors such as government support and initiatives to promote domestic manufacturing. This is expected to drive the demand for Butadiene in Japan over the forecast period.India is one of the fastest-growing markets for Butadiene in Asia-Pacific. The country’s polymer industry is expected to grow at a CAGR of 9% from 2019 to 2024. This is attributed to factors such as favorable government policies, growing automotive industry.

The key players in the Global Butadiene Market include- China Petroleum & Chemical Corporation (China), Shell PLC (UK), Eni Corporations (Italy), Evonik Industries (Germany), INEOS Group Ltd. (UK), LANXESS Chemicals Company (Germany), LG Chemicals Company (South Korea), LyondellBasell Industries Holdings BV (Netherlands), PJSC “Nizhnekamskneftekhim” (Russia), Repsol S. A. (Spain), Saudi Basic Industries Corporation (Saudi Arabia), The Dow Chemical Company (US), TPC Group (US), Formosa Plastics Corporation (Taiwan), ZEON Corporation (Japan), China Petrochemical Corporation Borealis AG (China), Versalis S.P.A. (Italy) and others.