The global butadiene 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.
Butadiene 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 synthetic rubbers and polymer resins and a few chemical intermediates. Styrene butadiene rubber (SBR), used mainly in making tires, consumes the most butadiene. It is also is also used making polybutadiene rubber (BR), used primarily in tires and also as an impact modifier for polymers, such as high impact polystyrene (HIPS). Other important use includes manufacturing of acrylonitrile butadiene styrene (ABS), the largest-volume engineering thermoplastic resin. Growing sectors for ABS include the electronics industry for business machines, computers, radios, televisions and telephone handsets.
Rising demand of SBR and other copolymers of butadiene from various industries such as automobiles, electrical and electronics industry are likely to drive the butadiene market. As butadiene is a major feedstock for SBR production, demand for SBR is expected to fuel the growth of this market. Demand for automobiles, electrical and electronics industry are actually increasing because of growing population and extra income in developing countries. Polymers such as BR, ABS, Styrene Butadiene Latex (SB Latex), Adiponitrile, and Nitrile Rubber (NR) among others obtained from butadiene are making butadiene a major driver for chemical production. Additionally, demand for Styrene Butadiene Latex (SB Latex), Adiponitrile, and Nitrile Rubber (NR) is likely to increase at a greater rate because of an upsurge in demand from end use markets, which in turn will boost butadiene demand.
Drivers and Restraints of Butadiene Market
Growing investments in downstream industries in regions like the Middle East and the Far East are likely to offer tremendous possibilities for butadiene and its derivatives 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.
Butadiene and its derivatives are exposed to the probability of volatility in supply and price of crude oil. Butadiene has an adverse effect on human body if exposed to it for a longer duration. It’s carcinogenic nature often makes environmental regulatory institutions to implement strict regulations on butadiene usage. Existing and future regulations concerning the use of butadiene and its derivatives in end products are likely to hinder the market growth.
Butadiene Market by Region
Asia was the largest consumer of butadiene 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 butadiene 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 butadiene market in Asia. Consumption of butadiene 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 Royal Dutch Shell Plc., LyondellBasell Industries N.V., TPC Group Inc., Sinopec, BASF SE, ExxonMobil Chemical Company, Braskem S.A. and ENI S.p.A among others.
The report covers exhaustive analysis on:
- Global Market Segments
- Global Market Size
- Supply & Demand
- Global Market Competitive Landscape
- Production Technology
- Global Market Value Chain
Regional analysis includes:
- Middle-East and Africa
- 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
- Strategies of key players and products available
- Potential and niche segments, regions showing promising growth