Global butadiene market is estimated to be valued at USD 35.38 Bn in 2024 and is expected to reach USD 53.55 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 6.1% from 2024 to 2031.
To learn more about this report, request sample copy
Growing rubber industry is expected to boost demand for butadiene. Butadiene is a key raw material used in the production of synthetic rubber. Rise in the application of synthetic rubber in the automotive and tire industry can boost consumption of butadiene. Expanding production of automobiles around the world has increased demand for tires, and this has boosted demand for butadiene-based synthetic rubber. Growing infrastructure development activities contributes to the growth of the construction industry where synthetic rubber products find numerous applications. Thus, a thriving rubber industry backed by growth in automotive, tire and construction is expected to drive the global butadiene market growth in the near future.
Trends in synthetic rubber production
Global butadiene market growth is driven by growing synthetic rubber industry. Butadiene is used in the production of synthetic rubbers such as styrene-butadiene rubber and Polybutadiene rubber. These synthetic rubbers are increasingly used as substitutes for natural rubber in various applications due to benefits such as enhanced strength, flexibility and resistance properties. In the automotive industry, synthetic rubbers have gained widespread acceptance for use in tyres, hoses, belts, gaskets and other automotive components. The global automotive market has been growing consistently in recent years driven by rising vehicle ownership in emerging economies and demand for premium vehicles. As synthetic rubbers continue to find more applications in the automotive sector, their offtake of butadiene is expected to increase accordingly. Meanwhile, the construction industry is another major end user of synthetic rubbers for various purposes such as roofing sheets, pipes, seals and waterproofing systems. With rapid urbanization and infrastructure development projects worldwide, synthetic rubber consumption increases in the construction sector as well. The trends of replacing natural rubber with synthetic varieties extend to other industries including consumer goods, footwear and clothing. Advantages of synthetic rubbers over natural rubber such as affordability and consistent quality prompt industries to use materials like styrene-butadiene rubber.
The global butadiene market is experiencing significant growth due to rising demand for polybutadiene rubber in tire manufacturing applications. Polybutadiene rubber is a key raw material used in the production of tires as it provides strength, flexibility and wear resistance. Currently, over 60% of all polybutadiene rubber produced globally is consumed by the tire industry. As automobile production continues to increase steadily worldwide, tire demand is experiencing a parallel rise. For example, data from the International Organization of Motor Vehicle Manufacturers shows global automobile sales increased over 4% in 2021 from 2020 levels, reaching just under 79 million units. With more automobiles on the road, tire replacement rates are also rising which is further stimulating polybutadiene rubber consumption. This steady growth in the tire industry shows no signs of slowing in the coming years. Most forecasts predict automobile sales will grow at least 3-4% annually through 2025. Emerging economies like India and Indonesia are expected to see especially strong growth in vehicle ownership as personal income levels rise across larger segments of the population in these nations. As a result, demand for replacement tires in these developing auto markets will steadily support increased butadiene consumption for polybutadiene rubber production to meet this need. Other uses of butadiene in markets like plastics and latex are also expanding but at a more modest pace compared to its role as a base material for the resilient tire sector.
Joining thousands of companies around the world committed to making the Excellent Business Solutions.
View All Our Clients