The global polybutadiene market size was estimated at USD 4.50 billion in 2016. The growing demand for low-cost substitutes of natural rubber with superior properties is expected to boost the polybutadiene consumption.
High abrasion resistance of polybutadiene makes it suitable for use in the manufacturing of tires. The rubber also finds application as an additive used to improve the toughness of polystyrene and acrylonitrile butadiene styrene (ABS). The niche applications including golf balls and other toys are expected to boost market demand over the forecast period.
Germany polybutadiene market revenue, by product, 2014 - 2025 (USD Million)
The Germany polybutadiene market accounted for 25% of the European market in 2016. The presence of thriving downstream industry has driven the demand for polybutadiene in the country. The growing demand for functional polybutadienes used in the manufacturing of automotive and construction adhesives is expected to drive market growth.
Major industry participants are fully integrated petrochemical companies that have a presence across the entire value chain. They produce the raw materials and use the monomers to produce polybutadiene at their plants resulting in reduced costs and an uninterrupted supply of raw materials. Manufacturers such as JSR Corporation, Reliance Industries Ltd., and Lanxess are not only involved in petroleum exploration but also have marked the presence in the related industries of polymers, polyesters and elastomers.
Polybutadiene manufacturing is among the largest consumers of butadiene. The butadiene prices are undergoing a lot of fluctuations owing to volatile crude oil prices and currency instability around the world. Volatile crude oil prices and currency fluctuations are expected to have a huge impact on market growth.
Environmental impact and sustainability have been a key issue for the polybutadiene industry. The impact of air pollution on the environment and living beings caused due to butadiene production has raised concerns. Manufacturers are now turning towards bio-based butadiene to counter the adverse effects resulting from petroleum based products.
The products in the market comprise high cis, low cis, high trans and high vinyl polybutadiene. The increased demand for high cis derivative can be attributed to high green strength and growth resistance exhibited by these products. The demand for high cis derivatives is anticipated to grow rapidly on account on increased application in tire manufacturing.
The demand for low cis segment is projected to reach 1,153.8 kilo tons by 2025 on account of growing application in polymer modification and industrial rubber manufacturing. The process improvements taking place in the manufacture of bio-based butadiene is expected to boost the demand for low cis products. The specific properties of low cis derivatives such as high consistency, high purity, and low gel content are driving the demand for these products in the industrial application.
The high trans derivative is expected to grow at a CAGR of 3.7% from 2017 to 2025. The crystalline nature of high trans-butadiene is responsible for its low commercialization as it has an adverse effect on the bonding properties of high trans derivative. Blends of this product are used with neoprene, styrene-butadiene rubber, and natural rubber for tire manufacturing.
Catalysts form an important component of the overall industry as they determine the type of product obtained. The major catalysts used in the manufacture of are Neodymium, Cobalt, Nickel, Titanium and Lithium. Cobalt and Neodymium are majorly used in the manufacture of high cis derivative whereas lithium finds application in the manufacture of high trans and high vinyl derivatives of polybutadiene.
Major applications of polybutadiene include tire manufacturing, polymer modification, and industrial rubber manufacturing. Tire manufacturing was the largest application segment with a market share of 77.4% in 2016. The segment was driven by growing automotive industry in China, India, and Japan. The growing popularity of green tires is expected to augment demand for bio-based polybutadiene over the forecast period.
Global polybutadiene market volume, by application, 2016 (%)
Polybutadiene rubber is used for modification of polyolefins. The growing popularity of performance plastics is responsible for increased demand of polybutadiene in polymer modification application. They are also used in the manufacture of golf balls, latex, and toys such as super ball and solid rocket boosters.
The polybutadiene market has been dominated by Asia Pacific and North America. The presence of major petrochemical companies in the region along with growing downstream industry is driving the market growth.
The consumption in North America has largely been affected by the butadiene supply in this region. The demand in this region is expected to grow at a moderate pace due to production slowdown in the end-use industries. The polybutadiene capacity additions in U.S. and Canada are expected to augment the market demand over the forecast period.
The market in Asia Pacific is driven by the growing demand from tire industry. The presence of large-scale automotive manufacturers such as Toyota, SAIC, and KIA Motors is expected to boost the demand for polybutadiene. The growing number of new cracker facilities in the region is a major boost for manufacturers as it is expected to streamline supply of butadiene.
The Middle East & Africa is upcoming market owing to the presence of a large number of oil reserves. Multiple disruptions including shale gas renaissance in the U.S. and declining crude oil prices are shaping the polybutadiene market in this region.
The polybutadiene industry is highly competitive in nature and is, therefore, marked by distribution enhancement, regional expansion, and merger & acquisitions. The manufacturers are also expanding their production capacities to meet the growing demand for polybutadiene from the application industries. The major industry participants are JSR Corporation, Reliance Industries Ltd., Lanxess, Synthos S.A., and LyondelBasell Industries. The other players are Trinseo, Evonik Industries, Ube Industries, and Nippon Soda Co. Ltd.
Growing regional presence and investment in downstream applications is expected to provide a competitive edge in the market. Production of high-value products such as solvents and rubbers that are used in applications other than tire manufacturing such as propellants and surface sealants is expected to be the major strategy. Companies such as Trinseo and Synthomer PLC have acquired adhesives and sealants manufacturers to grow their business and increase the demand for polybutadiene-based solvents.
Base year for estimation
Actual estimates/Historical data
2014 - 2016
2017 - 2025
Volume in kilo tons, revenue in USD Million and CAGR from 2017 to 2025
North America, Europe, Asia Pacific, Central & South America, Middle East & Africa
U.S., Germany, UK, China, Japan, Brazil
Revenue forecast, company share, competitive landscape, growth factors and trends
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This report forecasts revenue growth at country levels and provides an analysis on the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the polybutadiene market on the basis of product, application, and region:
Product Outlook (Volume, Kilo Tons; Revenue, USD Million, 2014 - 2025)
Application Outlook (Volume, Kilo Tons; Revenue, USD Million, 2014 - 2025)
Industrial Rubber Manufacturing
Regional Outlook (Volume, Kilo Tons; Revenue, USD Million, 2014 - 2025)
Central & South America
Middle East & Africa
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