Global Synthetic Bio Based Butadiene Market Overview
The Synthetic Bio Based Butadiene Market Size was estimated at 15.56 (USD Billion) in 2022.The Synthetic Bio Based Butadiene Industry is expected to grow from 16.65(USD Billion) in 2023 to 30.63 (USD Billion) by 2032. The Synthetic Bio Based Butadiene Market CAGR (growth rate) is expected to be around 7.01% during the forecast period (2024 - 2032).
Key Synthetic Bio Based Butadiene Market Trends Highlighted
The global synthetic and bio-based butadiene market is experiencing significant growth, driven by the rising demand for tires, rubber goods, and plastics. The automotive industry is a major consumer of butadiene, with tires accounting for over 70% of its consumption. The increasing popularity of electric vehicles is expected to boost the demand for butadiene, as they require specialized tires with lower rolling resistance and higher grip. Additionally, the growing construction and packaging industries are also contributing to the market growth.Opportunities in the synthetic and bio-based butadiene market lie in the development of sustainable and bio-based feedstocks. Bio-based butadiene, derived from renewable resources like biomass, is gaining traction due to its environmental benefits. The market is also witnessing the emergence of new technologies, such as catalytic dehydrogenation, which offer more efficient and cost-effective ways to produce butadiene.Recent trends in the market include the consolidation of the industry, with major players acquiring smaller companies to gain market share. Strategic collaborations between chemical companies and automotive manufacturers are also becoming more common, as they seek to optimize supply chains and meet the evolving needs of the industry.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Synthetic Bio Based Butadiene Market Drivers
Growing Demand for Synthetic Rubber
The increasing demand for synthetic rubber is a major driver of the Synthetic Bio Based Butadiene Market Industry. Synthetic rubber is used in a wide range of applications, including tires, hoses, and belts. The growing automotive industry is a major factor driving the demand for synthetic rubber, as tires are a major component of vehicles. In addition, the increasing use of synthetic rubber in other industries, such as construction and manufacturing, is also contributing to the growth of the market.The Synthetic Bio Based Butadiene Market Industry is expected to continue to grow as the demand for synthetic rubber increases.
Rising Environmental Concerns
Rising environmental concerns are another major driver of the Synthetic Bio Based Butadiene Market Industry. Traditional methods of producing butadiene, a key feedstock for synthetic rubber, can be harmful to the environment. Bio-based butadiene, which is produced from renewable resources, is a more environmentally friendly alternative to traditional butadiene. The increasing demand for bio-based butadiene is driving the growth of the Synthetic Bio Based Butadiene Market Industry.
Technological Advancements
Technological advancements are also driving the growth of the Synthetic Bio Based Butadiene Market Industry. New technologies are being developed to improve the efficiency and cost-effectiveness of producing synthetic and bio-based butadiene. These advancements are making synthetic and bio-based butadiene more competitive with traditional butadiene, which is further driving the growth of the market.
Synthetic Bio Based Butadiene Market Segment Insights
Synthetic Bio Based Butadiene Market Application Insights
The application segment of the global synthetic bio-based butadiene market holds significant importance, influencing the overall market growth and dynamics. Styrene-butadiene rubber (SBR), polybutadiene rubber (PBR), nitrile rubber (NBR), adiponitrile (ADN), and 1,3-butadiene are the key applications that drive the market demand. SBR holds the largest market share, accounting for approximately 60% of the global synthetic bio-based butadiene market revenue in 2023. Its extensive use in the automotive industry, particularly in tire manufacturing, contributes to its dominance.The increasing production of passenger and commercial vehicles worldwide is expected to fuel the demand for SBR in the coming years. PBR, another significant application, finds its primary use in the production of high-performance tires, conveyor belts, and hoses. Its superior resistance to abrasion, heat, and chemicals makes it a preferred choice for demanding applications. The growing demand for durable and long-lasting tires in various industries, including construction, mining, and agriculture, is expected to drive the growth of the PBR segment.NBR, known for its excellent oil and fuel resistance, is widely used in the automotive, aerospace, and oil gas industries. Its ability to withstand harsh environments makes it suitable for applications such as seals, gaskets, and hoses. The increasing demand for fuel-efficient vehicles and the growing oil gas exploration activities are expected to positively impact the NBR market. ADN, a key intermediate in the production of nylon, finds its major application in the textile industry. The rising demand for synthetic fibers, particularly nylon, is expected to drive the growth of the ADN segment.The increasing use of nylon in clothing, carpets, and industrial applications is contributing to the market expansion. 1,3-butadiene, the pure form of butadiene, is primarily used in the production of synthetic rubber, plastics, and chemicals. Its versatility and wide range of applications make it an essential raw material in various industries. The growing demand for lightweight and durable materials in the automotive and aerospace sectors is expected to drive the demand for 1,3-butadiene. Overall, the application segment of the global synthetic bio-based butadiene market is expected to witness steady growth in the coming years.The increasing demand for high-performance materials, coupled with the growing automotive, construction, and oil gas industries, is expected to drive the market expansion. Strategic investments in research and development to improve the efficiency and sustainability of butadiene production processes are likely to further enhance the market growth prospects.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Synthetic Bio Based Butadiene Market Feedstock Insights
The Synthetic Bio Based Butadiene Market is segmented based on feedstock into Petroleum, Naphtha, Butane, Ethanol, and Bio-Based Feedstock. Among these, the Petroleum segment held the largest market share in 2023, accounting for over 60% of the Synthetic Bio Based Butadiene Market revenue. This dominance is attributed to the wide availability and cost-effectiveness of petroleum as a feedstock for butadiene production. However, the Bio-Based Feedstock segment is expected to witness significant growth over the forecast period, owing to increasing concerns regarding the environmental impact of fossil fuel-based feedstocks and rising demand for sustainable alternatives.
Synthetic Bio Based Butadiene Market End-Use Industry Insights
The End-Use Industry segment plays a crucial role in shaping the Synthetic Bio Based Butadiene Market. Automotive, construction, packaging, consumer products, and industrial applications are the key end-use industries driving market growth. The automotive industry is projected to account for a significant share of the market, owing to the increasing production of vehicles and the rising demand for synthetic rubber in tire manufacturing. The construction industry is also expected to witness steady growth, fueled by the rising construction activities and the increasing use of butadiene-based polymers in building and infrastructure applications.Furthermore, the packaging industry is anticipated to contribute to market growth due to the growing demand for flexible packaging solutions and the increasing adoption of butadiene-based plastics. Consumer products, such as toys, sporting goods, and appliances, are also expected to drive market growth, as butadiene is used in the production of various plastic components. Industrial applications, including the manufacturing of adhesives, sealants, and lubricants, are projected to further contribute to the market's expansion.
Synthetic Bio Based Butadiene Market Production Process Insights
Butadiene Extraction from Petroleum remains the dominant Production Process segment in the Synthetic Bio Based Butadiene Market, accounting for a sizable revenue share. The segment benefits from the well-established infrastructure and cost-effectiveness of extracting butadiene from petroleum sources. However, the growing emphasis on sustainability and the increasing availability of bio-based alternatives are anticipated to challenge the dominance of Butadiene Extraction from Petroleum in the long term. Butadiene Production via Ethanol Dehydration is gaining traction as a more sustainable alternative to petroleum-based butadiene production.This process involves the dehydration of bio-ethanol derived from renewable feedstocks, such as sugarcane and corn. The Synthetic Bio Based Butadiene Market for Butadiene Production via Ethanol Dehydration is expected to witness significant growth in the coming years, driven by rising environmental concerns and government incentives for renewable energy sources. Bio-Based Butadiene Production, which utilizes renewable resources like biomass and plant-based materials, is still in its early stages of development. However, it holds immense potential for sustainable butadiene production.The segment is expected to grow rapidly in the future, supported by advancements in technology and increasing demand for eco-friendly materials.
Synthetic Bio Based Butadiene Market Product Type Insights
The Synthetic Bio Based Butadiene Market segmentation by product type includes Synthetic Butadiene and Bio-Based Butadiene. Synthetic Butadiene holds the largest market share due to its wide application in the production of synthetic rubber, particularly styrene-butadiene rubber (SBR) and polybutadiene rubber (PBR). SBR is extensively used in the automotive industry for manufacturing tires, while PBR finds applications in various industries, including automotive, construction, and consumer goods. Bio-Based Butadiene, derived from renewable resources, is gaining traction as a sustainable alternative to synthetic butadiene.The growing demand for bio-based and environmentally friendly products is driving the growth of the Bio-Based Butadiene segment. The Synthetic Bio Based Butadiene Market revenue is projected to reach USD 18.86 billion in 2023 and is expected to grow at a CAGR of 7.5% from 2023 to 2028.
Synthetic Bio Based Butadiene Market Regional Insights
The Synthetic Bio Based Butadiene Market is segmented into North America, Europe, APAC, South America, and MEA. The APAC region is projected to dominate the market in terms of revenue, with a share of 39.8% by 2032. This is due to the increasing demand for synthetic and bio-based butadiene from the automotive and construction industries in the region. This growth is attributed to the growing demand for bio-based butadiene from the renewable energy industry. The European region is also expected to witness a steady market growth, with a CAGR of 6.4% during the forecast period.This growth is attributed to the increasing demand for synthetic and bio-based butadiene from the automotive and packaging industries in the region. The South American and MEA regions are expected to witness a moderate market growth during the forecast period.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Synthetic Bio Based Butadiene Market Key Players And Competitive Insights
Major players in Synthetic Bio Based Butadiene Market industry are constantly striving to gain a competitive edge by investing in research and development, forming strategic partnerships, and expanding their production capacities. Leading Synthetic Bio Based Butadiene Market players are focusing on developing innovative products and technologies to meet the evolving demands of end-users. The Synthetic Bio Based Butadiene Market Competitive Landscape is characterized by intense competition, with key players adopting various strategies to differentiate themselves and gain market share.LyondellBasell is a leading global supplier of synthetic butadiene. The company operates one of the world's largest butadiene production facilities, located in Channelview, Texas. LyondellBasell's butadiene is used in a variety of applications, including the production of synthetic rubber, plastics, and chemicals. The company is also a major supplier of bio-based butadiene, which is produced from renewable resources.Another major player in the Synthetic Bio Based Butadiene Market is SABIC. The company is a global leader in the production of petrochemicals and plastics. SABIC's butadiene is used in a variety of applications, including the production of tires, automotive parts, and appliances. The company is also a major supplier of bio-based butadiene, which is produced from renewable resources.
Key Companies in the Synthetic Bio Based Butadiene Market Include
- LG Chem
- Reliance Industries
- BASF
- Dow
- LyondellBasell
- SIBUR
- ExxonMobil
- Braskem
- Saudi Aramco
- Sinopec
- TPC Group
- INEOS
- SABIC
- Chevron Phillips Chemical
Synthetic Bio Based Butadiene Market Industry Developments
Recent developments in the global synthetic and bio-based butadiene market include increased investments in bio-based butadiene production, driven by environmental concerns and government regulations favoring renewable resources. Major players such as Versalis and LanzaTech are expanding their production capacities to meet the growing demand for sustainable alternatives to traditional butadiene derived from fossil fuels. Technological advancements, such as the development of more efficient catalysts and processes, are also contributing to the growth of the bio-based butadiene segment. The market is expected to witness significant growth in the coming years, with a focus on sustainability and the increasing adoption of bio-based materials.
Synthetic Bio Based Butadiene Market Segmentation Insights
- Synthetic Bio Based Butadiene Market Application Outlook
- Styrene-Butadiene Rubber (SBR)
- Polybutadiene Rubber (PBR)
- Nitrile Rubber (NBR)
- Adiponitrile (ADN)
- 1,3-Butadiene
- Synthetic Bio Based Butadiene Market Feedstock Outlook
- Petroleum
- Naphtha
- Butane
- Ethanol
- Bio-Based Feedstock
- Synthetic Bio Based Butadiene Market End-Use Industry Outlook
- Automotive
- Construction
- Packaging
- Consumer Products
- Industrial Applications
- Synthetic Bio Based Butadiene Market Production Process Outlook
- Butadiene Extraction from Petroleum
- Butadiene Production via Ethanol Dehydration
- Bio-Based Butadiene Production
- Synthetic Bio Based Butadiene Market Product Type Outlook
- Synthetic Butadiene
- Bio-Based Butadiene
| Report Attribute/Metric |
Details |
| Market Size 2022 |
15.56(USD Billion) |
| Market Size 2023 |
16.65(USD Billion) |
| Market Size 2032 |
30.63(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
7.01% (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 |
LG Chem, Reliance Industries, BASF, Dow, LyondellBasell, SIBUR, ExxonMobil, Braskem, Saudi Aramco, Sinopec, TPC Group, INEOS, SABIC, Chevron Phillips Chemical |
| Segments Covered |
Application, Feedstock, End-Use Industry, Production Process, Product Type, Regional |
| Key Market Opportunities |
Growing demand from automotive industry Increasing adoption in bioplastics Emerging applications in electronics Expansion into emerging markets and Government policies supporting renewable materials |
| Key Market Dynamics |
Growing demand for tires increasing adoption of biobased butadiene rising automotive production stringent environmental regulations technological advancements |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Synthetic Bio Based Butadiene Market is expected to reach USD 30.63 Billion by 2032, expanding at a CAGR of 7.01% from 2024 to 2032.
Asia Pacific is expected to account for the largest market share, owing to the increasing demand for butadiene in the automotive and tire industries in the region.
Rising demand for lightweight and fuel-efficient vehicles, growing construction activities, and increasing awareness about sustainability are the key growth drivers of the market.
Synthetic Bio Based Butadiene is primarily used in the production of synthetic rubber, which is used in tires, hoses, and other automotive components.
Key players in the market include BASF, LyondellBasell, SABIC, and Dow.
The growing focus on sustainability is driving the demand for bio-based butadiene, which is produced from renewable feedstocks.
Fluctuating raw material prices, technological advancements, and intense competition are some of the challenges faced by the market.
The adoption of advanced technologies, such as artificial intelligence and machine learning, is an emerging trend in the market.
The market is projected to grow at a CAGR of 7.01% from 2024 to 2032.
2023 is considered as the base year and 2032 is considered as the end year for the market analysis.
