1,4-Butanediol Market: By Type (Synthetic, Bio-based), By Technology (Reppe Process, Davy Process, Propylene Oxide Process, Butadiene Process, Others), By Application (THF, GBL, PBT, Polyurethane), By End-user (Automotive, Healthcare & Pharmaceuticals, Textile, Electrical & Electronics, Others), and Geography

1,4-Butanediol Market was valued at USD 7,312.8 million in 2023 and is poised to grow at a CAGR of 7.5% over 2024-2030. 1,4-Butanediol (BDO) is a versatile liquid diol intermediate with reactive primary hydroxyl functionality and a linear structure that makes it ideal for formulating polyurethane elastomers with an excellent balance of properties and cost and is used in the creation of numerous industrial and consumer goods. The increased demand for the production of polymers and plastics, such as polybutylene terephthalate (PBT) and polyurethane drives the market. According to research conducted, 359 million metric tons of plastic were produced in 2018.

Furthermore, the increased expansion and production of engineering plastics in the automotive and aerospace industries owing to it being lightweight and having high-performance properties is anticipated to propel the market demand. Additionally, the creation and commercialization of bio-based BDO production techniques has presented an opportunity to capitalize on the expanding market for environmentally friendly and sustainable goods. Industries and consumers aiming to lessen their carbon footprint and reliance on fossil fuels find bio-based BDO appealing. Currently, the increased insistence on vehicles being lightweight to increase fuel efficiency and lower pollution in the automobile sector has made composites and polymers made from BDO-derived materials popular in the market. But the reliance on BDO production on feedstocks like butane or natural gas derivatives that are limited along with the constant fluctuations in the availability and price of these raw materials may hinder the market. However, the increased demand from the automotive and textile industry, advanced infrastructure, increased disposable income and emergence of new players in the market are anticipated to burgeon the market during the forecast period.

1,4-Butanediol Market Key Developments:

• In August 2022, Inner Mongolia Dongjing Bio-Environmental Technology Co., Ltd. launched the 280,000-ton 1,4-butanediol (BDO) project with a total investment of the project being more than 3 billion yuan.
• In June 2019, Daicel Corporation, a chemical manufacturing company headquartered in Japan, established a new production facility of 1,3-butanediol at its Aboshi Plant. The construction doubled its capacity.