Synthetic & bio-based butadiene market is expected to gain a significant revenue from the automotive sector subject to the increasing production and sales of automobiles by the day. The product is mainly used to manufacture tires, as butadiene based tires offer notable benefits such as low rolling resistance and excellent grip, which will stimulate synthetic & bio-based butadiene market. Growing environmental concerns coupled with the fuel efficiency benefits will also drive the industry share noticeably. As per a report by Global Market Insights, Inc., “Worldwide Synthetic & bio-based butadiene market was valued USD 16.5 billion in 2016 and will generate considerable revenue with an annual growth rate of 5% over the period of 2017 to 2024.”
Asia pacific covered a major share of global synthetic and bio-based butadiene industry and will collect considerable revenue over the years ahead. Strong automobile base across this region will contribute noticeably toward industry growth. In addition, the increasing disposable incomes of the population across the emerging economies is also a notable driving factor for APAC synthetic and bio-based butadiene market. The increased purchasing capability of consumers will lead to the adoption of luxurious and technologically enhanced products such as electric vehicles and autonomous cars.
U.S. Synthetic & Bio-Based Butadiene Market size, by application, 2013 - 2024 (USD Billion)
China will be the prominent revenue contributor of APAC synthetic and bio-based butadiene market, pertaining to the extensively growing automotive sector across the region and the fact that anti-corrosion coatings are massively used to manufacture automobile parts. China ABS synthetic & bio-based butadiene industry having had a revenue of USD 740 million in 2016, will record considerable annual growth rate over the years ahead.
The developing countries of APAC such as India and China have been witnessing rapid industrialization and urbanization since the last few decades. The governments of these economies have been spending heavily in infrastructural development, which is anticipated to fuel synthetic and bio-based butadiene market noticeably. The deployment of environment friendly regulations by the government will produce lucrative opportunities for market players to manufacture bio-based products over the coming seven years.
Synthetic and bio-based butadiene market size from rubber applications collected a revenue of over USD 5 billion in 2016 and will grow lucratively over the coming years. This product is primarily used for manufacturing automobile tires owing to its characteristics such as low rolling resistance & better grip. Implementation of strict governmental norms regarding environmental hazards will boost the usage of bio-based products, thereby propelling synthetic and bio-based butadiene market. As per a study, bio-based butadiene market generated a revenue of USD 450 million in 2016 and will register an annual growth rate of more than 13% over the coming seven years.
SB latex is a key product that is extensively used for sealing and binding purposes, primarily due to its excellent characteristics such as low shrinkage capability, high flexibility, and superior durability. Synthetic and bio-based butadiene market from SB latex applications will exhibit an annual growth rate of above 3% over the coming timeframe. Synthetic accounted for highest share in product segment of synthetic & bio-based butadiene market and will collect substantial revenue over the years ahead. Industry giants have been exploring a number of raw materials that can be used to manufacture synthetic butadiene, which will create lucrative avenue for the market in the ensuing years. The key participants in synthetic & bio-based butadiene industry are Evonik Industries AG, BASF SE, The Dow Chemical Company, INEOS Group, Eni S.p.A, Exxon Mobil, Yeochun Ncc Co., Ltd., LyondellBasell Industries N.V., TPC Group LLC., Royal Dutch Shell Plc., SABIC, Repsol, and PCS.
The market players are looking forward to develop alliances with the construction and automotive companies to increase their profit margins and address the extensive demands for the product across automotive parts, tires, and water proofing applications. Considerable R&D activities are expected to be in the offing over the years ahead to generate lucrative growth opportunities. Industry participants have also been focusing on lowering product prices to expand their global consumer base.