Global 1 3 Butadiene Market Overview
The 1 3 Butadiene Market Size was estimated at 28.2 (USD Billion) in 2022. The 1 3 Butadiene Industry is expected to grow from 28.93(USD Billion) in 2023 to 36.5 (USD Billion) by 2032. The 1 3 Butadiene Market CAGR (growth rate) is expected to be around 2.61% during the forecast period (2024 - 2032).
Key 1 3 Butadiene Market Trends Highlighted
Key Market Trends:The 1,3-butadiene market is experiencing a surge in demand due to the increasing production of synthetic rubber, which is used in various applications such as automotive tires, hoses, and belts. The growth in the automotive and construction industries is further fueling the demand for 1,3-butadiene.
Opportunities to be Explored:There is a growing opportunity for the utilization of 1,3-butadiene in the production of bio-based plastics and renewable energy. The development of sustainable and biodegradable materials is gaining traction, creating new revenue streams for market players.
Recent Market Trends:In recent years, the market has witnessed the emergence of new technologies, such as metathesis-based processes, for the production of 1,3-butadiene. These advancements aim to improve efficiency, reduce waste, and enhance the overall environmental sustainability of the industry. Furthermore, the increasing adoption of smart manufacturing and digitalization is transforming the market dynamics, enabling real-time monitoring, predictive maintenance, and optimized production processes.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
1 3 Butadiene Market Drivers
Rising Demand for Synthetic Rubber
The 1 3 Butadiene Market Industry is driven by the increasing demand for synthetic rubber. Synthetic rubber finds many applications such as tires, hoses, belts, and other industrial items. The surge in the automotive industry, especially in developing countries, is one of the main reasons for synthetic rubber is in demand. With the increasing number of vehicle production, the requirement for tires and other rubber items increased too.The expanding usage of synthetic rubber for other than automotive purposes on account of construction and consumer items is also contributing to increasing demand. Synthetic rubber is extending its application spectrum day by day, and it is less expensive than natural rubber, which is one of the main reasons for manufacturers to choose synthetic rubber over other types. This is expected to make the industry grow more in the future years.
Shift towards Bio-based Butadiene
The inclination towards the enhanced environmental sustainability aspect is leading to a transition to bio-based butadiene. Since the traditional butadiene is derived from fossil fuels, it is being replaced by bio-based butadiene, a product derived from renewable sources such as biomass and plant-based oils. The initiative by the stakeholders is being driven by the increased regulations by the government to use products and adopt practices that are nature friendly.Since it has a reduced carbon footprint when compared to the traditional butadiene, the alternative product is being considered to be a better option. It is expected that the availability of bio-based butadiene will be improved, as stakeholders in the are investing more in environmentally friendly products.
Expansion of the Chemical Industry
Another factor that is anticipated to drive the 1 3 Butadiene Market Industry is the expansion of the chemical industry. This is because butadiene is used as a feedstock for numerous chemical products, including plastics, solvents, and adhesives. The rising demand for these materials is likely to create additional demand for butadiene. The chemical industry is expanding in emerging markets, and this is expected to support the growth of the butadiene market.Further, the increasing use of butadiene in the manufacture of light and durable materials is also anticipated to drive market growth in the next few years.
1 3 Butadiene Market Segment Insights
1 3 Butadiene Market Grade Insights
The 1 3 Butadiene Market is segmented by Grade into Refined Butadiene and Polymer Grade Butadiene. Refined Butadiene is further sub-segmented into Chemical Grade Butadiene and Fuel Grade Butadiene. Polymer-grade butadiene is majorly utilized for the production of synthetic rubber, such as styrene-butadiene rubber (SBR), polybutadiene rubber (BR), and nitrile-butadiene rubber (NBR). The 1 3 Butadiene Market for Polymer Grade Butadiene is expected to witness significant growth over the forecast period. The increasing demand for synthetic rubber in various end-use industries, such as automotive, construction, and consumer goods, is a major factor driving the growth of the Polymer Grade Butadiene market.The 1 3 Butadiene Market for Refined Butadiene is also expected to register steady growth during the forecast period. The growing demand for refined butadiene in the production of chemicals, such as 1,3-butadiene, butene, and butylene, is a major factor driving the growth of the Refined Butadiene market. In 2023, the 1 3 Butadiene Market for Polymer Grade Butadiene was valued at USD 12.5 billion and is projected to reach USD 16.7 billion by 2032, exhibiting a CAGR of 3.1% during the forecast period. The 1 3 Butadiene Market for Refined Butadiene was valued at USD 10.2 billion in 2023 and is projected to reach USD 13.4 billion by 2032, exhibiting a CAGR of 2.9% during the forecast period.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
1 3 Butadiene Market Application Insights
The 1 3 Butadiene Market is segmented by Application into Synthetic Rubber Production, Chemical Intermediates, Fuel Additives, and Other Applications. Synthetic Rubber Production accounted for the largest share of the market in 2023, at around 60%. The demand for synthetic rubber is increasing due to its wide range of applications in various industries, including automotive, construction, and footwear. Chemical Intermediates is another major application segment, accounting for approximately 25% of the market share. 1 3 Butadiene is used as a feedstock in the production of various chemicals, such as adiponitrile, which is used to make nylon.Fuel Additives is a growing application segment and is expected to witness a steady growth rate during the forecast period. 1 3 Butadiene is used as an octane booster in gasoline and is also used to produce other fuel additives. Other Applications include the use of 1 3 Butadiene in the production of plastics, adhesives, and sealants.
1 3 Butadiene Market Manufacturing Process Insights
Steam cracking, a widely adopted process for 1 3-butadiene production, involves breaking down hydrocarbons at high temperatures in the absence of oxygen. This method offers several advantages, including cost-effectiveness and high conversion rates. Butane dehydrogenation, another significant manufacturing process, is estimated to hold a substantial share in the 1 3 Butadiene Market. Butane dehydrogenation entails converting butane to 1 3-butadiene through catalytic dehydrogenation. This process has gained popularity due to its ability to produce high-purity 1 3-butadiene.Other processes, such as oxidative dehydrogenation of butene and fluidized catalytic cracking, also contribute to the overall 1 3 Butadiene Market segmentation. Oxidative dehydrogenation of butene involves the selective oxidation of butene to produce 1 3-butadiene, while fluidized catalytic cracking utilizes a fluidized catalyst bed to convert heavy hydrocarbons into lighter products, including 1 3-butadiene.
1 3 Butadiene Market End-User Industry Insights
The end-user industry segment plays a crucial role in shaping the 1 3 Butadiene Market revenue. The major end-user industries for 1 3 Butadiene include Automotive, Construction, Consumer Goods, Packaging, and Other End-User Industries. In 2023, the Automotive industry held the largest market share, accounting for around 35% of the 1 3 Butadiene Market. This is primarily attributed to the increasing demand for lightweight and fuel-efficient vehicles, which drive the demand for 1 3 Butadiene-based polymers. The Construction industry is another significant end-user, utilizing 1 3 Butadiene in various applications such as pipes, fittings, and flooring.The Consumer Goods industry also holds a substantial market share, driven by the growing demand for consumer products like toys, appliances, and electronics that incorporate 1 3 Butadiene-based materials. The Packaging industry uses 1 3 Butadiene to produce flexible packaging solutions, contributing to its market growth. Other End-User Industries, including electronics, medical devices, and agriculture, also contribute to the overall 1 3 Butadiene Market segmentation and data.
1 3 Butadiene Market Regional Insights
The 1 3 Butadiene Market is segmented into North America, Europe, APAC, South America, and MEA. North America held the largest market share in 2023 and is expected to continue to dominate the market throughout the forecast period. The region's strong demand for 1 3 butadiene in the automotive and construction industries is a major driver of growth. Europe is the second largest market for 1 3 butadiene and is expected to grow at a steady pace over the forecast period. The region's automotive industry is a major consumer of 1 3 butadiene and is expected to continue to drive demand for the product.APAC is the third largest market for 1 3 butadiene and is expected to grow at the fastest rate over the forecast period. The region's growing population and urbanization are driving demand for 1 3 butadiene in the construction and automotive industries. South America and MEA are expected to grow at a moderate pace over the forecast period. The region's growing economies and increasing demand for 1 3 butadiene in the construction and automotive industries are expected to drive growth in these regions.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
1 3 Butadiene Market Key Players And Competitive Insights:
Major players in 1 3 Butadiene Market industry are constantly striving to gain a competitive edge by investing in research and development, expanding their product portfolios, and forming strategic partnerships. Leading 1 3 Butadiene Market players are focusing on developing innovative products that meet the evolving needs of customers, such as bio-based butadiene and renewable butadiene. The 1 3 Butadiene Market is characterized by intense competition, with key players adopting various strategies to gain market share. 1 3 Butadiene Market development is driven by factors such as rising demand for synthetic rubber, increasing use in plastics and polymers, and growing demand from emerging economies.Among the leading players in the 1 3 Butadiene Market, LyondellBasell is a chemical and plastics company with a strong presence in the butadiene market. The company operates several butadiene production facilities around the world and is a major supplier to tire and rubber manufacturers. LyondellBasell has a strong focus on sustainability and is investing in technologies to reduce the environmental impact of its butadiene production processes.A key competitor in the 1 3 Butadiene Market is BASF, a German multinational chemical company. BASF is a major producer of butadiene and operates production facilities in Europe, Asia, and North America. The company is focused on developing innovative butadiene-based products and expanding its market reach. BASF has a strong presence in the automotive and construction industries, where butadiene is used in the production of tires, plastics, and adhesives.
Key Companies in the 1 3 Butadiene Market Include:
1 3 Butadiene Market Industry Developments
The 1,3-butadiene market is projected to reach USD 36.5 billion by 2032, exhibiting a CAGR of 2.61% during the forecast period (2024-2032). Rising demand for synthetic rubber in the automotive industry and increasing use of 1,3-butadiene in the production of plastics and chemicals are key factors driving market growth. Recent developments include collaborations between companies to expand production capacity and advancements in technologies for more sustainable production of 1,3-butadiene. Furthermore, ongoing research on bio-based 1,3-butadiene is expected to create new opportunities in the future.
1 3 Butadiene Market Segmentation Insights
1 3 Butadiene Market Grade Outlook
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Refined Butadiene
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Polymer Grade Butadiene
1 3 Butadiene Market Application Outlook
1 3 Butadiene Market Manufacturing Process Outlook
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Steam Cracking
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Butane Dehydrogenation
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Other Processes
1 3 Butadiene Market End-User Industry Outlook
1 3 Butadiene Market Regional Outlook
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North America
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Europe
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South America
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Asia Pacific
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Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
28.2(USD Billion) |
| Market Size 2023 |
28.93(USD Billion) |
| Market Size 2032 |
36.5(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
2.61% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Braskem, LyondellBasell, Repsol, BASF, Shell, ExxonMobil, TPC Group, TotalEnergies, Formosa Plastics Group, Chevron Phillips Chemical, PetroChina, Dow, Sinopec, SIBUR, SABIC, China National Petroleum Corporation |
| Segments Covered |
Grade, Application, Manufacturing Process, End-User Industry, Regional |
| Key Market Opportunities |
Growing demand from tire manufacturers Rising consumption in automotive and construction industries Expanding applications in rubber and plastics industries Increasing use in specialty polymers Emerging opportunities in renewable energy and biochemicals |
| Key Market Dynamics |
Rising demand Increasing production capacity Fluctuating raw material costs Growing environmental concerns Technological advancements. |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The 1 3 Butadiene Market was valued at 28.93 billion USD in 2023.
The 1 3 Butadiene Market is projected to reach 36.5 billion USD by 2032, growing at a CAGR of 2.61% from 2024 to 2032.
Asia-Pacific is expected to dominate the 1 3 Butadiene Market throughout the forecast period.
1 3 Butadiene is primarily used in the production of synthetic rubber, plastics, and chemicals
Key competitors in the 1 3 Butadiene Market include BASF SE, The Dow Chemical Company, LyondellBasell Industries Holdings B.V., SABIC, and Sinopec Corp.
The growing demand for synthetic rubber in the automotive and construction industries is a major factor driving the growth of the 1 3 Butadiene Market.
Fluctuations in raw material prices and stringent environmental regulations pose challenges to the growth of the 1 3 Butadiene Market.
The increasing adoption of bio-based 1 3 Butadiene and the development of new technologies for the production of 1 3 Butadiene are key trends shaping the market.
The COVID-19 pandemic had a negative impact on the 1 3 Butadiene Market in the short term due to disruptions in supply chains and reduced demand from end-use industries.
The future prospects for the 1 3 Butadiene Market are positive, driven by the growing demand for synthetic rubber and the development of new applications for 1 3 Butadiene.
