Synthetic and bio-based butadiene market to surpass US$23.45 bln by 2023

The global market for synthetic & bio-based butadiene was valued at US$15.24 bln in 2014 and is anticipated to reach US$23.45 bln by 2023, expanding at a CAGR of 4.9% between 2015 and 2023, as per Transparency Market Research. In terms of volume, Asia Pacific accounted over 50% share of the global synthetic & bio-based butadiene market in 2014. The market for butadiene in this region is primarily driven by high demand from automotive and tire industries. Europe accounted for the second-largest share of the global synthetic & bio-based butadiene market in 2014. Demand for synthetic & bio-based butadiene in this region is expected to decline during the forecast period. However, increasing technological innovations to aid production of bio-based butadiene is likely to provide market opportunities in Europe. North America was another major region contributing to growth of the global synthetic & bio-based butadiene market in 2014. However, decline in the tire industry and rubber products market is expected to hinder growth of the synthetic & bio-based butadiene market in this region. Latin America is projected to exhibit stable demand for butadiene during the forecast period. The Middle East & Africa is anticipated to one of the most lucrative markets for synthetic & bio-based butadiene during the forecast period. The market share of the region is projected to increase in the next few years. Rise in demand from automotive and tire industries is primarily driving growth of the global synthetic & bio-based butadiene market. SB rubber and butadiene rubber are commonly used raw materials in the production of tire and tire products. Furthermore, high demand for ABS and adiponitrile in China has been chiefly driving growth of the synthetic & bio-based butadiene market. However, volatility in prices of raw materials such as naphtha, butane, ethane, and propane is projected to hinder the synthetic & bio-based butadiene market in the developed as well as developing regions. Various regulations by agencies such as the U.S. EPA are expected to hamper the butadiene market in North America. Synthetic butadiene was the largest product segment, accounting for over 90% share of the global synthetic & bio-based butadiene market in 2014. However, bio-based butadiene is likely to be the fastest-growing product segment and gain more market share during the forecast period. Bio-based butadiene is manufactured through biomass feedstock and is eco-friendly compared to its counterpart. The market for bio-based butadiene is expected to expand during the next decade due to development in technology and process innovation. China dominated the demand for synthetic & bio-based butadiene in Asia Pacific in 2014. High demand from ABS and adiponitrile has been driving the market growth. Strong demand from the tire industry has been fueling demand for synthetic & bio-based butadiene in South Korea and countries in Southeast Asia in the past few years. The butadiene market in Western Europe is expected to decline in the next few years due to higher prices and stringent regulations; however, Eastern Europe and countries such as Russia, Slovakia, and Hungary are estimated to drive the market growth in Europe. The U.S. accounted for majority share of the synthetic & bio-based butadiene market in North America in 2014. The region comprises key butadiene producers such as TPC Group, Exxon Mobil Corporation, and The Dow Chemical Company. The Middle East & Africa is expected to be one of the most lucrative markets for synthetic & bio-based butadiene during the forecast period. Growth in plastics and automotive industries is likely to be key factor boosting the market growth in the region.