Butadiene is an important petrochemical raw material used in production of rubber, plastics, fabrics and resins. It finds wide applications in manufacturing tires, latex, plastic bags and pipes due to its advantages like resistance to oil, chemicals and solvents.
The Global Butadiene Market is estimated to be valued at US$ 15681.17 Bn in 2024 and is expected to exhibit a CAGR of 28% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the butadiene market are Thermo Fisher Scientific, Synbio Technologies, Merck KGaA, Agilent Technologies, Inc., GenScript, Amyris, Eurofins Genomics GmbH, Integrated DNA Technologies, Inc., Codexis, Inc., EnBiotix, Inc., Synthego, New England Biolabs (UK) Ltd., Scarab Genomics, LLC and Genomatica, Inc. Key players are focusing on development of synthetic biology based technologies to produce butadiene from renewable feedstocks in a sustainable manner.
Growing Butadiene Market Demand from tire and rubber industries along with resurgence in automobile sector is expected to drive its market growth during the forecast period. The global rubber industry is projected to increase at a CAGR of over 5% thereby augmenting butadiene consumption.
Major players are expanding their production capacities globally especially in Asia Pacific and Middle East & Africa to leverage increasing demand from developing nations. For instance, SynBio technologies has undertaken capacity expansion projects in India and China.
Market key trends
Synthetic biology driven technologies are trending in butadiene production with varying degree of success at pilot scale. Companies like Genomatica and Amyris are utilizing synthetic biology tools to produce butadiene from sustainable feedstock like sugarcane through fermentation processes. These techniques help reduce dependence on crude oil and offer environmental benefits. Growing emphasis on sustainable chemicals and polymers is a major driver for synthetic biology in the butadiene market.
Porter’s Analysis
Threat of new entrants: The Butadiene Market has high capital requirement for setting up production facilities which limits threat of new entrants.
Bargaining power of buyers: The buyers have moderate bargaining power in the global butadiene market due to availability of substitutes.
Bargaining power of suppliers: A small number of companies dominate the global supply of crude oil and natural gas, giving them strong bargaining power over buyers.
Threat of new substitutes: Alternatives like renewable feedstocks for butadiene production pose threat of substitution.
Competitive rivalry: The butadiene market has few large players globally operating at economies of scale.
Geographical Regions
North America accounted for the largest share of over 35% of the global butadiene market in terms of value in 2024. Growth in automotive and construction industries which are major end-users is driving regional market.
Asia Pacific is expected to witness fastest growth during the forecast period. This can be attributed to rapid industrialization and growth in end-use industries especially in China and India. Establishment of production facilities by key players to cater growing demand in the region will further support market growth.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
