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Butadiene Market - Forecasts from 2022 to 2027

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  • 135 Pages
  • August 2022
  • Region: Global
  • Knowledge Sourcing Intelligence LLP
  • ID: 5649229
The global butadiene market is projected to grow at a CAGR of 8.23% to reach a market size of US$17.114 billion in 2027 from US$9.841 billion in 2020.

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.

The demand for synthetic rubbers is heavily influenced by the automotive industry, impacting the butadiene market. At the same time, the supply is dependent on the ethylene industry- which is a primary product needed for the steam cracking method. Thus, the butadiene industry is heavily influenced by the demand-supply forces of other markets. The latter half of the forecast period is projected to be the prime revenue driver based on the anticipated recovery of the auto industry in that period. 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.

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. 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 stymie the butadiene market's expansion. The market's overall growth is expected to be hampered by variable raw material prices, as well as a stringent regulatory environment.

The market is expected to be dominated by polybutadiene (PBR). P BR (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 low 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 market for butadiene in the world was controlled 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. Because a big number of indigenous players are present. There are 41 tire manufacturers in India, as well as around 6,000 non-tire firms that produce seals, conveyor belts, and extruded and moulded rubber profiles for use in automobiles, railways, defence, aviation, and other applications. Aside from 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. According to the OICA, India's total industrial output in 2021 was 4,399,112 vehicles, which included commercial, passenger, three-wheeler, two-wheeler, & quadricycle vehicles. The automobile industry is expected to benefit from government reforms such as the "Aatma Nirbhar Bharat" and "Make in India" programs in the near future. As a result, in the future years, the aforementioned variables are projected to have a substantial impact on the market.


JSR Corporation's global elastomers division, which comprises the manufacture and distribution of synthetic rubber, was acquired by ENEOS Corporation, a Japanese oil corporation, in June 2021. By dividing the firm, JSR shall create a new company and transfer the elastomer business as well as the shares of worldwide subsidiaries and affiliates associated with this business to the new firm. ENEOS will then purchase all of the new company's shares, rendering it a wholly-owned subordinate.

Sinopec-SK Petrochemical Co., Ltd., a joint effort between Sinopec and SK Global Chemical, completed expanding new petrochemical facilities in April 2021 and initiated commercial operations in the second half of the year.

In January 2019, Toyo Engineering Korea Limited was awarded the Engineering, Procurement, and Construction project from Bangkok Synthetics Company Ltd. (BST) that involves the construction of 1,3-Butadiene & Butene-1 production units with a total capacity of 80 KTA & 34 KTA, respectively, at BST’s existing petrochemical complex in Map Ta Phut, Rayong, Thailand.

In January 2020, CPC Corporation reportedly resumed operations at one of its naphtha crackers in Taiwan after the significant maintenance of the site was completed that has the capacity of manufacturing 380 tons/year of ethylene - a major feedstock for butadiene and 193,000 tons/year of propylene.

TPC group announced recently that it would be rebuilding its butadiene processing facility located at South East Texas petrochemical complex that was destroyed in the November 2019 explosion.

MOL Group has a butadiene plant in Tiszaújváros, Hungary, with a capacity of 130kt/year. The company plans to expand the site from 2021 onwards with its new polyol complex.

JG Summit Holdings, Inc. recently announced its plans to start a new butadiene extraction unit to produce 70KTA butadiene and 89KTA raffinate-1.

COVID-19 Impact

COVID-19 had a highly negative impact on the butadiene market. The butadiene market is heavily influenced by the overall rubber demand which in turn is dependent on the automotive and airline industry, primarily for tire applications. The automotive industry was already going through a phase of slow demand due to weak global macroeconomic conditions, with global vehicle sales declining by 4.49% in 2019, following a 0.01% reduction in 2018 according to the International Organization of Motor Vehicle Manufacturers. However, the COVID-19 pandemic has aggravated the declining trend, with global vehicle sales anticipated to decline by more than 20%.


By Application

  • Styrene-Butadiene Rubber (SBR)
  • Polybutadiene
  • Nitrile Rubber
  • Styrene Butadiene Latex
  • Acrylonitrile Butadiene Styrene (ABS)
  • Adiponitrile
  • Polychloroprene

By Geography

  • North America
  • United States
  • Canada
  • Mexico
  • South America
  • Brazil
  • Argentina
  • Europe
  • Germany
  • United Kingdom
  • France
  • Italy
  • Middle East and Africa
  • Saudi Arabia
  • UAE
  • Asia Pacific
  • Japan
  • China
  • South Korea
  • India
  • Australia
  • Taiwan
Frequently Asked Questions about the Butadiene Market

What is the estimated value of the Butadiene Market?

The Butadiene Market was estimated to be valued at $9.84 billion in 2020.

What is the growth rate of the Butadiene Market?

The growth rate of the Butadiene Market is 8.2%, with an estimated value of $17.11 billion by 2027.

What is the forecasted size of the Butadiene Market?

The Butadiene Market is estimated to be worth $17.11 billion by 2027.

Who are the key companies in the Butadiene Market?

Key companies in the Butadiene Market include LOTTE Chemical Corporation, JSR Corporation, China Petroleum & Chemical Corporation, ENEOS Corporation, Zeon Corporation, Exxon Mobil Corporation, BASF SE, Shell Plc, TPC Group and LyondellBasell Industries Holdings B.V..

Table of Contents

1.1. Market Overview
1.2. Covid-19 Scenario
1.3. Market Definition
1.4. Market Segmentation
2.1. Research Data
2.2. Assumptions
3.1. Research Highlights
4.1. Market Drivers
4.2. Market Restraints
4.3. Porter’s Five Force 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
5.1. Introduction
5.2. Styrene-Butadiene Rubber (SBR)
5.3. Polybutadiene
5.4. Nitrile Rubber
5.5. Styrene Butadiene Latex
5.6. Acrylonitrile Butadiene Styrene (ABS)
5.7. Adiponitrile
5.8. Polychloroprene
5.9. Others
6.1. Introduction
6.2. North America
6.2.1. North America Butadiene Market, by Application
6.2.2. North America Butadiene Market, by Country The United States Canada Mexico
6.3. South America
6.3.1. South America Butadiene Market, by Application
6.3.2. South America Butadiene Market, by Country Brazil Argentina Others
6.4. Europe
6.4.1. Europe Butadiene Market, by Application
6.4.2. Europe Butadiene Market, by Country Germany The United Kingdom France Italy Others
6.5. Middle East and Africa
6.5.1. Middle East and Africa Butadiene Market, by Application
6.5.2. Middle East and Africa Butadiene Market, by Country Saudi Arabia UAE Others
6.6. Asia Pacific
6.6.1. Asia Pacific Butadiene Market, by Application
6.6.2. Asia Pacific Butadiene Market, by Country Japan China South Korea India Australia Taiwan Others
7.1. Major Players and Strategy Analysis
7.2. Emerging Players and Market Lucrativeness
7.3. Mergers, Acquisitions, Agreements, and Collaborations
7.4. Vendor Competitiveness Matrix
8.1. LOTTE Chemical Corporation
8.2. JSR Corporation
8.3. China Petroleum & Chemical Corporation
8.4. ENEOS Corporation
8.5. Zeon Corporation
8.6. Exxon Mobil Corporation
8.7. BASF SE
8.8. Shell Plc
8.9. TPC Group
8.10. LyondellBasell Industries Holdings B.V.
8.11. Reliance Industries Ltd.
8.13. Synthos

Companies Mentioned

  • LOTTE Chemical Corporation
  • JSR Corporation
  • China Petroleum & Chemical Corporation
  • ENEOS Corporation
  • Zeon Corporation
  • Exxon Mobil Corporation
  • Shell Plc
  • TPC Group
  • LyondellBasell Industries Holdings B.V.
  • Reliance Indus