Polybutadiene Rubber Market
The global Polybutadiene Rubber market is projected to register a CAGR of 5.7% in the forecast period to cross market size of USD 10 billion from the current market size of USD 6 billion. PBR is widely used in the automotive industry in the manufacture of tires.
Polybutadiene Rubber (PBR) is manufactured by addition polymerisation of 1, 3-butadiene. Depending upon how the monomer units combine during addition polymerisation, three different geometric structures are formed in polymer chain. These polymer linkages are called mono-structures (namely, cis, trans and vinyl). There are two main types of PBR, namely high-cis PBR and low-cis PBR that makes most of the Butadiene Rubber Market. Main properties of butadiene rubber are low hysteresis loss, high resilience, and wear resistance. However, the ease of processing is lower as compared to SBR and Natural rubber. It serves end-use industries such as Tire, Industrial Products, Chemical Industry, Polymer Modification and others.
Global Polybutadiene Rubber Demand Supply Analysis, 2016-2032 (Kilo Tons)
Source: Secondary & Primary Research and Prismane Consulting estimates
Polybutadiene Rubber Capacity
The global Polybutadiene Rubber capacity was recorded to be around 5000 kilo tons in 2022, with Asia Pacific accounting for around 60%. PetroChina is the largest Polybutadiene Rubber manufacturer in China with a production capacity of 160 kilo tons. North America is the second largest Polybutadiene Rubber manufacturer with ARLANXEO dominating the regional market with a Polybutadiene Rubber capacity of 270 kilo tons located in Orange, Texas.
Polybutadiene Rubber Demand Analysis
The Polybutadiene Rubber demand stood at around 4000 kilo tons in 2022 and is expected to witness a strong growth of around 5% during the forecast primarily driven by strong demand from the Automotive industry. In terms of demand by types, the Polybutadiene Rubber market is bifurcated into low cis and high cis. High-Cis polybutadiene accounts for the largest share in the global Polybutadiene Rubber market as cis polybutadiene, primarily due to its elevated elasticity. This variant is extensively utilized in tire production and is frequently combined with other polymers.
In 2022, Tire application constituted the major share, accounting for over 65% of the Polybutadiene Rubber demand. PBR is combined with other elastomers such as SBR or natural rubber which is used in sidewalls and treads.
Global Polybutadiene Rubber Demand, By Application, 2016-2032 (Kilo Tons)
Source: Secondary & Primary Research and Prismane Consulting estimates
Polybutadiene is known for its toughness and impact resistance and more than 30% of PBR is used for polymer modification. When added to rigid polymers, such as polystyrene or acrylonitrile-butadiene-styrene (ABS), it can enhance impact strength and durability which makes it a particularly important in applications where resistance to impact and deformation is crucial.
Polybutadiene Rubber Regional Demand
In terms of Polybutadiene Rubber demand by region, Asia Pacific dominates the market accounting for more than 50% market share. This is due to the presence of strong Automotive industry in the region. China is the largest automotive market in the world and a steady growth has been observed in China’s tire production over the past three years. In emerging markets, the rising industrialisation has led to an increase in the demand for buses, cars, trucks, etc.
Global Polybutadiene Rubber Demand, By Region, 2022 (Kilo Tons)
Source: Secondary & Primary Research and Prismane Consulting estimates
North America accounts for more than 13% of the total Polybutadiene Rubber market. The region is one of the largest tires markets with the presence of strong tire manufacturers such as Goodyear Tire & Rubber Company., Cooper Tire & Rubber Company, Bridgestone Americas Inc., Michelin North America Inc.
Polybutadiene Rubber Trade Overview
South Korea is the largest Polybutadiene Rubber exporter with 353 kilo tons of exports recorded in 2021 with an average Polybutadiene Rubber price of $1.8/Kg. Russia is the second largest Polybutadiene Rubber exporter with 258 kilo tons exported in 2021 at an average price of 2.19$/kg. China is the largest Polybutadiene Rubber importer with 195 kilo tons of imports in 2021, followed by Thailand and India with Polybutadiene Rubber imports volume of 132 kilo tons and 130 kilo tons respectively.
Key Players in Polybutadiene Rubber Market
UBE Industries, JSR Corporation, Asahi Kasei Chemical Corporation, Kumho Petrochemicals, Lion Elastomers, The Goodyear Tire & Rubber Company, Synthos, Versalis, Sinopec, INEOS, Reliance Industries, LG Chemicals, TSRC Corporation, Chi Mei Corporation and ARLANXEO are some of the major Polybutadiene Rubber producers globally.
Polybutadiene Rubber Market Dynamics
Drivers: Rising demand from the Automotive industry
The rising demand for Tires in the automotive industry will positively impact the Polybutadiene Rubber market as it is often used in the tread compound of tires where the tread is the outer layer of the tire that comes in direct contact with the road. PBR is highly used in tires because it provides excellent abrasion resistance, low rolling resistance, and good traction providing to the overall durability and performance of the tire.
In tire manufacturing, polybutadiene rubber is sometimes blended with other types of rubber, such as natural rubber or styrene-butadiene rubber (SBR). These blends are known for achieving a balance of properties, including improved rolling resistance, wet traction, and overall tire performance.
Polybutadiene rubber is also used in the production of high-performance and racing tires owing to its properties which contribute to better grip, traction, and handling, making it suitable for applications where precise control and responsiveness are critical.
Polybutadiene is used for the development of tires with low rolling resistance. Tires with low rolling resistance enhance fuel efficiency in vehicles, which is a crucial factor for both consumers and regulatory bodies. This focus on fuel efficiency drives the demand for polybutadiene in the tire industry.
Restraints: Fluctuating raw material prices
Polybutadiene is derived from butadiene, which is a hydrocarbon obtained from crude oil. Fluctuations in crude oil prices can impact the cost of raw materials for polybutadiene production. Price volatility can create uncertainty for manufacturers which will hinder the PBR market in the forecast period.
Challenges: Presence of Alternatives
Polybutadiene faces competition from other synthetic rubbers, such as styrene-butadiene rubber (SBR) and polyisoprene, as well as from natural rubber. SBR is commonly used in tire production, footwear, conveyor belts, and is cost-effective, making it a potential alternative when cost is a significant factor. Each type of rubber has its own set of properties, and competition among these materials and can hinder the polybutadiene market.
Recent Developments in Polybutadiene Rubber Market
In 2022, Asahi Kasei began the sales of Tufdene™ S-SBR (solution-polymerized styrene-butadiene rubber) and Asadene™ BR (butadiene rubber) made using the mass-balance method at Asahi Kasei Synthetic Rubber Singapore Pte. Ltd. and the Synthetic Rubber Plant of Asahi Kasei s Kawasaki Works.
In July 2022, IOCL announced the setup of a new 60 kilo tons polybutadiene rubber plant at the company’s Naphtha Cracker Complex at Panipat, Haryana.
ARLANXEO has opened a 65 kilotons polybutadiene plant in Angelo, Brazil to cater the rising demand from the automotive industry.
ARLANXEO is also planning on setting up a ultra-high cis polybutadiene (NdBR) and lithium butadiene rubber (LiBR) manufacturing unit in Saudi Arabia with a nameplate capacity of 140 kilotons.
Need help
How can we help you?
Reach us with your research requirements and we shall provide the optimum solution to suit your needs.