1,4-Butanediol Market Size, Share, By Type (Synthetic and Bio-Based), By Application (THF, GBL, PBT, and Polyurethane), By End-User (Automotive, Healthcare and Pharmaceutical, Textile, Electrical and Electronics, and Others), and Region (North America, Europe, Asia Pacific, Middle East and Africa, and South America) - Trends, Analysis and Forecast till 2034

1,4-Butanediol Market Size was valued at USD 7.5 Billion in 2024 and is expected to reach USD 18.3 Billion by 2034 growing at a CAGR of 10.3%.

1,4-Butanediol (C4H10O2) is an organic molecule sometimes referred to as 1,4-Butylene glycol or BDO. It is a commonly utilized chemical intermediate in many different industries. It is a colorless, viscous liquid with a slight odor. 1,4-Butanediol is a member of the diol family of chemicals, comprising carbon chains with two hydroxyl groups (-OH) connected to them. "1,4-Butanediol" refers to a compound in which two hydroxyl groups are found at a four-carbon chain's first and fourth carbon atoms. Because of its distinct characteristics and structure, 1,4-butanediol is a valuable raw material that may be used to manufacture various goods.

It is mainly used to synthesize polyesters, including polybutylene succinate (PBS) and polybutylene terephthalate (PBT). Because of their superior mechanical, thermal, and chemical resistance, these engineering plastics are widely used in the consumer goods, automotive, and electrical industries. Moreover, 1,4-Butanediol is a precursor of tetrahydrofuran (THF), a multipurpose solvent used in paints, adhesives, and medicines, among other uses. Gamma-butyrolactone (GBL), an intermediary for synthesizing pyrrolidone solvents and pharmaceutical intermediates, is another product made using it.

The growing demand for engineering plastics like PBT and PBS from the automotive and construction sectors, the expanding usage of PU in a variety of applications, and the rising use of solvents like THF and GBL in a variety of industries are the main drivers propelling the 1,4-Butanediol market. Furthermore, the development of bio-based BDO has been facilitated by the trend towards sustainable and bio-based manufacturing techniques, hence augmenting the market growth. However, the market is constrained by things like the availability of alternatives, price swings for raw materials (especially for fossil-based BDO), and environmental issues related to the traditional methods of producing BDO, which use dangerous chemicals and make large amounts of waste. The market dynamics are also being impacted by regulatory demands and the need to adhere to strict environmental standards.

Key Drivers of Target Market:

Increasing demand in the automotive and construction industries:

• Polybutylene terephthalate (PBT) and polybutylene succinate (PBS), two engineering plastics produced with 1,4-butanediol as a primary raw ingredient, are widely used in the construction and automotive sectors. Due to its superior mechanical strength, heat resistance, and dimensional stability, PBT is frequently used to fabricate several automobile components, such as interior trims, under-the-hood components, and electrical connectors. rising PBT use and, subsequently, rising demand for 1,4-butanediol are a result of the automobile industry's growing need for strong, lightweight materials due to pollution laws and fuel economy standards.
• Owing to its ecological and biodegradable properties, PBS, another polymer made from 1,4-Butanediol, is becoming increasingly popular in the building sector. Adhesives, coatings, and both flexible and stiff foams are among its many uses. Demand for PBS and 1,4-Butanediol has been spurred by the need to use sustainable and eco-friendly construction materials and by strict laws about their influence on the environment.

Growth of the polyurethane (PU) market:

• While manufacturing certain polyurethanes (PU), 1,4-butanediol is used as a chain extender. One factor boosting the demand for 1,4-butanediol is the growing need for polyurethanes across various end-use sectors. Polyurethane flexible foams are commonly utilized in the manufacture of automobile seats, bedding, and furniture. The demand for 1,4-butanediol has grown as a result of the rising need for sturdy and comfortable furniture and the developing automotive sector.
• This has led to an increase in the consumption of PU flexible foams. Polyurethane adhesives and coatings are also used in a wide range of sectors, including industrial manufacturing, automotive, and construction, because of their superior adhesion strength, chemical resistance, and resistance to abrasion.
• The increasing demand for high-performance coatings and adhesives has pushed the use of PU and 1,4-Butanediol. Additionally, because of their flexibility, toughness, and resistance to solvents and oil, polyurethane elastomers are utilized in the manufacturing of a wide range of goods, such as gaskets, seals, and vibration-dampening components.
• The market for PU elastomers and, by extension, 1,4-butanediol has grown due to the growing demand for these goods in sectors including manufacturing, construction, and automotive. The worldwide 1,4-butanediol market has expanded due to these factors and the rising demand for other product derivatives, such as gamma-butyrolactone (GBL) and tetrahydrofuran (THF).

Restrains:

Environmental impact and stringent regulations:

• The conventional processes used to produce 1,4-butanediol involve dangerous chemicals and result in large waste streams, which raise environmental issues. The most popular process for producing BDO is hydrogenation of maleic anhydride, which calls for catalysts and produces byproducts that need to be properly disposed of or treated.
• Governments and regulatory organizations worldwide have also imposed strict guidelines and standards on the manufacturing, handling, and disposal of chemicals such as 1,4-butanediol and its precursors in response to rising environmental concerns. In addition to ensuring worker and community safety, these laws seek to limit their adverse effects on the environment.

Opportunities:

Development of sustainable production methods:

• The market is poised for substantial growth as bio-based manufacturing techniques for 1,4-butanediol are developed. Using specialized microbes in fermentation methods, sustainable feedstocks like biomass or bio-derived succinic acid are converted into bio-based BDO.
• Bio-based manufacturing techniques are typically seen as more sustainable and favorable to the environment compared to conventional methods. They frequently produce less waste, have a smaller carbon footprint, and use fewer non-renewable resources, all of which are in line with the rising demand for sustainable goods.

The market is segmented based on Type, Application, End-User, and Region.

Type Insights:

• Synthetic: Chemicals extracted from petroleum are the raw components used to manufacture synthetic BDO. Because this approach uses dangerous chemicals like acetylene, relies on non-renewable fossil fuels, and produces toxic byproducts, it poses environmental issues.
• Bio-Based: A state-of-the-art remedy made from sugarcane or maize and fermented using fermentation procedures. By encouraging sustainability, bio-based BDO presents a strong substitute for conventional production techniques.

Application Insights:

• THF: The primary application of 1,4-butanediol, which makes up around 40% of the market for BDO, is Tetrahydrofuran (THF). THF is a multipurpose solvent that finds application in several sectors, such as pharmaceutical manufacturing, paint and coatings, and adhesives.
• GBL: Gamma-butyrolactone, or GBL, is a flexible chemical with a wide range of industrial uses. It is used as a solvent in the manufacturing of several goods, including medicines, herbicides, and insecticides.  Moreover, GBL is a plasticizer that increases the flexibility and workability of plastics.
• PBT: High-performance engineering plastic polybutylene terephthalate, or PBT, is highly valued for its remarkable set of characteristics, which include a high modulus and tensile strength that prevent deformation under stress and strain. It functions effectively in hot conditions and applications requiring heat exposure since it also keeps its mechanical and dimensional stability at high temperatures.
• Polyurethane: OPolyurethane (PU) is a class of polymers with various uses. One important use of U) made from 1,4-butanediol is the creation of Spandex fibers, renowned for their elasticity and flexibility; these fibers are frequently used in clothes, especially swimwear, athleisure wear, and form-fitting styles.

End-User Insights:

• Automotive: The automotive industry uses 1,4-butanediol in two main ways. Tetrahydrofuran (THF) is an essential cleaning chemical used during the production process of automobile parts. PBT, or polybutylene terephthalate, is prized for its toughness and resistance to heat.
• Healthcare and Pharmaceutical: Healthcare relies heavily on BDO derivatives. THF is a necessary solvent in the manufacturing of pharmaceuticals, while PBT and PU are used in drug delivery systems and medical equipment because of their strength, biocompatibility, and adaptability.
• Textile: 1,4-butanediol (BDO) is a necessary ingredient in the creation of polyurethane (PU) fibers, popularly referred to as Spandex. Because of their exceptional stretch and form retention, these elastic fibers are highly valued for their pleasant apparel applications in athletics, activity, swimwear, and undergarments.
• Electrical and Electronics: Derivatives of BDO are essential to the electronics sector. While PBT's flame retardant qualities and dimensional stability make it appropriate for electronic casings and connections, guaranteeing the safety and operation of electronic equipment, THF is used to clean sensitive electronic components throughout the production process.
• Others: BDO's adaptability goes beyond its primary uses. PU is used in construction as a waterproofing covering and as insulating foam. PU is used in the furniture business for upholstery and cushioning, and it is also used in the agriculture sector to coat seeds to protect them from pests and illnesses.

Regional Insights

• North America: The United States and Canada comprise most of the North American area, which is a sizable market for 1,4-butanediol (BDO). The chemical industry in the area is well-established, and significant companies are involved in the manufacturing and use of BDO. The automobile industry drives the need for BDO in this area, which significantly uses polyurethanes and polybutylene terephthalate (PBT).
• Asia Pacific: Because of the fast industrialization and rising demand from a variety of end-user industries, the 1,4-butanediol market in the Asia Pacific region is anticipated to develop significantly. The growing automotive industries in China, India, and Japan are fueling the need for BDO in synthesizing PBT and polyurethanes.
• Europe: Strong automotive demand and the presence of well-known chemical firms propel the 1,4-butanediol market in Europe. Since bio-based BDO is a more ecologically friendly option than synthetic BDO, demand for it has surged due to the region's emphasis on sustainability and strict environmental restrictions.
• Latin America: The automotive and textile industries are expected to be the main drivers of the steady expansion of the 1,4-butanediol market in South America. Brazil, given its status as a key center for automobile manufacturing in the area, is anticipated to be a large user of BDO for the production of polyurethanes and PBT.
• Middle East and Africa: The 1,4-butanediol market is expected to develop moderately in the Middle East and Africa region. The Middle East's petrochemical sector, well-established in nations like Saudi Arabia and the United Arab Emirates, can facilitate the manufacturing and use of synthetic BDO.

1,4-Butanediol Market Report Scope:

Segments Covered in the Report:

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2024 to 2034. For the purpose of this study the target market report based on the market is segmented based on Type, Application, End-User, and Region.

Segmentation:

By Type:

• Synthetic
• Bio-Based

By Application:

• THF
• GBL
• PBT
• Polyurethane

By End-User:

• Automotive
• Healthcare and Pharmaceutical
• Textile
• Electrical and Electronics
• Others

By Region:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Russia
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • Israel
  • South Africa
  • Rest of Middle East & Africa

The key players operating the 1,4-Butanediol Market include The Dow Chemical Company, Evonik Industries AG, BASF SE, TCC Group, LyondellBasell Industries Holdings B.V., Oxea GmbH, Ashland, Genomatica, Inc., SINOPEC (China Petrochemical Corporation), Mitsubishi Chemical Group Corporation, Sipchem Company, International Specialty Products (ISP), Xinjiang Blue Ridge Tunhe Chemical Co. Ltd, Xinjiang Tianye (Group) Co., Ltd., Formosa Plastics Corporation, and Marubeni Corporation.

• In April 2021, Xinjiang Guotai Xinhua Chemical Co. Ltd. launched the Coal-based Fine Chemicals Circular Economy Industrial Park Phase II project. The project's objectives are to create 1,4 butanediol (BDO) using the acetylene aldehyde technique, hydrogen using the methanol cracking method, and acetylene and formaldehyde using dry acetylene and formaldehyde plants. When the project is finished, 100,000 tons of 1,4 butanediol (BDO) and 1,200 tons of butanol as a byproduct will be generated.

• The Dow Chemical Company *
  • Company Overview
  • Product Portfolio
  • Key Highlights
  • Financial Performance
  • Business Strategies
• Evonik Industries AG
• BASF SE
• TCC Group
• LyondellBasell Industries Holdings B.V.
• Oxea GmbH
• Ashland
• Genomatica, Inc.
• SINOPEC (China Petrochemical Corporation)
• Mitsubishi Chemical Group Corporation
• Sipchem Company
• International Specialty Products (ISP)
• Xinjiang Blue Ridge Tunhe Chemical Co. Ltd
• Xinjiang Tianye (Group) Co., Ltd,
• Formosa Plastics Corporation
• Marubeni Corporation

“*” marked represents similar segmentation in other categories in the respective section

1. Research Objective and Assumption
   • Research Objectives
   • Assumptions
   • Abbreviations
2. Market Preview
   • Report Description
     • Market Definition and Scope
   • Executive Summary
     • Market Snippet, By Type
     • Market Snippet, By Application
     • Market Snippet, By End-User
     • Market Snippet, By Region
   • Opportunity Map Analysis
3. Market Dynamics, Regulations, and Trends Analysis
   • Market Dynamics
     • Drivers
     • Restraints
     • Market Opportunities
   • Market Trends
   • Product Launch
   • Merger and Acquisitions
   • Impact Analysis
   • PEST Analysis
   • Porter’s Analysis
4. Market Segmentation, Type, Forecast Period up to 10 Years, (US$ Bn)
   • Overview
     • Market Value and Forecast (US$ Bn), and Share Analysis (%), Forecast Period up to 10 Years
     • Y-o-Y Growth Analysis (%), Forecast Period up to 10 Years
     • Segment Trends
   • Synthetic
     • Overview
     • Market Size and Forecast (US$ Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
   • Bio-Based
     • Overview
     • Market Size and Forecast (US$ Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
     • Segment Trends
5. Market Segmentation, Application, Forecast Period up to 10 Years, (US$ Bn)
   • Overview
     • Market Value and Forecast (US$ Bn), and Share Analysis (%), Forecast Period up to 10 Years
     • Y-o-Y Growth Analysis (%), Forecast Period up to 10 Years
     • Segment Trends
   • THF
     • Overview
     • Market Size and Forecast (US$ Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
   • GBL
     • Overview
     • Market Size and Forecast (US$ Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
   • PBT
     • Overview
     • Market Size and Forecast (US$ Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
   • Polyurethane
     • Overview
     • Market Size and Forecast (US$ Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
6. Market Segmentation, End-User, Forecast Period up to 10 Years, (US$ Bn)
   • Overview
     • Market Value and Forecast (US$ Bn), and Share Analysis (%), Forecast Period up to 10 Years
     • Y-o-Y Growth Analysis (%), Forecast Period up to 10 Years
     • Segment Trends
   • Automotive
     • Overview
     • Market Size and Forecast (US$ Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
   • Healthcare and Pharmaceutical
     • Overview
     • Market Size and Forecast (US$ Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
   • Textile
     • Overview
     • Market Size and Forecast (US$ Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
   • Electrical, and Electronics
     • Overview
     • Market Size and Forecast (US$ Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
   • Others
     • Overview
     • Market Size and Forecast (US$ Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
7. Market Segmentation, By Region, Forecast Period up to 10 Years, (US$ Bn)
   • Overview
     • Market Value and Forecast (US$ Bn), and Share Analysis (%), Forecast Period up to 10 Years
     • Y-o-Y Growth Analysis (%), Forecast Period up to 10 Years
     • Regional Trends
   • North America
     • Market Size and Forecast (US$ Bn), By Type, Forecast Period up to 10 Years
     • Market Size and Forecast (US$ Bn), By Application, Forecast Period up to 10 Years
     • Market Size and Forecast (US$ Bn), By End-User, Forecast Period up to 10 Years
     • Market Size and Forecast (US$ Bn), By Country, Forecast Period up to 10 Years
       • U.S
       • Canada
   • Asia Pacific
     • Market Size and Forecast (US$ Bn), By Type, Forecast Period up to 10 Years
     • Market Size and Forecast (US$ Bn), By Application, Forecast Period up to 10 Years
     • Market Size and Forecast (US$ Bn), By End-User, Forecast Period up to 10 Years
     • Market Size and Forecast (US$ Bn), By Country, Forecast Period up to 10 Years
       • India
       • Japan
       • South Korea
       • China
       • Rest of Asia Pacific
   • Europe
     • Market Size and Forecast (US$ Bn), By Type, Forecast Period up to 10 Years
     • Market Size and Forecast (US$ Bn), By Application, Forecast Period up to 10 Years
     • Market Size and Forecast (US$ Bn), By End-User, Forecast Period up to 10 Years
     • Market Size and Forecast (US$ Bn), By Country, Forecast Period up to 10 Years
       • UK
       • Germany
       • France
       • Russia
       • Italy
       • Rest of Europe
   • Latin America
     • Market Size and Forecast (US$ Bn), By Type, Forecast Period up to 10 Years
     • Market Size and Forecast (US$ Bn), By Application, Forecast Period up to 10 Years
     • Market Size and Forecast (US$ Bn), By End-User, Forecast Period up to 10 Years
     • Market Size and Forecast (US$ Bn), By Country, Forecast Period up to 10 Years
       • Brazil
       • Mexico
       • Rest of Latin America
   • Middle East and Africa
     • Market Size and Forecast (US$ Bn), By Type, Forecast Period up to 10 Years
     • Market Size and Forecast (US$ Bn), By Application, Forecast Period up to 10 Years
     • Market Size and Forecast (US$ Bn), By End-User, Forecast Period up to 10 Years
     • Market Size and Forecast (US$ Bn), By Country, Forecast Period up to 10 Years
       • GCC
       • Israel
       • South Africa
       • Rest of Middle East and Africa
8. Competitive Landscape

• Heat Map Analysis
• Company Profiles
  • The Dow Chemical Company
  • Evonik Industries AG
  • BASF SE
  • TCC Group
  • LyondellBasell Industries Holdings B.V.
  • Oxea GmbH
  • Ashland
  • Genomatica, Inc.
  • SINOPEC (China Petrochemical Corporation)
  • Mitsubishi Chemical Group Corporation
  • Sipchem Company
  • International Specialty Products (ISP)
  • Xinjiang Blue Ridge Tunhe Chemical Co. Ltd
  • Xinjiang Tianye (Group) Co., Ltd,
  • Formosa Plastics Corporation
  • Marubeni Corporation

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