Global Butadiene Market - Segmented by Application, End-User Industry and Geography - Growth, Trends and Forecast (2018 - 2023)
The global butadiene market is expected to witness a CAGR of 3% during the forecasted period, majorly driven by the increasing demand and production of light-weight and electric vehicles. Besides this, growing application of plastics and innovation of new products is expected to increase the demand for butadiene market.
Increasing Popularity of Light-weight and Electric Vehicles
Butadiene is extensively used in the automotive industry in manufacturing tires, hoses, gasket seals, fuel lines, and other parts of the vehicles. The increasing popularity of light-weight and fuel efficient cars has been increasing the production of vehicles. The global production of light commercial vehicles reached 19.39 million units in 2017. Besides this, electric vehicles are also gaining popularity. The automakers have been investing substantially in innovation and development of electric vehicles. Mercedes-Benz has planned to build electric vehicles in volume at six factories across three continents and a global battery network. Volkswagen has planned to make its Zwickau factory in Saxony, Germany, a major hub for the production of its next-generation electric cars, and is investing heavily with a plan to manufacture 1,500 electric cars per day. With the rising demand for lightweight cars and electric vehicles, the demand for butadiene in automotive parts production is expected to rise. This is projected to drive the demand for butadiene during the forecast period.
Tire and Rubber Industry to Dominate the Market
By end-user industry, tire and rubber industry is expected to dominate the market demand for butadiene. The butadiene rubber is used majorly in tires with over 70% of the polymer produced going into sidewalls and treads. Besides this, nitrile butadiene rubber is used in the production of various cables, molded and extruded products, belts, gloves, adhesives & sealants, foamed products, etc.
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. For this purpose, the country has planned to increase the production of electric vehicles (EVs) to two million a year by 2020, and seven million a year by 2025. The target, if achieved, will increase the share of electric vehicles to 20% of the total new car production for China 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.
Major players are BASF SE, China Petroleum & Chemical Corporation, ExxonMobil Chemical Company, LyondellBasell Industries N.V., Saudi Basic Industries Corporation (SABIC), and DowDuPont Inc., amongst 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).
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