The Global 1,4-Butanediol Market size is expected to reach $12.7 billion by 2031, rising at a market growth of 7.5% CAGR during the forecast period.
Europe has been at the forefront of promoting sustainable and eco-friendly manufacturing processes. There is an increasing shift towards the production of bio-based BDO to reduce reliance on fossil fuels. Consequently, the European region would acquire nearly 22% of the total market shar by 2031. Also, the German market would consume 48.48 Kilo Tonnes of this chemical by 2031.
Increased awareness of environmental issues, such as plastic pollution and the impact of non-biodegradable materials on ecosystems, has prompted consumers, businesses, and governments to seek alternative solutions that minimize environmental harm. Many companies commit to sustainability goals and incorporate biodegradable materials into their products and packaging. Therefore, these factors will fuel the demand for this chemical.
Additionally, R&D efforts focus on optimizing manufacturing processes for 1,4-butanediol to improve efficiency, yield, and product quality. Additionally, market players invest in R&D to develop purification technologies and refining processes that yield high-purity 1,4-butanediol with precise specifications. Hence, these aspects will assist in the growth of the market.
However, Regulatory agencies impose strict health and safety regulations governing the handling, storage, transportation, and disposal of BDO and BDO-derived products. Additionally, environmental regulations restrict the release of BDO and its by-products into the environment to prevent pollution and minimize ecological damage. Thus, these factors can decrease demand for this chemical in the coming years.
Type Outlook/h2>
Europe has been at the forefront of promoting sustainable and eco-friendly manufacturing processes. There is an increasing shift towards the production of bio-based BDO to reduce reliance on fossil fuels. Consequently, the European region would acquire nearly 22% of the total market shar by 2031. Also, the German market would consume 48.48 Kilo Tonnes of this chemical by 2031.
Increased awareness of environmental issues, such as plastic pollution and the impact of non-biodegradable materials on ecosystems, has prompted consumers, businesses, and governments to seek alternative solutions that minimize environmental harm. Many companies commit to sustainability goals and incorporate biodegradable materials into their products and packaging. Therefore, these factors will fuel the demand for this chemical.
Additionally, R&D efforts focus on optimizing manufacturing processes for 1,4-butanediol to improve efficiency, yield, and product quality. Additionally, market players invest in R&D to develop purification technologies and refining processes that yield high-purity 1,4-butanediol with precise specifications. Hence, these aspects will assist in the growth of the market.
However, Regulatory agencies impose strict health and safety regulations governing the handling, storage, transportation, and disposal of BDO and BDO-derived products. Additionally, environmental regulations restrict the release of BDO and its by-products into the environment to prevent pollution and minimize ecological damage. Thus, these factors can decrease demand for this chemical in the coming years.
Driving and Restraining Factors
Drivers
- Surge in demand for biodegradable plastics and green chemicals
- Increased investment in research and development (R&D) activities
- Growing usage of polybutylene terephthalate (PBT) in automotive sector
Restraints
- Regulatory constraints and compliance challenges
- Fluctuating raw material prices and supply chain disruptions
Opportunities
- Expansion of the spandex fiber industry
- Increasing usage of 1,4-butanediol in pharmaceutical applications
Challenges
- Counterfeit products and quality control concerns
- Limited application diversity and market penetration
Type Outlook/h2>Technology Outlook
On the basis of technology, the market is divided into Reppe process, Davy process, butadine process, propylene oxide process, and others. The Davy process segment acquired 24% revenue share in the market in 2023. This process, which involves the catalytic hydrogenation of maleic anhydride, has gained traction due to its ability to produce BDO with high selectivity and yield.
Application Outlook
On the basis of application, the market is divided into tetrahydrofuran, polybutylene terephthalate, gamma butyrolactone, polyurethane, and others. In 2023, the polybutylene terephthalate segment witnessed 20% revenue share in the market. In terms of volume, the segment registered 2,999.4 kilo tonnes in 2023. Polybutylene terephthalate (PBT) is extensively used in the automotive industry to manufacture components such as connectors, sensor housings, and various under-the-hood parts.
Regional Outlook
By region, the market is segmented into North America, Europe, Asia Pacific, and LAMEA. The Asia Pacific segment procured 49% revenue share in the market in 2023. BDO is used in the synthesis of pharmaceuticals and personal care products. The growing healthcare sector in the region, coupled with rising consumer awareness and demand for personal care products, contributes to the increased consumption of BDO.
List of Key Companies Profiled
- Lonza Group Ltd.
- BASF SE
- Mitsubishi Chemical Holdings Corporation
- Nan Ya Plastics Corp. (NPC)
- Sipchem Company
- Ashland Inc.
- INEOS Group Holdings S.A.
- Evonik Industries AG (RAG-Stiftung)
- LyondellBasell Industries Holdings B.V.
- Sinopec Group (China Petrochemical Corporation)
Market Report Segmentation
By Type (Volume, Kilo Tonnes, USD Billion, 2020-2031)
- Synthetic
- Bio-based
By Technology
- Reppe Process
- Davy Process
- Butadine Process
- Propylene Oxide Process
- Others
By Application (Volume, Kilo Tonnes, USD Billion, 2020-2031)
- Tetrahydrofuran
- Polybutylene Terephthalate
- Gamma Butyrolactone
- Polyurethane
- Others
By Geography (Volume, Kilo Tonnes, USD Billion, 2020-2031)
- North America
- US
- Canada
- Mexico
- Rest of North America
- Europe
- Germany
- UK
- France
- Russia
- Spain
- Italy
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- South Korea
- Singapore
- Malaysia
- Rest of Asia Pacific
- LAMEA
- Brazil
- Argentina
- UAE
- Saudi Arabia
- South Africa
- Nigeria
- Rest of LAMEA
Table of Contents
Chapter 1. Market Scope & Methodology
Chapter 2. Market at a Glance
Chapter 3. Market Overview
Chapter 4. Global 1,4-Butanediol Market by Type
Chapter 5. Global 1,4-Butanediol Market by Technology
Chapter 6. Global 1,4-Butanediol Market by Application
Chapter 7. Global 1,4-Butanediol Market by Region
Chapter 8. Company Profiles
Companies Mentioned
- Lonza Group Ltd.
- BASF SE
- Mitsubishi Chemical Holdings Corporation
- Nan Ya Plastics Corp. (NPC)
- Sipchem Company
- Ashland Inc.
- INEOS Group Holdings S.A.
- Evonik Industries AG (RAG-Stiftung)
- LyondellBasell Industries Holdings B.V.
- Sinopec Group (China Petrochemical Corporation)
Methodology
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