Market Overview

The market for 1, 4 butanediol is expected to grow at a CAGR of around 8% during the forecast period. major factors driving the market studied is increasing demand for polybutylene terephthalate (PBT), and stringent government regulations

  • Production of Bio-based Butanediol is likely to act as an opportunity.
  • Asia-Pacific dominated the market across the globe with the largest consumption in a country such as India, China, etc.



Key Market Trends

Polybutylene Terephthalate (PBT) to Dominate the Market

  • PBT is a synthetic thermoplastic polymer. The main raw materials used for the production of PBT are BDO (1, 4-butanediol), DMT (Dimethyl Terephthalate), and PTA (Purified Terephthalic Acid), with the help of catalysts.
  • One of the major factors driving the PBT market is the rising demand for lightweight vehicles, due to their competitive pricing, high performance, style, reliability, strength, and safety.
  • The PBT resin formed is then converted to PBT compounds, such as PBT fiber, PBT film, PBT market batch, glass fiber-reinforced grade PBT compound, and flame-retardant grade PBT compound. These compounds are used in various end-user applications, such as automotive, extrusion, electronics and electrical, and other applications (textile spinning and aerospace), and for making anti-lock braking system (ABS), anti-slip regulation (ASR), electrical motors, wipe arms, headlamp bezels, motor cover, plugs, switches, TV set accessories, and others.
  • In automotive and other transportation facilities, PBT allows for energy absorption, weight reduction, shock absorption for bumpers, restriction of explosion risk in fuel tanks, seat belts, airbags, door and seat assemblies, subsystems, bumpers, under-bonnet components, exterior trim, and various other applications.
  • PBT is used in electronic components, for air conditioning systems, and in control units. The demand for lightweight products has resulted in the replacement of metals with plastics. PBT can be recyclable. It can also be recovered in state-of-the-art incineration plants, by generating energy. Technological advancements have made it possible for PBT to be more applicable in a wide range of applications in the electrical sector, owing to its principle properties. The global consumption value of household appliances is expected to reach USD 588.83 billion by 2020.
  • All the aforementioned factors are expected to propel the demand for PBT, which, in turn, boosts the demand for BDO, over the forecast period.



Asia-Pacific Region to Dominate the Market

  • The Asia-Pacific region dominated the global market share. The demand for market studied is driven by the growing demand from industries, electronics, and consumer appliances, etc.
  • China is the largest automotive producer in the world and it is now focusing on the development of electric vehicles.
  • The region is witnessing numerous investments by global automakers, like BMW, Hyundai Motors, and Honda, into the automotive industry. This, in turn, is likely to increase the demand for BDO.
  • Besides, China has the world’s largest electronics production base. Electronic products, such as smartphones, OLED TVs, tablets, wires, cables, earphones, etc., have the highest growth in the electronics segment. With the increase in disposable income of the middle-class population and increasing demand for electronic products from countries importing electronic products from China, the production of electronics has increased.
  • In India, the government has also been pushing the growth of the electronics industry through initiatives, such as a Phased Manufacturing Programme (PMP), to add more smartphone components under the “Make in India” initiative, to push the domestic manufacturing of mobile handsets.
  • Besides, with the increasing income of the population, the demand for consumer appliances, such as air-conditioners, fridge, washing machines, microwaves, etc., has noticeably increased, which is further driving the growth of the consumer appliances market.
  • Hence, all such favorable market trends are expected to drive the demand for 1,4-butanediol for raw material applications in the region during the forecast period.



Competitive Landscape

The 1, 4 butanediol market is fragmented. Some of the major players include Ashland, BASF SE, Dairen Chemical Corporation, Mitsubishi Chemical Corporation, and Nan Ya Plastics Corporation, among others.

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