Synthetic and Biobased Butadiene Market - Snapshot

Synthetic butadiene and biobased butadiene, termed as 1,3-butadiene, are non-corrosive, colorless gases that condense to a liquid form at -4.5°C. They have a mild aromatic odor. Synthetic butadiene is produced commercially by refinement of crude butylene concentration (C4) stream, a by-product of ethylene and propylene production.

synthetic and bio based butadiene market

Based on product type, the synthetic and biobased butadiene market can be bifurcated into synthetic and biobased. Synthetic was the leading segment in 2017 due to the wide consumption of synthetic butadiene in various end-uses including production of SBR, PBR, SB latex, NBR, and ABS. High crude oil prices and low natural gas prices in the U.S. have compelled petrochemical companies to shift their focus from oil-based naphtha cracking to natural gas-based ethane cracking. This has adversely affected the supply of butadiene. In turn, this has stimulated interest in on-purpose butadiene production from conventional and renewable feedstock. Interest in green tires has also been rising. These tires are manufactured from synthetic rubber derived from biobased monomers such as bio-isoprene and bio-butadiene. Genomatica and Cobalt Technologies entered into an agreement to produce biobased butadiene at their commercial plants within the next five years.

More than 75% of synthetic and biobased butadiene produced worldwide is primarily used in rubber products and the automotive industry. In rubber compound materials, synthetic and biobased butadiene are blended with natural and synthetic elastomers along with various processing oils. Then, they are heated to produce SBR, PBR, SB latex, ABS, adiponitrile, etc. Synthetic and biobased butadiene are used as rubber-reinforcing agents in the tire manufacturing industry due to their ability to provide better reinforcement and improved resilience, tear strength, conductivity, and other physical properties. PBR and SBR are employed in treads, sidewalls, and inner liners; non-tire applications such as mechanical rubber goods (MRG) including industrial rubber goods, membrane roofing, and automotive rubber parts (sealing systems, hoses, and anti-vibration parts); and general rubber goods such as hoses, belts, gaskets, and seals. SB latex is used in specialty sectors such as paints & coatings. ABS is largely employed in lightweight vehicles.

In terms of value, the global synthetic and biobased butadiene market is anticipated to expand at a CAGR of more than 5.4% from 2018 to 2026 to reach US$ 27966.0 Mn by 2026. In terms of volume and value, the synthetic segment held major share of more than 90% of the market in 2017. Biobased is a rapidly expanding segment of the market, led by the rise in demand for biobased butadiene in green tires and increase in environmental concerns.

Increase in demand for synthetic and biobased butadiene in automotive and rubber industries is anticipated to propel the market. Volatility in prices of raw materials (such as c4 mixed and oil butadiene feedstock) and hazardous gases emitted into the atmosphere during the manufacture of synthetic butadiene are major factors restraining the global synthetic butadiene market. A few substitutes for synthetic butadiene such as biobased derived butadiene and silica are available in the market. However, biobased derived butadiene is considered as internal substitute for synthetic butadiene.

In terms of volume, Asia Pacific held the leading share of more than 50% of the global synthetic and biobased butadiene market in 2017. China is a major producer of synthetic and biobased butadiene with a few major producers operating in the market in the country along with several small manufacturers. India is a key importer of synthetic and biobased butadiene from China. China and India account for majority of the demand for synthetic and biobased butadiene in Asia Pacific due to the expansion in tire manufacturing and paints & coatings industries in these countries. Asia Pacific is estimated to maintain its dominance in the global market throughout the forecast period. Tire manufacturers and the automotive industry are shifting their production base to developing countries in the region. The market share of Asia Pacific and Middle East & Africa is expected to increase at a rapid pace. Easy availability of crude oil and raw materials for the production of butadiene is encouraging prominent players to commence operations in these regions. Additionally, emerging economies of GCC countries are likely to propel the automotive industry in Middle East & Africa. This, in turn, is augmenting the synthetic and biobased butadiene market. The market share of North America, Europe, and Latin America is projected to rise at a sluggish pace between 2018 and 2026.

Around 70%-75% of the global synthetic and biobased butadiene market is consolidated, while the rest is fragmented. A few small players operate in the market. High degree of competition exists among market players. The market is dominated by large players. Prominent players profiled in the report are BASF SE, Eni S.p.A., Evonik Industries, Exxon Mobil Corporation, Petrochemical Corporation of Singapore Pte. Ltd., Repsol Group, Royal Dutch Shell Plc, Saudi Basic Industries Corporation, The Dow Chemical Company, TPC Group, Yeochun NCC Co., Ltd., INEOS Group AG, LyondellBasell Industries N.V., and Nizhnekamskneftekhim.

Synthetic and Biobased Butadiene Market - Overview

Butadiene, also known as 1, 3-butadiene, is a non-corrosive, colorless, and aromatic gas that can be condensed to a liquid form at a certain temperature. Synthetic butadiene is produced by petroleum refining of crude oil. Steam cracking of hydrocarbons, dehydrogenation of butane, and dehydration of ethanol are the conventional methods of butadiene production. Butadiene can also be prepared from renewable biomass feedstock.

Butadiene is largely employed in rubber applications. It is primarily used as chemical intermediate and monomer to produce polymers such as elastomers including SBR, PBR, and NBR. Various types of rubber manufactured by incorporating butadiene as a key intermediate include styrene-butadiene latex, acrylonitrile-butadiene-styrene (ABS), polybutadiene, and adiponitrile.

Based on end-use, the PBR segment held major share of the global synthetic and biobased butadiene market in 2017. This trend is likely to continue throughout the forecast period. SBR is a significant end-use segment of the global synthetic and biobased butadiene market. Synthetic and biobased butadiene are used as raw materials in the manufacture of SBR, synthetic butadiene latex, adiponitrile, and ABS. In terms of consumption, the automotive industry accounts for key share of the synthetic and biobased butadiene market. SBR, PBR, and ABS are used in the automotive industry for the production of tires and lightweight vehicles. In terms of volume, the PBR segment stood at 3,782.7 kilo tons in 2017. In terms of consumption, the biobased product type segment was highly attractive in 2017, due to the extensive demand to manufacture green tires.

In terms of volume and value, Asia Pacific constituted prominent share of the global synthetic and biobased butadiene market in 2017. The region is expected to continue its dominance throughout the forecast period. China and India are highly lucrative countries of the synthetic and biobased butadiene market in Asia Pacific. Stringent regulations imposed by the U.S. EPA (Environmental Protection Agency) on hazardous chemicals released from synthetic and biobased butadiene manufacturing facilities in the country are likely to hamper the synthetic and biobased butadiene market in North America during the forecast period. Market share of Europe is projected to decrease by the end of the forecast period, owing to the implementation of regulations about the environment, energy efficiency, and safe manufacture of tires in the region. The synthetic and biobased butadiene market in Latin America and Middle East & Africa is likely to expand at a sluggish pace during the forecast period. Volatility in prices of synthetic and biobased butadiene is adversely affecting the market in these regions, as several players are increasing the price of synthetic and biobased butadiene products.

This report analyzes and forecasts the market for synthetic and biobased butadiene at the global and regional levels. The market has been forecast in terms of revenue (US$ Mn) and volume (kilo tons) from 2018 to 2026, considering 2017 as the base year. The study includes market indicators, drivers, and restraints of the global synthetic and biobased butadiene market. It also covers the anticipated impact of these drivers and restraints on the demand for synthetic and biobased butadiene during the forecast period. The report also highlights opportunities in the synthetic and biobased butadiene market at the global and regional levels.

The report also analyzes price trends and forecasts prices of synthetic and biobased butadiene at the global and regional levels.

The report includes detailed value chain analysis, which provides a comprehensive view of the global synthetic and biobased butadiene market. Porter’s Five Forces model for the synthetic and biobased butadiene market has also been included to help understand the competition landscape of the market. The study encompasses market attractiveness analysis, wherein product type and end-use segments have been benchmarked based on their market value, growth rate, and general attractiveness.

The study provides a decisive view of the global synthetic and biobased butadiene market by segmenting it in terms of product type and end-use. In terms of product type, the market has been segmented into synthetic and biobased. In terms of end-use, the synthetic and biobased butadiene market has been segregated into styrene butadiene rubber (SBR), polybutadiene rubber (PBR), styrene butadiene latex (SB Latex), acrylonitrile butadiene styrene (ABS), adiponitrile, and others (including NBR and SSBR). Market segments have been analyzed based on the present and future trends. The regional segmentation includes the current and forecast demand for synthetic and biobased butadiene in North America, Europe, and Asia Pacific, Latin America, and Middle East & Africa.

The report provides the actual value of the synthetic and biobased butadiene market for 2017 and the forecast market size (in terms of value and volume) between 2018 and 2026. The size of the global synthetic and biobased butadiene market has been provided in terms of value (US$ Mn) and volume (kilo tons). The market value has been provided for the global, regional, sub-regional, and country-level markets.

Around 70%-75% of the global synthetic and biobased butadiene market is consolidated, while the rest is fragmented. A few small players operate in the market. High degree of competition exists among market players. The market is dominated by large players. Prominent players profiled in the report are BASF SE, Eni S.p.A., Evonik Industries, Exxon Mobil Corporation, Petrochemical Corporation of Singapore Pte. Ltd., Repsol Group, Royal Dutch Shell Plc, Saudi Basic Industries Corporation, The Dow Chemical Company, TPC Group, Yeochun NCC Co., Ltd., INEOS Group AG, LyondellBasell Industries N.V., and Nizhnekamskneftekhim.

The global synthetic and biobased butadiene market has been segmented as follows:

Global Synthetic and Biobased Butadiene Market, by Product Type

  • Synthetic
  • Biobased

Global Synthetic and Biobased Butadiene Market, by End-use

  • Styrene Butadiene Rubber (SBR)
  • Poly Butadiene Rubber (PBR)
  • Styrene Butadiene Latex (SB Latex)
  • Acrylonitrile Butadiene Styrene (ABS)
  • Adiponitrile
  • Others (including NBR and SSBR)

Global Synthetic and Biobased Butadiene Market, by Region

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • France
    • U.K.
    • Italy
    • Russia & CIS
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • ASEAN
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Middle East & Africa
    • GCC
    • South Africa
  • Rest of Middle East & Africa

Key Takeaways

  • Global and regional market share of the synthetic and biobased butadiene market in terms of volume (kilo tons) and value (US$ Mn), by different product types and end-use segments for the period between 2018 and 2026
  • Detailed analysis of the country-level demand for synthetic and biobased butadiene in countries/sub-regions including the U.S., Canada, Germany, the U.K., Italy, France, Russia & CIS, China, India, Japan, ASEAN, Brazil, Mexico, GCC, and South Africa with respect to different product type and end-use segments for the period from 2018 to 2026
  • Technical overview of the synthetic and biobased butadiene production process
  • Key indicators, drivers, restraints, and opportunities in the global synthetic and biobased butadiene market
  • Price trend forecasts of the global synthetic and biobased butadiene market in terms of product type and regional segments
  • Value chain analysis and Porter’s Five Forces analysis of the global synthetic and biobased butadiene market
  • SWOT analysis
  • Market attractiveness analysis of the global synthetic and biobased butadiene market, by product type and end-use segments
  • Key findings for the synthetic and biobased butadiene market in each region and in-depth analysis of major product type and end-use segments of the global synthetic and biobased butadiene market, in terms of volume and value
  • Competition matrix of key players operating in the market and market share of major companies
  • Detailed company profiles of 16 market players
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