The global 1-butene market was worth more than USD xx billion in revenue in 2018 and is expected to cross USD xx billion in 2023, growing at a healthy CAGR of over xx% during the forecast period.
1-Butene is an aliphatic hydrocarbon produced from steam cracking of naphtha and butane (natural gas). It is a major feedstock for producing a wide variety of polymer and a few chemical intermediates. linear low-density polyethylene (LLDPE), used mainly in packaging and construction, consumes the most 1-Butene. It is also used in making HDPE, polybutene-1, valeraldehyde, 1,2-butylene oxide. Other uses include manufacturing of n-butyl mercaptan, sec-butylphenols and solvents.
Rising demand of LLDPE and other copolymers of 1-Butene from various industries such as packaging and construction industry are likely to drive the 1-Butene market. As 1-Butene is a major feedstock for LLDPE production, demand for LLDPE is expected to fuel the growth of this market. Demand from packaging and construction industry is actually increasing because of growing population and extra income in developing countries. Polymers such as HDPE and polybutene-1obtained from 1-Butene are making 1-Butene a major driver for chemical production. Additionally, demand for valeraldehyde, 1,2-butylene oxide, n-butyl mercaptan, sec-butylphenols and solvents is likely to increase at a greater rate because of an upsurge in demand from end-use markets, which in turn will boost 1-Butene demand.
Drivers and Restraints of 1-Butene Market
Growing investments in downstream industries in regions like the Middle East and the Far East are likely to offer tremendous possibilities for 1-Butene market in the future. As a result of accessibility to raw material, multinational businesses are investing in resource-rich regions to be able to limit the overall production cost. In the USA, the shale gas revolution has made the raw material cost much cheaper in the recent past which lasted after the global market was flooded with crude oil oversupply.
1-Butene and its derivatives are exposed to the probability of volatility in supply and price of crude oil. 1-Butene has an adverse effect on human body if exposed to it for a longer duration. Its acute toxicity often makes environmental regulatory institutions to implement strict regulations on 1-Butene usage. Existing and future regulations concerning the use of 1-Butene and its derivatives in end products are likely to hinder the market growth.
1-Butene Market by Region
Asia was the largest consumer of 1-Butene and its derivatives and this pattern is anticipated to continue to be identical over the following few years. Consumption in Asia is showing upward trend because of increase in economic activity in China and India. China, Japan and South Korea were the largest consumers of 1-Butene in this region, whereas India is likely to grow at a higher pace. Growing demand for automobiles, electrical and electronics and other industries will drive 1-Butene and its derivatives market in Asia. Consumption of 1-Butene and its derivatives in rest of the world was minimal however it is likely to grow at a reasonable rate next to Asia. North America is likely to grow at a significant rate due to demand from automobiles, electrical and electronics industry. With major production capacities in USA, the region is likely to grow in terms of global supply capability. Demand from Europe was low relatively and is likely to stay same in the next few years and will continue focusing on exporting to Asia.
Top players in this market include SABIC, LyondellBasell, Lorestan Petrochemical Co., Jam Petrochemical Company, Evonik, Bangkok Synthetics Co., Ltd., Daelim, TPC Group among others.
The report covers exhaustive analysis on:
- Global Market Segments
- Global Market Size
- Global Market Competitive Landscape
- Production Technology
- Global Market Value Chain
- In depth summary of parent market
- Altering market characteristics in the industry
- Detailed market segmentation
- Historical and forecast market size in terms of volume and value
- Current industry developments
- Competitive landscape
- Potential and niche segments, regions showing promising growth