The Global Butadiene Market Size accounted for USD 21.4 Billion in 2023 and is estimated to achieve a market size of USD 40.4 Billion by 2032 growing at a CAGR of 7.4% from 2024 to 2032.

Butadiene Market Highlights

• The global butadiene market is projected to reach USD 40.4 billion by 2032, with a CAGR of 7.4% from 2024 to 2032
• In 2023, the Asia-Pacific Butadiene market held a value of approximately USD 10.49 billion
• The North America region is expected to grow at a CAGR of over 7.9% from 2024 to 2032
• The styrene-butadiene (SBR) application sub-segment captured 33% of the market share in 2023
• Emphasis on recycling and reusing butadiene-based products to reduce waste and promote sustainability is the butadiene market trend that fuels the industry demand

Butadiene is a colorless, extremely flammable organic molecule with the molecular formula C4H6, derived mostly from the cracking of petroleum or natural gas. It is an essential building block in the petrochemical industry, mostly used to make synthetic rubber. Butadiene is required to produce styrene-butadiene rubber (SBR), which is widely used in tires, footwear, and automotive components. It is also used to make other compounds, such as acrylonitrile-butadiene-styrene (ABS) plastic and butadiene rubber for industrial use. Its adaptability makes it an important component in many industries, including automotive, consumer goods, and construction.

Global Butadiene Market Dynamics

Market Drivers

• Rising demand for synthetic rubber in the automotive industry
• Growth in the production of bio-based butadiene for sustainable solutions
• Increasing demand for butadiene derivatives like ABS and SBR

Market Restraints

• Volatility in raw material prices affecting production costs
• Environmental concerns and regulations on petrochemical products
• Limited availability of natural gas and oil impacting supply chains

Market Opportunities

• Expansion of butadiene production from renewable sources
• Emerging demand for high-performance polymers in electronics and consumer goods
• Advancements in recycling technologies for butadiene-based products

Butadiene Market Report Coverage

Butadiene Market Insights

The automobile industry's growing production and demand for vehicles drives the demand for synthetic rubber, which is predominantly made of butadiene. For example, the International Trade Administration estimates that new light vehicle sales in the United States will total 11.5 million units in 2022. Overall, the United States is the world's second-largest market for automobile sales and manufacturing. According to Autos Drive America, foreign manufacturers will produce 4.9 million vehicles in the United States in 2023. Domestic production in China is estimated to exceed 35 million vehicles by 2025. Synthetic rubber is used in crucial automotive components such as tires, hoses, and seals. As the automobile market expand, particularly in emerging economies, the demand for butadiene increases considerably to satisfy these demands.

As environmental concerns develop, there is a push to produce butadiene from renewable resources such as biomass and plant-based feedstocks. For example, in January 2024, Michelin, IFPEN (French Institute of Petroleum and New Energies), and Axens opened France's first industrial-scale demonstrator facility for generating butadiene from bioethanol. Bio-based butadiene is a more environmentally friendly alternative to traditional petroleum-derived butadiene. This transition is being pushed by both customer preferences for environmentally friendly items and government rules requiring fewer carbon emissions from industrial operations.

Raw material price volatility affects manufacturing costs, butadiene is generated from crude oil and natural gas, hence its prices are highly subject to global oil market swings. Sudden spikes in oil prices might result in greater production costs, affecting the overall profitability of butadiene manufacturers. This volatility threatens market stability and long-term planning in the sector.

With the growing emphasis on sustainability, there is a greater chance to develop innovative technologies for manufacturing butadiene from renewable sources. For instance, in March 2022, SABIC collaborated with Kraton to create certified renewable styrenic block copolymers using SABIC's certified renewable butadiene. This bio-based butadiene is made from'second generation' renewable feedstocks such as tall oil, which is a byproduct of the paper industry's wood pulping process. Notably, the feedstock used is animal- and palm oil-free, which is consistent with sustainable sourcing procedures. This action can lessen dependence on fossil fuels and accord with eco-friendly consumer trends, and provide access to a larger number of marketplaces. Investments in research and development are critical to realizing this opportunity in the future years.

Butadiene Market Segmentation

The worldwide market for butadiene is split based on production process, application, end user, and geography.

Butadiene Market By Production Process

• C4 Hydrocarbon Extraction
• N-Butane Dehydrogenation
• From Butenes
• From Ethanol

According to the butadiene industry analysis, the n-butane dehydrogenation (NBDH) method is gaining popularity due to its high efficiency in manufacturing butadiene, a vital feedstock for synthetic rubber and plastics. The catalytic dehydrogenation of N-butane converts it into butadiene. With the growing need for butadiene in the automotive and manufacturing industries, NBDH provides a more cost-effective and energy-efficient alternative to existing extraction processes. The planned expansion of this process corresponds to the increasing demand for butadiene, which is being driven by worldwide industrial and automotive growth.

Butadiene Market By Application

• Acrylonitrile Butadiene Styrene (ABS)
• Chloroprene
• Styrene-Butadiene (SBR)
• Polybutadiene (PBR)
• Adiponitrile
• Nitrile Rubber (Acrylonitrile Butadiene, NBR)
• Other Applications

Styrene-butadiene rubber (SBR) leads the butadiene market because it is widely used in the automotive and tire industries, where it provides high durability, abrasion resistance, and performance. SBR's versatility makes it suitable for a wide range of applications, including footwear, industrial items, and adhesives. Its enormous demand, paired with its low cost, has cemented its place as the most popular butadiene derivative.

Butadiene Market By End User

• Consumer Products Industries
• Chemical
• Plastics and Polymers
• Healthcare
• Automobile Industries
• Building & Construction
• Others

According to the butadiene market forecast, the automobile sector is expected to develop significantly, driven mostly by the demand for synthetic rubber in tire manufacture and other automotive components. Butadiene use has risen dramatically as worldwide vehicle manufacturing has increased, notably in the high-performance tire market. Furthermore, the transition to fuel-efficient and environmentally friendly automobiles increases the demand for high-quality butadiene-based rubber compounds.

Other industries, such as consumer items, chemicals, and plastics, make important contributions to the butadiene market. Butadiene is used in the healthcare and building & construction sectors for applications such as medical equipment and construction materials, albeit its share is still smaller than that of the automobile industry.

Butadiene Market Regional Outlook

North America

• U.S.
• Canada

Europe

• U.K.
• Germany
• France
• Spain
• Rest of Europe

Asia-Pacific

• India
• Japan
• China
• Australia
• South Korea
• Rest of Asia-Pacific

Latin America

• Brazil
• Mexico
• Rest of LATAM

The Middle East & Africa

• South Africa
• GCC Countries
• Rest of the Middle East & Africa (ME&A)

Butadiene Market Regional Analysis

For several reasons, Asia-Pacific now controls the butadiene market. The region's strong industrial base and high consumption of synthetic rubber, together with rising car production in China, Japan, and India, continue to underpin its market dominance. For example, the World Rubber Organization estimates that the China synthetic rubber market was worth USD 30.16 billion in 2022 and is expected to grow at a Compound Annual Growth Rate (CAGR) of 3.31% through 2028, reaching USD 36.43 million in 2028. Furthermore, the region's supremacy in butadiene consumption is aided by the expansion of its infrastructure and building sectors. According to the Indian Journal of Science and Technology, styrene-butadiene rubber (SBR) latex is a well-known synthetic polymer in cement technology because of its beneficial qualities. SBR polymers are widely used in concrete technology due to their capacity to improve the physical and mechanical qualities of concrete. The increasing use of butadiene boosts market growth in the Asian area.

North America's butadiene business is expanding rapidly, owing to increased demand in the automotive, plastics, and chemical sectors. The increase of shale gas production in the United States has resulted in decreased raw material costs, making the region more competitive in butadiene production. According to the United States Energy Information Administration (EIA), shale formations will account for approximately 78% (37.87 trillion cubic feet) of total dry natural gas production in the United States by 2023. Furthermore, the growing trend of using sustainable and environmentally friendly materials is driving up demand for butadiene-based products in North America.

Butadiene Market Players

Some of the top butadiene companies offered in our report include Formosa Plastics Group, ExxonMobil Chemical Company, Lanxess AG, Sinopec., BASF SE, Evonik Industries AG, Braskem S.A., TPC Group Inc., Ineos Group AG, LyondellBasell Industries N.V., China Petroleum & Chemical Corporation, and ENI S.p.A.

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