Butadiene Market Size, Share, Opportunities, And Trends By Application (Styrene Butadiene Rubber (SBR), Polybutadiene, Nitrile Rubber, Styrene Butadiene Latex, Acrylonitrile Butadiene Styrene (ABS), Adiponitrile, Polychloroprene, Others), And By Geography - Forecasts From 2024 To 2029

The global butadiene market size is expected to grow at a CAGR of 7.04% to reach US$19.192 billion by 2029, from US$11.919 billion in 2022.

Butadiene is the primary raw material used to produce many elastomers, such as styrene-butadiene rubber (SBR), polybutadiene, and acrylonitrile butadiene styrene (ABS), styrene-butadiene, latex, and nitrile rubber among others. It is primarily produced through the steam cracking method but from butane or butene dehydrogenation as well.

MARKET TRENDS:

The diversity in the use of butadiene in end-user industries, as well as its excellent elastic properties, which are used in the electrical industry as an insulation solution for wires and cables, are anticipated to drive the growth of the butadiene market in the forecast period.  Furthermore, its use in the production of tire treads for passenger and commercial vehicles, golf balls, shoes, advanced manufacturing parts, automobile parts, rubber isolators, and casters, sandblasting hose inner tubes, pneumatic and water hose covers, conveyors, shoe soles, as well as polystyrene modifier is expected to accelerate the overall market growth.

Simultaneously, the growing investment in the construction industry boosted mainly by the expanding middle-class population and the focus of the government of the emerging economies to provide affordable housing for the mass population is further expected to push the demand for synthetic rubber for sealing, roofing, and flooring applications.

On the other side, issues such as a drop in output due to shale oil finds, as well as negative acute and chronic effects, are predicted to restrain the butadiene market's expansion. Furthermore, the market's overall growth is expected to be hampered by variable raw material prices, as well as a stringent regulatory environment.

MARKET DRIVERS:

• Advancement in technology is expected to influence butadiene market growth.

Technological developments are expected to have a significant impact on the butadiene market's growth trajectory. The implementation of innovative catalytic systems and substitute feedstocks in industrial processes holds the potential to improve productivity, lower expenses, and mitigate the ecological consequences linked to the manufacture of butadiene. Furthermore, research and development initiatives centred on the manufacture of butadiene through biotechnology exhibit great potential, providing a sustainable substitute for traditional butadiene obtained from petrochemicals.

Additionally, it is anticipated that developments in downstream applications and product development such as the production of specialty chemicals and high-performance polymers from butadiene derivatives will increase the market's attractiveness to a wider range of sectors. The market is positioned to take advantage of new possibilities as technology develops further, spurring innovation enhancing the capabilities of butadiene-based products, and fostering sustainable growth and competitiveness in the global marketplace.

• The expansion in the petrochemical industry is predicted to positively impact the butadiene market growth.

The growth trajectory of the butadiene market is expected to be significantly impacted positively by the expansion of the petrochemical sector. Butadiene is an essential component of many chemicals, such as synthetic rubber and resins, and is produced in a wide range of goods that are used in many different sectors. The demand for butadiene is predicted to rise in tandem with the petrochemical sector's significant worldwide development and diversification, which is being driven by rising levels of urbanization, industrialization, and consumer demand. Additionally, the petrochemical industry's development of novel applications and cutting-edge technology boosts demand for butadiene derivatives and promotes market expansion.

The demand for butadiene-based goods is driven by rising industrialization and infrastructure development initiatives in emerging nations, where this trend is most noticeable. Overall, the rise of the petrochemical industry points to both higher production capacity and the increasing significance of butadiene as a necessary component of the manufacturing sector, driving the market's continued innovation and growth.

MARKET RESTRAINTS:

The butadiene industry is expected to grow, but several significant obstacles might prevent it from doing so. The price volatility of crude oil directly affects the cost of producing butadiene, therefore it presents a big obstacle for market players. Additionally, concerns regarding environmental sustainability and carbon emissions associated with traditional butadiene production methods may lead to stricter regulatory measures, increasing compliance costs and limiting market access. In addition, the market might be unstable due to supply chain interruptions and geopolitical unrest, which can influence the availability of raw materials and trading patterns.

Furthermore, the butadiene market is susceptible to changes in consumer demand and the state of the economy due to its reliance on important end-use sectors like construction and automotive. Moreover, strategic planning, creativity, and industry cooperation are needed to address these constraints and enable resilient growth that can withstand setbacks.

The market is expected to be dominated by polybutadiene (PBR). PBR (polybutadiene rubber) is a synthetic rubber that is used to replace natural rubber. Low hysteresis loss, superior elastic properties, strong wear resistance due to low surface tension and strength qualities, and hysteresis loss are all features of polybutadiene rubber.  Polybutadiene rubber also has a high degree of elasticity and resilience to dynamical fatigue at relatively low temperatures.  The industry for polybutadiene is expected to grow as a result of all of these causes.

The Asia Pacific region is anticipated to hold a significant share of the market.

The butadiene market is expected to be dominated by the Asia-Pacific region. The downstream industry in Asia-Pacific has grown dramatically in recent years, resulting in significant growth in demand for butadiene. With a diverse spectrum of industries, China is one of the world's greatest chemical manufacturing hubs. The butadiene market in China is predicted to increase significantly.

Besides that, the Asia-Pacific area is the world's largest car production. Butadiene is used to make intermediaries like styrene-butadiene (SBR) and many others, which are then used to make tires, conveyor belts, and other automotive products. The automobile industry is expected to benefit from government reforms such as the "Aatma Nirbhar Bharat" and "Make in India" programs. As a result, in the future years, the aforementioned variables are projected to have a substantial impact on the market.

Key Developments:

• In January 2024, at the Michelin facility in Bassens, close to Bordeaux, IFPEN, Axens, and Michelin officially opened the first industrial-scale demonstration of a plant generating bio-based butadiene in France.
• In April 2023, The China Petroleum & Chemical Corporation subsidiary Hainan Baling Chemical New Material Co., Ltd. began production of its styrene-butadiene copolymer (SBC) project (the "Project") in Hainan, China. The Project is expected to attain a production capacity of 170,000 tonnes annually.
• In March 2023, the new petrochemical plant of Butadiene LLP in Atyrau, Kazakhstan featured Lummus Technology's iC4 CATOFIN®, CATADIENE®, and CDMtbe® technologies as well as BASF's butadiene extraction technology.

Butadiene Market Scope:

 

Report Metric	Details
Market Size Value in 2022	US$11.919 billion
Market Size Value in 2029	US$19.192 billion
Growth Rate	CAGR of 7.04% from 2022 to 2029
Study Period	2019 to 2029
Historical Data	2019 to 2022
Base Year	2023
Forecast Period	2024 – 2029
Forecast Unit (Value)	USD Billion
Segments Covered	Application Geography
Companies Covered	LOTTE Corporation JSR Corporation Sinopec ENEOS Corporation Zeon Corporation
Regions Covered	North America, South America, Europe, Middle East and Africa, Asia Pacific
Customization Scope	Free report customization with purchase

 

Segmentation:

• By Application
  • Styrene-Butadiene Rubber (SBR)
  • Polybutadiene
  • Nitrile Rubber
  • Styrene Butadiene Latex
  • Acrylonitrile Butadiene Styrene (ABS)
  • Adiponitrile
  • Polychloroprene
  • Others
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others 
  • Europe
    • United Kingdom
    • Germany
    • France
    • Spain
    • Others 
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Israel
    • Others 
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Taiwan
    • Thailand
    • Indonesia
    • Others

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1. INTRODUCTION

1.1. Market Overview

1.2. Market Definition

1.3. Scope of the Study

1.4. Market Segmentation

1.5. Currency

1.6. Assumptions

1.7. Base, and Forecast Years Timeline

1.8. Key Benefits for the stakeholder

2. RESEARCH METHODOLOGY  

2.1. Research Design

2.2. Research Processes

3. EXECUTIVE SUMMARY

3.1. Key Findings

3.2. Analyst View

4. MARKET DYNAMICS

4.1. Market Drivers

4.2. Market Restraints

4.3. Porter’s Five Forces Analysis

4.3.1. Bargaining Power of Suppliers

4.3.2. Bargaining Power of Buyers

4.3.3. Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4. Industry Value Chain Analysis

4.5. Analyst View

5. BUTADIENE MARKET, BY APPLICATION

5.1. Introduction

5.2. Styrene – Butadiene Rubber (SBR)

5.2.1. Market Trends and Opportunities

5.2.2. Growth Prospects

5.2.3. Geographic Lucrativeness

5.3. Polybutadiene

5.3.1. Market Trends and Opportunities

5.3.2. Growth Prospects

5.3.3. Geographic Lucrativeness

5.4. Nitrile Rubber

5.4.1. Market Trends and Opportunities

5.4.2. Growth Prospects

5.4.3. Geographic Lucrativeness

5.5. Styrene Butadiene Latex

5.5.1. Market Trends and Opportunities

5.5.2. Growth Prospects

5.5.3. Geographic Lucrativeness

5.6. Acrylonitrile Butadiene Styrene (ABS)

5.6.1. Market Trends and Opportunities

5.6.2. Growth Prospects

5.6.3. Geographic Lucrativeness

5.7. Adiponitrile

5.7.1. Market Trends and Opportunities

5.7.2. Growth Prospects

5.7.3. Geographic Lucrativeness

5.8. Polychloroprene

5.8.1. Market Trends and Opportunities

5.8.2. Growth Prospects

5.8.3. Geographic Lucrativeness

5.9. Others

5.9.1. Market Trends and Opportunities

5.9.2. Growth Prospects

5.9.3. Geographic Lucrativeness

6. BUTADIENE MARKET, BY GEOGRAPHY

6.1. Introduction

6.2. North America

6.2.1. By Application

6.2.2. By Country

6.2.2.1. USA

6.2.2.1.1. Market Trends and Opportunities

6.2.2.1.2. Growth Prospects

6.2.2.2. Canada

6.2.2.2.1. Market Trends and Opportunities

6.2.2.2.2. Growth Prospects

6.2.2.3. Mexico

6.2.2.3.1. Market Trends and Opportunities

6.2.2.3.2. Growth Prospects

6.3. South America

6.3.1. By Application

6.3.2. By Country

6.3.2.1. Brazil

6.3.2.1.1. Market Trends and Opportunities

6.3.2.1.2. Growth Prospects

6.3.2.2. Argentina

6.3.2.2.1. Market Trends and Opportunities

6.3.2.2.2. Growth Prospects

6.3.2.3. Others

6.3.2.3.1. Market Trends and Opportunities

6.3.2.3.2. Growth Prospects

6.4. Europe

6.4.1. By Application

6.4.2. By Country

6.4.2.1. United Kingdom

6.4.2.1.1. Market Trends and Opportunities

6.4.2.1.2. Growth Prospects

6.4.2.2. Germany

6.4.2.2.1. Market Trends and Opportunities

6.4.2.2.2. Growth Prospects

6.4.2.3. France

6.4.2.3.1. Market Trends and Opportunities

6.4.2.3.2. Growth Prospects

6.4.2.4. Spain

6.4.2.4.1. Market Trends and Opportunities

6.4.2.4.2. Growth Prospects

6.4.2.5. Others

6.4.2.5.1. Market Trends and Opportunities

6.4.2.5.2. Growth Prospects

6.5. Middle East and Africa

6.5.1. By Application

6.5.2. By Country

6.5.2.1. Saudi Arabia

6.5.2.1.1. Market Trends and Opportunities

6.5.2.1.2. Growth Prospects

6.5.2.2. UAE

6.5.2.2.1. Market Trends and Opportunities

6.5.2.2.2. Growth Prospects

6.5.2.3. Israel

6.5.2.3.1. Market Trends and Opportunities

6.5.2.3.2. Growth Prospects

6.5.2.4. Others

6.5.2.4.1. Market Trends and Opportunities

6.5.2.4.2. Growth Prospects

6.6. Asia Pacific

6.6.1. By Application

6.6.2. By Country

6.6.2.1. China

6.6.2.1.1. Market Trends and Opportunities

6.6.2.1.2. Growth Prospects

6.6.2.2. Japan

6.6.2.2.1. Market Trends and Opportunities

6.6.2.2.2. Growth Prospects

6.6.2.3. India

6.6.2.3.1. Market Trends and Opportunities

6.6.2.3.2. Growth Prospects

6.6.2.4. South Korea

6.6.2.4.1. Market Trends and Opportunities

6.6.2.4.2. Growth Prospects

6.6.2.5. Taiwan

6.6.2.5.1. Market Trends and Opportunities

6.6.2.5.2. Growth Prospects

6.6.2.6. Thailand

6.6.2.6.1. Market Trends and Opportunities

6.6.2.6.2. Growth Prospects

6.6.2.7. Indonesia

6.6.2.7.1. Market Trends and Opportunities

6.6.2.7.2. Growth Prospects

6.6.2.8. Others

6.6.2.8.1. Market Trends and Opportunities

6.6.2.8.2. Growth Prospects

7. COMPETITIVE ENVIRONMENT AND ANALYSIS

7.1. Major Players and Strategy Analysis

7.2. Market Share Analysis

7.3. Mergers, Acquisitions, Agreements, and Collaborations

7.4. Competitive Dashboard

8. COMPANY PROFILES

8.1. LOTTE Corporation

8.2. JSR Corporation

8.3. Sinopec

8.4. ENEOS Corporation

8.5. Zeon Corporation

8.6. Exxon Mobil Corporation

8.7. BASF SE

8.8. Shell Plc

8.9. LyondellBasell Industries Holdings B.V.

8.10. Reliance Industries Ltd.

LOTTE Corporation

JSR Corporation

Sinopec

ENEOS Corporation

Zeon Corporation

Exxon Mobil Corporation

BASF SE

Shell Plc

LyondellBasell Industries Holdings B.V.

Reliance Industries Ltd.