Europe's butadiene market to grow at over 4% CAGR by 2018

19-Nov-14

The European Butadiene Market is estimated to reach a value of US$5290.2 mln by 2018 at a CAGR of 4.4% from 2013 to 2018, as per MicroMarket Monitor. This market is driven by increase in manufacture of butadiene derivatives for end-user industries. The European region is the third-largest market in terms of butadiene consumption. The market in this region witnessed great fluctuations in the last few years as butadiene is used in highly cyclical applications. The past trend of the world economy clearly shows the economic downturn and a stagnant western economy, because of which both developed and developing countries were affected. This scenario has also resulted in low economic activities around the world and has lowered the demand for industrial goods and services. Due to the stagnant economy there has been a drop in the manufacturing output, as a result of which there has been a significant slowdown in majority of industries. This affected the demand for butadiene, and in turn, had a negative effect on many associated markets such as its derivatives. However, despite the economic downturn, the consumption of butadiene in the market is growing, albeit at a slower rate, every year. The butadiene market is experiencing strong growth, which is only expected to get stronger in the future, because of the growing demand for its derivatives. Butadiene breaks down quickly in the atmosphere; it is found in ambient air in urban and suburban areas as a consequence of its constant emission from motor vehicles. The largest single use of butadiene is in the production of styrene butadiene rubber (SBR), which is principally used in the manufacture of automobile tires. SBR is also used in adhesives, sealants, coatings, and rubber articles such as shoe soles. The world market for butadiene is largely driven by the demand for elastomers due to their extensive use in manufacture of tires.