Hydroxyl Terminated Polybutadiene Market - Growth, Trends, and Forecast (2020 - 2025)
The market for hydroxyl terminated polybutadiene is expected to grow at a CAGR of 3% globally during the forecast period. Growing demand from the construction industry along with increasing demand from the aerospace & defense industry are driving the market growth. On the flip side, higher production costs coupled with unfavorable conditions arising due to the COVID19 outbreak are hindering the growth of the market.
The hydroxyl terminated polybutadiene market is expected to grow during the forecast period owing to the growing demand from the construction industry.
AsiaPacific region to dominate the market across the globe with the largest consumption from countries such as India and China.
Key Market Trends
Growing Demand from the Construction Industry
Hydroxylterminated polybutadiene is used in the formulation of adhesives and sealants which are used in the insulated glass sealants, waterproofing, and other sealing applications. It is used in the formulation of polyurethane foam, which is used for efficient insulation by sealing gaps and air leaks, thereby maintaining the interior temperature and reducing energy consumption.
Moreover, the construction industry in the United States continued to expand in the future, owing to a strong economy and positive market fundamentals for commercial real estate, along with an increase in federal and state funding for public works and institutional buildings.
The growing urbanization and construction activities are expected to drive the market for hydroxylterminated polybutadiene during the forecast period.
AsiaPacific Region to Dominate the Market
AsiaPacific region is expected to dominate the market for hydroxylterminated polybutadiene during the forecast period due to the increasing demand from countries like India and China.
Hydroxylterminated polybutadiene is used as in the encapsulants or potting compounds in the electrical and electronics industry. Apart from electronics, hydroxylterminated polybutadiene, based sealants are used in the automobile industry for sealing headlamps, speakers, bumper, and damping material. With China and India being a leading manufacturer in the automotive industry with a total production of about 30.2 million vehicles for the year 2019, with a decrease of 7.5% and 12% in production, respectively. However, the growing green initiatives combined with the success of electrical and hybrid vehicles are expected to drive the market.
Hydroxylterminated polybutadiene is used in the formulation of solid rocket propellants for binding fuel and oxidizing agent. The growing space explorations from countries like China and India are expected to drive the market during the forecast period.
Moreover, the growing construction industries in India and China is expected to drive the market. According to the National Development and Reform Commission, the Chinese government approved 26 infrastructure projects at an estimated investment of about USD 142 billion in 2019 which are estimated to be completed by 2023. Furthermore, the Indian government has allocated USD 63 billion for the infrastructure sector in 201920 and is planning to spend USD 1.4 trillion over the next five years.
The aforementioned factors, coupled with government support, are contributing to the increasing demand for hydroxylterminated polybutadiene in the AsiaPacific region during the forecast period.
The global hydroxyl terminated polybutadiene market is partially fragmented with players accounting for a major share of the market. Few companies include Cray Valley, CRS Chemicals, Evonik, Island Pyrochemical Industries (IPI), and Idemitsu Kosan Co., Ltd.
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