Published: Aug, 2015
Leading players operating in the global butadiene market are aligning their operations with cost-competitive and eco-friendly production. Driven by this, the global butadiene market is forecast to report a steady growth between 2015 and 2023. According to a study by Transparency Market Research (TMR), companies operating in the market will focus on innovating technological processes to produce bio-based butadiene. Initiatives such as this will give the market significant impetus over the forecast period between 2015 and 2023. Some of the leading companies operating in the global butadiene market are The Dow Chemical Company, INEOS Group AG, Petrochemical Corporation of Singapore Pte. Ltd., and BASF SE.
According to TMR, the global butadiene market, valued at US$ 15.24 Bn in 2014, will reach US$ 23.45 Bn by the end of 2023. If these figures hold true, the global butadiene market will exhibit a CAGR of 4.9% between 2015 and 2023. Among product segments, the demand for synthetic butadiene was the highest in 2014. Be it as it may, TMR expects the bio-based butadiene segment to exhibit growth at the fastest pace over the forecast period. Regionally, Asia Pacific held the dominant share of 50% in the global butadiene market in 2014.
Rising Use in Production of Tires Will Create Growth Opportunities
In the coming years, the demand for butadiene will significantly rise in automotive and tire industries. Increasing use of butadiene derivatives such as ABS, butadiene rubber, and SB rubber in the processing of tires and various other automotive parts, will drive the market in the coming years. E-SBR and S-SBR are the most commonly used raw materials that go in the production of tires. Because these materials offer better grip and low rolling resistance, they help in curbing CO2 emission thus offering improved fuel economy. Such factors will fuel the demand for SB rubber products, in turn enabling the global butadiene market gain pace.
Volatile Raw Material Prices May Hamper Growth
In the coming, the demand from Asia Pacific is expected to rise. According to TMR, the demand for ABS will be especially high in Southeast Asia and China. This is likely to boost the global butadiene market. Furthermore, the market is likely to benefit from the introduction of novel technologies. On the downside, volatile raw material prices and stringent environmental regulations will continue creating obstacles to growth for the market.
Nonetheless, the increasing use of bio-based butadiene will boost its demand and production, alike, in the coming years. This is attributable to the stringent standards implemented across the world for the oil and gas sector. Also an increasing number of nations are aligning their operations with various eco-friendly initiatives to reduce dependence fossil fuels and their byproducts. A key point to note here is that, bio-based butadiene is pricier than their synthetic counterpart. Never mind this, rising competition is projected to shrink prices of various products in the market. Spurred by this, the global butadiene market will exhibit steady growth during the forecast period.
This review is based on a TMR report, titled “Butadiene Market (Product - Synthetic and Bio-based Butadiene; End User - Butadiene Rubber, Butadiene Rubber, Styrene Butadiene Latex, Acrylonitrile Butadiene Styrene, and Adiponitrile) - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2015 – 2023.”
The report segments the global butadiene market as:
Synthetic & Bio-based Butadiene Market – Product Segment Analysis
- Synthetic Butadiene
- Bio-based Butadiene
Synthetic & Bio-based Butadiene Market – End-user Analysis
- SB Rubber
- Butadiene Rubber
- SB Latex
- Others (Including Nitrile Rubber, Chloroprene Rubber, etc.)
Synthetic & Bio-based Butadiene Market – Regional Analysis
- North America
- Rest of North America
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- Latin America
- Rest of Latin America
- Middle East & Africa (MEA)
- South Africa
- Rest of Middle East & Africa
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