1,4 Butanediol Market - Growth, Trends, COVID-19 Impact, and Forecast (2022 - 2027)

1,4 Butanediol Market - Growth, Trends, COVID-19 Impact, and Forecast (2022 - 2027)

The Global 1,4 Butanediol Market is valued at 2170 kilotons in 2020 and 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. Several countries were forced to go in lockdown owing to the pandemic scenario, which led to the shutdown of manufacturing facilities of almost every industry worldwide for a specified time. The pharmaceutical industry’s impact however was minimal during the COVID outbreak. 1, 4 butanediols which is widely used in the production of polybutylene terephthalate (PBT) suffered immensely as the demand for PBT was significantly impacted due to the downfall in the automotive sector. Disruption in Chinese parts exports, large scale manufacturing interruptions across Europe, and the closure of assembly plants in United States largely impacted the automotive industry. Furthermore, China, the leader in automotive sector, lost a significant chunk of its clients during and after the pandemic, as most of the companies who were relying on China for automotive sector started shifting their businesses to other second world countries such as India.

Key Highlights

• Over the long run, increasing demand for polybutylene terephthalate (PBT) from various industries, coupled with the stringent government regulations are expected to stimulate the market demand.
• Shift in focus toward eco-friendly products is expected to create market opportunity for the market in the coming years.
• Asia-Pacific region is expected to dominate the market and is also likely to witness the highest CAGR during the forecast period.

Key Market TrendsTextile Industry to Dominate the Market Demand

• 1,4 BDOis also used as an adhesive in leather, plastics, polyester laminates and polyurethane footwear. 1,4-Butanediol is an immediate chemical used in the production of Themoplastic polyurethane (TPU) which is further used in the making of Synthetic leather sole material.
• THF is used for theproduction of spandex fiber which has captured the garment industry. Spandex is a lightweight, soft smooth synthetic fiber which has a unique elasticity. Due to its elastic property, it is used in making stretchable clothing. Spandex fibers, consisting of 80% polytetramethylene ether glycol (PTMEG or PolyTHF), can be stretched to between 500% and 700% of their original length and durably retain their shape. Growth rates for spandex fiber are estimated to be around 10%, which is much higher than growth rates for textiles. The trend toward comfortable clothing with high wearing comfort is driving demand in this area.
• The material is used in making compression garments: motion capture suits, Surgical hose, and Support hose.
• This is also a useful fabric for hospitality and industrial organizations. Spandex fabrics are mostly used in garments where comfort and fit both are required like hosiery, swimsuits, exercise wear, socks, surgical hose, undergarments, gloves, cycling shorts, wrestling suits, rowing suits, specialized clothing like zentai suits, motion capture suits, denims, etc. Furthermore, it is used in sports equipment such as Volleyballs, Soccer ball and Netball and bodysuit.Spandex is also used for table coverings – elastic nature of fiber ensures that the cloth is durable enough to withstand the wear that accompanies frequent use. The material also find it’s applications in Household products such as Fitted sheets and Micro-bead pillows etc.
• The global sports equipment market has been witnessing a significant growth in the recent past. According to Statista Consumer Market Outlook, the global sports equipment market is projected to reach from USD126.54 billions in 2021 to USD 159.41 billions in 2026. ​
• Moreover, rising health and self-consciousness, desire to lead active lifestyles and to appear fit, is encouraging consumers to incorporate sports and fitness activities into their daily routine. This has led to a change in market dynamics, leading to an increased demand for sports equipment doing a huge favor to the market
• Such factors are depicting that the market will observe a stagnant growth from the textile industry during the forecast period.

Asia-Pacific Region to Dominate the Market

• The Asia-Pacific region dominated the global market in 2020. The demand for market studied is driven by the growing demand from various industries such as electronics, leather, and electronics, amongst others.
• China is the largest automotive producer in the world and is now focusing on the development of electric vehicles.
• The region is witnessing numerous investments by global automakers, like BMW, Hyundai Motors, and Honda, into the automotive industry. This, in turn, is likely to increase the demand for 1,4 butanediol.
• Besides, China has the world’s largest electronics production base. Electronic products, such as smartphones, OLED TVs, tablets, wires, cables, earphones, etc., have the highest growth in the electronics segment. With the increase in disposable income of the middle-class population and increasing demand for electronic products from countries importing electronic products from China, the production of electronics has increased.
• In India, the government has also been pushing the growth of the electronics industry through initiatives, such as a Phased Manufacturing Programme (PMP), to add more smartphone components under the “Make in India” initiative, to push the domestic manufacturing of mobile handsets.
• Besides, with the increasing income of the population, the demand for consumer appliances, such as air-conditioners, fridge, washing machines, microwaves, etc., has noticeably increased, which is further driving the growth of the consumer appliances market. The growth in electronics industry would pave way for chemicals used in production, thus accelerating growth of 1,4 butanediol.
• As per Japan Electronics and Information Technology Industries (JEITA), the electronics industry is estimated to have a growth of 7% with the increase in usage of remote technologies in 2021.
• Hence, all such favorable market trends are expected to drive the demand for 1,4 butanediol during the forecast period.

Competitive Landscape

The 1, 4 butanediol market is partially consolidated in nature. Some of the major players include BASF SE, DCC, Xinjiang Tianye (Group) Co., Ltd, SINOPEC YIZHENG CHEMICAL FIBRE LIMITED LIABILITY COMPANY and Nan Ya Plastics Corporation, among others.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

IBM Corporation
Oracle Corporation
Internap Corporation
Packet Inc. (An Equinix Inc. Company)
Scaleway Inc.
Amazon Web Services Inc
Rackspace Inc.
CenturyLink, Inc.
LightEdge Solutions, Inc

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