The global butadiene market (henceforth referred to as the market studied) is expected to reach 12,347.03 kilo metric ton in 2018
NEW YORK, Jan. 21, 2020 /PRNewswire/ --
The global butadiene market (henceforth referred to as the market studied) is expected to reach 12,347.03 kilo metric ton in 2018. It is estimated to reach 15,357.81 kilo tons by 2023, at estimated CAGRs of 4.46% over the forecast period of 2018-2023 (henceforth referred to as the forecast period).
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Rapidly Increasing Automotive Production Creating a Demand for Butadiene Rubber
The 1,3 butadiene is highly used in the manufacturing of synthetic rubbers or elastomers. Different types of polymers and monomers can be produced using 1,3 butadiene, such as styrene-butadiene rubber, nitrile rubber, polychloroprene, and polybutadiene rubber. Thus, it has a high demand from the automotive industry. ABS is majorly used for the production of automotive components, such as wheel covers, dashboard trims, and bumpers. Moreover, it offers added advantages to the manufacturers, such as a shiny and impervious surface, and the butadiene part, which is a rubbery substance, provides resilience even at low temperatures and is impact-resistant, tough, and heat-resistant. Additionally, the growing demand for lightweight vehicles, globally, is expected to boost the automotive production, thus, driving the demand for butadiene during the forecast period. Moreover, the popularity associated with electric vehicles is mainly due to the eco-friendly nature of the product, when compared to its conventional counterpart. The graph affixed on the right clearly indicates the exponential growth experienced by the market. Further, the market is expected to reach sales of over 1.9 million units in 2018, recording an expected increase of 48% during the same year. With the rapid increase in automotive production in the past few years, the demand for butadiene has witnessed a quick surge.
Tire and Rubber Industry to Dominate the Market
Butadiene is majorly used in the manufacturing of synthetic rubbers and elastomers that include polybutadiene rubber (PBR), styrene-butadiene rubber (SBR), nitrile rubber (NR), and polychloroprene (Neoprene). These, in turn, are used in the production of other goods and materials. Plastics that are made using butadiene-based rubber mainly consist of acrylonitrile-butadiene-styrene (ABS) resin, which has numerous applications. Polybutadiene is largely used in the manufacturing of automobile tires. It has been estimated that the manufacturing process of tires consumes about 70% of the world production of polybutadiene. It is primarily used as a sidewall in tires to improve fatigue caused by continuous flexing during the run. Beside this, butadiene also finds various applications in other automobile parts. Lately, volatility in raw material prices has affected the tire and rubber industry. Tire manufacturers have reported modest increases in raw material (including ABS) expenditure in 2017 and have stated that there had been an increase in the price by 4.1%, since the fourth quarter of 2016. Using butadiene in the production of rubber gives it a low rolling resistance and a high resistance to wear. This provides the tires a long life and low fuel consumption rate.
Asia-Pacific to Dominate the Market
Asia-Pacific is projected to dominate the butadiene market globally during the forecast period, owing to the projected increase in the automotive production and the growth of the plastics industry in the region. Being the world's largest producer of vehicles and manufacturing economy, China is expected to dominate the butadiene market in Asia-Pacific. Currently, China's automotive industry is majorly focusing on increasing the production and sale of electric vehicles in the country. China is by far the largest automotive manufacturer in the world since 2009, with the current share of production of over 29%. In 2017, the Chinese automotive industry recorded a growth of 3.19% and reached a total of 29,015,434 vehicles. Additionally, the country's gradual focus on shifting to electric vehicles is expected to drive the country's demand for butadiene. As per China's Ministry of Industry and Information Technology, the country's agenda is to ban all the internal combustion engines (ICEs) from the roads in the coming years. Mr.Xin Guobin, the Vice Minister for Industry and Information Technology, proposed initial targets that vehicles with electric engines may account for 8% of new car sales in 2018, 12% in 2020, and 20% by 2025. With such a rise in electric vehicle production and sale, the application of butadiene products is expected to increase during the forecast period, further boosting the demand for butadiene market.
Key Developments in the Market
- March 2018: Kuraray Co., Ltd, PTT Global Chemical, and Sumitomo Corp. have signed an agreement to establish a joint venture company focused on the progression of a feasibility study for the manufacturing and sales of butadiene derivatives in Thailand.
The major players include - BASF SE, China Petroleum & Chemical Corporation, ExxonMobil Chemical Company, LyondellBasell Industries N.V., Saudi Basic Industries Corporation (SABIC), and DowDuPont Inc., among others.
Reason to Purchase the Report
- Analyzing various perspectives of the market with the help of Porter's Five Forces Analysis.
- To understand the dominating application in the butadiene market.
- Identify the countries expected to witness the fastest growth during the forecast period.
- Identify the latest developments, market shares, and strategies employed by the major market players.
- 3-month analyst support along with the Market Estimate sheet (in Excel).
Customization of the Report
This report can be customized to meet your requirements.
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