Polybutadiene is a synthetic rubber produced from the polymerization of 1, 3-butadiene. It has superior abrasion resistance, high resilience, excellent low temperature flexibility, and high resistance to cuts, bruises, and snags. Owing to its versatile properties, polybutadiene finds widespread usage in the manufacturing of tires, footwear, belts, hoses, and gaskets. The global polybutadiene demand is significantly driven by the tire industry, where it accounts for over 60% of the total consumption.
The Global Polybutadiene Market Size is estimated to be valued at US$ 6.23 Bn in 2024 and is expected to exhibit a CAGR of 8.8% over the forecast period 2024-2031, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity
Growing automotive production and demand for high-performance tires: The increasing automotive production driven by rising vehicle parc across regions is propelling the demand for tires. Polybutadiene plays a critical role in manufacturing high-performance tires owing to its properties. The growing need for tires with superior strength, abrasion resistance, and low rolling resistance is estimated to boost the consumption of polybutadiene in the tire industry.
Porter’s Analysis
Threat of new entrants: The polybutadiene market is moderately concentrated, which poses a moderate threat of new entrants. Large investments are required for R&D, manufacturing facilities, and distribution networks.
Bargaining power of buyers: The bargaining power of buyers is moderate. Polybutadiene has applications in tires, polymers, and others. Buyers can negotiate on price and quality standards.
Bargaining power of suppliers: A few major players dominate the raw material supply. This gives them significant bargaining power over manufacturers. Suppliers integrate forward to capture higher margins.
Threat of new substitutes: Low-cost substitutes like synthetic and natural rubber pose a threat. Stricter environmental regulations boost the demand for substitutes.
Competitive rivalry: The market is fragmented. Players compete based on product differentiation, pricing, innovation, and brand promotion.
SWOT Analysis
Strengths: Wide applications in tires, footwear and automotive boost demand. Existing customers and global presence of key players.
Weaknesses: Volatility in raw material prices increases production costs. Styrene butadiene rubber and nitrile butadiene rubber substitute polybutadiene.
Opportunities: Growth in the automotive industry especially in Asia Pacific. Development of bio-based polybutadiene using renewables.
Threats:Stringent environmental regulations on emissions. Economic slowdowns affecting end-use industries.
Key Takeaways
The Global Polybutadiene Market Size is expected to witness high growth led by the Asia Pacific region.
Regional analysis: Asia Pacific region dominating the global polybutadiene market with China being the largest producer and consumer. Growth rates are expected to be highest in India and Southeast Asian countries.
Key players operating in the polybutadiene market are Envista Holdings Corporation, Planmeca Oy, Acteon Group, DENTSPLY Sirona, Carestream Dental, VATECH Co. Ltd., Owandy Radiology, Durr Dental SE, Midmark Corporation, Genoray Co. Ltd., Asahi Roentgen Co. Ltd., 3Shape, PreXion Inc., Cefla Medical Equipment, Apteryx Imaging (Canada), Yoshida Dental Mfg. Co. Ltd, and Align Technology Inc. Major players are investing in capacity additions to cater to rising demand majorly in Asia Pacific and Latin America.
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