In 2022 & 2023, market players expected to sail in rough waters; might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain. Further, U.S. economy is expected to grow merely by 3% in 2022. Purchasing power in the country is expected to fell nearly by 2.5%.
On the other hand, European countries to see the worst coming in the form of energy crisis especially in upcoming winters!! Right after COVID-19, inflation has started gripping the economies across the globe. Higher than anticipated inflation, especially in western world had raised concerns for national banks and financial institutions to control the economic loss and safeguard the interest of the businesses. Increased interest rates, strong USD inflated oil prices, looming prices for gas and energy resources due to Ukraine-Russia conflict, China economic slowdown (~4% in 2022) disrupting the production and global supply chain and other factors would impact each industry negatively.
Base Year |
2022 |
Forecast Year |
2023-2033 |
CAGR |
~6% |
Base Year Market Size (2022) |
~ 2,500 Million |
Forecast Year Market Size (2033) |
~ 7,600 Billion |
The global 1 3 butadiene market is estimated to garner revenue of ~USD 7,600 million by the end of 2033 by growing at a CAGR of ~6% over the forecast period, i.e., 2023 – 2033. Further, the market generated a revenue of ~USD 2,500 million in the year 2022. The growth of the market can be attributed primarily to the increasing production of motor vehicles worldwide, as 1 3 butadiene offers elastomers which are highly used in the production of tires. A report by OICA reveals that the production of motor vehicles worldwide increased from 58374162 units in 2000 to 91786861 units in 2019.
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The chemical compound 1,3-butadiene is a colorless, synthetic gas or liquid that is useful as a chemical intermediate or monomer (molecules that form polymers when attached to others). It is widely used in the manufacture of synthetic rubbers or elastomers and is highly soluble in ethanol, ether, acetone, and benzene, but highly insoluble in water. Moreover, the extensive use of product in end use industries such as automobile, construction, healthcare, and expansion of chemical industry are projected to drive 1 3 butadiene market growth during the forecast period. According to estimates, the Indian chemical industry is projected to grow by 10% and reach USD 300 billion in revenue by 2025.
1,3-butadiene is used in the production of synthetic rubber, while SBR is mainly used in the production of tires in combination with natural rubber. The growing preference for 1,3 butadiene in the production of rubber tyres and other automotive components coupled with escalating automotive sector is expected to augment global market growth over the forecast period.
The global 1 3 butadiene market is segmented and analyzed for demand and supply by product into butadiene rubber, styrene butadiene rubber, acrylonitrile butadiene rubber, nitrile butadiene rubber, SB latex, hexamethylenediamine, and others. Among these segments, the styrene butadiene rubber (SBR) segment is anticipated to capture the largest market size in the global 1 3 butadiene market owing to the rising trade and exports of SBR globally. Styrene butadiene rubber exports were valued at USD 6,515,185 thousands in 2021, up from USD 4,508,649 thousands in the previous year, according to the International Trade Center (Trademap). Moreover, SBR is the major component of synthetic rubber, and it is mixed with natural rubber to create tires. It is commonly used when water, hydraulic fluids, or alcohol are present. Styrene-butadiene has strong water resistance as well as compressive strength. These factors are expected to fuel segment growth over the forecast period.
The chemical industry is a major component of the economy. According to the U.S. Bureau of Economic Analysis, in 2020, for the U.S., the value added by chemical products as a percentage of GDP was around 1.9%. Additionally, according to the World Bank, Chemical industry in the U.S. accounted for 16.43% to manufacturing value-added in 2018. With the growing demand from end-users, the market for chemical products is expected to grow in future. According to UNEP (United Nations Environment Program), the sales of chemicals are projected to almost double from 2017 to 2030. In the current scenario, Asia Pacific is the largest chemical producing and consuming region. China has the world’s largest chemical industry, that accounted for annual sales of approximately more than USD 1.5 trillion, or about more than one-third of global sales, in recent years. Additionally, a vast consumer base and favorable government policies have boosted investment in China’s chemical industry. Easy availability of low-cost raw material & labor as well as government subsidies and relaxed environmental norms have served as a production base for key vendors globally. On the other hand, according to the FICCI (Federation of Indian Chambers of Commerce & Industry), the chemical industry in India was valued at 163 billion in 2019 and it contributed 3.4% to the global chemical industry. It ranks 6th in global chemical production. This statistic shows the lucrative opportunity for the investment in businesses in Asia Pacific countries in the upcoming years.
Regionally, the global 1 3 butadiene market is studied into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region. Amongst these markets, the market in Asia Pacific is projected to hold the largest market share by the end of 2033 backed by the increasing production and trade of tyre rubber. As per the ITC data, tyre rubber exports in China in 2021 were valued at USD 24,765 thousand, up from USD 22,490 thousand the previous year. Moreover, the increasing R&D investments in industrial sectors, rising vehicle production, and rapid growth in the automobile industry along with the presence of market key players in the region are anticipated to drive 1 3 butadiene market growth in Asia Pacific over the forecast period.
The global 1 3 butadiene market is further classified on the basis of region as follows:
Our in-depth analysis of the global 1 3 butadiene market includes the following segments:
By Type |
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By Product |
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By End User |
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Ans: Rapid expansion of automotive sector, rising disposable income along with surge in exports of butadiene rubber worldwide are the major factors driving the growth of the 1 3 butadiene market.
Ans: The market is anticipated to attain a CAGR of ~6% over the forecast period, i.e., 2023 – 2033.
Ans: Availability of renewable substitutes for the product and high price of raw material are the challenges affecting the market growth.
Ans: The market in Asia Pacific is projected to hold the largest market share by the end of 2033 and provide more business opportunities in the future.
Ans: The major players in the market are BASF S.E., Braskem S.A, Exxon Mobil Chemical Company, S&P Global Inc., Lyondell Basell Industry N.V., Royal Dutch Shell PLC., DYNASOL Group, TPC Group Incorporation, Nizhnekamskneftekhim O.A.O, Lanxess A.G.
Ans: The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by type, product, end user and, by region.
Ans: The styrene butadiene rubber segment is anticipated to garner the largest market size by the end of 2033 and display significant growth opportunities.
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