Polyvinyl Butyral Market

The global Polyvinyl Butyral Market is valued at USD 3.76 Billion in 2023 and is projected to reach a value of USD 6.75 Billion by 2032 at a CAGR (Compound Annual Growth Rate) of 6.8% between 2024 and 2032.

PVB Market Outlook

Polyvinyl Butyral (PVB) is a water-insoluble thermoplastic known for its excellent binding and film-forming properties. It dissolves well in organic solvents and is compatible with other polymers. Its superior elasticity and optical clarity make it suitable for several applications.

Depending on the need, high or low viscosity PVBs can be used, with their glass transition temperature tailored to the specific application. Enhanced stability can be achieved through cross-linking. PVB is used as a binder in paints, primers, adhesives, metal powders, and ceramics, as well as an interlayer in laminated safety glass products, making it an essential polymer in the industry.

A positive outlook for the automotive industry in China, Japan, South Korea, India, Indonesia, Malaysia, and Vietnam is expected to propel the use of PVB. Increasing populations in China and India, alongside supportive government policies aimed at attracting investments through public-private partnerships and foreign direct investments, are also poised to drive demand for PVB in the coming years.

According to Invest Saudi, global demand for PVB is projected to reach approximately 355 KMT by 2025. This growth is primarily fueled by the expansion of automobile manufacturing clusters and infrastructure projects in sectors such as healthcare and transportation. Saudi Arabia's initiative to increase its solar capacity to 40 GW by 2030 is expected to boost demand for solar panels and consequently drive the demand for PVB.

In November 2023, the US Senate approved a USD 1.2 trillion infrastructure bill aimed at stimulating demand for construction services. This is expected to bolster construction spending, subsequently driving demand for the PVB market in the forecast period. Capacity expansions in airports and railways are anticipated to increase the need for laminated glass, thereby boosting market growth.

The PVB market is predominantly concentrated in Asia Pacific, leading in terms of volume. As countries like China, Japan, and India were early virus hotspots during the pandemic's onset, many of their manufacturing hubs endured lockdowns to curb virus transmission. This led to extensive social distancing measures and significantly affected their manufacturing sectors. In nations like China, Japan, India, there was a significant supply chain disruptions in manufacturing industries, with Chinese factory closures causing exports to the country to drop by nearly 50% in 2020. As a global hub for manufacturing electronics, electricals, and the automotive industry, China faced not only production line interruptions and supply chain delays but also labor shortages and inactive logistics due to widespread lockdowns worldwide.

Industry Highlights

• In 2023, Asia Pacific dominated the market with a 35.2% revenue share, driven by industrial expansion, rising demand for PVB-based inks and packaging materials in consumer electronics, and increasing use of PVB in packaging and photovoltaic applications
• The Films & Sheets segment dominated the market with a revenue share of 76.2% in 2023 because of its extensive use as an interlayer in laminated glass, which is essential in both architectural & automotive sectors
• In Polyvinyl Butyral, the Automotive category accounted 51.5% of revenue share in 2023 due to increasing demand for PVB films in automotive glass driven by both vehicle replacement needs and new vehicle installations
• The optical clarity, strong adhesion, high flexibility, and good strength of PVB have broadened its applications across the construction, solar, and automotive sectors, as well as in paint and coating applications
• The rising demand for automobiles and the continually expanding construction sector are anticipated to propel the market growth

Market Dynamics

PVB Resins in Industrial Applications

Butvar® PVB resins, produced by companies such as Eastman Chemical Company, play a critical role in various industrial applications. Recognized for their versatility and reliability, Butvar resins are integral in the production of wash primers used for surface pretreatment of metals prior to painting. The U.S. Navy Bureau of Ships mandates the use of Butvar B-90 in wash primer formulations specified under Military Specification DOD-P-15328D. Similarly, formulations like Coating Compound, Metal Pretreatment, ResinAcid MIL-C-8514C (ASG), approved by the Department of the Air Force and the U.S. Navy Bureau of Naval Weapons, utilize Butvar B-76 or B-90. These specifications highlight Butvar's adaptability and efficacy in meeting stringent military and industrial standards for surface preparation.

Increasing Applications in Photovoltaic Solar Modules

PVB resins are increasingly adopted by manufacturers of photovoltaic thin film solar modules. This expanding use in the solar energy sector is anticipated to open new growth opportunities for the market. Economic growth, investments in research & development, and ongoing technological advancements are aligning to create opportunities within the photovoltaic industry. Top manufacturers of PVB resins are prioritizing thin film efficiency, process innovations, and cost-effective manufacturing techniques to enhance their production capabilities.

Enhancing Safety and Architectural Innovation with PVB Applications

PVB laminated glass is extensively used in commercial shops, government buildings, and banks to enhance safety and security. In residential construction, PVB films are employed to protect indoor furniture and plastic items from UV radiation and fading. Furthermore, the increasing use of thin PVB sheets, including 0.38 mm, 0.76 mm, and 1.04 mm, in architectural applications, is expected to further stimulate market growth.

Key Trends

• Increasing Demand in the Automotive Industry: The automotive industry is a major consumer of PVB, particularly for the production of safety glass. PVB is utilized as an interlayer in laminated glass finding application mainly for windshields due to its impact resistance and shatterproof properties. This demand is driven by stringent safety regulations and growing focus on passenger protection thereby ensuring that it remains a critical component in automotive manufacturing.
• Growing Application in the Construction Sector: In the construction industry, PVB is widely used for producing laminated safety glass in buildings. With increased emphasis on safety, security, and energy efficiency in construction, the demand for PVB especially for contemporary buildings is anticipated to grow in the near future.
• Rising Demand for Solar Energy Applications: VB films are increasingly used in solar panels as encapsulation materials. The global shift towards renewable energy sources and the rising installation of solar panels worldwide are significantly boosting the demand for PVB.
• Technological Advancements in PVB Production: Innovations and new formulations in PVB production processes have led to improved product performance and expanded applications. For instance, new formulations provide efficient temperature and moisture resistance, thus maintaining integrity in diverse environmental conditions.
• Environmental and Sustainability Considerations: Manufacturers are continously focussed on developing eco-friendly PVB products with reduced environmental impact. This trend is further driven by regulatory pressures and consumer demand for sustainable products along with prompting advancements in PVB formulations that align with green building practices and sustainable development goals across the globe.

Application Overview

The Films & Sheets category captures 76.2% revenue share in 2023 due to its extensive use across architectural and automotive sector

The films and sheets segment held a prominent position in the worldwide market. PVB films and sheets serve as a crucial interlayer in the production of laminated glass used extensively in architectural and automotive applications. Laminated glass, known for its safety properties, remains intact even when shattered, thanks to the PVB interlayer sandwiched between multiple layers of glass. In the event of impact, this interlayer maintains the structural integrity of the glass layers, while the robustness of PVB prevents the glass from breaking into large, hazardous fragments.

The expansion of the industrial sector will likely drive the need for PVB-based paints and coatings. This growth is particularly notable in emerging economies such as China, India, South Korea, Mexico, and Brazil. Factors contributing to this trend include increasing populations, improved living standards, & rapid urbanization, all of which are fostering growth in sectors like manufacturing, construction, FMCG (Fast Moving Consumer Goods), and transportation across these developing nations.

Adhesives are highly adaptable products extensively used in industrial and manufacturing settings. Their demand is rising steadily as manufacturers strive for enhanced performance in bonding materials, substitution of synthetic substrates for traditional ones, reduction of volatile organic compound (VOC) emissions, and solutions for aesthetically pleasing bonds across diverse substrates. PVB is a popular choice in adhesives due to its exceptional strength, adhesion capabilities, and binding properties that perform well in different environmental conditions.

End-Use Overview

The Automotive segment dominated the market with a revenue share of 51.5% in 2023 because of increasing demand for PVB films in automotive glass

PVB films provide graphic protection, durable finishes, and prevent surface bubbles. They are widely used in laminated safety glass, initially for windshields and now increasingly for roof and side windows in luxury vehicles. This application reduces noise, controls light transmission, and enhances overall safety.

The demand for PVB film in automotive glass is driven by both replacement needs for existing vehicles and installation demands for new vehicles. According to data from the National Bureau of Statistics, as of 2021, domestic car ownership and production reached approximately 302 million and 26.28 million vehicles, respectively, marking year-on-year increases of 7.5% and 3.8%, respectively. Currently, PVB film is predominantly used in front windshields due to their high safety standards. Each vehicle's front windshield requires approximately 1.021 tons of PVB film. With an estimated compound growth rate of 4.5% in car ownership/output from 2022 to 2025 and an assumed 5% annual replacement rate for existing vehicle front windshields, domestic demand for PVB film in the automotive sector is projected to reach about 59,000 tons by 2025, representing a rise of approximately 20,000 tons compared to the end of 2020.

According to the China Association of Automobile Manufacturers, China's automotive production grew by 2.1% in 2022, reaching 26.86 million units sold. This growth highlights the increasing demand for PVB in automotive laminated glass applications, driven by safety & regulatory requirements. The rise in production highlights China's pivotal role in the global automotive market and its impact on the demand for PVB in vehicle safety technologies.

The growing adoption of renewable energy sources is projected to boost the use of PVB in the electrical & electronics sector. PVB films offer cost-effective and practical solutions for solar photovoltaic modules and encapsulation materials, enhancing UV protection and overall performance. Additionally, the stringent clean energy regulations and increasing demand for solar cells are expected to drive the demand for PVB in this industry.

Regional Overview

Asia Pacific held 35.2% revenue share in 2023 mainly driven by increasing use of PVB in packaging and photovoltaic applications

The industrial growth across the Asia Pacific region is expected to drive the need for PVB-based paints, coatings, and adhesives in machinery, equipment, and containers. Additionally, the rising demand for consumer goods in the region is likely to boost the use of PVB-based inks and packaging materials. PVB is also expected to see growing use in packaging applications due to increased demand for laminated glass and adhesives in hospitals, both in urban & rural areas of emerging economies.

The photovoltaic sector employs PVB films to encapsulate double-glazed components integrated with solar cells, enhancing the longevity of solar panels. The Asia Pacific photovoltaic industry, experiencing rapid growth due to the rise in solar energy projects, is an emerging market. Major manufacturers are expanding their PVB resin production capacities in developing economies, thereby increasing the use of PVB resins within the photovoltaic sector.

Europe Market Overview

Each year, Europe generates approximately 480,000 tonnes of laminated glass waste from end-of-life vehicles (ELVs), constituting 3% of a vehicle's material. Most of this glass is incinerated or landfilled due to recycling challenges posed by PVB. The EU-funded RECYCLED-PVB project launched a pilot plant capable of processing 20 kg of recycled PVB per hour, aiming to reduce costs to €4-€5 per kg from current levels of €9-€13 per kg. This initiative aligns with EU Directive 2000/53/EC's goal to recover 95% of ELVs.

In January 2021, EVERLAM joined the SUNOVATE research project led by TNO, collaborating with universities like Leuven & Hasselt. Over two years, the project aims to develop smart laminated glazing using PVB films to achieve a climate-neutral built environment by 2050. This innovative technology integrates smart pigments to autonomously regulate solar heat transmission, potentially saving 75.5 million tons of oil equivalents annually by 2030, reducing CO2 emissions by 94.3 million tons across Europe.

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Competitive Outlook

The global Polyvinyl Butyral (PVB) market shows fragmentation due to numerous global and regional players involved. Key global companies face strong competition from regional counterparts, who benefit from robust distribution networks and deep knowledge of suppliers and regulations. Major market participants focus on research & development to enhance the quality of PVB resins, aiming for improved product features. Also, the company footprint expansion is expected to fuel this industry.

For instance, in February 2024, Gutmann launched Extra Clear PVB in India through a collaboration with Visaar Proact Solutions. This initiative introduces high-quality PVB known for its strength, durability, and transparency to the Indian market, expanding Gutmann's footprint from the Middle East to India. Visaar Proact Solutions, based in southern India, specializes in importing & exporting quality packing materials, chemicals, and minerals, enhancing Gutmann's market penetration in the region.

Eastman expanded its Saflex™ FlySafe™ 3D PVB interlayer portfolio for laminated glass. These additions provide architects and designers with more options to comply with new building regulations protecting birds, while maintaining aesthetic appeal. Eastman now offers Saflex FlySafe 3D with sequins in two sizes (6 mm and 9 mm) and two colors (silver matte and shiny), tailored for building facades.

Market Developments

Kuraray Commissions Life Cycle Assessment for European Products

• In January 2023, Kuraray has commissioned Sphera Solutions, a product sustainability consultancy, to conduct a Life Cycle Assessment (LCA) for four of its products produced in Europe: Kuraray Poval™ (polyvinyl alcohol, PVOH), Polyvinyl Butyral (PVB), Polyvinyl Butyral film, and SentryGlas®. This aims to evaluate the sustainability of Kuraray’s products and identify areas for improvement.

EVERLAM™ SUPER TOUGH Receives Miami-Dade County and Florida Building Code Approval for HVHZ Applications

• In August 2021, EVERLAM announces that EVERLAM™ SUPER TOUGH now meets the stringent requirements of the Miami-Dade County and Florida building codes for high-velocity hurricane zone (HVHZ) applications. The PVB interlayer, EVERLAM™ SUPER TOUGH, has successfully completed all necessary tests mandated by Miami-Dade County’s Department of Regulatory and Economic Resources to comply with ASTM standards D635-18, D1929-16, D2843-16, G155-13, and G158-02. As a result, it has received a Notice of Acceptance for HVHZ hurricane applications.

Eastman Chemical Company Enhances Extrusion Capabilities

• In March 2021, Eastman Chemical Company announced an investment to upgrade and expand its extrusion capabilities at its manufacturing facility in Springfield, Massachusetts. This investment aims to strengthen Eastman's ability to meet regional and global demand for Saflex® Polyvinyl Butyral (PVB) products in the automotive and architectural markets. Additionally, the upgrade will enhance the facility’s capabilities to produce specialty architecture and automotive PVB products, including thicker gauges and advanced tri-layer formulations, such as Saflex® acoustic interlayer products.

The global Polyvinyl Butyral market can be categorized as Application, End-Use, and Region.

Frequently Asked Questions (FAQ’s)?

1.What is PVB used for?

PVB resins, available in powdered or granulated form from manufacturers, are used in various applications such as temporary binders for technical ceramics, inks, dye transfer ribbon inks, paints and coatings (including wash primers), binders for reflective sheets, and magnetic media binders.

2. How big is the Polyvinyl Butyral market?

The market was valued at USD 3.76 billion in 2023 and is projected to grow to approximately USD 6.75 billion by 2032, with a compound annual growth rate (CAGR) of 6.8% from 2024 to 2032.

3. Where is PVB used?

Polyvinyl Butyral is a specialty resin primarily utilized as a raw material for laminated safety glass sheets in both automotive and architectural applications.

4. What is the difference between (PVB) and Polyvinyl Alcohol (PVA)?

Although PVB and PVA are prepared in the same way, their costs and solubility differ. PVB requires anhydrous ethanol for dissolution, making it more costly to use as an adhesive. In contrast, PVA is water-soluble, whereas PVB is soluble in organic solvents.

5. Is PVB soluble in water?

Polyvinyl Butyral (PVB) is a thermoplastic that is not soluble in water but has excellent binding and film-forming properties. It dissolves well in organic solvents and is compatible with other polymers.

6. Is PVB a plastic?

Polyvinyl Butyral (PVB) is a well-known thermoplastic (non-cross-linked) encapsulant. It has long been used in architectural safety-glass laminates and in the photovoltaic industry for building-integrated photovoltaics (BIPV) and thin-film technology with glass-to-glass configurations.

7. What is the use of PVB film?

PVB interlayers have unique advantages, such as adhesion to glass, penetration resistance, and impact resistance. Due to its shatterproof qualities, PVB interlayer is used in applications requiring safety and security, such as automobile windshields, side door windows, and architectural glass.