The global 1,4-butanediol market is expected to reach USD 6.95 billion by 2020, according to a new report by Grand View Research, Inc. Rising spandex and tetrahydrofuran demand for sports apparels is anticipated to fuel Butanediol industry over the forecast period. Upcoming sports events such as FIFA World Cup 2018 and Olympics 2016 are anticipated to fuel infrastructure development in Brazil and Russia, which is estimated to drive the product demand over the forecast period. Increasing polyurethane demand from various end-use industries such as footwear, construction, and automotive, particularly in Asia Pacific and Latin America is also expected to have a positive impact on market growth.
Volatile raw material prices are expected to hinder market profitability over the forecast period. To overcome challenges, key industry participants have shifted their focus towards developing bio-based alternatives at competitive prices to synthetic BDO.
Tetrahydrofuran emerged as the largest application segment and accounted for over 29% of the global market demand in 2013. This segment is expected to gain share over the next five years on account of high demand from key end-use industries. Polyurethane is anticipated to be the fastest growing segment on account of growing construction industry in Asia Pacific and Central & South America. This segment is anticipated to grow at an estimated CAGR of 5.1% from 2014 to 2020.
Browse full research report on global 1,4-butanediol market: http://www.grandviewresearch.com/industry-analysis/1-4-butanediol-market
Further key findings from the report suggest:
- Global 1,4-butanediol market demand was 1,954.5 kilo tons in 2013 and is expected to grow at a CAGR of 4.8% from 2014 to 2020
- BDO is an intermediate chemical used for manufacturing tetrahydrofuran, gamma-butyrolactone, polytetramethylene ether glycol, polybutylene terephthalate, and polyurethane. These chemicals are extensively used in engineering plastics, fibers, medicines, artificial leather, cosmetics, hardener, plasticizers, solvent, pesticides, and rust remover.
- Asia Pacific was the largest regional market with demand share estimated over 55% in 2013. Positive outlook on key end-use industries such as construction, automotive, and footwear, particularly in China, India, Indonesian, and Vietnam is expected to drive regional growth. High production capacities in Asia Pacific give flexibility to the manufacturers to scale up the production depending on the demand trends.
- Major companies operating in global 1,4-butanediol market include Shanxi Sanwei Group, Invista, Lyondell Chemicals, International Specialty Products, and Mitsubishi Chemicals. Major players such as BASF, Mitsubishi Chemicals, Purac, and Myriant are investing heavily in R&D to develop bio-based routes to manufacture the product.
Browse more reports of this category by Grand View Research: http://www.grandviewresearch.com/industry/renewable-chemicals
Grand View Research has segmented the 1,4-butanediol market on the basis of application and region:
Application Outlook (Volume, Kilo Tons; Revenue, USD Million, 2012 – 2020)
- Polybutylene terephthalate
Regional Outlook (Volume, Kilo Tons; Revenue, USD Million, 2012 – 2020)
- North America
- Asia Pacific
Access press release of this research report by Grand View Research: http://www.grandviewresearch.com/press-release/global-1-4-butanediol-market
About Grand View Research
Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, we offer market intelligence studies ensuring relevant and fact-based research across a range of industries, from technology to chemicals, materials and healthcare.
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