Global 1,4 Butanediol Market Worth USD 3.19 Billion By 2031 | CAGR of 3.62%

Introduction

The clear, viscous liquid 1,4 butanediol (BDO) is one of butanediol's four stable isomers. It produces additional organic chemicals such as engineering plastic polybutylene terephthalate (PBT), polyurethane (PU), and derivatives. Tetrahydrofuran (THF) is used to produce spandex and urethane elastomers. Electronics, pharmaceuticals, agrochemicals, and high-performance polymers utilize gamma-butyrolactone (GBL). It is used as a solvent in organic synthesis and has applications in various end-use industries, such as automotive, pharmaceutical, electrical and electronic, synthetic leather, and agricultural chemicals.

Market Dynamics

Growing Tetrahydrofuran Demand for Spandex Fibers Drives the Global Market

Tetrahydrofuran (THF), a typical organic compound, is used to create polytetramethylene ether glycol (PTMEG), a base chemical used to make spandex and polyurethanes. More than 65% of the tetrahydrofuran produced globally is used in the production of PTMEG, primarily in spandex and other polyurethanes. Spandex is a synthetic fabric that contains 85% polyurethane by weight. THF and THF derivatives are the foundation for almost half of all BDO applications worldwide. The largest industry in this region is that of spandex and elastane. Stretching spandex fibers between 500 and 700% of their original length is possible without losing shape.

Additionally, one factor contributing to the fact that spandex growth rates are significantly higher than growth rates for textiles is the trend toward comfortable clothing with good wearing comfort. However, due to its superior properties, spandex is frequently used to improve the comfort and elasticity of fabrics for sports, casual wear, swimwear, and women's clothing. High levels of uniformity, strength, and abrasion resistance are present. The growing demand for spandex in the textile industry is predicted to increase tetrahydrofuran demand, fueling 1,4-butanediol demand over the forecast period.

Reducing the Carbon Footprint of Clothing Creates Tremendous Opportunities

The fashion and clothing industries have been working hard to reduce their carbon footprint by focusing on their emissions. The fashion industry has been shifting toward environmentally friendly and carbon-footprint-reducing practices. The American company Cargill and the German company Helm have announced a joint venture called Qore to help brands transition from fossil-based chemistries to bio-based intermediates and reduce their greenhouse gas emissions. According to the agreement, both companies will put a combined USD 300 million toward building the nation's first BDO facility of this kind. By substituting this bio-based BDO for conventional BDO, DSM hopes to lower its carbon footprint and increase the renewable content of Arnitel TPC products to up to 73%. The market's subsequent developments and the various inventive steps taken by businesses are anticipated to present an opportunity for driving the BDO market after lowering the carbon footprint of clothing.

Regional Analysis

Asia-Pacific is the highest revenue contributor and is anticipated to grow at a CAGR of 3.97% during the forecast period. China consumes almost half of all BDO in the world and may control the market for the entire forecast period. China's ability to produce THF has more than doubled over the last seven years. The country first began exporting THF net in 2016. The rapid increase in THF/PTMEG production in China, mainly from Taiwan and Japan, has significantly declined THF and PTMEG exports to that country. South Korea, Japan, and India are now included in Taiwan's export markets. Most of the most recent capacity additions were also concentrated in China. The expanding pharmaceutical, electrical and electronics, and motor vehicle industries are expected to support domestic demand for BDO and its derivatives, encouraging the market's future growth.

North America is anticipated to grow at a CAGR of 2.28% during the forecast period. The American economy is the most giant and most potent on the planet. The United States is anticipated to deliver enormous gains for the global PBT industry due to the growing initiatives for next-generation 5G plans, which present opportunities through bulk manufacturing of electrical and electronic components. One of the markets under study's most promising potential regions is the US electronics market, which is the largest in the world in terms of size. It is also anticipated that this market will maintain its dominance throughout the forecast period due to cutting-edge technology, increased R&D facilities, and increased consumer demand. There is a sizable demand for newer and faster electronic products due to the accelerated pace of innovation, the advancement of technology, and R&D activities in the electronics industry. The number of manufacturing facilities and development hubs in the United States has significantly increased due to the focus on producing high-end products.

Key Highlights

• The global 1,4 butanediol market size was valued at USD 2,319.04 million in 2022. It is expected to reach USD 3,193.75 million by 2031, growing at a CAGR of 3.62% during the forecast period (2023–2031).
• Based on the derivative, the global 1,4 butanediol market is bifurcated into tetrahydrofuran (THF), polybutylene terephthalate (PBT), gamma-butyrolactone (GBL), and polyurethane (PU). The tetrahydrofuran (THF) segment is the highest contributor to the market and is expected to grow at a CAGR of 3.68% during the forecast period.
• Based on the end-user, the global 1,4 butanediol market is bifurcated into automotive, healthcare and pharmaceutical, textile, and electrical and electronics. The textile segment is the highest contributor to the market and is expected to grow at a CAGR of 3.41% during the forecast period.
• Based on the end-user, the global 1,4 butanediol market is bifurcated into automotive, healthcare and pharmaceutical, textile, and electrical and electronics. The textile segment is the highest contributor to the market and is expected to grow at a CAGR of 3.41% during the forecast period.
• Asia-Pacific is the most significant revenue contributor and is expected to grow at a CAGR of 3.97% during the forecast period.

Competitive Players

1. Ashland
2. BASF SE
3. DCC
4. LyondellBasell Industries Holdings BV
5. Mitsubishi Chemical Corporation
6. NAN YA PLASTICS CORPORATION
7. SINOPEC YIZHENG CHEMICAL FIBRE LIMITED LIABILITY COMPANY
8. Sipchem
9. Shanxi Sanwei Group Co. Ltd
10. Xinjiang Guotai
11. Xinjiang Tianye (Group) Co. Ltd
12. Xinjiang Blueridge Tunhe Chemical Industry Co. Ltd

Recent Developments

• November 2022- Ashland introduced sclareanceTM biofunctional, made from clary sage flowers that are bio-transformed using non-GMO biotechnology in the company's owned clary sage fields in the United States. It is the second biofunctional product with artificial intelligence (AI) created by Ashland for health and wellness in scalp care, and it aids in reducing dandruff appearance while restoring a healthy scalp.
• October 2022- BASF opened a surface treatment innovation and technology center in China for Chemetall.

Segmentation

1. By Derivative
   1. Tetrahydrofuran (THF)
   2. Polybutylene Terephthalate (PBT)
   3. Gamma-Butyrolactone (GBL)
   4. Polyurethane (PU)
2. By End-User Industry
   1. Automotive
   2. Healthcare and Pharmaceutical
   3. Textile
   4. Electrical and Electronics
3. By Type
   1. Synthetic
   2. Bio-based
4. By Technology
   1. Reppe Process
   2. Davy Process
   3. Butadiene Process
   4. Propylene Oxide Process
   5. Others