Pre-order Enquiry
Request Free Sample
Healthcare
Aerospace & Defence
Agriculture
Automations
Chemicals & Advanced Materials
Food & Beverages
Information & Communication Technology
Oil & Gas
Power & Energy
Market Overview
The market for butadiene is expected to register a CAGR of 3.96 % during the forecast period (2019-2024). Rapidly growing automotive production is expected to drive the market. Butadiene is majorly used in the production of styrene-butadiene rubber (SBR) and polybutadiene rubber (PBR), which is used to produce tires and plastic materials. Growing automotive production is, hence, the largest driving factor for the market, owing to the increasing use of tires and plastics in automotive manufacturing. However, hazardous effects caused by butadiene is expected to hinder the growth of the market studied.
- Polybutadiene dominated the market in 2017. However, the acrylonitrile butadiene styrene (ABS) segment is expected to witness the highest CAGR during the forecast period.
- The innovation of bio-butadiene is likely to act as an opportunity in the future.
- Asia-Pacific dominated the market across the world, with the largest consumption from countries, such as China and South Korea.
Key Market Trends
Rapidly Increasing Automotive Production Creating a Demand for Butadiene Rubber
- The 1,3 butadiene is highly used in the manufacturing of synthetic rubbers or elastomers. Different types of polymers and monomers can be produced using 1,3 butadiene, such as styrene-butadiene rubber, nitrile rubber, polychloroprene, and polybutadiene rubber. Thus, it has a high demand from the automotive industry.
- ABS is majorly used for the production of automotive components, such as wheel covers, dashboard trims, and bumpers. Moreover, it offers added advantages to the manufacturers, such as a shiny and impervious surface, and the butadiene part, which is a rubbery substance, provides resilience even at low temperatures, and is impact-resistant, tough, and heat-resistant.
- Additionally, the rising demand for lightweight vehicles, globally, is expected to boost the automotive production, thus driving the demand for butadiene during the forecast period.
- Moreover, the popularity associated with electric vehicles is mainly due to the eco-friendly nature of the product, when compared to its conventional counterparts. The graph below clearly indicates the exponential growth experienced by the market. Furthermore, the market is expected to reach a sales of over 1.9 million units in 2018, recording an expected increase of 48% during the same year.
- With the growing global automotive production, countries in Asia-Pacific, like China, India, the Philippines, and Vietnam, are turning out to be potential markets for the demand for and supply of automobiles, as many automotive manufacturers have been establishing their manufacturing and assembly plants in these countries
Asia-Pacific Region to Dominate the Market
- The Asia-Pacific region dominated the global market share in 2017. 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 has achieved some milestones in shale gas exploration, both in capacity and drilling techniques, making it one of the top shale gas suppliers worldwide.
- India, with the support of the United States, is working on developing the shale gas exploration in its coastal regions, with US companies joining the exploration process. India has recoverable shale gas reserves, which are estimated to have a capacity of 96 trillion cubic feet (tcf), mainly in Tamil Nadu, Andhra Pradesh, and Rajasthan. The Krishna-Godavari basin, located in eastern India, holds the country’s largest shale gas reserves, extending over 7,800 gross square miles, with a prospective area of 4,340 square miles.
- Presently, Australia has the seventh-biggest potential shale gas resources and the sixth-biggest shale oil resources in the world. According to an estimate, the technically recoverable shale resources were at 437 tcf in six basins, and about 1,000 tcf in all the prospective basins, in 2013. Australia has large shale gas formations that are similar in size to the Marcellus and Bakken formations in the United States.
Competitive Landscape
The market studied is fragmented, and the top five players account for a market share of ~30% of the total production capacity. Some of these major players include LyondellBasell Industries Holdings BV, BASF SE, China Petroleum and Chemical Corporation (Sinopec), Exxon Mobil Corporation, and TPC Group.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- Report customization as per the client's requirements
- 3 months of analyst support
The market for butadiene is expected to register a CAGR of 3.96 % during the forecast period (2019-2024). Rapidly growing automotive production is expected to drive the market. Butadiene is majorly used in the production of styrene-butadiene rubber (SBR) and polybutadiene rubber (PBR), which is used to produce tires and plastic materials. Growing automotive production is, hence, the largest driving factor for the market, owing to the increasing use of tires and plastics in automotive manufacturing. However, hazardous effects caused by butadiene is expected to hinder the growth of the market studied.
- Polybutadiene dominated the market in 2017. However, the acrylonitrile butadiene styrene (ABS) segment is expected to witness the highest CAGR during the forecast period.
- The innovation of bio-butadiene is likely to act as an opportunity in the future.
- Asia-Pacific dominated the market across the world, with the largest consumption from countries, such as China and South Korea.
Key Market Trends
Rapidly Increasing Automotive Production Creating a Demand for Butadiene Rubber
- The 1,3 butadiene is highly used in the manufacturing of synthetic rubbers or elastomers. Different types of polymers and monomers can be produced using 1,3 butadiene, such as styrene-butadiene rubber, nitrile rubber, polychloroprene, and polybutadiene rubber. Thus, it has a high demand from the automotive industry.
- ABS is majorly used for the production of automotive components, such as wheel covers, dashboard trims, and bumpers. Moreover, it offers added advantages to the manufacturers, such as a shiny and impervious surface, and the butadiene part, which is a rubbery substance, provides resilience even at low temperatures, and is impact-resistant, tough, and heat-resistant.
- Additionally, the rising demand for lightweight vehicles, globally, is expected to boost the automotive production, thus driving the demand for butadiene during the forecast period.
- Moreover, the popularity associated with electric vehicles is mainly due to the eco-friendly nature of the product, when compared to its conventional counterparts. The graph below clearly indicates the exponential growth experienced by the market. Furthermore, the market is expected to reach a sales of over 1.9 million units in 2018, recording an expected increase of 48% during the same year.
- With the growing global automotive production, countries in Asia-Pacific, like China, India, the Philippines, and Vietnam, are turning out to be potential markets for the demand for and supply of automobiles, as many automotive manufacturers have been establishing their manufacturing and assembly plants in these countries
Asia-Pacific Region to Dominate the Market
- The Asia-Pacific region dominated the global market share in 2017. 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 has achieved some milestones in shale gas exploration, both in capacity and drilling techniques, making it one of the top shale gas suppliers worldwide.
- India, with the support of the United States, is working on developing the shale gas exploration in its coastal regions, with US companies joining the exploration process. India has recoverable shale gas reserves, which are estimated to have a capacity of 96 trillion cubic feet (tcf), mainly in Tamil Nadu, Andhra Pradesh, and Rajasthan. The Krishna-Godavari basin, located in eastern India, holds the country’s largest shale gas reserves, extending over 7,800 gross square miles, with a prospective area of 4,340 square miles.
- Presently, Australia has the seventh-biggest potential shale gas resources and the sixth-biggest shale oil resources in the world. According to an estimate, the technically recoverable shale resources were at 437 tcf in six basins, and about 1,000 tcf in all the prospective basins, in 2013. Australia has large shale gas formations that are similar in size to the Marcellus and Bakken formations in the United States.
Competitive Landscape
The market studied is fragmented, and the top five players account for a market share of ~30% of the total production capacity. Some of these major players include LyondellBasell Industries Holdings BV, BASF SE, China Petroleum and Chemical Corporation (Sinopec), Exxon Mobil Corporation, and TPC Group.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- Report customization as per the client's requirements
- 3 months of analyst support
Frequently Asked Questions
This market study covers the global and regional market with an in-depth analysis of the overall growth prospects in the market. Furthermore, it sheds light on the comprehensive competitive landscape of the global market. The report further offers a dashboard overview of leading companies encompassing their successful marketing strategies, market contribution, recent developments in both historic and present contexts.
- By product type
- By End User/Applications
- By Technology
- By Region
The report provides a detailed evaluation of the market by highlighting information on different aspects which include drivers, restraints, opportunities, and threats. This information can help stakeholders to make appropriate decisions before investing.
