Butadiene Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Butadiene Market is segmented by Application (Polybutadiene (PBR), Chloroprene, Styrene-butadiene (SBR), Nitrile Rubber (Acrylonitrile Butadiene NBR), Acrylonitrile Butadiene Styrene (ABS), Adiponitrile, Sulfolane, Ethylidene Norbornene, Styrene Butadiene Latex, and Other Applications), End-user Industry (Plastic and Polymer, Tire and Rubber, Chemical, and Other End-user Industries), and Geography (Asia-Pacific, North America, Europe, South America, and Middle-East and Africa).

Market Snapshot

Butadiene Market Overview
Study Period: 2016 - 2026
Base Year: 2020
Fastest Growing Market: Middle-East and Africa
Largest Market: Asia Pacific
CAGR: >3.5 %
Butadiene Market Top Companies

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Market Overview

The butadiene market size was estimated at 12,432 kiloton 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, this negatively impacted the demand for styrene-butadiene and polybutadiene rubber, which are used in tires, building crack fillers, concrete additives, etc., which declined the demand for 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 market’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.

Scope of the Report

Butadiene, a colorless, non-corrosive gas, is used for the production of resins and plastics, including butadiene rubber, styrene rubber, adiponitrile, polychloroprene, nitrile rubber, and others. It is mainly produced from the extractive distillation of by-products from steam crackers while producing ethylene and propylene. The butadiene market is segmented by application, end-user industry, and region. By application, the market is segmented into polybutadiene (PBR), chloroprene, styrene-butadiene (SBR), nitrile rubber (acrylonitrile butadiene NBR), acrylonitrile butadiene styrene (ABS), adiponitrile, sulfolane, ethylidene norbornene, styrene butadiene latex, and other applications. By end-user industry, the market is segmented into plastic and polymer, tire and rubber, chemical, and other end-user industries. The report also covers the market size and forecasts for the butadiene market in 15 countries across major regions. For each segment, the market sizing and forecasts have been done on the basis of volume (kiloton).

Application
Polybutadiene (PBR)
Chloroprene
Styrene-Butadiene (SBR)
Nitrile Rubber (Acrylonitrile Butadiene NBR)
Styrene Butadiene Latex
Acrylonitrile Butadiene Styrene (ABS)
Adiponitrile
Sulfolane
Ethylidene Norbornene
Other Applications
End-user Industry
Plastic and Polymer
Tire and Rubber
Chemical
Other End-user Industries
Geography
Asia-Pacific
China
India
Japan
South Korea
Rest of Asia-Pacific
North America
United States
Canada
Mexico
Europe
Germany
United Kingdom
Italy
France
Rest of Europe
South America
Brazil
Argentina
Rest of South America
Middle-East and Africa
Saudi Arabia
South Africa
Rest of Middle-East and Africa

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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 this value reached about 52 million vehicles in Q3 2020, registering a decline rate of about 23%. Thus, this 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 AS, Petrochim, and TSRC.
  • Owing to all these factors, the market for butadiene is likely to grow globally during the forecast period.
Butadiene Market Share

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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 country’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 world. Butadiene is used to produce intermediates like styrene-butadiene (SBR) and others, which are further used to manufacture automotive products include tires, conveyor belts, 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 a significant impact on the market in the coming years.
Butadiene Market Geography Trends

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Competitive Landscape

The butadiene market 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 BV, among others.

Recent Developments

  • In August 2019, Lion Elastomers completed the acquisition of the Firestone Orange facility based in Texas of the United States, which produces polybutadiene, styrene-butadiene block copolymers, and solution styrene-butadiene rubber, thus, enhancing the company’s product portfolio.
  • In August 2018, Saudi Arabian Oil Co. agreed to acquire the remaining 50% stake in ARLANXEO Joint Venture from LANXESS, which has enhanced its C4-based chemical business, including butadiene.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Drivers

      1. 4.1.1 Developing Downstream Market in Asia-Pacific

      2. 4.1.2 Other Drivers

    2. 4.2 Restraints

      1. 4.2.1 Hazardous Effects Caused by Butadiene

      2. 4.2.2 Unfavorable Conditions Arising Due to the Impact of COVID-19

    3. 4.3 Industry Value Chain Analysis

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Suppliers

      2. 4.4.2 Bargaining Power of Buyers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitute Products and Services

      5. 4.4.5 Degree of Competition

    5. 4.5 Feedstock Analysis

    6. 4.6 Technological Snapshot

  5. 5. MARKET SEGMENTATION (Market Size by Volume)

    1. 5.1 Application

      1. 5.1.1 Polybutadiene (PBR)

      2. 5.1.2 Chloroprene

      3. 5.1.3 Styrene-Butadiene (SBR)

      4. 5.1.4 Nitrile Rubber (Acrylonitrile Butadiene NBR)

      5. 5.1.5 Styrene Butadiene Latex

      6. 5.1.6 Acrylonitrile Butadiene Styrene (ABS)

      7. 5.1.7 Adiponitrile

      8. 5.1.8 Sulfolane

      9. 5.1.9 Ethylidene Norbornene

      10. 5.1.10 Other Applications

    2. 5.2 End-user Industry

      1. 5.2.1 Plastic and Polymer

      2. 5.2.2 Tire and Rubber

      3. 5.2.3 Chemical

      4. 5.2.4 Other End-user Industries

    3. 5.3 Geography

      1. 5.3.1 Asia-Pacific

        1. 5.3.1.1 China

        2. 5.3.1.2 India

        3. 5.3.1.3 Japan

        4. 5.3.1.4 South Korea

        5. 5.3.1.5 Rest of Asia-Pacific

      2. 5.3.2 North America

        1. 5.3.2.1 United States

        2. 5.3.2.2 Canada

        3. 5.3.2.3 Mexico

      3. 5.3.3 Europe

        1. 5.3.3.1 Germany

        2. 5.3.3.2 United Kingdom

        3. 5.3.3.3 Italy

        4. 5.3.3.4 France

        5. 5.3.3.5 Rest of Europe

      4. 5.3.4 South America

        1. 5.3.4.1 Brazil

        2. 5.3.4.2 Argentina

        3. 5.3.4.3 Rest of South America

      5. 5.3.5 Middle-East and Africa

        1. 5.3.5.1 Saudi Arabia

        2. 5.3.5.2 South Africa

        3. 5.3.5.3 Rest of Middle-East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Market Share Analysis

    3. 6.3 Strategies Adopted by Leading Players

    4. 6.4 Company Profiles

      1. 6.4.1 BASF SE

      2. 6.4.2 Braskem

      3. 6.4.3 China Petroleum & Chemical Corporation

      4. 6.4.4 Dow

      5. 6.4.5 Evonik Industries AG

      6. 6.4.6 Exxon Mobil Corporation

      7. 6.4.7 Formosa Plastics Group

      8. 6.4.8 INEOS

      9. 6.4.9 JSR Corporation

      10. 6.4.10 LG Chem

      11. 6.4.11 LOTTE CHEMICAL TITAN HOLDING BERHAD

      12. 6.4.12 LyondellBasell Industries Holdings BV

      13. 6.4.13 Reliance Industries Limited

      14. 6.4.14 Repsol

      15. 6.4.15 Royal Dutch Shell PLC

      16. 6.4.16 SABIC

      17. 6.4.17 Saudi Arabian Oil Co.

      18. 6.4.18 TPC Group

      19. 6.4.19 Lion Elastomers

    5. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

    1. 7.1 Innovation of Bio-butadiene

**Subject to Availability

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Frequently Asked Questions

The Butadiene Market market is studied from 2016 - 2026.

The Butadiene Market is growing at a CAGR of >3.5% over the next 5 years.

Middle-East and Africa is growing at the highest CAGR over 2021- 2026.

Asia Pacific holds highest share in 2020.

China Petroleum & Chemical Corporation, TPC Group, Exxon Mobil Corporation, Royal Dutch Shell PLC, LyondellBasell Industries Holdings B.V. are the major companies operating in Butadiene Market.

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