Butadiene Market to Reach Valuation of USD 29.0 Billion by 2028 –Rapid Urbanization and Industrialization Drives the Market

In terms of revenue, the Global Butadiene Market is expected to reach USD 29.0 Billion by 2028, growing at a CAGR (Compound Annual Growth Rate) of 18.3% from 2022 to 2028.

Butadiene, commonly known as 1,3-Butadiene, is a highly reactive gas that smells somewhat aromatic or like gasoline at room temperature and pressure. It is a byproduct of the synthesis of ethylene and propylene and is mostly used as a monomer to make synthetic rubber and plastic. However, it can be utilized as a chemical intermediate if used cautiously. The resulting rubbers or plastics are employed in household goods, construction materials, appliance parts, protective clothing, computers, and telecommunications equipment. Butadiene-based polymers are more cost-effective and offer improved functionality, performance, and safety. The development of eco-friendly techniques for producing polymer emulsions, the rise in demand for water-based solvents and coatings, the growth of manufacturing sectors like automotive and consumer durables and rising public awareness of the value of green building construction are some of the factors driving the global market.

Key Developments in the Industry

· January 2020: According to reports, CPC Corporation's naphtha cracker in Taiwan, which has the capacity to manufacture 380 tons/year of ethylene and 193,000 tons/year of propylene, a major feedstock for Butadiene, has begun operations following extensive renovations to the facility.

· The global elastomers business of JSR Corporation, which encompasses the production and marketing of synthetic rubber, was acquired by ENEOS Corporation, the Japanese oil firm, in June 2021. By dividing the business, JSR will create a new company and transfer the elastomer business and the shares of worldwide subsidiaries and affiliates associated with this business to the new firm. Subsequently, ENEOS will purchase all of the new company's shares, converting them into a wholly-owned subsidiary.

· Sinopec-SK Petrochemical Co. Ltd., a partnership between Sinopec and SK Global Chemical (a division of SK Innovation), announced in April 2021 that it intended to finish expanding new petrochemical facilities and launch commercial operations in the second half of 2021.

Market Dynamics

The automobile sector has a substantial impact on the demand for synthetic rubbers, which in turn has an impact on the Butadiene market. On the other hand, because ethylene is a crucial component required for the steam cracking process, it has an impact on supply. As a result, the supply-demand issues in other markets greatly impact the Butadiene sector. Some of the factors driving the global market include the development of environmentally friendly methods for creating polymer emulsions, the rise in demand for water-based coatings and solvents, as well as the development of industrial sectors like automotive and consumer durables. Additionally, several market opportunities are projected as a result of manufacturers' focus on the development of bio-based manufacturing processes for Butadiene and the rising demand for nylon 66 resin in significant end-use industries like automotive and electronics. Furthermore, numerous academics are engaged in similar research, and governments support the use of bio-based substitutes in their respective countries.

Most synthetic rubbers and elastomers, such as polyButadiene rubber (PBR), nitrile rubber (NR), styrene-Butadiene rubber (SBR), and polychloroprene, are made using Butadiene (Neoprene). These are then employed to create a variety of finished products and raw materials. The basic ingredient of acrylonitrile-Butadiene-styrene (ABS) resin, which has numerous applications, is used to make plastics when Butadiene-based rubber is employed as the starting material. In addition, when making tires, polyButadiene is frequently utilized.

Over 70% of tires produced globally are thought to be generated from polyButadiene. It is mostly used as a sidewall in tires to reduce strain from repetitive bending during running. Therefore, it is anticipated that the market will be driven throughout the projected period by the use ofButadiene in the automotive industry.

During the forecast period, the Butadiene market in Asia Pacificis anticipated to develop at the quickest rate.One of the world's greatest centers for the production of chemicals is China, which has a diverse economy. Because there are so many domestic players, the Butadiene market in China is predicted to increase significantly. There are 41 tire manufacturers in India and over 6,000 non-tire producers of conveyor belts, extruded and molded rubber profiles, seals, and other products used in the automotive, railroad, defense, aerospace, and other industries. India is currently the world's second-largest consumer and manufacturer of footwear. The nation currently contributes about 9% of worldwide footwear output worldwide. India has one of the largest footwear industries in the world after China. Aside from this, the Asia Pacific area produces the most vehicles globally. Styrene-Butadiene (SBR) and other intermediates, which are then utilized to make automotive products like tires and conveyor belts, are produced from Butadiene. These are, thus, some of the factors influencing the market expansion in the Asia Pacificregion.

The Global Butadiene Market is Segmented as follows

• Product Type
  • Butadiene Rubber
  • Styrene Butadiene Rubber
  • Acrylonitrile Butadiene Rubber
  • Nitrile Butadiene Rubber
  • Styrene Butadiene Latex
  • Hexamethylenediamine
• Production Process
  • Extractive Distillation
  • Steam Cracking
• End-User
  • Automobile Industries
  • Chemical
  • Plastics & Polymers
  • Building & Construction
  • Consumer Products Industries
  • Healthcare
  • Other End Users
• Region
  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa

List of the Key Players of the Global Butadiene Market is

China Petroleum & Chemical Corporation (China), Royal Dutch Shell PLC (UK), Borealis AG (Austria), Versalis S.P.A. (Italy), Eni S.P.A. (Italy), Evonik Industries AG (Germany), Ineos Group AG (UK), LANXESS (Germany), LG Chem (South Korea), LyondellBasell Industries Holdings B.V. (U.S.), Nizhnekamskneftekhim (Russia), Repsol (Spain), SABIC (Saudi Arabia), The Dow Chemical Company (U.S.), TPC Group (U.S.), Formosa Plastics Corporation (Taiwan), ZEON Corporation (Japan), Shanghai Petrochemical (China)

The Global Butadiene Market Scope can be Tabulated as below