Global sales of butylene-divinyl fraction stood at USD 14,749.2 million in 2023. The industry is projected to exhibit a 5% year-over-year growth in 2024 and reach USD 15,483.1 million in the same year. Surging at a CAGR of 5.2% between 2024 and 2034, demand for butylene-divinyl fraction is valued to reach USD 25,768.5 million by 2034.
Butadiene is the most important monomer for the manufacture of synthetic rubber and plastics, accounting for 76.2% market share. Its major application includes the manufacture of polybutadiene rubber, nitrile-butadiene rubber, and styrene-butadiene rubber. It has applications in the tire industry due to its high resilience and abrasion resistance.
Nitrile-butadiene rubber is resistant to oil and chemicals and hence finds wide applications in automotive seals and gaskets. Solution and emulsion styrene-butadiene rubber find a great application in tire treads with other high-performance rubber products.
Polybutadiene rubber is synthetic rubber with 29.8% of the applications of butadiene. It has a very good degree of elasticity, and wear and tear resistance, hence such a vital material in the tire industry for the durability increase of tires with their performance. Besides that, the other applications of polybutadiene rubber in auto parts, such as belts and hoses, are for its excellent mechanical properties.
The neodymium-based version, even while taking a small market percentage of 2.8%, would have higher demand in applications where high performance and better resilience with low rolling resistance become necessary to further improve fuel efficiency in vehicles.
Attributes | Key Insights |
---|---|
Estimated Size, 2024 | USD 15,483.1 million |
Projected Size, 2034 | USD 25,768.5 million |
Value-based CAGR (2024 to 2034) | 5.2% |
The increase in demand for eco-friendly materials has revolutionized the butylene-divinyl fraction market. In a bid to reduce environmental degradations, consumers and the various industries are increasingly adopting eco-friendly products.
New developments from butadiene offer superior performances with minimal environmental degradation; hence, their increasing demand is realized. Besides this, organizations come up with effective packaging solutions using butadiene, which is also recyclable and biodegradable.
This is a trend maintained by supportive regulatory frameworks that now include eco-friendly materials. For example, the European Union's regulations on packaging and packaging waste further raise demand for these value-added butadiene-derived products by boosting the use of sustainable materials.
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Innovations in Rubber Products Increase the Demand for High-performance Butadiene-based Materials
The continuous innovation within the rubber industry boosts demand for high-performance butadiene-based material; hence, this also makes it have a great impact on the BDF market. As the advancement of the rubber industry proceeds, demand is increased to produce materials that are quite durable, elastic, and can bear extreme conditions. One of the raw materials involved in the making of synthetic rubber is butadiene; hence, it sees its demand within the above sectors like automotive, aerospace, and industrial sectors.
The key high-performance butadiene-based materials include polybutadiene rubber and styrene-butadiene rubber, which are of paramount importance in the making of tires, belts, and seals or any other component made of rubber with superior performance characteristics. Coupled with continued improvement in these materials, growing demand for butadiene is yielding increasing demand for BDF, its key feedstock.
The demand for value-added rubber products has grown very rapidly in the recent past, and such trends have their repercussions on the BDF Market. Due to the increasingly higher demands for butadiene-based materials in advanced applications, demands for BDF as feedstock for production have also been on the increase.
In January 2022, Bridgestone Corporation introduced a new high-performance tire employing advanced styrene-butadiene rubber. The invention was to improve fuel efficiency while at the same time reducing its contribution to the environmental impact, thus showing an increase in demand for the products of butadiene in the industries of rubber.
The Increasing Demand for Eco-friendly Materials Drives the Use of Advanced Butadiene-derived Products
The increasing industry demand for green materials has been the biggest influencing factor in the advanced butadiene-derived products sector, finding applications in various fields such as automotive, construction, and packaging.
This demand will be driven especially by high-performance synthetic rubbers and polymers used in green construction materials, energy-efficient tires, and sustainable packaging solutions. The growing demand for butadiene-based products, in turn, enhances the need for butylene-isobutylene fractions, as they serve as the major feedstock for butadiene production.
Partially, this has also been driven by the fact that regulatory pressure encourages such transformation for reducing carbon emissions and increasing the recyclability of materials. The governmental and organizational elements in different parts of the world are framing new and stricter environmental laws, which oblige an industry to adapt to greener alternatives.
This regulatory scenario, hence, gives birth to a strong market for value-added butadiene-derived products, thereby surging the demand for butylene-isobutylene fractions.
In December 2022, Lanxess Ag, the field materials company, decided to further extend the collection of cost-effectively friendly synthetic rubbers. The company presented an improved variety of butadiene-based rubber with improved characteristics for better sustainability, including lower rolling resistance and better durability as a part of the world drive for eco-friendly materials in automotive and industrial applications.
The emphasis on sustainable manufacturing and recycling techniques for butylene fractions creates potential for eco-friendly products.
The demand for sustainable production and implementation of recycling techniques leads to opportunities for eco-friendly butylene-based products. Industry is being more proactive in reducing the carbon footprint through adoption of environmentally responsible raw materials and processes. Companies could reduce the wastes, improve the energy efficiency, and decrease the emissions resulting from the butylene fraction productions by adopting greener techniques.
The impact on the Butylene-divinyl Fraction market is significant. The production of green products from renewable or recycled feedstocks is increasingly being developed in various applications, such as polymer and synthetic rubber production. Sustainable butylene fractions help reduce dependence on petrochemical resources, thereby improving market growth.
Rising regulatory pressures on companies to minimize their impact on the environment and consumers increasing demand for sustainable products also spur this opportunity. The demand for such cleaner technologies is positively boosting the market for eco-friendly butylene fractions as companies are making investments in cleaner technologies.
For instances, in 2022, LyondellBasell made significant strides in the recycling sector with the launch of its advanced recycling technology aimed at transforming waste plastic into valuable feedstocks.
Growing Automotive Industry is Driving the Increased Demand for High-Performance Butylene Fractions.
As the industry continues to expand globally, the demand for advanced materials such as synthetic rubber and high-performance fuels becomes high. Butylene fractions are integral in the production of these materials, which enhance the performance, safety, and durability of modern vehicles.
An excellent example is the use of butylene fractions in the manufacture of PBR, a type of rubber that has become commonly used in the production of tires because of its remarkable resistance to wear and abrasion.
Some examples are Nitrile-Butadiene Rubber (NBR) and Styrene-Butadiene-Styrene (SBS) thermoplastic elastomers, which have critical usage in the manufacturing of different parts for an automobile: seals and hoses to allow the vehicle to run or function. These products seek high-performance butylene fractions for advanced tires that come with an improved rolling resistance and greater lifespan.
Advances in manufacturing technology are also seen in more effective catalysts and improved polymerization techniques to create butylene fractions; all these contribute to the production of high-quality butylene materials for the automotive industry.
In 2023, LyondellBasell, a leading producer of butylene fractions, announced substantial investments in its production facilities to meet the rising demand for high-performance butylene derivatives used in automotive applications.
Volatile Demand in The Automotive and Industrial Sectors Impacts Market Growth and Predictability
The quite volatile demand from the automotive and industrial sectors burdens the BDF market with many challenges. Indeed, unstable automobile and industrial production is directly related to the consumption of major products resulting from the fractionation of BDF, such as butadiene-based rubbers and methyl tertiary butyl ether.
Automotive demand for a variety of synthetic rubbers, such as polybutadiene and nitrile-butadiene rubber, may be irregular due to fluctuation in the vehicle production rate and/or a switch in consumer preference to electric or conventional vehicles.
This volatility also leads to uncertainty in the market forecast and thus affects investment decisions in the business of BDF. Companies might have problems with planning the production capacity and the inventory, as their demand is becoming uncertain and unpredictable. Hence, chances of having overcapacity or shortage could occur.
Fluctuating demand can also result in un-even pricing stability, which causes a problem for a business to manage its costs.
The global Butylene-divinyl Fraction industry recorded a CAGR of 3.4% during the historical period between 2019 and 2023. The growth of the Butylene-divinyl Fraction industry was positive as it reached a value of USD 14,749.2 million in 2023 from USD 6,090.4 million in 2019.
From 2019 to 2023, the global sales of butylene-divinyl fractions witnessed a steady increase, driven primarily by the robust growth in the automotive and rubber industries. The demand for butadiene and related products, such as polybutadiene rubber and nitrile-butadiene rubber, surged due to a rebound in vehicle production post-pandemic and heightened consumer demand for durable goods.
Additionally, the growing adoption of methyl tertiary butyl ether (MTBE) in fuel formulations supported sales, as regulatory pressures for cleaner fuel alternatives prompted refiners to seek high-octane solutions.
Despite the overall positive sales trajectory, the market faced challenges, including fluctuations in raw material prices and supply chain disruptions caused by geopolitical tensions and the COVID-19 pandemic. These factors led to temporary shortages and increased production costs, impacting profit margins for manufacturers. Environmental concerns regarding the use of certain butylene derivatives prompted regulatory scrutiny, which influenced market dynamics and forced companies to innovate and adapt their product offerings.
In this scheme of things, the global sales of butylene-divinyl fractions increased steadily from 2019 up to 2023, driven by the strong progress of sales in the automotive and rubber industries. Growth in the use of methyl tertiary butyl ether in fuel formulations supported sales because regulatory pressure for clean fuel alternatives affected refiners looking for high-octane solutions.
While the general tendency of sales has been upward, there were some issues in the market: geopolitical tensions and the COVID-19 pandemic contributed to fluctuations in the prices of raw materials. The supply chain faced partial shortages due to disruptions, hence raising production costs and reducing profit margins for the manufacturers. Moreover, ecological concern for certain by-products of butylene attracted regulatory attention and impacts the market dynamics-forced companies to change their product offering.
From 2024 to 2034, it is expected that butylene-divinyl fractions will face strong demand because of the following factors: continued development in the automotive industry, especially in developing countries, boosting demands for high-performance tires and rubber; drive toward greener materials and clean fuels as MTBE and bio-based alternates manufactured from the butylene fractions will likely see increased demand in the path to global sustainability.
Innovation will remain the most important driver in the future of the butylene-divinyl fraction market. Because of that, companies increasingly invest in research and development to realize high-performance materials with improved characteristics and properties for meeting end-industry requirements.
Polymer technology and increasing electric vehicles are going to create new avenues for derivatives from butylene, enabling manufacturers to enter emerging applications and expand their share in the market within this decade.
Tier 1 companies include industry leaders with annual revenues exceeding USD 10,000 - 35,000 million. These companies are currently capturing a significant share of 25-30% globally. These frontrunners are characterized by high production capacity and a wide product portfolio.
They are distinguished by extensive expertise in manufacturing and a broad geographical reach, underpinned by a robust consumer base. The firms provide a wide range of products and utilize the latest technology to meet regulatory standards. Prominent companies within Tier 1 include Mitsubishi Chemical Corporation, BASF SE, SINOPEC, Sumitomo Chemicals, The Dow Company, and Evonik.
Tier 2 companies encompass mid-sized participants with revenues ranging from USD 1,000 - 10,000 million, holding a presence in specific regions and exerting significant influence in local economies. These firms are distinguished by their robust presence overseas and in-depth industry expertise.
They possess strong technology capabilities and adhere strictly to regulatory requirements. However, the firms may not wield cutting-edge technology or maintain an extensive global reach. Noteworthy entities in Tier 2 include SABIC, Eastman Chemical Company, Armaco, Reliance Industries, and Air Liquide.
Tier 3 encompasses most of the small-scale enterprises operating within the regional sphere and catering to specialized needs with revenues below USD 500 - 1,000 million. These businesses are notably focused on meeting local demand and are hence categorized within the Tier 3 segment.
They are small-scale participants with limited geographical presence. In this context, Tier 3 is acknowledged as an informal sector, indicating a segment distinguished by a lack of extensive organization and formal structure in comparison to the structured one. Tier 3 includes INEOS, Mitsui Chemicals, Westlake Corporation, and SIBUR International GmbH.
The section below covers assessments of butylene-divinyl fraction sales across key countries. Countries from East Asia, and North America, are anticipated to exhibit promising double-digit growth over the forecast period.
Countries | Value CAGR (2024 to 2034) |
---|---|
The USA | 5.1% |
China | 4.5% |
India | 6.1% |
Italy | 4.7% |
Brazil | 5.6% |
The synthetic rubber industry has the largest share of butylene-divinyl fraction production across different USA states. Therefore, the synthetic rubber industry is crucial in the growth of the butylene-divinyl fraction. Industries such as automotive and construction are the major customers of synthetic rubber. The growing automotive and construction industry will further push the growth of the butylene-divinyl faction.
The USA chemical industry is gaining importance as several petrochemical manufacturers are engaged in mergers and acquisitions. This in turn has increased the demand for Butylene-divinyl fraction. For instance, The USA's overall merger and acquisition cost stood around USD 75 billion in 2022 alone for the petrochemical industry, showcasing the strong potential for growth of the butylene-divinyl fraction.
According to industry statistics, the adoption of synthetic rubber is largely dominated by the automotive industry and roughly 48% is utilized. The tire industry depends largely on synthetic rubber and nearly 2/3rd of synthetic rubber goes into tire production. All these factors are driving the growth of the butylene-divinyl fraction in the USA
The Indian government is increasing local petrochemical production to minimize the reliance on exports. Prominent petrochemical companies are engaged in production capacity expansion. For instance, Reliance Industries has planned to invest USD 10 billion to expand its petrochemical business segment.
This in turn will impact positively the growth of the butylene-divinyl fraction in India. Technological development is also crucial in the growth of India ṣ butylene-divinyl fraction. Several green production technologies are implemented by dominant petrochemical companies that will directly impact the positive growth of the butylene-divinyl fraction in India.
The growth of the butylene-divinyl faction in Brazil is largely dependent on automotive and infrastructure development in Brazil. Brazil is the largest country for the automotive industry in the Latin America region and the majority of the synthetic rubber is used in the automotive industry.
The production of EPDM rubber requires the use of butylene-divinyl faction as this enhances the product quality. Largely, the EPDM rubber is in the tire industry and the growing automotive sector will impact positively the butylene-divinyl faction growth in Brazil.
The Brazilian government has implemented several acts to support the country's infrastructure development. For instance, after post implementation of the Brazilian Growth Acceleration Program (PAC), the construction industry in Brazil has witnessed a surge. EPDM rubber is also majorly used in roofing membranes, waterproofing products, and other construction materials. All these factors are positive factors driving the Brazilian butylene-divinyl faction industry.
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The section explains the growth trajectories of the leading segments in the industry. In terms of application, the butadiene category will likely dominate and generate a share of around 76% in 2024.
Segment | Butadiene (Application) |
---|---|
Value Share (2024) | 76% |
Butylene-divinyl fraction is largely used as an intermediate chemical in the production of butadiene. The butadiene is used across the production of diverse polymers and synthetic rubber. The demand for Butylene-divinyl fraction largely depends upon the technology and production of butadiene.
Acrylonitrile-butadiene-styrene (ABS) plastic is gaining traction across automotive parts, electronic casings, and other consumer goods owing to its strength and durability. Butadiene produced by using the Butylene-divinyl fraction has been largely used in ABS production, thus driving the growth of the market.
Butadiene-styrene latex is also a major consumer of butadiene. Several applications such as carpet backing, paper coating, and adhesives drive the demand for Butadiene-styrene latex. As butadiene is a largely used butylene-divinyl fraction, the demand for the industry also grows in the forecast period.
The section also provides insight analysis and perspective, which put companies based both in the developed and developing nations abreast of recent opportunities and emergent trends. It assesses the latest manufacturing developments and identifies fresh trends that are likely to find applications in new uses in the market.
Key players in the butylene-divinyl fraction market are investing in capabilities and resources to meet the growing demand for the compound across diversified applications. Large enterprises through partnership and joint venture methods develop new products and broaden resource bases.
Major players are also launching new products to cater to the growing demand for innovative solutions across different end-use industries. Geographical expansion is one of the crucial strategies being adopted by renowned companies. The emergence of startups in this industry is expected to take place up to 2034, which will further lead to increasing competitiveness in the industry.
Industry Updates
In terms of application, the industry is divided into two main categories: BIF (Butylene-Isobutylene Fraction) and Butadiene. The BIF category includes Methyl Tertiary Butyl Ether (MTBE) for motor fuels, while the Butadiene category encompasses various applications such as Polybutadiene Rubber, Neodymium-Based Polybutadiene Rubber, Nitrile-Butadiene Rubber, Styrene-Butadiene-Styrene (SBS) Thermoplastic Elastomers, Solution Styrene-Butadiene Rubber, and Emulsion Styrene-Butadiene Rubber.
Key countries of North America, Latin America, Western Europe, Eastern Europe, East Asia, South Asia, the Middle East, and Africa (MEA), have been covered in the report.
The global market was valued at USD 14,749.2 million in 2023.
The global market is set to reach USD 15,483.1 million in 2024.
Global demand is anticipated to rise at 5.2% CAGR.
The industry is projected to reach USD 25,768.5 million by 2034.
1. Executive Summary 2. Industry Introduction, including Taxonomy and Market Definition 3. Market Trends and Success Factors, including Macro-economic Factors, Market Dynamics, and Recent Industry Developments 4. Global Market Demand Analysis 2019 to 2023 and Forecast 2024 to 2034, including Historical Analysis and Future Projections 5. Pricing Analysis 6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034 6.1. Application 7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Application 7.1. BIF (Butylene-isobutylene Fraction) 7.1.1. Methyl Tertiary Butyl Ether for Motor Fuels 7.2. Butadiene 7.2.1. Polybutadiene Rubber 7.2.2. Polybutadiene Rubber (Neodymium Based) 7.2.3. Nitrile-butadiene Rubber 7.2.4. Styrene-butadiene-styrene Thermoplastic Elastomers 7.2.5. Solution Styrene-butadiene Rubber 7.2.6. Emulsion Styrene-butadiene Rubber 8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region 8.1. North America 8.2. Latin America 8.3. Western Europe 8.4. South Asia 8.5. East Asia 8.6. Eastern Europe 8.7. Middle East & Africa 9. North America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 10. Latin America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 11. Western Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 12. South Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 13. East Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 14. Eastern Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 15. Middle East & Africa Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 16. Sales Forecast 2024 to 2034 by Application for 30 Countries 17. Competition Outlook, including Market Structure Analysis, Company Share Analysis by Key Players, and Competition Dashboard 18. Company Profile 18.1. Mitsubishi Chemical Corporation 18.2. BASF SE 18.3. SINOPEC 18.4. Sumitomo Chemicals 18.5. The Dow Company 18.6. Evonik 18.7. SABIC 18.8. Eastman Chemical Company 18.9. Armaco 18.10. Reliance Industries 18.11. Airliquide 18.12. INEOS 18.13. Mitsui Chemicals 18.14. Westlake Corporation 18.15. SIBUR International GmbH
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