Butadiene Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Butadiene Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The butadiene market size was estimated at around 12,400 kiloton in 2021, and the market is projected to register a CAGR greater than 3% during the forecast period.

The market saw a surge in 2021. The demand for automotive manufacturing units and building construction projects increased comparatively compared to 2020. This had a positive impact on the demand for styrene-butadiene and polybutadiene rubber, which are used in tires, building crack fillers, concrete additives, etc., reducing the demand for butadiene. However, the use of protective gloves made from nitrile rubber has increased in the current situation, thus stimulating the demand in the butadiene market.

Key Highlights

• Over the short term, the developing downstream market in Asia-Pacific is expected to drive the market’s growth.
• Polybutadiene dominated the market, holding a share of almost 30%. However, the acrylonitrile butadiene styrene (ABS) segment is expected to witness the highest CAGR during the forecast period.
• The innovation of bio-butadiene to produce products like synthetic rubber, thermoplastic elastomers, nylon, etc., is likely to create opportunities for the market in the coming years.

Key Market TrendsTire and Rubber to Dominate the Market

• Butadiene is majorly used for manufacturing synthetic rubbers and elastomers, which include polybutadiene rubber (PBR), styrene-butadiene rubber (SBR), nitrile rubber (NR), and polychloroprene (Neoprene). These, in turn, are used for producing other goods and materials.
• PBR and SBR are used for producing tires. Neoprene and nitrile rubber are used for producing gloves, seals, gaskets, hoes, wetsuits, foams, and water, among others. Styrene-butadiene (SB) latex is used for producing carpet and paper coatings.
• Polybutadiene rubber (BR, PBR) is a synthetic general-purpose elastomer that is occasionally used as a substitute for natural rubber due to its low cost and vast volume (NR).
• In a non-polar solvent, it is generated through anionic polymerization or coordination polymerization of 1,3-butadiene. Because it allows for both tight control of the molecular weight (MW) and high stereoregularity, this is frequently the method of choice.
• With the increase in automobile production across the world, the demand for tires and rubbers substantially increased in various countries, thereby increasing the demand for butadiene.
• Due to all the aforementioned factors, the tire and rubber industry is supposed to dominate the market in the upcoming years.

Increasing Demand in the Asia-Pacific Region

• The Asia-Pacific region dominated the butadiene market. The downstream market in Asia-Pacific witnessed a huge spur in the past few years, owing to which the demand for butadiene has witnessed a rapid increase due to its requirement.
• China is one of the largest chemical manufacturing hubs in the world, with a wide range of industries. The Chinese butadiene market is expected to witness significant growth due to the presence of a large number of indigenous players.
• In India, there are 41 tire manufacturers in India and around 6,000 non-tire manufacturers producing seals, conveyor belts, and extruded and molded rubber profiles to be used in automotive, railway, defense, aerospace, and other applications.
• India is currently the second highest consumer and producer of footwear in the world. The country is currently producing around 9% of the global annual production of footwear. The footwear sector in India is one of the largest in the region behind China.
• Apart from this, the Asia-Pacific region is the largest producer of vehicles across the world. Butadiene is used to produce intermediates like styrene-butadiene (SBR) and others, which are further used to manufacture automotive products, including tires and conveyor belts.
• According to the OICA, 2021, total industrial production in India was about 4,399,112 vehicles, including passenger, commercial, three-wheeler, two-wheeler, and quadricycles. The government's reforms such as “Aatma Nirbhar Bharat” and “Make in India” programs are likely to boost the automotive industry in the near future.
• Therefore, the aforementioned factors are expected to have a significant impact on the market in the coming years.

Competitive Landscape

The butadiene market is fragmented in nature, with the top five players occupying less than 30% of the market share as of 2021. These companies (not in any particular order) include China Petroleum & Chemical Corporation (Sinopec), China National Petroleum Corporation, TPC Group, Royal Dutch Shell PLC, and Exxon Mobil Corporation.

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• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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