1,4 Butanediol Market: Current Analysis and Forecast (2022-2028)

1,4 Butanediol Market: Current Analysis and Forecast (2022-2028)

1,4 Butanediol is a colorless, greasy, and viscous liquid with high solubility in water and other substances. It is used to make a variety of other organic chemicals, such as tetrahydrofuran (THF), which is then used to make other chemicals that are intermediates in the manufacturing of spandex fibers, elastomers, and PBT resins. In addition, it serves as a solvent in the manufacture of some liquids, elastic fibers, and polyurethanes. Also, the synthesis of -butyrolactone can also be carried out. Additionally, it is converted into the significant solvent tetrahydrofuran at high temperatures and in the presence of phosphoric acid. Also, it has occasionally been used as a recreational substance. The consumers refer to this recreational drug as "One Comma Four," "Liquid Fantasy," "One Four Bee," or "One Four B-D-O."

The 1,4 Butanediol Market is expected to grow at a steady rate of around 8% owing to the increasing biobased Butanediol coupled with the growing adoption of 1,4 Butanediol in the Tetrahydrofuran industry. Major companies in the market offer 1,4 Butanediol by collaborating with other players to decrease greenhouse gas emissions. For instance, in June 2021, Cargill and HELM started a new joint venture QIRA, a bio-based 1,4-butanediol (BDO) that saves up to 93% of greenhouse gas emissions to build $300M commercial-scale, renewable BDO facility, the first in the US, to meet growing customer demand.

• Based on type, the market is segmented into synthetic and bio-based. Bio-based type category is to witness higher CAGR during the forecast period owing to the rising investments in environmentally friendly technologies, which are anticipated to advance current procedures and increase the overall effectiveness of bio-based in the market. For instance, in Feb 2022, Lummus and Synthos Advanced Bio-Butadiene Technology Development to Produce Sustainable Rubber. Furthermore, the entry of global players into emerging markets adds to the growth of the market. For instance, In June 2021, Cargill and HELM decided to build a bio-based intermediate production facility at Cargill’s existing biotechnology campus and corn refining operation in Eddyville, Iowa to meet the demands specification of product supply chains.
• On the basis of application, the market is categorized into tetrahydrofuran (THF), polybutylene terephthalate (PBT), gamma-butyrolactone (GBL), polyurethane (PU), and others. Among these, tetrahydrofuran (THF) is expected to grow at a significant CAGR. This is mainly due to the advantages of THF in the creation of PU stretch fibers, coatings, adhesives, printing inks, magnetic tapes, and as a solvent for reactions. Also, the increasing use for producing Polytetramethylene Glycol (PTMEG), which is a polymer that is extensively utilized for manufacturing urethane elastomers and fibers. In addition, the THF has been witnessing the highest adoption from the athletic and sportswear industry as the growing health, fitness, and sports awareness can be seen across the globe.
• Based on end-user, the 1,4 Butanediol market has been classified into automotive, healthcare & pharmaceutical, textile, electrical & electronics, and others. The automotive industry is to witness the highest adoption of 1,4 Butanediol during the forecast period. This is mainly due to the rise of lightweight vehicles and the consumption of fewer carbon emissions vehicles in the market. 1,4 Butanediol is also used as a feedstock for the preparation of chemicals. Furthermore, in the automotive industry, these are used in the manufacturing of shock absorption for bumpers, seat belts, airbags, door and seat assemblies, subsystems, bumpers, under-bonnet components, exterior trims, and various other applications. Thus, due to these factors, the demand for the automotive industry is growing globally.
• For a better understanding of the market adoption of the 1,4 Butanediol industry, the market is analyzed based on its worldwide presence in the countries such as North America (The United States, Canada, Rest of North America), Europe (Germany, The United Kingdom, France, Spain, Italy, Rest of Europe), Asia-Pacific (China, India, Japan, Rest of Asia-Pacific), Rest of World. APAC is anticipated to grow at a substantial CAGR during the forecast period. This is mainly attributed due to the cost-effectiveness and easy availability of skilled labor and land in the region. Also, the growth in the industrial sector in developing nations, particularly in China and India countries are increasing the demand for 1,4 Butanediol industry within the region. For instance, in Nov 2021, IndianOil Board greenlighted the setting up of India's first mega-scale Maleic Anhydride Plant to manufacture value-added chemical products at its Panipat Refinery and Petroleum Complex (PRPC). That is used to make specialty products like polyester resins and surface coatings plasticizers, agrochemicals, and lubricant additives. The plant will also manufacture 20 KTA of 1,4-Butanediol (BDO) that finds applications in Poly Urethanes (PU), Poly Butylene Terephthalates (PBT) - an engineering grade plastic and biodegradable fibers. Moreover, China's market is expected to offer better opportunities as government initiatives and funding is increasing to maintain the development of the region as that of other South-East Asian nations. For instance, In April 2021, Xinjiang Guotai Xinhua Chemical Co. Ltd started the Coal-based Fine Chemicals Circular Economy Industrial Park Phase II project to produce acetylene and formaldehyde through a dry acetylene plant and a formaldehyde plant, produce hydrogen through the methanol cracking method, and further produce 1,4 butanediol (BDO) through the acetylene aldehyde method. Completion of this project will help produce 100,000 tons of 1,4 butanediol (BDO) and 1,200 tons of butanol as a by-product.
• Some of the major players operating in the market include BASF SE, Nan Ya Plastics Corp, Sinopec Yizheng Chemical Fibre Limited, Dairen Chemical Corporation, Genomatica, Ashland Global Specialty Chemicals Inc., Mitsubishi Chemical Corporation, SK Global Chemical Co. Ltd., BioAmber Inc., Chemtura Corporation.