Global 1,4 Butanediol Market Report and Forecast 2024-2032

Global 1,4 Butanediol Market Outlook

The global 1,4 butanediol market size was valued at USD 7.74 billion in 2023. The market is further projected to grow at a CAGR of 7.30% between 2024 and 2032, reaching a value of USD 14.76 billion by 2032.

Key Takeaways

The chemical compound 1,4-butanediol (BDO) is employed in the synthesis of polymers, plastics, and solvents, among other industrial uses. It is a straight-chain glycol with hydroxyl groups on both ends that is used to make a variety of goods, including polyurethane resins and high-performance polyester. Additionally, it serves as a starting chemical for other derivatives like tetrahydrofuran (THF) and gamma-butyrolactone (GBL) and is employed in the production of polybutylene terephthalate (PBT) plastic.

The global 1,4 butanediol market is growing because the compound is being produced on a large scale globally and is a key ingredient in the manufacturing of various products, including spandex and polyurethane elastomers. In addition, the market looks promising due to the compound's diverse applications in industries such as textiles, pharmaceuticals, and automotive. Its role in the production of polymers and resins find applications in various manufacturing processes across industries, which can propel the demand for 1,4 butanediol in global market.

Key Trends and Developments

Growing adoption of bio-based 1,4 butanediol, increasing use of 1,4 butanediol in textile industries, and the rising demand for PBT aids in market growth

Global 1, 4 Butanediol Market Trends

One of the emerging trends in the global 1,4 butanediol market is the growing adoption of bio-based 1,4 butanediol, which is derived from renewable sources such as corn, sugarcane, or biomass. Bio-based 1,4 butanediol has similar applications as synthetic 1,4 butanediol, which is produced from fossil fuels such as oil, gas, or coal. Bio-based butanediol reduces greenhouse gas emissions and carbon footprint, as it uses less energy and emits less CO2 during its production and use. Thus, it supports the circular economy and the sustainability goals of various industries, as it can be recycled and reused, and biodegrades at the end of its life cycle.

Moreover, it offers better performance and quality, as it has higher purity, lower impurities, moisture resistance, and excellent insulating properties. The growing adoption of bio-based 1,4 butanediol is, thus, expected to have a positive impact on the 1,4 butanediol market outlook, as it can create new opportunities and demand for the product in various end-use sectors, such as textiles, cosmetics, plastics, adhesives, solvents, and coatings.

Challenges in 1,4 Butanediol Market

Market Segmentation

Global 1,4 Butanediol Market Report and Forecast 2024-2032 offers a detailed analysis of the market based on the following segments:

Bio-based butanediol is gaining popularity in the market as it is an environmentally friendly alternative to its synthetic counterpart

The bio-based segment is anticipated to lead the 1,4 butanediol market share in the forecast period. Bio-based 1,4-butanediol is made from sustainable resources like sugar and is gaining popularity due to its many benefits, which include high stability, biodegradability, high durability, high moisture resistance, and superior insulating qualities. It offers an environmentally friendly alternative, which has led to its increased demand in various industries, including automotive, textile, and electronics.

On the other hand, synthetic 1,4-butanediol is produced through petroleum-based chemical synthesis methods, which face issues such as non-renewability of raw materials and environmental concerns. Nonetheless, it finds extensive application in the production of electronic chemicals, polyurethanes, solvents, technical plastics, and elastic fibres.

Textile industry holds a significant market share due to rising production and sales of textiles in emerging economies

According to global 1,4-butanediol market analysis, the textile industry is expected to hold a significant  market share, with 1,4-butanediol playing a crucial role in the production of spandex fibres, thereby enhancing the elasticity and durability of textiles. The rising demand for spandex clothing, particularly in urban areas, is also contributing to the market's growth. 1,4-butanediol's ability to form long polymer chains provides elasticity and durability to spandex and makes it ideal for use in clothing and apparels, such as sportswear, undergarments, and medical compression wears. Consequently, the increasing demand for textiles and fibres, which has led to a significant increase in global sales of textiles from 2021 to 2022, is further driving the 1,4-butanediol market growth.

The automotive industry is also projected to hold a substantial market share as 1,4-butanediol is used in the production of brake fluids, automotive coolants, coatings, adhesives, and polyurethane foams, which are essential for preserving the safety and performance of vehicles. The increasing demand for 1,4-butanediol in this sector is linked to the growth and innovation in the automotive industry, particularly in regions such as North America.

Furthermore, 1,4-butanediol market report states that 1,4-butanediol (BDO) is a versatile chemical intermediate that is also used in the electric and electronics industry. BDO is used in the production of polybutylene terephthalate (PBT) plastic, which is used in the manufacturing of electrical and electronic components such as connectors, switches, and sockets. BDO is also used in the production of polyurethane (PU), which is used in circuit boards, adhesives, and coatings. The increasing demand for electronic devices and components is driving the growth of the 1,4 butanediol market in the electronics sector.

Competitive Landscape

Market participants are focused on increasing their 1,4 butanediol production capacities without compromising on sustainability.

Other key players in the 1,4 butanediol market include LyondellBasell Industries Holdings B.V., Sipchem Company, Dairen Chemical Corporation (DCC), Sinopec Yizheng Chemical Fibre Limited Liability Company, Xinjiang Blue Ridge Tunhe Sci.&Tech. Co., Ltd., and Shanxi Sanwei Group Co, Ltd., among others.

Global 1,4 Butanediol Market Analysis by Region

Asia Pacific is one of the prominent regions due to expanding automotive and textile industries

The Asia Pacific region, particularly China and India, holds a significant 1,4 butanediol market share, driven by the growth of manufacturing industries and the expansion of the automotive and textile industries. China is a key player in the Asia Pacific market, with substantial production and consumption of BDO, due to the country's thriving chemical manufacturing sector. Sinopec, one of the major players in China, has formed joint ventures and operates BDO facilities, which can accelerate the use of propylene oxide (PO) and styrene monomer (SM) in the construction and transportation sectors. This can boost the overall 1,4 butanediol market expansion.

North America and European regions are expected to witness significant growth in the market. In North America, the demand for BDO is driven by its wide application across various industries, including automotive, construction, and electronics. The region is also anticipated to see substantial growth due to the extensive use of BDO in the pharmaceutical, agricultural, and chemical industries, as well as in the production of consumer appliances.

On the other hand, Europe is poised to witness strong demand for 1,4 butanediol due to its increasing usage in industries such as automotive, textiles, transportation, and building and construction. The region's advanced infrastructure, research and development activities, and highly skilled workforce contributes to its position as a premium chemical manufacturing hub, thereby boosting the 1,4 butanediol market development.

Key Highlights of the Report