1, 4 Butanediol Market Expected To Witness A Substantial Growth Of $14.66 Billion By 2030: Grand View Research Inc.

 

The global 1, 4 butanediol market is expected to reach USD 14.66 billion by 2030, registering a CAGR of 8.1% during the forecast period, as per the new report by Grand View Research, Inc. The growth is attributable to its increasing consumption in the production of fibers, plastics, and solvents. The product is also being increasingly used for medicinal formulations, because of which several legislative actions and regulations regarding its safe usage have been initiated.

1, 4 butanediol (BDO) is widely utilized in numerous applications such as chemical & adhesives manufacturing, fiber & particle composites, plastic processing, and pharmaceuticals owing to its inherent advantageous characteristics such as hydrophobicity, chemical resistance, and excellent durability.

1, 4 butanediol produced by the reppe process, which is particularly popular in China, accounts for more than 40.0% of the global capacity of chemical manufacturing. Major industry participants including Ashland, BASF, and DuPont are utilizing this technology to produce 1, 4 butanediol and its other derivatives. In this process, acetylene is reacted with formaldehyde to form butanediol (BYD), which undergoes high-pressure hydrogenation.

The spread of the COVID-19 virus has disrupted economies around the world and has severely affected the supply chain across the chemical industry. The supply chain disruption of 1, 4 butanediol had an adverse effect on its production and consumption patterns, globally. This has resulted in a decline in market growth during the pandemic.

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.

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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.

1, 4 Butanediol Market Report Highlights

• Tetrahydrofuran (THF) application witnessed the fastest growth rate with a CAGR of 5.5% from 2022 to 2030. This is attributable to increasing use in the applications such as vinyl films, elastomers, printing inks, coatings, and adhesives
• Polyurethanes (PU) applications also witnessed the fastest growth rate with a CAGR of 5.5% from 2022 to 2030. The growth is driven by the increasing demand for PU in the manufacturing of foam seating, elastomeric wheels & tires, and electronic instruments
• Asia Pacific witnessed the fastest growth rate with a CAGR of 8.4% from 2022 to 2030. The growth is attributed to the presence of major market players and growing industries such as automotive and construction in the region
• Europe witnessed the second fastest growth rate with a CAGR of 8.2% from 2022 to 2030. The growth is augmented by the presence of major market players such as BASF SE, Lyondell basel, Evonik Industries AG, and others
• Volatility in prices of the raw materials has been affecting the profitability of the manufacturers, which, in turn, is expected to hinder the market growth during the upcoming years
• The spread of COVID-19 has negatively impacted the chemical industry, resulting in a decline in its market growth. Long shut-down of chemical manufacturing companies led to disruptions in the supply chain of 1, 4 butanediol

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.

List of Key Players of 1, 4 Butanediol Market

• 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
• LyondellBasell Industries
• Myriant Corporation