Middle East and Africa Hydroxyl-Terminated Polybutadiene (HTPB) Market Size, Share and Trends Analysis Report – Industry Overview and Forecast to 2032

What is the Middle East and Africa Hydroxyl-Terminated Polybutadiene (HTPB) Market Size and Growth Rate?

• The Middle East and Africa hydroxyl-terminated polybutadiene (HTPB) market size was valued at USD 23.41 million in 2024 and is expected to reach USD 37.32 million by 2032, at a CAGR of 6.00% during the forecast period
• The growing demand for innovative aerospace components significantly impacts the expansion of the market for hydroxyl-terminated polybutadiene (HTPB). In line with this, the gaining popularity of hydroxyl-terminated polybutadiene (HTPB) in the automotive industry, and increasing demand for consumer electronic goods, are key determinants favoring the growth of the hydroxyl-terminated polybutadiene (HTPB) market during the forecast period

What are the Major Takeaways of Hydroxyl-Terminated Polybutadiene (HTPB) Market?

• Aerospace components are usually made from advanced materials, including hydroxyl-terminated polybutadiene, titanium alloys, nickel-based super alloys, and other ceramics. Aircraft manufacturers have benefited greatly due to advancements in material science. Therefore, the efficiency of the hydroxyl-terminated polybutadiene in aerospace technology improves airplane wings and makes aircraft more lightweight and fuel-efficient
• Saudi Arabia dominated the Middle East and Africa hydroxyl-terminated polybutadiene (HTPB) market with the largest revenue share of 38.8% in 2024, driven by strong demand from defense, aerospace, and industrial applications
• The U.A.E. hydroxyl-terminated polybutadiene market is witnessing the fastest growth rate of 9.2%, fueled by expansion in aerospace projects, missile development programs, and industrial manufacturing. The region’s emphasis on high-tech defense solutions and advanced materials sourcing is driving HTPB adoption
• The Conventional Hydroxyl-Terminated Polybutadienes segment dominated the market with a 62% revenue share in 2024, owing to its extensive use in solid rocket propellants, adhesives, and sealants due to its excellent binding properties, oxidative stability, and mechanical strength

Report Scope and Hydroxyl-Terminated Polybutadiene (HTPB) Market Segmentation 

What is the Key Trend in the Hydroxyl-Terminated Polybutadiene (HTPB) Market?

“Shift Toward Sustainable Production and Defense Modernization”

• A key emerging trend in the global hydroxyl-terminated polybutadiene (HTPB) market is the growing focus on sustainability and modernization across defense and aerospace sectors. Manufacturers are increasingly adopting eco-friendly production methods and green propellant formulations to minimize environmental impact
• For instance, Evonik Industries AG and Idemitsu Kosan Co., Ltd. have invested in sustainable hydroxyl-terminated polybutadiene synthesis routes that reduce carbon footprint and enhance fuel efficiency
• Advancements in polymer engineering, low-toxicity binders, and digitalized quality control are enabling better process consistency and performance in solid rocket propellants
• Defense modernization programs in countries such as the U.S., India, and China are driving innovation in composite propellants, demanding high-performance hydroxyl-terminated polybutadiene with improved thermal stability and mechanical strength
• This trend signifies a strong alignment between technological innovation and environmental responsibility, shaping the next generation of advanced propellants and elastomers

What are the Key Drivers of Hydroxyl-Terminated Polybutadiene (HTPB) Market?

• The rising demand for solid rocket propellants in space exploration, defense, and missile systems is a primary driver of the hydroxyl-terminated polybutadiene market. Its superior bonding, mechanical strength, and fuel efficiency make it a preferred binder material
• For instance, in 2024, Cray Valley (A Subsidiary of TotalEnergies) expanded its hydroxyl-terminated polybutadiene portfolio to cater to global aerospace and defense customers
• Growing investments in space launch programs by NASA, ISRO, and private companies such as SpaceX are boosting hydroxyl-terminated polybutadiene consumption for hybrid rocket systems
• HTPB’s increasing use in coatings, adhesives, and sealants is expanding its footprint in the industrial and construction sectors
• The material’s flexibility, resistance to aging, and adaptability for composite propellants are driving its adoption across multiple high-performance applications

Which Factor is Challenging the Growth of the Hydroxyl-Terminated Polybutadiene (HTPB) Market?

• High production and processing costs of hydroxyl-terminated polybutadiene remain a significant challenge, particularly for small-scale manufacturers operating in cost-sensitive regions
• Dependence on petroleum-based feedstocks limits large-scale sustainability, creating pressure to develop bio-based or renewable alternatives
• Price fluctuations in raw materials such as butadiene and polyols affect profitability and supply stability for market participants
• Stringent environmental and safety regulations governing propellant formulation and chemical handling further increase operational costs and complexity
• To address these challenges, key players such as NIPPON SODA CO., LTD. and Polymer Source Inc. are focusing on research and innovation in bio-based HTPB and energy-efficient production technologies to ensure long-term competitiveness and compliance

How is the Hydroxyl-Terminated Polybutadiene (HTPB) Market Segmented?

The market is segmented on the basis of product, application, and end use.

• By Product

On the basis of product, the hydroxyl-terminated polybutadiene (HTPB) market is segmented into Conventional Hydroxyl-Terminated Polybutadienes and Low Molecular Weight Hydroxyl-Terminated Polybutadienes. The Conventional Hydroxyl-Terminated Polybutadienes segment dominated the market with a 62% revenue share in 2024, owing to its extensive use in solid rocket propellants, adhesives, and sealants due to its excellent binding properties, oxidative stability, and mechanical strength. Its compatibility with various curing agents and ability to form resilient elastomers make it a preferred choice in defense and aerospace applications.

The Low Molecular Weight Hydroxyl-Terminated Polybutadienes segment is projected to witness the fastest CAGR of 8.4% during 2025–2032, driven by its rising use in coatings, surface treatments, and specialty polymer formulations. These variants offer better flowability and processing efficiency, which appeal to industries focusing on lightweight materials and high-performance elastomeric products, enhancing versatility and formulation flexibility across end-use sectors.

• By Application

On the basis of application, the market is segmented into Rocket Fuel, Rubber Material, Paint, Polyurethane, and Others. The Rocket Fuel segment held the largest share of 57% in 2024, attributed to the high demand for hydroxyl-terminated polybutadiene as a binder in solid propellants used in missiles, space launch vehicles, and defense systems. Its superior mechanical strength, low glass transition temperature, and consistent combustion behavior make it ideal for high-performance propulsion systems.

The Polyurethane segment is expected to record the fastest CAGR of 7.9% during 2025–2032, owing to its expanding use in flexible foams, coatings, adhesives, and elastomers. HTPB-based polyurethanes offer excellent toughness, hydrolytic stability, and weather resistance, making them suitable for industrial and construction applications. The growing trend toward advanced polymer materials and hybrid composites continues to strengthen the segment’s position in the global market.

• By End Use

On the basis of end use, the hydroxyl-terminated polybutadiene (HTPB) market is segmented into Building & Construction, Aerospace & Defense, Automotive, Electrical & Electronics, Packaging, and Others. The Aerospace & Defense segment dominated the market with a 49% revenue share in 2024, owing to extensive utilization of hydroxyl-terminated polybutadiene in missile systems, space exploration vehicles, and military-grade coatings. Its superior bonding properties and consistent performance under extreme conditions make it indispensable in solid propellant formulations and insulation systems.

The Automotive segment is anticipated to witness the fastest CAGR of 8.1% during 2025–2032, driven by rising demand for hydroxyl-terminated polybutadiene -based adhesives, sealants, and coatings in lightweight vehicle manufacturing. The increasing use of advanced elastomers to improve vehicle durability, fuel efficiency, and vibration resistance further boosts product adoption. This shift toward performance-driven and sustainable materials positions HTPB as a critical component in next-generation automotive and defense technologies.

Which Region Holds the Largest Share of the Hydroxyl-Terminated Polybutadiene (HTPB) Market?

• Saudi Arabia dominated the Middle East and Africa hydroxyl-terminated polybutadiene (HTPB) market with the largest revenue share of 38.8% in 2024, driven by strong demand from defense, aerospace, and industrial applications. The country’s focus on modern defense infrastructure, space programs, and high-performance industrial materials supports HTPB adoption
• Local manufacturers are investing in advanced polymer synthesis and high-quality binder production, while initiatives such as Saudi Vision 2030 promote technology-led industrial growth.
• Saudi Arabia’s robust government support, high defense expenditure, and preference for eco-friendly and high-performance polymers position it as a leading market within the Middle East and Africa hydroxyl-terminated polybutadiene industry

U.A.E. Hydroxyl-Terminated Polybutadiene (HTPB) Market Insight

The U.A.E. hydroxyl-terminated polybutadiene market is witnessing the fastest growth rate of 9.2%, fueled by expansion in aerospace projects, missile development programs, and industrial manufacturing. The region’s emphasis on high-tech defense solutions and advanced materials sourcing is driving hydroxyl-terminated polybutadiene adoption. Dubai’s status as a global trade and logistics hub facilitates the import and export of high-grade polymers. With strong focus on sustainable production, digitalized manufacturing, and advanced polymer formulations, the U.A.E. continues to attract international suppliers and innovators in the hydroxyl-terminated polybutadiene market.

South Africa Hydroxyl-Terminated Polybutadiene (HTPB) Market Insight

The South Africa hydroxyl-terminated polybutadiene market is expanding at a steady CAGR, supported by industrial polymer applications, small-scale aerospace projects, and chemical manufacturing. Manufacturers are increasingly integrating recycled feedstocks and advanced polymer blends to align with sustainability initiatives. Rising local demand for low-VOC, high-performance elastomers and the growth of e-commerce and industrial distribution networks are contributing to steady market expansion. South Africa’s position as a regional distribution and manufacturing hub strengthens its role within the Middle East and Africa hydroxyl-terminated polybutadiene landscape.

Egypt Hydroxyl-Terminated Polybutadiene (HTPB) Market Insight

The Egypt hydroxyl-terminated polybutadiene market is projected to grow consistently, driven by defense modernization programs, export-oriented chemical production, and industrial polymer applications. Local manufacturers are leveraging skilled labor, cost-effective production techniques, and government-backed industrial clusters to expand output. Increased interest in eco-friendly and high-performance polymer binders is further propelling market growth. Egypt remains a key contributor to the Middle East and Africa HTPB market, blending heritage manufacturing expertise with modern polymer innovation.

Which are the Top Companies in Hydroxyl-Terminated Polybutadiene (HTPB) Market?

The hydroxyl-terminated polybutadiene (HTPB) industry is primarily led by well-established companies, including:

• Evonik Industries AG (Germany)
• Idemitsu Kosan Co., Ltd. (Japan)
• Cray Valley (A Subsidiary of TotalEnergies) (France)
• Polymer Source Inc. (Canada)
• NIPPON SODA CO., LTD. (Japan)
• Island Pyrochemical Industries (IPI) (Singapore)

What are the Recent Developments in Middle East and Africa Hydroxyl-Terminated Polybutadiene (HTPB) Market?

• In November 2014, Evonik Industries AG opened a new plant for hydroxyl-terminated polybutadiene (HTPB) in Marl. Evonik marketed HTPB under the brand name POLYVEST HT, and along with it, the company had extended its polybutadienes product portfolio by a further functionalized grade. This development helped the company to create goodwill for the company

SKU-66557