April 18, 2024

Butadiene Is Estimated To Witness High Growth Owing To Increasing Demand From Rubber Industries

Market Overview

Butadiene, also known as 1,3-butadiene, is a colorless gas that is the simplest conjugated diene. It is flammable and has a mild gasoline-like odor. Butadiene is an important chemical building block used to make plastics, elastomers and rubber. It is primarily used in styrene-butadiene rubber (SBR), poly butadiene rubber (BR) and latex. SBR and BR are used to manufacture tires, hoses, footwear and industrial products. Latex is used in various medical and household applications.

Market Dynamics

The increasing demand for butadiene from the rubber manufacturing industries, especially from the tire industry, is a key driver propelling the growth of this market. According to the Rubber Manufacturers Association, over 2 billion tires are produced annually across the globe. As butadiene is a primary raw material used to manufacture SBR and BR rubber employed in tire manufacturing, its demand increases alongside growth in the tire industry. Another key factor fueling the market growth is the increasing consumption of butadiene in latex applications such as latex Threads, tapes, carpet backing, paper coating, and also in medical gloves, condoms etc. However, the health hazards associated with butadiene exposure acts as a challenge for the market growth. Butadiene is a known human carcinogen and prolonged exposure to it can cause various health issues. Stringent regulations surrounding its production and usage might hamper the market expansion.

SWOT Analysis

Strength: Butadiene has wide applications in various industries like automotive, construction and healthcare due to its high strength and flexibility properties. It is used to manufacture synthetic rubber which is important building block material. Easy availability of raw materials and advanced manufacturing facilities help increase the production of butadiene. Many companies have experience and expertise in butadiene production.

Weakness: Butadiene is a volatile hazardous material and exposure can cause harmful health effects. Stringent government regulations regarding its transportation and storage increase operational costs. Dependency on fluctuating raw material prices can impact the overall costs.

Opportunity: Growing demand for synthetic rubber from tire and automotive industry due to increasing vehicle production and sales worldwide presents an opportunity. Rising usage of butadiene in paints, coatings and adhesive industries also provides new growth prospects. Developing nations with improving economic conditions offer additional market expansion opportunities.

Threats: Volatile crude oil prices and geopolitical issues affect the raw material supply and costs. Environmental concerns and stringent emission norms regarding butadiene production pose challenges. Competition from alternative materials reduces the dominance of butadiene in few applications.

Key Takeaways

The Global Butadiene Market Demand  ssis expected to witness high growth, exhibiting CAGR of 3.6% over the forecast period, due to increasing automobile production across the globe. The market size for 2023 is estimated at US$ 13612.12 Mn.

Regional analysis: Asia Pacific dominates the global butadiene market with largest market share due to strong presence of automotive and tire industries in major economies like China, India, Japan and South Korea. China accounts for over 30% of global demand due to rapidly growing automobile sector. North America and Europe are other prominent markets driven by high vehicle fleet.

Key players operating in the butadiene market are BASF SE, Braskem, China Petroleum & Chemical Corporation, Dow, Evonik Industries AG, Exxon Mobil Corporation, Formosa Plastics Corporation, INEOS, JSR, Corporation, LG Chem, LOTTE CHEMICAL TITAN HOLDING BERHAD, LyondellBasell Industries Holdings BV, Reliance Industries Limited., Repsol, Royal Dutch Shell Plc, SABIC, TPC Group, and China National Petroleum Corporation. Key players are focusing on capacity expansion plans and adoption of new production technologies to cater rising butadiene demand worldwide.

Note:

  1. Source: Coherent Market Insights, Public sources, Desk research
  2. We have leveraged AI tools to mine information and compile it