Butadiene Market

The Butadiene Market is Expected to be Flourished by Rising Demand for Automotive Tyres

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Butadiene, also known as 1, 3-butadiene, is an important organic chemical that is primarily used to produce synthetic rubber known as butadiene rubber (BR). It is a colorless gasthat is highly flammable and has a mild aromatic odor. Butadiene finds extensive application in manufacturing various industrial products and commodities. Some of the common end-use applications of butadiene include manufacturing styrene-butadiene latex, styrene-butadiene rubber, polybutadiene rubber for tires and others rubber products, acrylonitrile butadiene styrene (ABS) resins for plastics industries, nitrile rubber for industrial gloves, hoses and belts.

The global butadiene Market is estimated to be valued at US$ 15681.17 Bn in 2023 and is expected to exhibit a CAGR of 28% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights. Demand for automotive tires is one of the primary drivers boosting the butadiene market globally. Around 60-70% of all butadiene production is directed to manufacture synthetic rubber, mainly used to produce tires for vehicles. Rapid motorization across developing nations coupled with growing replacement demand for tires from developed automotive markets are fueling consumption of butadiene-based synthetic rubbers.

Market Dynamics

As mentioned in the heading, rising demand for automotive tires is projected to drive the butadiene market over the forecast period. As per the analysis, the automobile sector accounts for over two-thirds of total synthetic rubber demand globally and butadiene rubber finds its biggest application in tire manufacturing. Expanding worldwide vehicle parc consisting of passenger cars and commercial vehicles is creating sustained demand for replacement tires and fueling the need for cost-effective and performance-enhancing butadiene rubbers. Furthermore, improving economic conditions, growing disposable incomes and changing lifestyles are increasing automobile ownership, especially in emerging economies. This, in turn, is benefitting butadiene consumption in the tire industry over the coming years.

Segment Analysis

One of the dominant sub-segments in the butadiene market is styrene-butadiene rubber (SBR). SBR accounted for around 45% of the global butadiene demand in 2020. This is because SBR has excellent properties like good tensile strength, abrasion resistance and aging resistance. These properties make SBR ideal for use in tires, footwear, hoses, beltings, automotive parts and other industrial rubber goods where high performance is required.

PEST Analysis

Political: No major political factors are impacting the butadiene market currently. However, stringent environmental regulations around emissions and wastewater treatment in production processes may pose a challenge.

Economic: The global economy recovery post-covid is driving growth in end-use industries like construction and automotive, boosting demand for butadiene. Rising disposable incomes in developing nations are also augmenting the consumption of tires, footwear and other rubber goods.

Social: With growing health awareness, bio-based and eco-friendly butadiene alternatives may gain popularity over conventionally produced butadiene to meet sustainability goals of industries.

Technological: Producers are focusing on developing innovative recycling technologies to increase butadiene yield from refining processes as well as reduce emissions. New catalyst systems for synthesizing butadiene from renewable feedstock can also provide opportunities.

Key Takeaways

The Global Butadiene Market Share is expected to witness high growth over the forecast period due to recovery in the end-use industries globally.

The Asia Pacific region currently dominates the butadiene market and is expected to maintain its lead through 2031. China, being the largest chemicals producer, accounts for over 30% of global butadiene capacity. It also has a strong automotive and tire industry driving butadiene consumption.

Key players operating in the butadiene market are Thermo Fisher Scientific, Synbio Technologies, Merck KGaA, Agilent Technologies, Inc., GenScript, Amyris, Eurofins Genomics GmbH, Integrated DNA Technologies, Inc., Codexis, Inc., EnBiotix, Inc., Synthego, New England Biolabs (UK) Ltd., Scarab Genomics, LLC and Genomatica, Inc. The key players are focusing on capacity expansions as well as partnerships and mergers for technology advancements and geographical expansions.

*Note:
1.      Source: Coherent Market Insights, Public sources, Desk research
2.      We have leveraged AI tools to mine information and compile it 
Ravina
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Ravina Pandya,  Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. With an MBA in E-commerce, she has an expertise in SEO-optimized content that resonates with industry professionals.