1,4 Butanediol Derivatives Market Size, Share & Trends Analysis Report By Product By Application (THF, GBL, Spandex, PBT, PTMEG, NMP, NVP, PVP, PBS, PBAT, TPU, 2PY), By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global 1,4 butanediol derivatives market size was estimated at USD 28.27 billion in 2022 and is anticipated to grow at a compound annual growth rate (CAGR) of 6.8% from 2023 to 2030. This is attributed to the wide application scope of derivatives of 1,4 butanediol in different end-use industries, including electronics, clothing, pharmaceutical, packaging, etc. As per the OICA (International Organization of Motor Vehicle Manufacturers), the global production of cars was 55.83 million units in 2020, which grew to 57.05 million in 2021 and 61.6 million in 2022. The production of automobiles is rising owing to the increasing population and growing disposable income. This has increased the purchasing power of consumers, thereby increasing luxury buying behavior in rapidly growing countries like India, China, Japan, and some European countries.

Thus, with the rising demand for automobiles, the demand for PBT is rising. This is expected to boost the market growth over the forecast period. The U.S. textile manufacturing industry has established new facilities across the supply chain, including recycling plants that convert textile waste into new textiles and resins. As per the National Council of Textile Organization, the U.S. textile industry invested USD 20.9 billion in new plants and equipment between 2012 and 2021. This growing investment in the textile industry is expected to drive the demand for tetrahydrofuran (THF) and spandex. Tetrahydrofuran derivative of 1,4 butanediol triggered the market growth owing to its wide utilization as a solvent in a range of processes for manufacturing pharmaceuticals, dyes, and plastics.

It is also used in the production of solvents and Polytetramethylene Ether Glycol (PTMEG), which is further used in manufacturing polyurethanes and spandex. In emerging countries like India, the electronics industry is developing at a rapid pace on account of the increasing demand for electronic goods along with supportive government initiatives, such as Digital India and Make in India, coupled with supportive policies, including favorable FDI policy for electronics manufacturing. Thus, the developing electronic goods market is expected to boost the demand for PBT, which, in turn, is expected to augment the demand for BDO derivatives in the coming years, thereby boosting the overall market growth.

Product By Application Insights

The spandex segment dominated the market with the highest revenue share of 26.2% in 2022. This is attributed to its increasing application in the textile and clothing industry. Spandex, also known as elastane, is a type of synthetic fiber known for its remarkable elasticity and stretchiness. Its unique capabilities make this fiber popular for manufacturing clothing items, such as sportswear and leggings, that require a high degree of stretch and recovery. Spandex can stretch up to 600% of its original length and still return to its initial form. Another advantage of spandex is its ability to mix well with other fibers, resulting in blended fabrics with unique properties.

For instance, spandex combined with cotton can improve fabric durability and strength, while still being elastic. The growing global textiles industry is anticipated to drive the demand for spandex worldwide over the forecast period. In addition, spandex is used in medical applications, such as compression stockings and bandages. It can help improve circulation and support muscle recovery. It is also used for developing comfortable and durable furniture, such as sofas and chairs. Polybutylene terephthalate (PBT) is also one of the most prominent derivatives of 1,4 butanediol. It is a polyester type known for its strength, rigidity, and solvent resistance. PBT is often used in the electrical and electronics industries as an insulator due to its non-conductive properties.

In addition, PBT is often used for producing automotive parts, such as connectors, sensors, and housings, owing to its high strength and impact resistance. Polytetramethylene ether glycol (PTMEG) is a type of linear, long-chain polyether glycol developed by THF polymerization. It is used in a range of applications. Polytetramethylene ether glycol is a raw material for elastomers, coatings, and adhesives. It is commonly used for manufacturing high-performance elastomers, particularly polyurethanes. These elastomers are employed in various applications, from automotive suspension systems to sports equipment, owing to their high tensile strength, durability, and resilience. Thus, these elastomers are ideal for use in high-performance applications.

Regional Insights

Asia Pacific dominated the market with the highest revenue share of 65.2% in 2022 owing to an increase in construction activities, growing electronics, automotive, medical, and clothing production, and increasing foreign investments in the region. As per the India Brand Equity Foundation, the pharmaceuticals industry in the country accounts for more than 50% of the global demand for various vaccines, making it one of the largest pharmaceutical markets in the world. In addition, according to the Indian Economic Survey, the pharmaceuticals market in India was estimated at USD 42 billion in 2021 and is projected to grow to USD 65 billion by 2024.

Thus, the growing pharmaceutical industry in Asia Pacific countries like India is further expected to increase the demand for 1,4 butanediol derivatives like 2PY and PVP. North America is also a prominent product manufacturer owing to the region's growing electronics and textile industries. Mexico’s electronics industry is the sixth-largest producer of electronics in the world, with 1,100 companies manufacturing and designing electronic components and devices. The total electronics production in Mexico accounted for USD 8.50 billion, registering an annual growth of 7.1% in 2020.

The growing electronic industry in Mexico is further anticipated to drive the demand for BDO derivatives, including TPU and PBT, over the forecast period. Moreover, according to the National Council of Textile Organization, the U.S. is the third-largest exporter of textiles, with total textile exports accounting for USD 65.80 billion in 2022. The textile industry in the U.S. invested USD 20.90 billion in new textile plants and equipment in 2021. The advancing textile industry in the U.S. is anticipated to drive the demand for spandex, which is expected to drive the market over the forecast period.

Key Companies & Market Share Insights

The market is fragmented due to the presence of several major players. Leading players have adopted strategies, such as mergers & acquisitions, to enhance the reach of their products by utilizing the network of acquired players and increasing the availability of their products in diverse geographies. For instance, Celanese Corporation, in February 2022, acquired Dupont's mobility and material business, which included the polybutylene terephthalate (PBT) unit. Some of the prominent players in the global 1,4 butanediol derivatives market include:

• BASF SE

• Ashland

• DCC

• Mitsubishi Chemical Group Corp.

• Evonik Industries AG

• LyondellBasell Industries Holdings B.V.

• Sipchem Company

• SINOPEC (China Petrochemical Corp.)

• Genomatica, Inc.

1,4 Butanediol Derivatives Market Report Scope

Global 1,4 Butanediol Derivatives Market Report Segmentation

This report forecasts revenue growth at regional level and provides an analysis of the latest trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the 1,4 butanediol derivatives market report on the basis of product by application and region:

• Product by Application Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • THF (tetrahydrofuran)

    • PTMEG (Polytetramethylene Ether Glycol)

    • Solvents

  • GBL (γ-Butyrolactone)

    • NMP (N-methyl-2-pyrrolidone)

    • 2 PY (2-pyrrolidone)

    • Others

  • Spandex

    • Clothing

    • Medical

    • Others

  • PBT (polybutylene terephthalate)

    • Electronics

    • Automotive

    • Consumer Goods

    • Others

  • PTMEG (Polytetramethylene Ether Glycol)

    • Spandex

    • Polyurethane

    • Others

  • NMP (N-methyl-2-pyrrolidone)

    • Petrochemicals

    • Electronics

    • Paints & Coatings

    • Others

  • NVP (N-Vinyl-2-pyrrolidone)

    • PVP (polyvinylpyrrolidones)

    • Adhesives

    • Coatings

    • Others

  • PVP (polyvinylpyrrolidones)

    • Pharmaceuticals

    • Personal Care/Cosmetics

    • Detergents

    • Others

  • PBS (Polybutylene Succinate)

    • Mulch Films

    • Packaging

    • Others

  • PBAT (Polybutylene Adipate Terephthalate)

    • Food Packaging

    • Agricultural Films

    • Others

  • TPU (Thermoplastic Polyurethane)

    • Footwear

    • Automotive

    • Electronics

    • Medical

    • Others

  • 2 PY (2-pyrrolidone)

    • Coatings

    • Inks

    • Pharmaceuticals

    • Others

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • UK

    • France

    • Italy

    • Spain

    • The Netherlands

    • Russia

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Australia

    • Vietnam

  • Central & South America

    • Brazil

    • Argentina

  • Middle East & Africa

    • Saudi Arabia

    • South Africa