Butylenes Market Trends

Global Butylenes Market Overview

Butylenes Market Size was valued at USD 34.43 Billion in 2022. The butylene industry is projected to grow from USD 34.99 Billion in 2023 to USD 48.64 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 3.73% during the forecast period (2023 - 2032). Investments in renewable energy and the transition to cleaner sources of power, including wind and solar energy, are expected to be a significant market driver for the Butylenes Market.

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

Butylenes Market Trends

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  Increasing production of various petrochemical products and production of various plastic materials, including polyethylene and polypropylene is driving the market growth

  
  

Market CAGR for Butylenes is being driven by the Increasing production of various petrochemical products and production of various plastic materials, including polyethylene and polypropylene. Butylenes play a crucial role in the production of various petrochemical products, and according to the International Energy Agency (IEA), the increasing demand for petrochemicals is projected to be a significant driver of oil consumption growth. By 2030, petrochemicals are expected to account for over one-third of the growth in oil demand, and this share is anticipated to rise to nearly half by 2050, surpassing sectors like trucks, aviation, and shipping. Additionally, the petrochemicals industry is poised to consume an extra 56 billion cubic meters of natural gas by 2030, equivalent to roughly half of Canada's current total gas consumption. Furthermore, butylenes serve as essential feedstocks for the production of critical chemicals like butadiene, used in the manufacturing of synthetic rubber, and methyl tert-butyl ether (MTBE), an additive that enhances the octane rating of gasoline. The demand for these downstream products significantly influences and propels the butylene market forward.

Additionally, butylenes find extensive use in the production of various plastic materials, including polyethylene and polypropylene. The packaging industry in India is of particular significance, ranking as the country's fifth-largest sector and experiencing rapid growth. Over recent years, the packaging industry has been at the forefront of technological advancements and innovation in India, contributing value to diverse manufacturing sectors, including agriculture and the fast-moving consumer goods (FMCG) segments. According to data from the Indian Institute of Packaging (IIP), packaging consumption in India has increased by an impressive 200% over the past decade, rising from 4.3 kilograms per person per annum (pppa) in FY10 to 8.6 kg pppa in FY20. Despite this substantial growth, there is still substantial room for expansion in the Indian packaging industry when compared to more developed regions across the globe. As the packaging industry relies on butylenes for various applications, the growing demand for both flexible and rigid packaging materials directly contributes to the dynamics of the butylenes market.

As a result, it is anticipated that throughout the projection period, demand for the Butylenes Market will increase due to the Increasing production of various petrochemical products and production of various plastic materials, including polyethylene and polypropylene. Thus, driving the Butylenes Market revenue.

April 2024: Clariant, a firm specializing in sustainable chemicals, has recently introduced its newest catalyst, CATOFIN 312, which is used for propane dehydrogenation. The latest catalyst offers enhanced selectivity and a lifespan that is extended by up to 20%. Due to its enhanced efficiency, a standard 600 KTA PDH facility has the potential to generate an extra $20 million in profits throughout the lifespan of the catalyst. This offers clients a highly attractive opportunity to optimize their returns. CATOFIN is a catalyst technology that is in the forefront globally in the production of olefins, including propylene, isobutylene, and butylene/butadiene. CATOFIN technology has been selected for various PDH facilities globally because to its exceptional productivity and strong reliability. The CATOFIN method integrates Clariant's customized catalysts and Heat Generating Material (HGM) with Lummus's sophisticated technology, making it one of the rapidly expanding technologies for propylene production. Since 2017, CATOFIN has been chosen for 40 new projects globally.

Butylenes Market Segment Insights

Butylenes Market Type Insights

The Butylenes Market segmentation, based on Type includes 1-Butene and 2-Butene. The 1-Butene segment dominated the market, accounting for XX% of market revenue (XX Billion). The packaging industry, driven by the growth of e-commerce, food and beverage consumption, and consumer goods, relies heavily on LLDPE for the production of flexible packaging materials. 1-butene's role in LLDPE production makes it a key component in the packaging industry's supply chain. LLDPE, produced using 1-butene, is used in the construction industry for applications such as geomembranes, waterproofing membranes, and pipes. As infrastructure development continues, the demand for LLDPE and 1-butene in these applications is on the rise.

Figure 1: Butylenes Market, by Type, 2022 & 2032 (USD Billion)Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Butylenes Market Application Insights

The Butylenes Market segmentation, based on Application includes Butadiene, Methyl Ethyl Ketone, Butanol, and Others. The Butadiene segment dominated the market, accounting for XX% of market revenue (XX Billion). The automotive industry, driven by rising vehicle sales, expanding transportation networks, and the replacement tire market, relies heavily on synthetic rubber. Butadiene plays a critical role in enhancing the performance and durability of tires. With the automotive industry showing no signs of slowing down, the butadiene segment is expected to witness continuous growth. Synthetic rubber, produced using butadiene, is used in various applications apart from tires. Footwear, conveyor belts, gaskets, seals, and other industrial components are manufactured using these rubber materials, which creates additional demand for butadiene.

Butylenes 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 Butylenes market in North America can be attributed to several key factors. The proliferation of shale gas production in North America has resulted in an abundant supply of natural gas liquids (NGLs), which encompass valuable butylenes. These butylenes are extracted from NGLs as part of the natural gas processing procedure. In 2018, shale gas production in the United States reached a substantial 22.3 trillion cubic feet (Tcf), representing a significant portion of the country's overall gas output, at 75%. Furthermore, in 2018, shale oil production in the United States reached a remarkable 2.2 billion barrels of oil per day (bopd). In March 2019, Chevron Corporation, a prominent player in the oil industry, announced its plans to intensify exploration and production activities in the Permian Basin of the United States. The Permian Basin is a prominent shale reservoir recognized for its substantial shale gas production in the country. Additionally, Chevron holds a 50% operated interest in 290,000 net acres (1,174 square kilometers) in the Horn River and Liard shale basins located in British Columbia, Canada. This thriving shale gas supply has not only made butylenes more readily available but has also contributed to reduced production costs, thereby stimulating the growth of the butylenes market. This phenomenon underscores the significant impact of shale gas production on the industry's landscape and cost dynamics.

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: BUTYLENES MARKET SHARE BY REGION 2022 (USD Billion) Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe's Butylenes Market accounts for the second-largest market share as Europe has emerged as a leader in adopting renewable energy sources, with countries like Germany, Spain, and the United Kingdom showcasing substantial wind power capacity. Germany, in particular, boasts the largest installed wind power capacity in Europe, reaching 63.760 GW in 2021, sufficient to power approximately 3.4 million homes. The cumulative wind power capacity across the European Union was reported at 235.950 GW in 2021. The European Union introduced new legislation in July 2021, aimed at fulfilling its commitment to reduce greenhouse gas emissions by 55% over the current decade. This legislation includes measures such as taxing foreign companies for their emissions and expanding solar and wind power initiatives in the North Sea region to curtail greenhouse gas emissions in the power sector. The region's significant investments in renewable energy, particularly in wind and solar power, have created a rising demand for advanced chemicals. Among these, butylenes play a pivotal role in various renewable energy applications, thus contributing to the growth of the market. Further, the German Butylenes Market held the largest market share, and the UK Butylenes Market was the fastest-growing market in the European region

The Asia-Pacific Butylenes Market is expected to grow at the fastest CAGR from 2023 to 2032. The Asia-Pacific region holds a prominent position in the worldwide chemical manufacturing industry. Here, the chemical sector constitutes over 45% of the chemical manufacturing output and accounts for more than 69% of the industry's workforce. Butylenes, as essential feedstock, play a crucial role in the production of various chemicals. The dynamic growth observed in the chemical industry across the Asia-Pacific directly influences the demand for butylenes. This signifies the interdependence between the thriving chemical sector and the increasing need for butylenes in the region. Moreover, China’s Butylenes Market held the largest market share, and the Indian Butylenes Market was the fastest-growing market in the Asia-Pacific region.

Butylenes 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 Butylenes 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 Butylenes industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the Butylenes industry to benefit clients and increase the market sector. In recent years, the Butylenes industry has offered some of the most significant advantages to the petrochemical and plastics sectors. Major players in the Butylenes Market, including — Dow Chemical, BASF, DuPont, Mitsui Chemicals, and GE are attempting to increase market demand by investing in research and development operations.

Dow Chemical a company specializing in materials science, conducts its operations through its wholly-owned subsidiary, The Dow Chemical Co. (TDCC). Dow's product portfolio encompasses plastics, performance materials, coatings, silicones, and industrial intermediates. The company provides an array of products and solutions to customers in segments such as packaging, infrastructure, mobility, and consumer care. Dow's products are utilized in diverse industries, including home and personal care, durable goods, adhesives and sealants, coatings, as well as food and specialty packaging. The company maintains a presence, with operations spanning Latin America, Asia Pacific, North America, Europe, the Middle East, and Africa. Dow is headquartered in Midland, Michigan, USA.

BASF is a chemical company primarily engaged in the production, marketing, and sales of a diverse range of chemicals, plastics, crop protection products, and performance products. Its product portfolio includes a wide array of items such as solvents, adhesives, surfactants, fuel additives, electronic chemicals, pigments, paints, food additives, fungicides, and herbicides. BASF caters to numerous industries, including construction, furniture and wood, agriculture, electronics and electrical, paints and coatings, automotive, home care, nutrition, chemicals, and more. The company actively conducts research and development in collaboration with customers, scientists, and partners. It operates an extensive network of manufacturing facilities across the globe, maintaining a strong presence in regions such as Europe, Asia Pacific, South America, Africa, the Middle East, and North America. BASF is headquartered in Ludwigshafen, Germany.

Key companies in the Butylenes Market include

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  Dow Chemical

  
  


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  BASF

  
  


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  DuPont

  
  


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  Mitsui Chemicals

  
  


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  GE

  
  

Butylenes Industry Developments

In June 2019, Exon Mobil Corporation and SABIC announced the creation of a joint venture called Gulf Coast Growth Ventures, which plans to build a chemical plant and an ethane steam cracker in Texas. Its ultimate goal is to produce inputs for various goods, including but not limited to construction materials such as packaging and automotive coolants. Also, during the examination, there will be two polyethylene units and one mono-ethylene glycol unit.

SABIC made public its merger with SADAF, a Saudi petrochemical enterprise, as well as PETROKEMYA – An Arabian petrochemical company (Saudi basic industries corporation), in October 2019. This merger is aimed at increasing SABIC’s efficiency and competitiveness.

Lummus Technology has signed an MOU with Braskem Netherlands BV, which is among the largest biopolymer manufacturers globally and owned by Braskem, in November 2021. MOU is for Braskem’s ethanol-to-ethylene technology license, targeting the development of two projects in North America and Asia, respectively.

Dow intends to make the world’s first-ever integrated cracker and derivatives plant employing net-zero carbon emissions by October 2021. This project will triple Dow’s ethylene and polyethylene capacity while converting already existing business assets into zero carbon emitters.

Honeywell released new technological improvements meant to increase production rates from naphtha crackers into ethylene in March 2022.

In October 2023, Ichimaru Pharcos introduced Biobenefity conc (INCI: Butylene Glyco (and) Water (Aqua) (and) Cynara Scolymus (Artichoke) Leaf Extract), a concentrated cosmetic component that is a more environmentally sustainable version of Biobenefity (INCI: Cynara Scolymus (Artichoke) Leaf Extract). Biobenefity is a derivative acquired from the leaves of the artichoke plant. Cynaropicrin, an active chemical, inhibits the activation of NF-κB, a crucial element in the process of skin aging. It is a widely used natural component with anti-aging properties, known for its ability to prevent pigmentation, photoaging, and the appearance of prominent pores. The substance is now available as a new Biobenefity concentrated solution, with the active chemical cynaropicrin quantity raised by a factor of 10, according to the business.The condensed and concentrated nature of this form minimizes carbon dioxide emissions from transportation, decreases container waste, and optimizes storage space, so establishing it as an ecologically and SDGs-friendly source material. Furthermore, the heightened concentration of the active component makes it a viable option for greater dosages in formulations.     

Butylenes Market Segmentation

Butylenes Market Type Outlook

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  1-Butene

  
  


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  2-Butene

  
  

Butylenes Market Application Outlook

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  Butadiene

  
  


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  Methyl Ethyl Ketone

  
  


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  Butanol

  
  


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  Other

  
  

Butylenes Market Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


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


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • Rest of World
  
  
  
  


• Middle East
  
  
  
  • Africa
  
  
  • Latin America