1-Butene for Industrial Use Market - Global Forecast 2026-2032

The 1-Butene for Industrial Use Market size was estimated at USD 734.31 million in 2025 and expected to reach USD 805.54 million in 2026, at a CAGR of 9.50% to reach USD 1,386.38 million by 2032.

1-Butene has emerged as a pivotal chemical building block, feeding into a diverse portfolio of industrial processes that extend from high-performance polymers to advanced fuel formulations. Its linear structure and reactivity profile render it an essential component in copolymer production, alkylation processes, and lubricant base stock synthesis. Over the past decade, refiners and petrochemical manufacturers have increasingly prioritized 1-Butene for applications that demand consistency, yield optimization, and downstream performance enhancements.

The strategic relevance of 1-Butene is underscored by its role in lubricant technology, where its incorporation into motor and industrial formulations improves viscosity indices and thermal stability. Simultaneously, the compound’s integration into gasoline blending operations supports octane enhancement initiatives and emissions compliance targets. This report delivers a comprehensive overview of these critical use cases and outlines the evolving drivers-ranging from regulatory shifts to feedstock economics-that continue to shape the global 1-Butene landscape.

The 1-Butene landscape is undergoing a paradigm shift, driven by the interplay of sustainability imperatives, feedstock realignment, and technological innovation. In response to decarbonization agendas, many integrated producers have accelerated their transition from crude oil–derived naphtha to ethane-based feedstocks, which often offer lower lifecycle greenhouse gas footprints. Around 40% of U.S. ethane-based petrochemical production capacity highlights this strategic pivot toward lighter feedstocks that reduce processing emissions and optimize yield profiles.

Simultaneously, refinery operators are adopting crude-to-chemicals configurations, deploying high-severity Fluid Catalytic Cracking units to boost propylene and butene yields per barrel. These configurations, however, require complementary investments in carbon capture, utilization, and storage technologies to meaningfully lower net emissions-a pathway that is gaining traction across North America and Europe as regulatory frameworks tighten.

Moreover, with supply chains still adjusting to recent trade disruptions and raw material scarcity, producers are diversifying sourcing strategies. Some have turned to on-purpose 1-Butene units, which decouple production from traditional steam-cracker operations and offer greater feedstock flexibility. At the same time, industry partnerships are forming around circularity initiatives, integrating physical recycling methods to reduce reliance on virgin feedstocks. Together, these developments represent transformative shifts that are redefining cost structures, environmental performance, and operational resilience in the 1-Butene sector.

The cumulative weight of United States trade measures implemented through early 2025 has exerted profound effects on 1-Butene supply chains, cost structures, and sourcing paradigms. In April 2025, a universal 10% tariff on all imports took effect, supplementing preexisting duties on specific origins and commodities. This “reciprocal tariff” framework, encompassing 57 countries, elevated the effective duty on key feedstocks from several major suppliers, prompting rapid reassessment of import strategies.

Meanwhile, sustained Section 301 levies on chemical imports from China, which date back to 2018 and peaked at 54% effective duty rates, have continued to inflate landed costs for naphtha-derived and on-purpose 1-Butene sources alike. As a result, many downstream processors have accelerated domestic sourcing plans and diversified procurement to regions offering preferential trade terms or tariff exemptions.

These layered tariff regimes have also prompted manufacturers to explore backward integration solutions, with increased greenfield investments in on-purpose synthesis and polymerization-adjacent units. While some cost pressures have been absorbed through operational efficiencies and long-term feedstock contracts, the net effect remains a heightened emphasis on supply chain agility and nearshoring. Companies that adapt quickly to this evolving trade environment are better positioned to mitigate duty burdens, secure raw material continuity, and optimize their global cost structures.

When examining the industrial 1-Butene market through an application lens, distinct use cases emerge that shape procurement and production priorities. In the realm of chemical intermediates, 1-Butene fulfills critical roles in alkylation processes and the synthesis of butyl rubber, while in fuel applications it enhances aviation fuel octane and elevates motor gasoline performance. The polymer sector leverages 1-Butene extensively for polyethylene grade differentiation-spanning high-density, linear low-density, and low-density variants-where molecular weight control drives material properties. Complementarily, the lubricant industry relies on 1-Butene as a building block for both industrial and motor lubricant base stocks, with its branching structure yielding desirable viscosity and thermal behavior.

From a technological perspective, the market bifurcates between traditional steam cracking coproduct streams and dedicated on-purpose synthesis routes. Steam crackers deliver 1-Butene as part of their mixed C4 output, necessitating purification investments, whereas on-purpose units enable targeted production volumes and feedstock flexibility. In parallel, grade segmentation delineates chemical grade from polymer grade, the former emphasizing purity for specialty derivatives and the latter suiting bulk polymerization requirements. Lastly, the physical form of 1-Butene-whether pressurized gaseous product or cryogenically liquefied stream-influences storage, transportation, and downstream integration practices.

Across the Americas, the United States and Canada continue to drive innovation in 1-Butene synthesis, leveraging abundant shale gas feedstocks and robust midstream infrastructure. Investments in on-purpose polymer-grade units and propane dehydrogenation complexes have proliferated, ensuring reliable regional supply while minimizing import dependence. Mexico is emerging as a growth corridor, capitalizing on integrated refining expansions and nearshoring trends that align with the United States–Mexico–Canada Agreement.

In Europe, Middle East, and Africa, petrochemical clusters remain anchored by naphtha cracker complexes, with the European Union’s decarbonization agenda prompting significant retrofits for energy efficiency and carbon capture. The Middle East sustains its competitive edge through low-price hydrocarbon feedstocks and rapidly expanding downstream complexes, particularly in Saudi Arabia and the UAE, where new facilities target high-purity 1-Butene for export. Meanwhile, African producers are exploring small-scale dehydrogenation and modular units to serve niche markets and reduce logistic bottlenecks.

Asia-Pacific maintains its position as the largest consumer of 1-Butene, supported by thriving polyethylene and synthetic lubricant industries in China, South Korea, and Japan. Regional market leaders are complementing steam cracker outputs with on-purpose dehydrogenation plants in response to domestic feedstock shifts and regulatory pressures on emissions. Southeast Asia is also attracting greenfield investments, driven by rising domestic demand and government incentives for petrochemical integration.

Leading global petrochemical companies have adopted differentiated strategies to secure their positions in the competitive 1-Butene landscape. LyondellBasell has leveraged its proprietary on-purpose dehydrogenation technology to expand production in North America and Asia, aligning capacity with long-term supply contracts. ExxonMobil and Chevron Phillips have pursued integrated steam-cracker upgrades, coupling advanced separation units to optimize C4 recovery while lowering energy intensity.

European consortium INEOS has focused on asset acquisitions and joint ventures to gain market share, notably enhancing its naphtha cracker footprint in Belgium and the United Kingdom. Meanwhile, SABIC has integrated upstream refining operations in the Middle East with downstream polymer plants to ensure feedstock consistency and cost advantages. In Asia, Mitsubishi Chemical and Idemitsu Kosan continue to invest in tailored polymer-grade 1-Butene units, complemented by strategic partnerships that align product specifications with regional converter requirements.

Beyond capacity expansions, these industry participants are collaborating on digitalization initiatives, applying predictive maintenance and real-time analytics to improve operational reliability and feedstock yield. Such collaborative ecosystems underscore the sector’s evolution toward higher margins, reduced environmental footprint, and greater supply chain resilience.

Industry leaders can capitalize on emerging opportunities in the 1-Butene market by prioritizing feedstock diversification, including balancing ethane-based streams with naphtha and propane dehydrogenation capabilities. By investing in on-purpose synthesis technologies, companies gain greater control over production volumes and feedstock flexibility, mitigating the impact of trade disruptions and input cost volatility.

Accelerating decarbonization through carbon capture integration and energy-efficiency retrofits will not only align operations with tightening regulations but also unlock longer-term cost savings. Collaborating on circular economy initiatives-such as chemical recycling partnerships-can reduce reliance on virgin 1-Butene and resonate with sustainability mandates from end-use industries.

Furthermore, building agility into global supply chains through nearshoring strategies and diversified sourcing agreements will buffer organizations against future tariff shifts. Engaging proactively with policymakers to shape trade frameworks and securing long-term off-take agreements with key converters will strengthen market positions. Lastly, leveraging advanced analytics and digital twin simulations can optimize plant throughput and enhance feedstock yield, driving continuous performance improvements.

This analysis draws on a comprehensive research methodology that integrates primary stakeholder consultations with exhaustive secondary data synthesis. We conducted in-depth interviews with senior executives from major petrochemical producers, technology licensors, and industry associations to validate strategic insights and uncover emerging trends. Supplemental surveys and site visits at key production facilities provided granular operational context.

Secondary research encompassed a systematic review of trade publications, regulatory filings, government databases, and international energy agency reports. Import and export statistics were obtained from customs records, while patent databases and academic literature were analyzed to track technological developments. Historical tariff schedules and policy announcements were examined to assess cumulative trade impacts.

Data triangulation and rigorous quality assurance processes ensured that findings are robust and replicable. Market mappings were cross-validated against proprietary pricing databases and real-world offtake agreements to confirm accuracy. This multi-layered approach guarantees that the insights and recommendations presented in this report are grounded in empirical evidence and industry-tested perspectives.

As industrial stakeholders navigate the complexities of feedstock transitions, trade dynamics, and sustainability imperatives, 1-Butene remains a cornerstone molecule with multifaceted applications. The interplay between on-purpose synthesis innovations and traditional steam-cracking operations will define cost structures and operational flexibility in the years ahead. Meanwhile, decarbonization technologies and circular feedstock initiatives are poised to reshape the competitive battleground, rewarding first movers who align investments with evolving regulatory landscapes.

Regionally, market growth trajectories will diverge based on feedstock availability and policy incentives, demanding customized strategies for supply, logistics, and customer engagement. Leading companies that integrate strategic partnerships, digitalization, and policy advocacy into their core operations will emerge as industry benchmarks. Ultimately, the ability to anticipate tariff fluctuations, optimize asset configurations, and champion sustainability will determine who thrives in the dynamic 1-Butene ecosystem.

For decision-makers seeking to gain a competitive edge in the dynamic 1-Butene market, direct engagement with Ketan Rohom offers an exclusive opportunity to unlock the full depth of our research. As Associate Director of Sales & Marketing, Ketan can provide personalized insights, discuss tailored licensing options, and facilitate access to proprietary data chapters covering regional breakdowns, technology assessments, and regulatory analyses.

By reaching out to Ketan, companies can secure advanced copies of market and value chain maps, detailed supply chain risk matrices, and customized benchmarking services. This engagement not only delivers the comprehensive report but also ensures ongoing support through expert consultations and strategic briefings. Contact Ketan Rohom today to transform data into actionable strategy and confidently navigate the evolving landscape of industrial 1-Butene.