North American butadiene market estimated to grow at CAGR of 5% by 2018

19-Nov-14

North American butadiene market estimated to grow to US$5508.9 mln by 2018 at a CAGR of 5% from 2013 to 2018, as per MicroMarket Monitor. The butadiene market in North America is the second-largest market globally, and is expected to grow at a moderate CAGR owing to slow growth in the region. In 2013, the U.S. led the market in terms of consumption in the region, and the market is driving high in the country because producers of butadiene adopt a low-cost leadership approach to the marketplace. The stringent environment regulations in North America are expected to affect the market growth in developed regions. However, the rising demand for butadiene due to the growth of downstream applications is set to drive and maintain the growth potential of the market in coming years. It remains at a reassuring position for existing players in the market. Applications of butadiene include acrylonitrile butadiene styrene, 1,4-Butanediol (1,4-BDO), adiponitrile, engineering plastics, nitrile elastomers or nitrile butadiene rubber (NBR) OR Buna N, polybutadiene, styrene butadiene rubber (SBR), and styrene-butadiene latexes. Ingredients include ethane, naphtha, and propane. The countries included in the region are U.S., Canada, and Mexico. Butadiene is a basic petrochemical that is majorly obtained as a by-product from the manufacture of ethylene and propylene. 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.