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1 3 Butadiene Market

ID: MRFR/CnM/24090-HCR
111 Pages
Priya Nagrale
October 2025

1 3 Butadiene Market Research Report By Grade (Refined Butadiene, Polymer Grade Butadiene), By Application (Synthetic Rubber Production, Chemical Intermediates, Fuel Additives, Other Applications), By Manufacturing Process (Steam Cracking, Butane Dehydrogenation, Other Processes), By End-User Industry (Automotive, Construction, Consumer Goods, Packaging, Other End-User Industries) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Forecast to 2035.

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1 3 Butadiene Market Summary

As per MRFR analysis, the 1 3 Butadiene Market Size was estimated at 30.47 USD Billion in 2024. The 1 3 Butadiene industry is projected to grow from 31.26 USD Billion in 2025 to 40.46 USD Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 2.61 during the forecast period 2025 - 2035.

Key Market Trends & Highlights

The 1 3 Butadiene Market is poised for growth driven by sustainability and technological advancements.

  • North America remains the largest market for 1 3 Butadiene Market, primarily due to its robust automotive sector.
  • Asia-Pacific is emerging as the fastest-growing region, fueled by increasing industrialization and demand for synthetic rubber.
  • Refined Butadiene continues to dominate the market, while Polymer Grade Butadiene is witnessing rapid growth.
  • Rising demand for synthetic rubber and regulatory support for sustainable practices are key drivers propelling market expansion.

Market Size & Forecast

2024 Market Size 30.47 (USD Billion)
2035 Market Size 40.46 (USD Billion)
CAGR (2025 - 2035) 2.61%

Major Players

LyondellBasell Industries (US), Shell Chemicals (GB), Bridgestone Corporation (JP), TPC Group (US), SABIC (SA), Evonik Industries (DE), Reliance Industries Limited (IN), Mitsubishi Chemical Corporation (JP), Kraton Corporation (US)

1 3 Butadiene Market Trends

The 1 3 Butadiene Market is currently experiencing notable shifts driven by various factors. The demand for synthetic rubber, particularly in the automotive sector, remains a primary driver, as manufacturers seek materials that enhance performance and durability. Additionally, the increasing focus on sustainability and environmental regulations is prompting companies to explore alternative production methods and feedstocks. This transition may lead to innovations in the synthesis of 1 3 butadiene, potentially altering traditional supply chains and production processes. Furthermore, geopolitical dynamics and trade policies could influence the availability and pricing of raw materials, thereby impacting market stability. In the context of evolving consumer preferences, the 1 3 Butadiene Market appears to be adapting to a landscape that increasingly values eco-friendly products. As industries strive to reduce their carbon footprint, the integration of bio-based alternatives and recycling initiatives is gaining traction. This shift not only aligns with global sustainability goals but also presents opportunities for companies to differentiate themselves in a competitive marketplace. Overall, the 1 3 Butadiene Market is poised for transformation, with emerging trends likely to shape its future trajectory.

Sustainability Initiatives

The emphasis on sustainable practices is becoming more pronounced within the 1 3 Butadiene Market. Companies are increasingly investing in eco-friendly production methods and exploring bio-based alternatives to traditional petrochemical sources. This trend reflects a broader commitment to reducing environmental impact and aligning with global sustainability goals.

Technological Advancements

Innovations in production technologies are influencing the 1 3 Butadiene Market. Enhanced methods for synthesizing 1 3 butadiene are being developed, which may improve efficiency and reduce costs. These advancements could also facilitate the use of alternative feedstocks, further diversifying the market.

Regulatory Changes

The regulatory landscape surrounding the 1 3 Butadiene Market is evolving, with stricter environmental regulations being implemented. These changes may compel manufacturers to adapt their processes and invest in cleaner technologies, ultimately reshaping market dynamics and competitive strategies.

1 3 Butadiene Market Drivers

Growth in Plastics Production

The 1 3 Butadiene Market is significantly influenced by the expanding plastics sector, where 1 3 butadiene serves as a key feedstock for the production of various polymers. The increasing utilization of plastics in packaging, consumer goods, and construction is driving the demand for 1 3 butadiene. Recent data indicates that The 1 3 Butadiene Market is expected to reach a valuation of over 600 billion USD by 2026, with a substantial portion attributed to the production of styrene-butadiene rubber and other derivatives. This growth in plastics production is likely to bolster the 1 3 Butadiene Market, as manufacturers seek to capitalize on the rising consumption of plastic products.

Rising Demand for Synthetic Rubber

The 1 3 Butadiene Market is experiencing a notable increase in demand for synthetic rubber, primarily driven by the automotive and tire manufacturing sectors. Synthetic rubber, which is derived from 1 3 butadiene, is favored for its superior performance characteristics, including durability and resistance to wear. As automotive production ramps up, particularly in emerging markets, the need for high-quality tires is expected to surge. Reports indicate that The 1 3 Butadiene Market is projected to grow at a compound annual growth rate of approximately 4.5% over the next few years, further propelling the 1 3 Butadiene Market. This trend suggests that manufacturers may need to enhance production capacities to meet the escalating demand.

Increasing Applications in Automotive Sector

The automotive sector is a pivotal driver for the 1 3 Butadiene Market, as the material is extensively used in the manufacturing of various automotive components. From tires to interior parts, the versatility of 1 3 butadiene derivatives is being increasingly recognized. With the automotive industry focusing on enhancing vehicle performance and safety, the demand for high-quality materials is on the rise. Projections suggest that the automotive sector will continue to expand, with a significant portion of this growth attributed to the demand for lightweight and durable materials. This trend is likely to further stimulate the 1 3 Butadiene Market, as manufacturers strive to meet the evolving needs of the automotive market.

Regulatory Support for Sustainable Practices

The 1 3 Butadiene Market is also being shaped by regulatory frameworks that promote sustainable practices within the chemical sector. Governments are increasingly implementing policies aimed at reducing carbon emissions and encouraging the use of eco-friendly materials. These regulations are prompting manufacturers to explore alternative production methods and invest in cleaner technologies. As a result, the demand for 1 3 butadiene, which can be produced through more sustainable processes, is likely to increase. This regulatory support not only enhances the market's appeal but also encourages innovation within the 1 3 Butadiene Market, as companies seek to comply with evolving environmental standards.

Technological Innovations in Production Processes

Technological advancements in the production processes of 1 3 butadiene are playing a crucial role in shaping the 1 3 Butadiene Market. Innovations such as improved catalytic processes and enhanced extraction techniques are leading to more efficient and cost-effective production methods. These advancements not only reduce production costs but also minimize environmental impact, aligning with the increasing emphasis on sustainability. As companies adopt these technologies, they may experience enhanced profitability and competitiveness in the market. Furthermore, the integration of automation and digitalization in production facilities is expected to streamline operations, thereby positively influencing the overall growth of the 1 3 Butadiene Market.

Market Segment Insights

By Grade: Refined Butadiene (Largest) vs. Polymer Grade Butadiene (Fastest-Growing)

In the 1 3 Butadiene Market, the distribution of market share is heavily skewed towards Refined Butadiene, which holds the largest share due to its widespread application in producing synthetic rubber and plastics. Polymer Grade Butadiene, while smaller in market share, is capturing attention as manufacturers recognize its potential for high-quality polymer production, contributing to a dynamic shift in market dynamics. As various industries increasingly leverage refined solutions for sustainability, the overall market is witnessing an evolution with diversified preferences.

Grade: Refined Butadiene (Dominant) vs. Polymer Grade Butadiene (Emerging)

Refined Butadiene is characterized by its established position in the industry, primarily utilized in the manufacture of synthetic rubber and plastics, making it a dominant force in the 1 3 Butadiene Market. The consistent demand for high-performance materials ensures that refined butadiene maintains a leading status. On the other hand, Polymer Grade Butadiene is emerging rapidly as a preferred choice for advanced polymer applications, benefitting from innovations that emphasize performance and environmental sustainability. Its growing usage reflects advancements in polymer technology that cater to evolving consumer needs, presenting fresh opportunities within the sector.

By Application: Synthetic Rubber Production (Largest) vs. Chemical Intermediates (Fastest-Growing)

In the 1 3 Butadiene Market, Synthetic Rubber Production holds a significant share, dominating the application segment due to its extensive usage in tire manufacturing and other rubber products. Chemical Intermediates follows closely, experiencing rapid adoption across various industries, driven by the versatility of butadiene as a feedstock. Fuel Additives play a smaller yet crucial role, providing essential improvements in fuel performance, while Other Applications represent niche uses that contribute to overall market dynamics.

Rubber Production (Dominant) vs. Chemical Intermediates (Emerging)

The Synthetic Rubber Production segment stands out as the dominant force in the 1 3 Butadiene Market, fueled by the growing automotive sector and rising tire demand globally. This segment benefits from technological advancements that enhance rubber properties, making it indispensable in high-performance applications. On the other hand, Chemical Intermediates are emerging rapidly, primarily due to the increasing utilization of butadiene in the manufacture of plasticizers, resins, and other chemical products. This duality of dominance and emerging potential highlights the evolving landscape of the market, where Synthetic Rubber remains a staple while Chemical Intermediates gain traction in diverse applications.

By Manufacturing Process: Steam Cracking (Largest) vs. Butane Dehydrogenation (Fastest-Growing)

The 1 3 butadiene market exhibits a diverse distribution among its manufacturing processes, with steam cracking holding the largest share due to its established technology and efficiency in producing hydrocarbons. Butane dehydrogenation, while currently smaller in market share, shows significant potential for growth, driven by advancements in catalyst technology and increasing demand for light olefins. Other processes play a supporting role but contribute to the overall versatility of production methods in this segment.

Steam Cracking (Dominant) vs. Butane Dehydrogenation (Emerging)

Steam cracking remains the dominant method for producing 1 3 butadiene, primarily due to its efficiency in processing various feedstocks, including naphtha and ethane. This method benefits from established infrastructure and large-scale operations, enabling cost-effective production. On the other hand, butane dehydrogenation is emerging as a significant contender, fueled by its ability to generate higher purity and lower operational costs. As producers lean towards more sustainable practices, butane dehydrogenation is expected to gain traction, capitalizing on its environmental advantages and the growing emphasis on light olefins in petrochemical applications.

By End-User Industry: Automotive (Largest) vs. Packaging (Fastest-Growing)

The 1 3 Butadiene Market demonstrates a diverse distribution among major end-user industries, with Automotive leading the sector significantly due to the increasing demand for rubber products and synthetic materials in vehicle manufacturing. Following behind, the Construction and Consumer Goods industries contribute meaningfully, but the Packaging industry is emerging rapidly, capturing attention with its innovative applications and growing demand, enhancing the use of butadiene derivatives.

Automotive: Dominant vs. Packaging: Emerging

The Automotive sector remains the dominant force in the 1 3 Butadiene Market, driven by its extensive use in tire manufacturing and automotive components. The reliance on high-performance materials in vehicle design fosters continuous growth in this segment. Conversely, the Packaging industry is an emerging player, driven by sustainability trends and the need for lightweight, durable materials. Innovations in packaging solutions, such as biodegradable plastics and efficient processing, are enhancing its market presence, making butadiene indispensable in developing advanced packaging products.

Get more detailed insights about 1 3 Butadiene Market

Regional Insights

The 1 3 Butadiene Market is segmented into North America, Europe, APAC, South America, and MEA. North America held the largest market share in 2023 and is expected to continue to dominate the market throughout the forecast period. The region's strong demand for 1 3 butadiene in the automotive and construction industries is a major driver of growth. Europe is the second largest market for 1 3 butadiene and is expected to grow at a steady pace over the forecast period.

The region's automotive industry is a major consumer of 1 3 butadiene and is expected to continue to drive demand for the product.APAC is the third largest market for 1 3 butadiene and is expected to grow at the fastest rate over the forecast period. The region's growing population and urbanization are driving demand for 1 3 butadiene in the construction and automotive industries. South America and MEA are expected to grow at a moderate pace over the forecast period.

The region's growing economies and increasing demand for 1 3 butadiene in the construction and automotive industries are expected to drive growth in these regions.

1 3 Butadiene Market Regional Image

Key Players and Competitive Insights

Major players in 1 3 Butadiene Market industry are constantly striving to gain a competitive edge by investing in research and development, expanding their product portfolios, and forming strategic partnerships. Leading 1 3 Butadiene Market players are focusing on developing innovative products that meet the evolving needs of customers, such as bio-based butadiene and renewable butadiene.

The 1 3 Butadiene Market is characterized by intense competition, with key players adopting various strategies to gain market share. 1 3 Butadiene Market development is driven by factors such as rising demand for synthetic rubber, increasing use in plastics and polymers, and growing demand from emerging economies.Among the leading players in the 1 3 Butadiene Market, LyondellBasell is a chemical and plastics company with a strong presence in the butadiene market. The company operates several butadiene production facilities around the world and is a major supplier to tire and rubber manufacturers.

LyondellBasell has a strong focus on sustainability and is investing in technologies to reduce the environmental impact of its butadiene production processes.A key competitor in the 1 3 Butadiene Market is BASF, a German multinational chemical company. BASF is a major producer of butadiene and operates production facilities in Europe, Asia, and North America. The company is focused on developing innovative butadiene-based products and expanding its market reach. BASF has a strong presence in the automotive and construction industries, where butadiene is used in the production of tires, plastics, and adhesives.

Key Companies in the 1 3 Butadiene Market market include

Industry Developments

The 1,3-butadiene market is projected to reach USD 36.5 billion by 2032, exhibiting a CAGR of 2.61% during the forecast period (2024-2032). Rising demand for synthetic rubber in the automotive industry and increasing use of 1,3-butadiene in the production of plastics and chemicals are key factors driving market growth. Recent developments include collaborations between companies to expand production capacity and advancements in technologies for more sustainable production of 1,3-butadiene. Furthermore, ongoing research on bio-based 1,3-butadiene is expected to create new opportunities in the future.

Future Outlook

1 3 Butadiene Market Future Outlook

The 1 3 Butadiene Market is projected to grow at 2.61% CAGR from 2024 to 2035, driven by increasing demand in automotive and synthetic rubber industries.

New opportunities lie in:

  • Expansion into bio-based butadiene production technologies.
  • Development of advanced storage solutions for butadiene transport.
  • Strategic partnerships with automotive manufacturers for tailored applications.

By 2035, the market is expected to solidify its position as a key player in the chemical industry.

Market Segmentation

1 3 Butadiene Market Grade Outlook

  • Refined Butadiene
  • Polymer Grade Butadiene

1 3 Butadiene Market Application Outlook

  • Synthetic Rubber Production
  • Chemical Intermediates
  • Fuel Additives
  • Other Applications

1 3 Butadiene Market End-User Industry Outlook

  • Automotive
  • Construction
  • Consumer Goods
  • Packaging
  • Other End-User Industries

1 3 Butadiene Market Manufacturing Process Outlook

  • Steam Cracking
  • Butane Dehydrogenation
  • Other Processes

Report Scope

MARKET SIZE 202430.47(USD Billion)
MARKET SIZE 202531.26(USD Billion)
MARKET SIZE 203540.46(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)2.61% (2024 - 2035)
REPORT COVERAGERevenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR2024
Market Forecast Period2025 - 2035
Historical Data2019 - 2024
Market Forecast UnitsUSD Billion
Key Companies ProfiledMarket analysis in progress
Segments CoveredMarket segmentation analysis in progress
Key Market OpportunitiesGrowing demand for sustainable materials drives innovation in the 1 3 Butadiene Market.
Key Market DynamicsRising demand for synthetic rubber drives competition and innovation in the 1 3 Butadiene market.
Countries CoveredNorth America, Europe, APAC, South America, MEA

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FAQs

What is the projected market valuation of the 1 3 Butadiene Market by 2035?

The projected market valuation for the 1 3 Butadiene Market is expected to reach 40.46 USD Billion by 2035.

What was the overall market valuation of the 1 3 Butadiene Market in 2024?

The overall market valuation of the 1 3 Butadiene Market was 30.47 USD Billion in 2024.

What is the expected CAGR for the 1 3 Butadiene Market during the forecast period 2025 - 2035?

The expected CAGR for the 1 3 Butadiene Market during the forecast period 2025 - 2035 is 2.61%.

Which companies are considered key players in the 1 3 Butadiene Market?

Key players in the 1 3 Butadiene Market include LyondellBasell Industries, Shell Chemicals, Bridgestone Corporation, and others.

What are the projected valuations for the Polymer Grade Butadiene segment by 2035?

The projected valuation for the Polymer Grade Butadiene segment is expected to increase from 18.28 USD Billion to 24.46 USD Billion by 2035.

How much is the Synthetic Rubber Production application expected to grow by 2035?

The Synthetic Rubber Production application is projected to grow from 15.0 USD Billion to 20.0 USD Billion by 2035.

What is the expected valuation for the Automotive end-user industry segment by 2035?

The Automotive end-user industry segment is expected to reach a valuation of 10.0 USD Billion by 2035.

What are the projected values for the Butane Dehydrogenation manufacturing process by 2035?

The projected valuation for the Butane Dehydrogenation manufacturing process is expected to rise from 10.0 USD Billion to 12.0 USD Billion by 2035.

What is the expected growth for the Fuel Additives application segment by 2035?

The Fuel Additives application segment is projected to grow from 4.0 USD Billion to 5.0 USD Billion by 2035.

What is the anticipated valuation for the Construction end-user industry segment by 2035?

The anticipated valuation for the Construction end-user industry segment is expected to increase from 6.0 USD Billion to 8.0 USD Billion by 2035.

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