Global 1 3 Butanediol Market Overview
The 1 3 Butanediol Market Size was estimated at 991.1 (USD Billion) in 2022. The 1 3 Butanediol Industry is expected to grow from 1,027.87(USD Billion) in 2023 to 1,427.5 (USD Billion) by 2032. The 1 3 Butanediol Market CAGR (growth rate) is expected to be around 3.71% during the forecast period (2024 - 2032).
Key 1 3 Butanediol Market Trends Highlighted
The 1,3-butanediol market continues to experience robust growth, driven by several key trends. Increasing demand for polybutylene terephthalate (PBT) and polytetramethylene ether glycol (PTMEG), major end-use applications, is a significant market driver. The growing adoption of bio-based 1,3-butanediol, driven by sustainability initiatives and consumer preference for eco-friendly products, presents a significant opportunity. Moreover, the expanding use of 1,3-butanediol in the production of spandex, a synthetic fiber used in various applications, further contributes to market growth.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
1 3 Butanediol Market Drivers
Increasing Demand from the Polyurethane Industry
The 1 3 Butanediol Market Industry is primarily driven by the growing demand from the polyurethane industry. Polyurethanes are widely used in various applications, including automotive, construction, furniture, and appliances. The increasing demand for lightweight and energy-efficient materials in these industries is fueling the growth of the 1 3 butanediol market. 1 3 Butanediol is a key raw material in the production of polyurethanes, and its demand is expected to rise in line with the growing polyurethane industry.Polyurethanes offer excellent insulation properties, making them ideal for use in construction and automotive applications. The increasing demand for energy-efficient buildings and fuel-efficient vehicles is driving the growth of the polyurethane industry, which in turn is boosting the demand for 1 3 butanediol. Furthermore, the growing construction industry in emerging economies, such as China and India, is also contributing to the increased demand for 1 3 butanediol.
Rising Adoption in the Chemical Industry
Furthermore, the demand for 1 3 butanediol is increasing in the chemical industry. It is used as an intermediate in the production of other chemicals such as THF, GBL, and PVB. THF is used for the production of PTMEG, which is mainly used in the production of spandex and elastomeric fibers. GBL is used in the pharmaceutical industry as a solvent and as a chemical in the production of other chemicals. PVB is used for safety glass and interlayer films.The growing demand for the aforementioned chemicals will also boost the growth of the 1 3 butanediol market.
Government Regulations on Volatile Organic Compounds (VOCs)
The other market driver is increasing government regulations over volatile organic compounds, or VOCs. VOCs are emitted during the manufacture or use of a number of chemicals, including 1 3 butanediol. Thus, in an effort to reduce their emissions, the new legislations and regulations favor its low-VOC or VOC-free 1 3 butanediol-based equivalents. 1 3 Butanediol has a low VOC content, and, therefore, the compound is a popular choice among manufacturers interested in complying with the new environmental regulations.
1 3 Butanediol Market Segment Insights:
1 3 Butanediol Market Grade Insights
1 3 Butanediol Market report is segmented by Grade into Industrial and Pharmaceutical grade. The Industrial Grade segment held the largest market share in 2023 and is expected to continue dominating the market over the forecast period. The growth of the industrial grade segment can be attributed to the increasing demand for 1 3 Butanediol in the production of polyesters, polyurethanes and other industrial chemicals. The growth of the market is attributed to the expanding automotive, construction and electronics sectors, which will propel the demand for 1 3 Butanediol.Positive growth is also estimated to continue in the market on account of growing demand for bio-based products. The 1 3 Butanediol Market is highly competitive. There is a large number of prominent players, including BASF, DOW, SABIC and Mitsubishi Chemical Corporation. Large players are investing heavily in research and development to develop newer and innovative products. The market is also witnessing an increasing number of new entrants, thus further increasing the competition in the market.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
1 3 Butanediol Market Application Insights
1, 3-Butanediol market’s major application segments comprise Polyester Butanediol Terephthalate, Polybutylene Terephthalate, Polytetramethylene Ether Glycol, Gamma-Butyrolactone and 1, 4-Butanediol. Of these, PBT and PTMEG together constituted the most significant revenue share as of the end of 2013. These chemicals are extensively useful in engineering plastics, fibers and elastomers production. PBT is likely to exhibit high growth owing to high demand from the lucrative automotive as well as electrical electronics industries. The PTMEG market will be driven by demand from the packaging and textile industries.GBL finds application as a solvent and chemical intermediate will witness average growth on account of pharmaceutical and fine chemicals demand application. BDO, as an intermediate for manufacturing spandex and polyurethanes, will exhibit moderate growth. High demand from several end-use industries, such as automotive and electrical electronics, for the coming ten years, is expected to grow the 1, 3-Butanediol market profitably.
1 3 Butanediol Market End-User Industry Insights
The end-user industries for 1,3 Butanediol are diverse, contributing to its substantial market demand. The automotive sector utilizes 1,3 Butanediol in the production of brake fluids, coolants, and antifreeze owing to its high boiling point and low freezing point. In 2023, the automotive segment accounted for approximately 25% of the 1 3 Butanediol Market revenue. The electrical and electronics industry employs 1,3 Butanediol as a solvent in the manufacture of printed circuit boards, capacitors, and batteries, contributing to around 20% of the market share.The packaging industry utilizes 1,3 Butanediol in the production of flexible packaging films and coatings, capturing approximately 18% of the market. The construction industry leverages 1,3 Butanediol in the production of polyvinyl butyral (PVB) interlayers for laminated glass, representing approximately 15% of the market. Lastly, the pharmaceuticals industry utilizes 1,3 Butanediol as an intermediate in the synthesis of various drugs, accounting for approximately 12% of the market. These end-user industries drive the growth of the 1 3 Butanediol Market, with ongoing technological advancements and increasing demand across various sectors.
1 3 Butanediol Market Distribution Channel Insights
The 1 3 Butanediol Market segmentation by Distribution Channel comprises Direct Sales, Distributors, and E-commerce. In 2023, Direct Sales accounted for the largest revenue share, owing to the strong relationships and control over distribution channels maintained by manufacturers. Distributors play a crucial role in expanding the reach of 1 3 Butanediol to smaller markets and regional customers, driving market growth. E-commerce is gaining traction, particularly for smaller orders and niche applications, as it offers convenience and a wider product selection.The 1 3 Butanediol Market data indicate a shift towards online distribution channels in the coming years, driven by the increasing adoption of digital platforms and the growing preference for online purchasing.
1 3 Butanediol Market Regional Insights
The regional landscape of the 1,3 Butanediol Market showcases distinct market dynamics across various geographical regions. North America and Europe collectively accounted for a significant share of the 1,3 Butanediol Market revenue in 2023. The presence of well-established chemical industries, coupled with robust demand from end-use sectors such as automotive, construction, and pharmaceuticals, drives growth in these regions. APAC, led by China and India, is projected to witness the highest growth rate during the forecast period, owing to rapid industrialization, expanding automotive and construction sectors, and increasing disposable incomes.South America and MEA also present growth opportunities due to growing infrastructure development and rising demand for consumer products. However, market growth in these regions may be influenced by factors such as economic fluctuations, political instability, and supply chain disruptions.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
1 3 Butanediol Market Key Players And Competitive Insights:
Major players in 1 3 Butanediol Market are constantly striving to gain a competitive edge by investing in research and development, expanding their production capacities, and forming strategic partnerships. The 1 3 Butanediol Market industry is characterized by a high level of competition, with leading 1 3 Butanediol Market players employing various strategies to maintain and expand their market share. These strategies include product innovation, geographical expansion, and mergers and acquisitions. 1 3 Butanediol Market development is being driven by increasing demand from end-use industries such as the automotive, construction, and packaging sectors. The growing adoption of sustainable and eco-friendly materials is also contributing to the market's growth.Leading 1 3 Butanediol Market players are focusing on developing innovative products that meet the evolving needs of customers. For example, BASF SE has introduced a new range of bio-based 1 3 butanediol products that are derived from renewable resources. These products offer improved sustainability and performance compared to traditional 1 3 butanediol products.A prominent competitor in the 1 3 Butanediol Market is Evonik Industries AG. The company has a strong presence and offers a wide range of 1 3 butanediol products. Evonik Industries AG is also actively involved in research and development to improve the performance and sustainability of its products. The company has recently developed a new process for the production of 1 3 butanediol that is more efficient and environmentally friendly.
Key Companies in the 1 3 Butanediol Market Include:
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SINOPEC Group
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China Petroleum Chemical Corporation
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LyondellBasell Industries Holdings N.V.
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Nanjing Chemical Industry Group Co., Ltd.
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Praxair Technology, Inc.
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Lanxess AG
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Mitsubishi Chemical Corporation
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BASF SE
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Dow Chemical Company
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Reliance Industries Limited
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Sibur
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Shandong Jinling Petrochemical Co., Ltd.
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Qilu Petrochemical Corporation
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Evonik Industries AG
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Henan Huayi Chemical
1 3 Butanediol Market Industry Developments
The 1,3-butanediol market is anticipated to reach a valuation of USD 1,427.5 billion by 2032, expanding at a CAGR of 3.71% from 2024 to 2032. The increasing demand for 1,3-butanediol in the production of polybutylene terephthalate (PBT) and polybutylene succinate (PBS) is driving market growth. PBT is used in various applications, including automotive parts, electrical and electronic components, and consumer products. PBS is gaining popularity as a biodegradable alternative to conventional plastics, further contributing to market expansion. Technological advancements and the development of cost-effective production processes are expected to support market growth in the coming years.
1 3 Butanediol Market Segmentation Insights
1 3 Butanediol Market Grade Outlook
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Industrial Grade
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Pharmaceutical Grade
1 3 Butanediol Market Application Outlook
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Polyester Butanediol Terephthalate (PBT)
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Polybutylene Terephthalate (PBT)
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Polytetramethylene Ether Glycol (PTMEG)
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Gamma-Butyrolactone (GBL)
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1,4-Butanediol (BDO)
1 3 Butanediol Market End-User Industry Outlook
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Automotive
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Electrical Electronics
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Packaging
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Construction
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Pharmaceuticals
1 3 Butanediol Market Distribution Channel Outlook
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Direct Sales
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Distributors
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E-commerce
1 3 Butanediol 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 |
991.1(USD Billion) |
| Market Size 2023 |
1027.87(USD Billion) |
| Market Size 2032 |
1427.5(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
3.71% (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 |
SINOPEC Group, China Petroleum Chemical Corporation, LyondellBasell Industries Holdings N.V., Nanjing Chemical Industry Group Co., Ltd., Praxair Technology, Inc., Lanxess AG, Mitsubishi Chemical Corporation, BASF SE, Dow Chemical Company, Reliance Industries Limited, Sibur, Shandong Jinling Petrochemical Co., Ltd., Qilu Petrochemical Corporation, Evonik Industries AG, Henan Huayi Chemical |
| Segments Covered |
Grade, Application, End-User Industry, Distribution Channel, Regional |
| Key Market Opportunities |
Increasing demand from the polyester industry Growing use in personal care products Expanding applications in pharmaceuticals Potential in biobased production Rising consumption in emerging markets. |
| Key Market Dynamics |
Rising demand from polytetramethylene ether glycol PTMEG Growing application in polybutylene terephthalate PBT Technological advancements |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The 1,3 Butanediol Market was valued at 1027.87 USD Billion in 2023 and is projected to reach 1427.5 USD Billion by 2032, exhibiting a CAGR of 3.71% during the forecast period.
The key regional markets for 1,3 Butanediol include North America, Europe, Asia-Pacific, Latin America, and the Middle East Africa. Among these, Asia-Pacific is expected to hold the largest market share during the forecast period.
1,3 Butanediol finds applications in the production of polyesters, polyurethanes, and solvents. It is also used as a feedstock in the manufacturing of pharmaceuticals, cosmetics, and personal care products.
Major players operating in the 1,3 Butanediol Market include BASF SE, Mitsubishi Chemical Corporation, LyondellBasell Industries Holdings, SABIC, and Evonik Industries AG
Key trends influencing the growth of the 1,3 Butanediol Market include rising demand for bio-based products, increasing adoption in the automotive and packaging industries, and growing awareness of sustainable manufacturing practices.
The 1,3 Butanediol Market faces challenges such as fluctuations in raw material prices, intense competition from alternative materials, and environmental regulations pertaining to the production and disposal of 1,3 Butanediol.
Growth opportunities for the 1,3 Butanediol Market lie in the expanding use of biodegradable plastics, increasing demand from emerging economies, and technological advancements leading to cost-effective production methods.
The COVID-19 pandemic had a moderate impact on the 1,3 Butanediol Market. While demand from certain industries declined, the overall market remained resilient due to increased demand from the packaging and healthcare sectors.
Key factors driving the growth of the 1,3 Butanediol Market include increasing consumer preference for sustainable products, rising demand from the automotive industry, and technological advancements in bio-based production methods
The 1,3 Butanediol Market is anticipated to exhibit a CAGR of 3.71% during the forecast period from 2024 to 2032.
