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1, 4 Butanediol Industry Set to Achieve $13.84 Billion Milestone by 2029 | Steady 7.9% CAGR
Get 30% off global market reports with code ONLINE30 and keep ahead of tariffs, macro trends, and worldwide economic developments.What Is the Long-Term Growth Forecast for the 1, 4 Butanediol Market Size 2025?
In recent times, the 1, 4 butanediol market size has experienced strong growth. The prediction is that it will expand from a market size of $9.55 billion in 2024 to $10.22 billion in 2025, with a compound annual growth rate (CAGR) of 7.0%. The surge in growth during the historical period is due to key factors such as demand arising from polybutylene terephthalate (PBT) production, increased usage in the burgeoning textile industry, the expansion witnessed in the automotive sector, rising demand for tetrahydrofuran (THF), and its application in pharmaceutical and cosmetic products.
What CAGR is Forecasted for the 1, 4 Butanediol Market Through 2029?
Strong expansion is anticipated in the 1, 4 butanediol market in the next few years, with its size projected to reach $13.84 billion in 2029, reflecting a compound annual growth rate (CAGR) of 7.9%. This expected growth can be linked to factors such as rising bio-based 1,4 butanediol production, extended application range, increased need for polyurethane, heightened usage in resin and coating mixtures, and focus on green chemical manufacturing. Key trends for the forecast period include market growth in the Asia-Pacific region, technological innovation in production, variable raw material costs, and innovation in product use.
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What Are the Critical Factors Driving 1, 4 Butanediol Market Development?
The growth of the 1,4-butanediol market is anticipated to be fuelled by the expansion of the automotive sector. This sector comprises businesses that design, manufacture, distribute, sell, and maintain vehicles. The processes of manufacturing vehicle components such as bumpers, fenders, spoilers, and front and rear end fascia in the automotive sector necessitate the use of urethane elastomers derived from 1,4-butanediol. Therefore, the surging demand within the automotive sector is promoting the growth of the 1,4-butanediol market. For example, data from the Belgium-based European Automobile Manufacturers' Association in August 2024 indicates that there was a 3.9% rise in new car registrations over the first seven months of 2024, surpassing 6.5 million units. Noteworthy growth, albeit modest, was exhibited by the largest markets with Spain (+5.6%), Italy (+5.2%), Germany (+4.3%), and France (+2.2%) all recording increases. Hence, the growing automotive sector is a key driver for the 1,4-butanediol market.
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How Does the 1, 4 Butanediol Market Break Down Across Major Segments?
The 1, 4 butanediol market covered in this report is segmented -
1) By Type: Synthetic, Bio Based
2) By Application: Tetrahydrofuran (THF), Polybutylene Terephthalate (PBT), Gamma Butyrolactone (GBL), Polyurethane (PU), Others
3) By End-Use: Chemical, Sports, Automotive, Electronic, Footwear, Others
Subsegments:
1) By Synthetic: Hydrocarbon-Based Butanediol, Other Synthetic Processes
2) By Bio Based: Fermentation-Based Butanediol, Other Bio-based Processes
What Are the Major Trends Transforming the 1, 4 Butanediol Industry?
The increasing trend towards product innovation is currently dominating the 1,4-butanediol market. Companies involved in this market are keen on introducing groundbreaking products to secure a firm standing in the marketplace. In a noteworthy instance, Yuanli Chemical Group Co., Ltd., a firm based in China that primarily focuses on invention, manufacturing, and commercialization of fine chemicals, launched bio-BDO in May 2022. Potential applications for bio-BDO are vast, ranging from Spandex and biodegradable polymers to polyurethane, shoe materials, and innovative energy batteries. Bio-BDO is an environmentally friendly product that offers green, renewable, energy-efficient, and emission-reducing benefits. With the ability to meet the development requirements for carbon emission reduction, bio-BDO is providing new alternatives for users.
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Which Players Are Driving Innovation in the 1, 4 Butanediol Market?
Major companies operating in the 1, 4 butanediol market include BASF SE, Ashland Global Holdings Inc., Mitsubishi Chemical Corporation, SK Global Chemical Co Ltd., Dairen Chemical Corporation, LyondellBasell Industries NV, Dow Inc., Genomatica Inc., Xinjiang Tianye Co Ltd., Koch Industries, PTT Global Chemical Public Company Limited, Saudi International Petrochemical Company, Chongqing Jianfeng Chemical Co Ltd., DCC plc., Nan Ya Plastics Corporation, Sinopec Yizheng Chemical Fibre Company Limited, Shanxi Sanwei Group Co. Ltd, Invista S.à r.l., Nanjing Bluestar Co. Ltd., Oxea GmbH, TCC Group, Formosa Plastics Corporation, International Specialty Products, Huntsman Corporation, Myriant Corporation, Davy Process Technology
Which Regions Are Driving Global 1, 4 Butanediol Market Expansion?
Asia-Pacific was the largest region in the 1,4 butanediol market in 2024. The regions covered in the 1, 4 butanediol market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
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