Butadiene Market - Size, Share, Industry Trends, and Forecasts (2024 - 2031)

By Application:

Based on application the market is segmented into Styrene-butadiene rubber (SBR), Acrylonitrile Butadiene Styrene (ABS), Polybutadiene Rubber (PBR), Nitrile Butadiene Rubber (NBR), SB Latex, and others.

Trends in the Application:

• Ongoing advancements in SBR production technology and formulation enhance its properties and expand its applications, maintaining its competitive edge in the market.

The styrene-butadiene rubber (SBR) accounted for the largest revenue share of 35.02% in the year 2023.

• SBR is a widely used synthetic rubber with extensive applications across various industries, primarily due to its versatile properties and performance characteristics.
• It maintains flexibility at various temperatures, enhancing its performance in different environmental conditions.
• The largest application of SBR is in tire manufacturing, where it is used in the tread and sidewalls of tires. SBR offers excellent abrasion resistance, durability, and performance characteristics that make it ideal for automotive tires.
• It is also utilized in adhesives, coatings, and other industrial products. Its properties make it suitable for use in a wide range of applications where flexibility and durability are required.
• For instance, according to TRP polymer solutions SBR has stood the test of time as an indispensable feedstock for our modern world. Its stability, resilience, and versatility have allowed it to permeate industries as diverse as transportation, footwear manufacturing, machinery production, and construction.
• Thus, as per the segmental analysis, SBR is driven by its widespread use in tire manufacturing, automotive components, and various industrial applications.

The acrylonitrile butadiene styrene (ABS) segment is anticipated to register the fastest CAGR during the forecast period.

• ABS is widely used in the production of durable and aesthetically pleasing consumer electronics and household appliances. Its strength, impact resistance, and ease of processing make it ideal for these applications.
• It is used extensively in automotive interior components such as dashboards, trim, and panels. Its ability to be molded into complex shapes and its resistance to impact and wear make it suitable for these applications.
• The rise of 3D printing and additive manufacturing has increased the butadiene market demand for ABS as it is one of the most commonly used materials in 3D printers due to its excellent printability and finish.
• The automotive market growth is driven by technological opportunities and increasing vehicle production, contributing to the butadiene market share for ABS in automotive components.
• For instance, Ruitai Mould uses ABS pellets or granules for molding. Since moisture can lower the quality of the finished product, they make sure the ABS material is dry and free of moisture. This can be accomplished by utilizing a dehumidifier or drying the ABS pellets in a hopper.
• Thus, according to the butadiene market analysis the ABS segment is poised to register the fastest CAGR during the forecast period due to its versatile applications, favorable material properties, and growing demand in key industries.

By Production Process:

Based on the production process the market is segmented into the Oxo-Diene Process, Extraction Process, Dehydrogenation Process, and Ethanol to Butadiene (ETB) Process.

Trends in the Production Process:

• Innovations and improvements in the oxo-diene process could have enhanced its competitiveness, leading to its dominance in the market.

The oxo-diene process accounted for the largest revenue share in the year 2023.

• The oxo-diene process, also known as the Oxo process or hydroformylation process, involves the production of the compound through the catalytic reaction of butene with synthesis gas.
• The oxo-diene process is known for its high yield of the compound, making it economically attractive compared to other methods.
• The oxo-diene process offers high conversion rates of butenes, leading to cost efficiency in production.
• The global butadiene market, driven by the automotive and industrial sectors, reinforces the importance of the oxo-diene process in meeting market needs.
• For instance, Mettler Toledo states that hydroformylation, otherwise known as oxo synthesis, is a chemical reaction where carbon monoxide and hydrogen are added to an unsaturated compound that is usually an alkene or alkyne. The reaction selectivity is prioritized, sacrificing speed for enantiomeric excess. Additional approaches continue to be explored aiming to balance both selectivity and rate through clever catalysis design and reaction engineering.
• Thus, in 2023, the oxo-diene process accounted for the largest revenue in the butadiene market due to its high efficiency, economic viability, and ability to produce high-purity butadiene.

The extraction process segment is anticipated to register the fastest CAGR during the forecast period.

• Extraction processes are used to purify it from other co-products in the chemical plant, ensuring a high-purity output that is crucial for downstream applications.
• Innovations in extraction technology, such as improved solvents and more efficient adsorption materials, are enhancing the performance and cost-effectiveness of extraction processes.
• New developments in extraction technology, such as improved solvents and more efficient separation techniques, are driving the trend in this segment.
• The integration of automation and advanced control systems in extraction processes improves efficiency and reduces operational costs.
• For instance, according to Google systems for disentangling and cleansing butadiene and isoprene from a composite of C4 hydrocarbons containing the compound and a mixture of C5 hydrocarbons holding isoprene are attainable. The scheme will further contain a C5 washer column washing residuals, an absorption column taking in gases, and a distillation column bringing everything into place.
• Thus, according to the analysis the extraction process segment is expected to register the fastest CAGR during the forecast period due to advancements in extraction technologies, increased demand for high-purity butadiene, and the need for efficient and sustainable production methods.

By End Use Industry:

Based on the end-use industry the market is segmented into Automotive, Construction, Consumer Goods, Electrical & Electronics, Healthcare, and others.

Trends in the End Use Industry:

• The automotive market is increasingly focusing on sustainability, leading to innovations and opportunities in production and use, such as the development of bio-based and recyclable synthetic rubbers.

The automotive accounted for the largest revenue share in the year 2023.

• The largest application of butadiene in the automotive market is in the production of synthetic rubber for tires. It is a key monomer in the production of SBR, which is critical for tire performance.
• Butadiene-based synthetic rubbers are used in various interior components such as dashboards, seals, gaskets, and weatherstripping due to their durability and resistance to aging.
• Butadiene market opportunities are rising due to disposable incomes in emerging markets which contributes to increased vehicle sales, further driving the size of the butadiene market.
• For instance, Omnexus states that SBR is a widely used general-purpose rubber. The reason for its success is its unique properties and diverse applications. Also, it is the only material that exhibits long-range elasticity.
• Thus, as per the analysis the automotive sector accounted for the largest revenue share in the market due to its extensive use in tire manufacturing and automotive components.

The construction segment is anticipated to register the fastest CAGR during the forecast period.

• Butadiene-based polymers, such as SBR and other synthetic rubbers, are used in adhesives and sealants. These materials provide excellent bonding strength and flexibility, essential for various construction applications.
• Butadiene-based polymers are used in concrete additives to improve the performance of concrete, enhancing its flexibility, strength, and resistance to environmental conditions.
• Governments and regulatory bodies are implementing stricter building standards and regulations, which increases the need for high-quality, reliable construction materials.
• There is a growing emphasis on sustainable construction practices, leading to increased use of advanced materials that include butadiene-based components.
• For instance, J Flex Rubber Products produces synthetic rubber which stems from a hydrocarbon blend commonly derived from petroleum or coal resources. The polymer chains concatenate under raised temperatures and pressures to synthesize diverse formulations befitting versatile applications.
• Thus, according to the analysis trend the construction segment is anticipated to register the fastest CAGR during the forecast period due to increased infrastructure development, technological advancements, and a growing emphasis on sustainability.

Regional Analysis:

The regions covered are North America, Europe, Asia Pacific, the Middle East and Africa, and Latin America.

Asia Pacific region was valued at USD 6.76 Billion in 2023. Moreover, it is projected to grow by USD 7.02 Billion in 2024 and reach over USD 10.64 Billion by 2031. Out of this, China accounted for the maximum revenue share of 45.6%.

Asia-Pacific is currently the leading player in the butadiene market and is expected to experience the highest growth rate in the coming years. It is a crucial raw material used to produce synthetic rubbers, particularly SBR and PBR. These synthetic rubbers are used extensively in the automotive market to manufacture tires, hoses, and various parts. Countries such as China and India continue to witness rapid industrialization and urbanization due to the butadiene market expansion in automobiles and automotive components are expected to rise in the region.

• In November 2023, the groundbreaking ceremony commenced on a joint venture between Tatneft and the Smruk-Kazyna to construct an expansive butadiene plant in Kazakhstan, as announced by President Kassym-Jomart Tokayev. Construction has now started on the Kazakh-Russian facility that will generate up to three hundred forty thousand metric tons annually of this compound through the partnership with Tatneft.

North America is estimated to reach over USD 4.31 Billion by 2031 from a value of USD 2.84 Billion in 2023 and is projected to grow by USD 2.94 Billion in 2024.

In North America, the market is expected to grow significantly over the forecasted period. The automotive sector drives the market growth for the compound in the region. As vehicle production increases to meet consumer demand, particularly in the United States and Canada, there is a corresponding rise in the need for high-performance tires and other rubber components.

• In 2024, The Butadiene Product Stewardship Guidance Manual was prepared as a collaboration between market experts seeking to educate those interacting with the compound. Prized for its low mass and high versatility, the compound finds wide use as the basic monomer in an assortment of manufactured polymers and copolymers while fulfilling an essential function in the synthesis of certain industrial chemicals.

Europe is predicted to have a significant increase throughout the projection period as a result of the widespread use of this compound and its derivatives in the manufacturing of auto parts such as wheel covers, dashboard trims, tires, and other components. Germany is the top-ranking nation due to its rising automobile exports.

The Middle East, with its significant oil and gas reserves, is a major player in the petrochemical market. Countries like Saudi Arabia, the United Arab Emirates (UAE), and Qatar have substantial production capacities. In Africa, the production is more limited compared to the Middle East. However, countries like South Africa have some petrochemical activities, contributing to the regional supply.

In Latin America, Brazil has significant chemical production capabilities, including butadiene. The automotive sector in Latin America, particularly in countries like Brazil and Mexico, is a significant consumer of this compound.