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1,4 Butanediol Market - By Application (Tetrahydrofuran Production, Polyurethane Production, Gamma-Butyrolactone Production, Plasticizers & Resins), By End-use (Automotive, Construction, Electronics, Textiles & Apparel, Pharma, Chemical industry) & Forecast, 2023 – 2032

  • Report ID: GMI6782
  • Published Date: Sep 2023
  • Report Format: PDF

1,4 Butanediol Market Size

1,4 Butanediol Market size was valued at around USD 6.5 billion in 2022 and is estimated to register a CAGR of 9.4% between 2023 and 2032. One of the primary uses of BDO is in the production of polyurethane, a versatile polymer used in a wide range of applications such as foams, adhesives, coatings, and elastomers. The growth of these industries drives the demand for BDO. BDO is used in the production of plasticizers and resins that find applications in the manufacturing of flexible plastics, paints, coatings, and adhesives.

1,4 Butanediol Market

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The automotive industry relies on BDO-derived polyurethane for various components, including seats, interior trim, and foams, to enhance comfort, safety, and durability. BDO-based polyurethane materials are used in the construction industry for applications such as insulation, sealants, and coatings, contributing to the demand for BDO.

The production of BDO relies on the availability of raw materials such as butadiene or maleic anhydride.  BDO prices can be volatile due to factors such as raw material costs, production capacity, and market demand. Environmental regulations, especially related to emissions and waste disposal, can impact BDO production processes. Thus, the risks associated with 1,4 Butanediol may drive down the acceptance rate, further hampering the business growth.

COVID-19 Impact

Lockdowns, restrictions, and reduced economic activity during the early stages of the pandemic led to decreased demand for BDO-based products in industries such as automotive, construction, and manufacturing. Thus, the reduced number of COVID-19 cases and implementation of subsequent strategies by government and non-government organizations is anticipated to drive the business expansion in the upcoming years.

1,4 Butanediol Market Trends

There is a growing focus on sustainable production methods for BDO, including bio-based BDO derived from renewable feedstocks. Companies are exploring greener alternatives to traditional petrochemical-based BDO. Bio-based BDO production is gaining traction as it offers a more sustainable and environmentally friendly option. Manufacturers are investing in research and development to scale up bio-based BDO production.

1,4 Butanediol Market Analysis

1,4 Butanediol Market Size, By Application, 2021 - 2032 (USD Billion)

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Based on application, the 1,4 butanediol market is segmented as tetrahydrofuran (THF) production, polyurethane (PU) production, gamma-butyrolactone (GBL) production, plasticizers and resins, others. Tetrahydrofuran (THF) Production held a majority market value of USD 2.2 billion in 2022. THF, produced from BDO, is a versatile solvent and chemical intermediate used in various applications, including pharmaceuticals, coatings, adhesives, and chemical synthesis. Increased demand for THF in these industries drives the demand for BDO.

1,4 Butanediol Market Revenue Share, By End-use, (2022)

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Based on end-use, the 1,4 butanediol market is segmented as automotive, construction, electronics, textiles and apparel, pharmaceuticals, chemical industry. Automotive held a dominant market share of around 35% in 2022 and is expected to grow at a lucrative pace till 2032. BDO is used in the production of automotive coolants and brake fluids, which are essential for maintaining vehicle performance and safety. The demand for BDO in this sector is closely tied to the automotive market's production and maintenance requirements.

U.S. 1,4 Butanediol Market Size, 2020- 2032 (USD Billion)

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U.S. dominated the North American region with majority 1,4 butanediol market share and a revenue of USD 3.9 billion in 2022 and is anticipated to expand at a significant pace from 2023-2032. The automotive sector is a significant consumer of BDO-based products, including polyurethane foams, coatings, and adhesives. As the North American automotive industry continues to grow and innovate, it fuels demand for BDO.

1,4 Butanediol Market Share

Some of the major industry players operating in the 1,4 Butanediol market are

  • BASF SE Dairen Chemical Corporation
  •  LyondellBasell Industries Holdings B.V.
  • Mitsubishi Chemical Corporation
  •  Invista
  • Sipchem (Saudi International Petrochemical Company)
  • Nanjing Bluestar Co., Ltd.
  •  The Dow Chemical Company (Dow) -
  •  Ashland Global Holdings Inc.
  • Oxea GmbH, BASF-YPC Company Limited
  •  TCC Group
  • Formosa Plastics Corporation
  •  International Specialty Products (ISP)
  •  Marubeni Corporation

These players focus on strategic partnerships, new product launch & commercialization for market expansion. Furthermore, these players are heavily investing in research that allows them to introduce innovative products and garner maximum revenue in the market.

1,4 Butanediol Industry News:

  • In May 2021, In October 2022, BASF announced the manufacturing of 1,4-butanediol using renewable feedstock. The process included Genomatica’s patented dextrose-based fermentation process. After six months of the declaration, BASF disclosed that it had successfully generated its first commercial volumes of 1,4-butanediol using renewable raw materials.
  • In September 2019, INEOS Enterprises announced that it had acquired Ashland Global Holdings Inc.'s complete composites business. Also, the deal included a BDO facility in Germany. The companies involved in the transaction generated around USD 1.1 billion in annual sales.

1,4 Butanediol market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue in USD Million & Kilo Tons from 2018 to 2032, for the following segments:

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By Application

  • Tetrahydrofuran (THF) Production
  • Polyurethane (PU) Production
  • Gamma-Butyrolactone (GBL) Production
  • Plasticizers and Resins
  • Others

By End-use

  • Automotive
  • Construction
  • Electronics
  • Textiles and Apparel
  • Pharmaceuticals
  • Chemical industry

The above information is provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • UK
    • France
    • Spain
    • Italy
  • Asia Pacific
    • China
    • Japan
    • India
    • Australia
    • South Korea
    • Indonesia
    • Malaysia 
  • Latin America
    • Brazil
    • Mexico
    • Argentina
  • Middle East & Africa
    • South Africa
    • Saudi Arabia
    • UAE
    • Egypt


Authors: Kiran Pulidindi, Kunal Ahuja

Frequently Asked Questions (FAQ) :

Market size for 1,4 butanediol value was around USD 6.5 billion in 2022 and is estimated to reach USD 15.9 billion by the end of 2032.

How is automotive sector driving the 1,4 butanediol industry?

U.S. 1,4 butanediol industry revenue was USD 3.9 billion in 2022 and is anticipated to expand at a significant pace from 2023-2032 owing to the continuous growth and innovations in the nation’s automotive sector, that fuels demand for BDO.

BASF SE Dairen Chemical Corporation, LyondellBasell Industries Holdings B.V., Mitsubishi Chemical Corporation, Invista, Sipchem (Saudi International Petrochemical Company), and Nanjing Bluestar Co., Ltd.

1,4 Butanediol Market Scope

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  • Base Year: 2022
  • Companies covered: 14
  • Tables & Figures: 136
  • Countries covered: 21
  • Pages: 150
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