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Global 1,3 Butadiene (BD) Market Report 2018-2029
Global 1,3 Butadiene (BD) Market Report 2018-2029

Pages: 150       Published Date: Jul 04 2023       Category: Other       Report ID: HJR855743
1,3 Butadiene (BD) is a chemical compound used primarily in the production of various rubber and latex products. It is a colorless gas with a mild, gasoline-like odor. The global 1,3 Butadiene (BD) market is expected to reach a size of US$35514.9 million by 2022, with a compound annual growth rate of 6.09% (HJResearch, 2022). This indicates significant growth potential for the industry in the coming years.

One of the major applications of 1,3 Butadiene (BD) is in the production of Styrene Butadiene Rubber (SBR) and Butadiene Rubber (BR). SBR and BR are widely used in the manufacturing of tires, automotive components, and industrial rubber products. The growth of the automotive sector and increasing demand for high-performance tires are expected to drive the demand for 1,3 Butadiene (BD) in these applications.

Additionally, 1,3 Butadiene (BD) is used in the production of Styrene Butadiene Latex (SBL), which finds applications in adhesives, coatings, and paper coatings. The increasing demand for these products in various end-use industries such as construction, furniture, and packaging is expected to fuel the growth of the 1,3 Butadiene (BD) market.

Another significant application of 1,3 Butadiene (BD) is in the production of Acrylonitrile Butadiene Styrene (ABS). ABS is a widely used thermoplastic material known for its strength and impact resistance. It finds extensive applications in the automotive, electronics, and consumer goods sectors. The growing demand for lightweight and durable materials in these industries is expected to drive the demand for 1,3 Butadiene (BD) in ABS production.

Apart from these applications, 1,3 Butadiene (BD) also serves as a raw material for the production of adiponitrile and other products including nitrile rubber, among others.

In terms of industry status, the global 1,3 Butadiene (BD) market is highly competitive, with several key players dominating the market. These major manufacturers include Sinopec, TPC Group, Braskem, Shell Chemical, CNPC, FPCC, BASF, ExxonMobil, JSR Corp, Lotte, LyondellBasell, Ineos O&P, LG Chem, and Evonik. These companies are focused on expanding their production capacities and investing in research and development to meet the growing demand from various industries.

Looking ahead, the prospects for the 1,3 Butadiene (BD) industry remain positive. The increasing demand for rubber and latex products, driven by sectors such as automotive, construction, and consumer goods, is expected to fuel the market growth. Additionally, the development of newer applications and the growing demand for lightweight and high-performance materials are likely to create new opportunities for the industry. However, challenges such as volatile raw material prices and environmental concerns regarding harmful emissions during the production process may pose hurdles for the market growth. Nonetheless, strategic collaborations and technological advancements are expected to help the industry overcome these challenges and thrive in the coming years.

The SWOT analysis of the 1,3 Butadiene (BD) industry is as follows:

Strengths:
1. Versatility: 1,3 Butadiene (BD) is a crucial raw material used in the manufacturing of a wide range of products, such as automotive tires, synthetic rubber, plastics, chemicals, and coatings. Its versatility makes it an essential component in multiple industries, ensuring a consistent demand.

2. Cost-effectiveness: BD is a byproduct of ethylene production and is obtained from the cracking process, making it a relatively cost-effective raw material compared to other petrochemicals. This cost advantage can help manufacturers maintain competitive pricing in the market.

3. Growing Demand: The global demand for BD has remained strong due to the growth in automotive and construction industries, especially in emerging economies. The increasing disposable income of consumers and infrastructure development projects have contributed to the industry's growth.

Weaknesses:
1. Environmental Concerns: BD is a volatile organic compound (VOC) that is considered a hazardous air pollutant. Its emissions can contribute to air pollution and the formation of ground-level ozone. This potentially harmful impact on the environment raises concerns and regulatory requirements, which can increase compliance costs for manufacturers.

2. Price Volatility: The BD industry is subject to price fluctuations due to factors such as changes in feedstock prices, supply-demand imbalances, and geopolitical events. These price fluctuations can impact the profitability of manufacturers, especially if they are unable to pass on the increased costs to customers.

3. Dependency on Feedstock: The BD industry relies heavily on ethylene as a feedstock. Any disruption in the ethylene supply chain can have a significant impact on the availability and pricing of BD, potentially affecting the industry's operations and profitability.

Opportunities:
1. Growing End-user Industries: The automotive industry, primarily tire manufacturing, is a major consumer of BD. With the increasing demand for vehicles, especially in emerging economies, the demand for BD is expected to grow further. Additionally, the construction industry, driven by urbanization and infrastructure development, offers significant growth opportunities for the BD market.

2. Technological Advancements: Research and development efforts are focused on developing more efficient and environmentally-friendly BD production techniques. New catalysts and process innovations can lead to improved yields, reduced energy consumption, and lower emissions, providing a competitive edge to companies adopting these technologies.

3. Shift towards Renewable and Sustainable Materials: The sustainability trend in various industries is driving the demand for renewable and sustainable materials. This shift presents an opportunity for the BD industry to develop bio-based or bio-sourced alternatives that have a smaller environmental impact and meet the criteria for sustainable manufacturing.

Threats:
1. Strict Environmental Regulations: Governments worldwide are implementing stricter regulations to reduce emissions and curb environmental pollution. The BD industry may face compliance challenges and increased operational costs to meet these regulations, especially in regions with stringent environmental policies.

2. Competition from Substitutes: BD faces competition from substitutes like natural rubber, styrene-butadiene rubber, and other synthetic rubbers. The availability of these alternatives and their pricing can pose a threat to the BD industry, as customers may switch to more cost-effective or environmentally-friendly options.

3. Geopolitical Factors: Political unrest, trade disputes, and sanctions can disrupt the global supply chain of BD and its feedstocks. Any disruption in the supply chain can lead to supply shortages, increased prices, and uncertainties in the BD industry.

Key players in global 1,3 Butadiene (BD) market include:
Sinopec
TPC Group
Braskem
Shell Chemical
CNPC
FPCC
BASF
ExxonMobil
JSR Corp
Lotte
LyondellBasell
Ineos O&P
LG Chem
Evonik

Market segmentation, by product types:
Extractive Distillation
Oxidative Dehydrogenation

Market segmentation, by applications:
Styrene Butadiene Rubber (SBR)
Butadiene Rubber (BR)
Styrene Butadiene Latex (SBL)
Acrylonitrile Butadiene Styrene (ABS)
Adiponitrile
Others (Including Nitrile Rubber, etc)

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