Market Overview
Hydroxyl-terminated polybutadiene is a telechelic polymer having unsaturated hydrocarbon backbone. It reacts with isocyanates to form polyurethane polymers. Polyurethanes that are prepared from this can be engineered for different physical properties as per the requirement. It is commonly used as a binder in rocket propellants and plastic bonded explosives. Some of the other properties of the hydroxyl-terminated polybutadiene includes low glass-transition temperatures, hydrophobicity, acid-base resistance, and excellent dielectric properties.
Based on application, the global hydroxyl-terminated polybutadiene market is categorized into rocket fuel, waterproof coating and membranes, adhesives, sealants, electrical and electronics, and others. Rocket fuel is the largest application area in the market and expected to register the highest growth during the forecast period. This can be attributed to the increased demand of rocket fuel in the missiles and rockets. Also, the growing investment in space technologies around the world is further contributing towards the market growth.
On the basis of end use industry, the hydroxyl-terminated polybutadiene market is classified into construction and civil engineering, aerospace and defense, automotive, electrical and electronics, and others. The aerospace and defense is expected to grow at the fastest growth rate in the coming years. This is attributed to its superior properties such as, it is stronger and more flexible, good mechanical properties, offer long burn time as compared to polybutadiene acrylic acid acrylonitrile.
Market Dynamics
Trend
A shift from traditional rocket fuel towards technologically efficient rocket fuel is the major trend witnessed in the hydroxyl-terminated polybutadiene market. The technological advanced rocket fuel contains a molecule that has the potential of boosting rocket fuel efficiency by 20 to 30% compared to the current fuel. This is resulting in a shift in preference of consumers towards more advanced fuel.
Drivers
The major growth drivers identified in the hydroxyl-terminated polybutadiene market are the rising investment in space technologies around the globe and growing aerospace and defense industry. The rising investment in space technologies by countries such as the U.S., China, and India is expected to drive the market growth. For instance, in 2018, Indian rocket has launched 31 satellites in orbit. Number of such programs and launches are carried out by various countries, and are encouraging the governments to invest in this space, resulting in market growth.
Restraints
High price is identified as main restraints in the hydroxyl-terminated polybutadiene market, which is expected to hinder the market growth in the coming years. The high price of the polymer is significantly higher as compared to solid polybutadiene rubber, which is expected to directly affect it usage by small manufacturers. The usage will get affected in the price sensitive applications and may also restrict its usage. Along with that, the fluctuation in the raw materials price such as butadiene monomer is also expected to hinder its growth, as this makes it even more costly than other conventional polymers.
Opportunities
Growing application of the polymer in the construction industry is expected to create growth opportunities in the hydroxyl-terminated polybutadiene market for the industry players. In housing application, it is used in sealing compounds in double and triple glazing for the improved insulation, which is fueling its demand in the market.
Insights by geography
North America held the largest share in the hydroxyl-terminated polybutadiene market. During the forecast period, the North American market is expected to remain the largest consumer, owing to the increasing usage of the polymer in the various applications areas including aerospace and defense, construction and civil engineering.
Competitive Landscape
Some of the major players operating in the global hydroxyl-terminated polybutadiene market are CRS Chemicals, Emerald Performance Materials LLC, Total Cray Valley, Evonik Industries AG, Aerocon Systems Co., RCS Rocket Motor Components Inc., Zibo Qilong Chemical Industry Co. Ltd., and Mach I Inc.
