Butadiene Market - Growth, Trends, and Forecast (2020 - 2025)

Butadiene Market - Growth, Trends, and Forecast (2020 - 2025)

The market for butadiene is expected to register a CAGR of around 4% during the forecast period. Rapidly growing automotive production is expected to drive the market. Butadiene is majorly used in the production of styrenebutadiene rubber (SBR) and polybutadiene rubber (PBR), which is used to produce tires and plastic materials. Developing downstream market in AsiaPacific is one of the drivers boosting the market growth. However, hazardous effects caused by butadiene is expected to hinder the growth of the market studied.

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 biobutadiene is likely to act as an opportunity in the future.
AsiaPacific dominated the market across the world, with the largest consumption from countries, such as China and South Korea.

Key Market Trends

Polybutadiene (PBR) to Dominate the Market

The automotive industry relies on PBR for nontire 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.
On the supply side, the PBR plants in Asia are running at full rates to meet the strong demand. Deepsea 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 Lanxess, Korea Kumho, Michelin, Ncgromcx, Nippon Zeon, Petkim, Turkey, Petrochim, RcpsonOuimica, Taiwan Synthetic, Ube and Romania, and CIS.

AsiaPacific Region to Dominate the Market

The AsiaPacific region dominated the global butadiene market. The downstream market in AsiaPacific 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 KrishnaGodavari 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.
Presently, Australia has the seventhbiggest potential shale gas resources and the sixthbiggest shale oil resources in the world. According to an estimate, the technically recoverable shale resources were at 437 tcf in six basins, and about 1,000 tcf in all the prospective basins, in 2013. Australia has large shale gas formations that are similar in size to the Marcellus and Bakken formations in the United States.
Therefore, the aforementioned factors are expected to drive the demand for butadiene in the coming years.

Competitive Landscape

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 LyondellBasell Industries Holdings BV, BASF SE, China Petroleum and Chemical Corporation (Sinopec), Exxon Mobil Corporation, and TPC Group, among others.

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1.1 Study Assumptions
1.2 Scope of the Study
4.1 Drivers
4.1.1 Developing Downstream Market in Asia-Pacific
4.1.2 Other Drivers
4.2 Restraints
4.2.1 Hazardous Effects Caused by Butadiene
4.3 Industry Value-Chain Analysis
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Consumers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products and Services
4.4.5 Degree of Competition
4.5 Feedstock Analysis
4.6 Technological Snapshot
5.1 Application
5.1.1 Polybutadiene (PBR)
5.1.2 Chloroprene
5.1.3 Styrene-Butadiene (SBR)
5.1.4 Nitrile Rubber (Acrylonitrile Butadiene NBR)
5.1.5 SB Latex
5.1.6 Acrylonitrile Butadiene Styrene (ABS)
5.1.7 Adiponitrile
5.1.8 Sulfolane
5.1.9 Ethylidene Norbornene
5.1.10 Other Applications
5.2 End-user Industry
5.2.1 Plastic and Polymer
5.2.2 Tire and Rubber
5.2.3 Chemical
5.2.4 Other End-user Industries
5.3 Geography
5.3.1 Asia-Pacific China India Japan South Korea Rest of Asia-Pacific
5.3.2 North America United States Canada Mexico
5.3.3 Europe Germany United Kingdom Italy France Rest of Europe
5.3.4 South America Brazil Argentina Rest of South America
5.3.5 Middle-East and Africa Saudi Arabia South Africa Rest of Middle-East and Africa
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Market Share Analysis**
6.3 Strategies Adopted by Leading Players
6.4 Company Profiles
6.4.1 BASF SE
6.4.2 Braskem SA
6.4.3 China Petroleum & Chemical Corporation (Sinopec)
6.4.4 Dow
6.4.5 Evonik Industries AG
6.4.6 Exxonmobil Chemical Company
6.4.7 Formosa Plastics Group
6.4.8 Ineos Group AG
6.4.9 JSR Corporation
6.4.10 Lanxess AG
6.4.11 LG Chem Limited
6.4.12 Lotte Chemical Titan Holding Berhad
6.4.13 Lyondellbasell Industries NV
6.4.14 Reliance Industries Limited
6.4.15 Repsol SA
6.4.16 Royal Dutch Shell PLC
6.4.17 Saudi Basic Industries Corporation (SABIC)
6.4.18 TPC GROUP
7.1 Innovation of Bio-butadiene

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