1, 4 Butanediol Market Size, Share & Trends Analysis Report By Application (Tetrahydrofuran, Polybutylene Terephthalate, Gamma-Butyrolactone), By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global 1, 4 butanediol market size was valued at 6.88 billion in 2021 and is anticipated to expand at a compound annual growth rate (CAGR) of 8.1% from 2022 to 2030. The growth is attributed to its applications of tetrahydrofuran (THF), polybutylene terephthalate (PBT), and polyurethane (PU) in various industrial processes along with the growing demand for spandex in textiles. This colorless liquid is derived from butane and is one of the most stable isomers of butanediol. The most common manufacturing method for the production of 1, 4 butanediol(BDO) is reppe process, which involves the reaction of acetylene with formaldehyde and is widely practiced by major industry players such as BASF and DuPont.

1, 4 butanediol product suppliers have also integrated backward to begin production of the raw materials themselves. This strategy significantly lowers logistics costs and procurement hassles for these companies in the long run. Consumers are increasingly becoming more aware regarding product benefits and technologies, which has been influencing suppliers to maintain quality supplies throughout the production process.

Increasing focus on green chemistry across the globe has encouraged major market participants such as BioAmber, Genomatica, and Myriant to develop alternative, bio-based processing technologies, which is likely to drive the 1, 4 BDO growth during the forecast period. The market is also expected to benefit from increasing investments in sustainable technologies that are likely to boost existing processes and improve overall efficiency.

Davy process technology is also known as the Maleic anhydride-based process. It has rapidly gained popularity during the past few years, owing to reduced complexity, equipment requirement, and capital cost. Maleic anhydride is converted into ester, which undergoes fixed-bed hydrogenolysis to make a mixture of 1, 4 butanediol, THF, and GBL. BASF has integrated the Davy process with Huntsman Mars V/VI, in Kuantan, Malaysia, in order to reduce production, cost and penetrate into the highly profitable Asia Pacific market.

Several recent technologies such as hydrogenation of succinic acid, fermentation of sugars, and esterification have also transformed the 1, 4 butanediol industry. Biological ways to produce 1, 4 butanediol are also providing ample opportunities to new participants in the chemicals market. Additionally, government agencies such as the U.S. EPA are integrating fundamentals of green chemistry towards the production of chemicals and also promoting utilization of the renewable feedstock, which is further propelling the market growth.

The outbreak of COVID-19 impacted the market severely due to the disruption in the supply chain of chemical products during the period of the pandemic, which resulted in a price hike of raw materials. The prevailing COVID-19 situation led to a global lockdown; as a result, chemical manufacturers had to shut their operations for a long period in 2020. This factor had an adverse effect on the growth of the market globally.

Application Insights

Tetrahydrofuran (THF) application dominated the global market with a revenue share of 50.4%in the year 2021. Its high share is attributable to the increasing use for producing Polytetramethylene Glycol (PTMEG), which is a polymer extensively utilized for manufacturing urethane elastomers and fibers. PTMEG demand has gathered pace owing to superior properties such as exceptional flexibility and elasticity.

Polybutylene Terephthalate (PBT) application was the second largest revenue contributor with a share of 21.6% globally in 2021. This is attributable to the increasing plastics consumption in automotive applications owing to the strong rise in demand for lightweight vehicles, which is anticipated to drive demand for PBT during the forecast period. Other key growth drivers for PBT consumption include replacement of the conventional metals in the automotive and electronics industry, the introduction of new-generation PBT grades, and the development of bio-based PBT.

Polyurethane (PU) demand is anticipated to be driven by growing insistence for lightweight and durable products in the industries such as automotive, construction, and electronics in regions like the Asia Pacific. Extensive research & development activities in the global plastics industry on account of changing need arising from various end-use industries has prompted the development of novel plastic products which outperform conventional plastics in terms of their physical and chemical properties.

Expansion of the application scope through innovation and extensive research & development are the key strategies being adopted by the industry participants to capture market share and penetrate into untapped regional-level markets. The market exhibits ample potential due to the accelerating demand from the automotive and packaging industry and also shifting focus toward polyurethane products.

Regional Insights

Asia Pacific region dominated the market with a revenue share of 60.7% in 2021. This is attributed to a large amount of skilled labor at low cost along with the easy availability of the land. A shift in the production landscape in developing countries, particularly in China and India, is expected to drive market growth during the forecast period. The region is a hub for several expanding industries such as construction, automotive, electronics, and others that offer vast potential for 1, 4 butanediol manufacturers.

China’s construction market is likely to outperform other South-East Asian countries, only owing to government initiatives and funding to retain its development. These factors are driving PU construction in the rapidly expanding construction & infrastructure sector of China. Furthermore, rising demand for green materials in the automotive industry, to foster carbon emission savings, is anticipated to create strong demand for the bio-based production of 1, 4 butanediol during the forecast period.

North America accounted for the second largest contributor with a revenue share of 20.1% globally in 2021. The major factor driving 1, 4 butanediol demand in the region is the wide application scope and extensive usage across a number of key end-use industries such as automotive & transportation, construction, footwear, furniture, consumer goods, packaging, and electronics.

Europe is one of the premium chemical manufacturing hubs owing to its advanced infrastructure and technology, research and development initiatives & facilities, and highly skilled workforce. The region is anticipated to witness strong demand on account of the rising use of the product from end-use industries such as automotive, textiles, transportation, and building & construction.

Key Companies & Market Share Insights

The companies are focused on establishing a widespread dealer network, strong customer database, and variety of products to gain an advantage over other players in the market. This aim of companies is achieved by taking various strategic decisions and their implementation on a global level. Companies with the help of technological advancements try to adapt a variety of production techniques to gain the maximum profit possible with minimal input and investment. Some of the prominent players in the global 1, 4 butanediol market include:

• Bio Amber Inc.

• BASF SE

• Ashland Inc.

• ExxonMobil Chemicals

• China Petroleum & Chemical Corporation

• International Specialty Products.

• Mitsubishi Chemical Corporation

• Evonik Industries AG

• Invista

• SK Global Chemical Co. Ltd.

• Toray Industries Inc.

• Dairen Chemical Corporation

• Lyondell Basell Industries

• Myriant Corporation

• The Dow Chemical Company

• Sipchem

• Genomatica

• Shanghai Petrochemical

1, 4 Butanediol Market Report Scope

Global 1, 4 Butanediol Market Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global 1, 4 Butanediol Market report based on the  application and region:

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

  • Tetrahydrofuran (THF)

  • Polybutylene Terephthalate (PBT)

  • Gamma-butyrolactone (GBL)

  • Polyurethane (PU)

  • Others

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

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • U.K.

    • France

    • Italy

    • Ireland

    • Turkey

  • Asia Pacific

    • China

    • India

    • Japan

    • Indonesia

    • Philippines

    • South Korea

    • Thailand

  • Central & South America

    • Brazil

    • Argentina

    • Chile

  • Middle East & Africa

    • Saudi Arabia

    • Iran

    • South Africa

    • Nigeria