The Global Butadiene Market size was estimated at 12,432 kilotons in 2020 and the market is projected to register a CAGR of over 3.5% during the forecast period (2021-2026). The market was negatively impacted by COVID-19 in 2020. Considering the ongoing pandemic scenario, the automotive manufacturing units and building construction projects were temporarily halted, thus negatively impacted the demand of styrene-butadiene and polybutadiene rubber, which are used in tires, building crack fillers, concrete additives, etc., which has declined the demand of butadiene. However, the use of protective gloves made from nitrile rubber has increased in the current situation, thus stimulating the demand for the butadiene market.
- Over the short term, the developing downstream market in Asia-Pacific is expected to drive the marketâ€™s growth.
- Polybutadiene dominated the market holding a share of almost 30%. However, the acrylonitrile butadiene styrene (ABS) segment is expected to witness the highest CAGR during the forecast period.
- The innovation of bio-butadiene to produce products like synthetic rubber, thermoplastic elastomers, nylon, etc. is likely to create opportunities for the market in the coming years.
Key Market Trends
Polybutadiene (PBR) to Dominate the Market
- The automotive industry relies on PBR for non-tire applications, such as hoses, belts, gaskets, and other automotive components, because of its high resistance to cold temperatures.
- The increasing number of automobiles across the world and the increasing demand for PBR for numerous applications are expected to stimulate the growth of the global butadiene market. However, the recent downfall in automobile production and sales is likely to hinder the market growth.
- PBR consumption is dominated by Northeast Asia, particularly China. West Europe and North America are the next largest consumer regions for PBR.
- As of Q3 2019, about 67.47 million vehicles were produced globally and has reached about 52 million vehicles up to Q3 2020, registering a decline rate of about 23%, thus led to a decrease in the demand for PBR based automotive parts like hoses and belts, which in turn negatively impacts the market growth of butadiene.
- On the supply side, the PBR plants in Asia are running at full rates to meet the strong demand. Deep-sea supplies from Europe and the Middle-East are also expected to head to Asia, in order to help meet the strong demand.
- Leading producers of PBR around the world include Saudi Arabian Oil Co., KUMHO PETROCHEMICAL, Michelin, Zeon Corporation, Petkim Petrokimya Holding A.S., Petrochim, and TSRC.
- Owing to all these factors, the market for butadiene is likely to grow globally during the forecast period.
Asia-Pacific Region to Dominate the Market
- The Asia-Pacific region dominated the global butadiene market. The downstream market in Asia-Pacific witnessed a huge spur in the past few years, owing to which, the demand for butadiene has witnessed a rapid increase due to its requirement.
- China has achieved some milestones in shale gas exploration, both in capacity and drilling techniques, making it one of the top shale gas suppliers worldwide.
- India, with the support of the United States, is working on developing the shale gas exploration in its coastal regions, with US companies joining the exploration process. India has recoverable shale gas reserves, which are estimated to have a capacity of 96 trillion cubic feet (tcf), mainly in Tamil Nadu, Andhra Pradesh, and Rajasthan. The Krishna-Godavari basin, located in eastern India, holds the countryâ€™s largest shale gas reserves, extending over 7,800 gross square miles, with a prospective area of 4,340 square miles.
- Apart from this, the Asia-Pacific region is the largest producer of vehicles across the globe. Butadiene is used to produce intermediates like styrene-butadiene (SBR) and others, which are further used to manufacture automotive products include tires, conveyor belt, etc.
- In 2019, the total volume of tires produced in India was about 191.98 million, with a growth rate of about 7.5% compared to the previous year, which in turn stimulates the demand for the butadiene market.
- As of Q3 2019, China had produced 18.17 million vehicles and reached 16.96 million vehicles by Q3 2020, registering a decline rate of about 6.66%, which in-turn has led to a decrease in the consumption of parts made up of styrene-butadiene (SBR) and others, thus creating a negative effect on the regional butadiene market growth.
- Therefore, the aforementioned factors are expected to show significant impact on the market in the coming years.
The market studied is fragmented, and the top five players account for a market share of ~30% of the total production capacity. Some of these major players include China Petroleum & Chemical Corporation, TPC Group, Exxon Mobil Corporation, Royal Dutch Shell PLC, and LyondellBasell Industries Holdings B.V., among others.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support