The global 1,3-butadiene market is set for substantial expansion over the next decade, driven primarily by rising demand for synthetic rubber and the continued growth of the automotive industry. Valued at US$ 38.9 Bn in 2023, the market is projected to grow at a CAGR of 6.0% from 2024 to 2034, reaching approximately US$ 73.6 Bn by the end of 2034.

Market Overview

1,3-butadiene (buta-1,3-diene) is a colorless gas widely used as a chemical intermediate and monomer in polymer production. It plays a critical role in manufacturing synthetic rubbers such as:

• Styrene Butadiene Rubber (SBR)
• Polybutadiene Rubber (PBR)
• Nitrile Butadiene Rubber (NBR)

These materials are extensively used in automotive tires, industrial rubber goods, shoe soles, seals, and gaskets. Beyond rubber, 1,3-butadiene is also used in the production of plastics, acrylics, gasoline blending components, and certain fungicides.

Production Methods

The three major methods of producing 1,3-butadiene include:

• Steam cracking of saturated hydrocarbons (primary method globally)
• Houdry process (dehydrogenation of n-butane)
• Oxidative dehydrogenation of 2-butenes

Among these, steam cracking remains the dominant route due to its integration with petrochemical complexes.

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Key Market Drivers

1. Rising Demand for Synthetic Rubber

Synthetic rubber remains the largest application segment for 1,3-butadiene. Its chemical stability, high abrasion resistance, strength, elasticity, and dimensional stability make it ideal for tire manufacturing and industrial applications.

According to data from The Observatory of Economic Complexity, global synthetic rubber exports increased from US$ 30.0 Bn in 2021 to US$ 31.1 Bn in 2022, highlighting strong international demand. Major exporters include South Korea, Thailand, the U.S., Japan, and Vietnam.

As tire production expands globally—particularly in emerging markets—the need for butadiene-based rubbers continues to rise, directly supporting market growth.

2. Expansion of the Automotive Sector

The automotive industry is a major consumer of synthetic rubber, particularly SBR and polybutadiene rubber used in passenger and commercial vehicle tires. In addition to tires, synthetic rubber is used in hoses, belts, seals, vibration dampers, and engine compartment components.

Global car exports increased from US$ 727 Bn in 2021 to US$ 782 Bn in 2022, reflecting a 7.51% growth, further strengthening demand for rubber materials.

In North America, rising vehicle sales are contributing to market expansion. According to Cox Automotive, U.S. new vehicle sales were projected to reach 1.45 million units in March 2024, reflecting year-over-year growth.

Regional Outlook

Asia Pacific Leads the Market

Asia Pacific held the largest share of the global 1,3-butadiene market in 2023, supported by strong synthetic rubber production and rapid automotive growth.

China is the world’s largest producer and consumer of synthetic rubber, with production reaching over 8,117 kilotons in 2021, marking significant year-over-year growth. India also plays a key role as a growing producer and consumer in the region.

According to India Invest, India’s automotive sector produced 25.93 million vehicles between April 2022 and March 2023, including passenger and commercial vehicles, two-wheelers, and three-wheelers—further boosting butadiene demand.

North America and Europe

North America is expected to grow steadily due to consistent vehicle production and strong petrochemical infrastructure. Europe continues to benefit from advanced automotive manufacturing and industrial rubber production.

Competitive Landscape

Major players operating in the global 1,3-butadiene market include:

• BASF SE
• LyondellBasell Industries Holdings B.V.
• ExxonMobil Corporation
• Lanxess
• China Petrochemical Corporation
• Shell plc
• JSR Corporation
• LG Chem Ltd.
• Idemitsu Kosan Co., Ltd.
• Evonik Industries AG

Market participants are responding to rising feedstock naphtha and crude oil prices, which directly impact butadiene production costs. Strategic expansions in developing economies and investments in synthetic rubber facilities remain key growth strategies.

Recent Industry Developments

In December 2023, Zhejiang Petroleum & Chemical (ZPC) completed routine maintenance at its 240,000 tons-per-year butadiene plant in Zhoushan, China.

In May 2023, Arlanxeo announced plans to establish a 140,000 t/y synthetic rubber production plant in Jubail, Saudi Arabia, as part of the US$ 11 Bn Amiral petrochemical complex developed by Saudi Aramco and TotalEnergies.

Market Segmentation Overview

By Technique

• Extractive Distillation
• Oxidative Dehydrogenation

By Product

• Butadiene Rubber
• Styrene Butadiene Rubber
• Acrylonitrile Butadiene Rubber
• Nitrile Butadiene Rubber
• SB Latex
• Hexamethylenediamine

By End-use

• Automotive
• Building & Construction
• Consumer Products
• Healthcare

Conclusion

The global 1,3-butadiene market is positioned for sustained growth through 2034, supported by strong synthetic rubber demand and expanding automotive production worldwide. With the market expected to reach US$ 73.6 Bn by 2034, strategic investments, feedstock optimization, and regional expansion will remain central to competitive success in this evolving petrochemical landscape.