Butadiene Market Analysis

Global Butadiene Market Overview

Butadiene Market Size was valued at USD 10.8 Billion in 2022. The Butadiene industry is projected to grow from USD 11.8 Billion in 2023 to USD 24.64 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 9.60% during the forecast period (2023 - 2032). Factors such as growing demand from end-use industries improved functionality at lower cost and a rising number of automobiles are expected to be a significant market driver for the Butadiene Market.


Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Butadiene Market Trends

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  Rising carbon footprint across the world and increasing demand for renewable energy sources is driving the market growth

  
  

Market CAGR for butadiene is being driven by the increasing adoption of electric vehicles and the expanding chemical sector. The increasing adoption of electric vehicles is driving a surge in demand for automobile tires, consequently amplifying the need for butadiene. According to the International Energy Agency (IEA), the electric car stock experienced substantial growth, reaching ten million units in 2020, reflecting a remarkable 43% increase over 2019 and constituting 1% of the total vehicle stock. In the same year, battery electric vehicles accounted for two-thirds of new electric car registrations and two-thirds of the overall stock. Looking ahead to 2030, the New Policies Scenario predicts electric vehicle sales to reach 23 million units (excluding two-/three-wheelers). In the EV3030 Scenario, China is expected to witness a remarkable shift, with electric vehicles likely making up around 70% of total vehicle sales in 2030.

Additionally, the expanding chemical sector is poised to present substantial growth prospects throughout the forecast period. According to the India Brand Equity Foundation, the Indian chemicals industry, valued at US$ 178 billion in 2019, is projected to reach US$ 304 billion by 2025, demonstrating a robust Compound Annual Growth Rate (CAGR) of 9.3%. The demand for chemicals is set to expand by 9% annually by 2025, and the chemical industry is anticipated to contribute a significant US$ 300 billion to India's GDP by 2025. This underlines the substantial opportunities for growth within the chemical sector.

As a result, it is anticipated that throughout the projection period, demand for the Butadiene Market will increase due to the increasing adoption of electric vehicles and the expanding chemical sector. Thus, driving the Butadiene Market revenue.

Butadiene Market Segment Insights

Butadiene Market Product Type Insights

The Butadiene Market segmentation, based on Product Type includes Butadiene Rubber, Styrene Butadiene Rubber, Acrylonitrile Butadiene Rubber, Nitrile Butadiene Rubber, Styrene Butadiene Latex, and Hexamethylenediamine. The Styrene Butadiene Rubber segment dominated the market, accounting for 58% of market revenue (6.2 Billion). SBR is also used in the construction industry for applications such as asphalt modification, where it enhances the performance of asphalt pavements by improving their resistance to wear and environmental factors. With increased construction and infrastructure development projects worldwide, the demand for modified asphalt using SBR has grown.

Figure 1: Butadiene Market, by Product Type, 2022 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Butadiene Market Production Process Insights

The Butadiene Market segmentation, based on the Production Process includes C4 hydrocarbon extraction, n-butane dehydrogenation, ethanol, and butenes. From ethanol segment dominated the market, accounting for 58% of market revenue (6.2 Billion). The primary production process of butadiene from ethanol is called the oxidative dehydrogenation (ODH) process. It involves the dehydrogenation of ethanol, which means removing hydrogen atoms from ethanol molecules to obtain butadiene. Ethanol is initially dehydrated to produce ethylene. This step involves removing a water molecule from ethanol. Ethylene is then subjected to dehydrogenation to produce butadiene. This process involves removing hydrogen atoms from ethylene molecules.

Butadiene Market End-user Insights

The Butadiene Market segmentation, based on End-user includes Automobile Industries, Chemical, Plastics and Polymers, Building and construction, Consumer Products Industries, Healthcare, and Others. The Automobile Industries segment dominated the market, accounting for 60% of market revenue (6.4 Billion). A significant catalyst for the increased demand for butadiene within the automotive industry is its pivotal role in the production of synthetic rubber, particularly styrene-butadiene rubber (SBR) and polybutadiene rubber (PBR). These rubber types are integral to tire manufacturing, offering exceptional wear resistance and traction properties. Data from the U.S. Tire Manufacturers Association (USTMA) forecasts a rise in United States tire shipments, estimating a total of 342.1 million units in 2022, compared to 335.2 million units in 2021 and 332.7 million units in 2019. Furthermore, the tire manufacturing sector in the United States holds a substantial annual economic impact of USD 170.6 billion. Across the Atlantic, the European Tyre and Rubber Manufacturers' Association notes the presence of over 6,000 companies engaged in the production of rubber goods in Europe, with 98% of them being small and medium-sized enterprises (SMEs). These SMEs operate within an intricately interconnected value chain to cater to the specific requirements of their clientele. In light of the expanding automotive market, the need for tires is on the rise, subsequently driving up the demand for butadiene.

Butadiene Market Regional Insights

By region, the study provides market insights into North America, Europe, Asia-Pacific, and Rest of the World. The anticipated expansion of the Butadiene market in North America can be attributed to several key factors. In the United States, the automotive industry, a major consumer of synthetic rubber, especially for tire production, experienced a notable increase in new sales of light-duty electric vehicles in 2021. Sales surged to 608,000 units, up from 308,000 in 2020, with battery electric vehicles representing over 73% of the total electric vehicle sales. As the automotive sector plays a significant role in the nation's economy, contributing at least 3% to the overall GDP, and with the production of approximately 8.82 million vehicles in 2020, a resurgence in this industry can have a substantial impact on driving up the demand for butadiene. Increased consumer confidence and spending translate into higher vehicle sales, ultimately boosting the requirement for tires and, by extension, butadiene.

Further, the major countries studied in the market report are the US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: BUTADIENE MARKET SHARE BY REGION 2022 (USD Billion) 

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe's Butadiene Market accounts for the second-largest market share as The European automotive industry is currently in the midst of a substantial transition towards electric vehicles (EVs) and hybrid vehicles. According to data from the European Environment Agency, the penetration of electric cars, encompassing both battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs), in the EU market has been steadily increasing. New electric car registrations have risen from 600 in 2010 to approximately 1.74 million in 2021, constituting 18% of all new registrations. These numbers continued to climb in 2022, with nearly 22% of newly registered passenger cars being electric. BEVs accounted for 12.2% of the total new car registrations in 2022, while PHEVs represented 9.4%. While traditional internal combustion engines still hold a dominant position, the growth of EVs is poised to reshape the automotive industry's landscape. It's worth noting that EVs also rely on tires, and as a result, the demand for butadiene, a critical component in tire manufacturing, is anticipated to remain substantial amid this evolving automotive environment. Further, the German Butadiene Market held the largest market share, and the UK Butadiene Market was the fastest-growing market in the European region

The Asia-Pacific Butadiene Market is expected to grow at the fastest CAGR from 2023 to 2032. The Asia-Pacific region has established a commanding presence in the butadiene market. China, being one of the world's largest chemical manufacturing hubs with a diverse range of industries, is anticipated to experience substantial growth in its butadiene market. This growth is attributed to the considerable number of local industry players. China's butadiene market is especially promising, thanks to the presence of numerous domestic producers. The World Bank reports indicate that in 2021, China recorded significant net exports of butadiene rubber (BR) and synthetic rubber, totaling USD 377,211.44 and 187,926,000 kilograms in quantity, underscoring the country's robust position in the butadiene market. In India, a thriving market for butadiene has emerged, with 41 tire manufacturers and approximately 6,000 non-tire manufacturers specializing in seals, conveyor belts, extruded and molded rubber profiles for diverse applications spanning automotive, railway, defense, aerospace, and more. The World Bank data reveals that in 2021, India's net exports of butadiene rubber (BR) and synthetic rubber reached USD 232,943.90 and 123,199,000 kilograms in quantity. Butadiene serves as a crucial component in the production of intermediates like styrene-butadiene (SBR) and other materials, which, in turn, are used in the manufacture of various automotive products, including tires and conveyor belts. This dynamic landscape in Asia-Pacific underscores the significance of the butadiene market in the region's business and industrial context. Moreover, China’s Butadiene Market held the largest market share, and the Indian Butadiene Market was the fastest-growing market in the Asia-Pacific region.

Butadiene Market Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development to expand their product lines, which will help the Butadiene market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Butadiene industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the Butadiene industry to benefit clients and increase the market sector. In recent years, the Butadiene industry has offered some of the most significant advantages to the manufacturing and automotive sectors. Major players in the Butadiene Market, including China Petroleum & Chemical Corporation, Royal Dutch Shell Plc, Borealis AG., Versalis S.p.A., Eni S.p.A., Evonik Industries AG, Ineos Group AG, LANXESS, LG Chem, LyondellBasell Industries Holdings B.V., Nizhnekamskneftekhim., Repsol, SABIC, The Dow Chemical Company, TPC Group, Formosa Plastics Corporation, ZEON Corporation., Shanghai Petrochemical are attempting to increase market demand by investing in research and development operations.

China Petroleum & Chemical Corporation, a subsidiary of China Petrochemical Corporation, is a fully integrated energy and chemical company. It engages in various sectors, including oil and gas exploration, production, and marketing; oil refining; and the manufacturing, marketing, storage, and transportation of petrochemicals, chemical fibers, chemical fertilizers, and other chemical products. Additionally, the company handles the import and export of commodities such as crude oil, natural gas, refined oil products, petrochemicals, chemicals, and associated technologies. Their product lineup consists of refined oil products like gasoline, diesel, and jet fuel, as well as petrochemical products, which encompass synthetic resin, synthetic fiber monomers and polymers, chemical fertilizers, and petrochemical intermediates. Sinopec's headquarters are located in Beijing, China. In April 2023, Hainan Baling Chemical New Material Co., Ltd., a subsidiary of China Petroleum & Chemical Corporation (HKG: 0386, known as "Sinopec"), initiated production of its styrene-butadiene copolymer (SBC) project in Hainan, China. This project is set to achieve an annual production capacity of 170,000 tons.

Evonik Industries AG, a subsidiary of RAG-Stiftung, is a specialized chemical company with a diverse product portfolio that encompasses surfactants, polymers, resins, additives, and other chemical compounds. These products have a wide range of applications across various industries, including agriculture, renewable energy, paints and coatings, paper and printing, metals and oil, electrical and electronics, food and animal feed, consumer and personal care goods, pharmaceuticals, plastics, rubber, as well as automotive and construction sectors. Additionally, Evonik provides essential services such as process technology, technical support, logistics, utilities management, waste disposal, and engineering services. The company operates major production facilities in strategic locations like Germany, Belgium, the United States, China, and Singapore, serving a presence with operations spanning across North America, Asia-Pacific, Africa, South America, Europe, and other regions. Evonik's headquarters is situated in Essen, Nordrhein-Westfalen, Germany. In June 2022, Evonik introduced a line of sustainable liquid polybutadienes under the name POLYVEST® eCO, which is a part of their Coating & Adhesive Resins division. This innovative product range is created using sustainably sourced butadiene, significantly reducing reliance on fossil raw materials by up to 99.9%.

Key companies in the Butadiene Market include

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  China Petroleum & Chemical Corporation

  
  


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  Royal Dutch Shell Plc

  
  


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  Borealis AG

  
  


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  Versalis S.p.A.

  
  


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  Eni S.p.A.

  
  


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  Evonik Industries AG

  
  


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  Ineos Group AG

  
  


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  LANXESS

  
  


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  LG Chem

  
  


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  LyondellBasell Industries Holdings B.V.

  
  


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  Nizhnekamskneftekhim

  
  


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  Repsol

  
  


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  SABIC

  
  


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  The Dow Chemical Company

  
  


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  TPC Group

  
  


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  Formosa Plastics Corporation

  
  


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  ZEON Corporation

  
  


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  Shanghai Petrochemical

  
  

Butadiene Industry Developments

January 2021: In January 2021, Dow executed a sales agreement with Dow Europe GMBH as the seller and Trinseo Europe GMBH as the buyer. The contract pertains to the purchase and sale of butadiene and became effective on January 1, 2021, with a five-year duration.

February 2019: In February 2019, Bangkok Synthetics Co. Ltd., a player in the petrochemical industry, announced its intentions to boost butadiene production to an annual capacity of 80 kilotons by the year 2021.

Butadiene Market Segmentation

Butadiene Market Product Type Outlook

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  Butadiene Rubber

  
  


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  Styrene Butadiene Rubber

  
  


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  Acrylonitrile Butadiene Rubber

  
  


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  Nitrile Butadiene Rubber

  
  


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  Styrene Butadiene Latex

  
  


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  Hexamethylenediamine

  
  

Butadiene Market Production Process Outlook

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  C4 hydrocarbon extraction

  
  


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  n-butane dehydrogenation

  
  


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  From ethanol

  
  


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  From butenes

  
  

Butadiene Market End-user Outlook

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  Automobile Industries

  
  


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  Chemical

  
  


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  Plastics and Polymers

  
  


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  Building & Construction

  
  


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  Consumer Products Industries

  
  


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  Healthcare

  
  


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  Others

  
  

Butadiene Market Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America