Benzene and Methylbenzenes Market Overview
Benzene and Methylbenzenes Market size is forecast to reach $30.34 billion by 2025 after growing at a CAGR of 5% during 2020-2025. Increased demand for Styrene polymers combined with high consumption of methylene diphenyl diisocyanate and phenol is expected to fuel the market over the forecast period. There is a rise in demand for methylbenzene due to its broader use in gasoline blends. Toluene serves as an octane booster and retains the fuel energy level.
Asia-pacific dominates the Benzene and Methylbenzenes market owing to the rise in consumption due to end-users like electronics and home appliances, packaging and construction in China, India, and ASEAN countries.
The growth of these end-user industries, especially in emerging markets, like China, India is propelling the growth of styrene, which in turn is responsible for growth in usage of Benzene.
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By Type– Segment Analysis
Ethyl Benzene segment held the largest share in the Benzene and Methylbenzenes market in 2019. Ethylbenzene is mainly used in the manufacture of styrene. It is also used as a solvent as a part of asphalt and naphtha, and in petrol. Laboratory studies have shown that ethylbenzene can be ototoxic with subacute exposure at relatively low levels of exposure, both in comparison to other aromatic hydrocarbons and to acceptable levels of exposure in the workplace. However, the global Ethylbenzene market is undergoing a transformation phase. Demand growth will continue in China and will be driven by new EB / SM capacity in the Middle East and North East Asia. Moreover, the Middle East will reach much of China’s development at the expense of North America.
By Application– Segment Analysis
Chemical Intermediates segment held the largest share in the Benzene and Methylbenzenes market in 2019. Chemical intermediate finds substantial use in the pharmaceutical industry, increasing the use of chemical intermediates in the manufacture of drugs increases consumer demand. The growth of the pharmaceutical industry is driven by medical innovation due to the growing prevalence of illness, medication availability, market awareness and supportive government policies. With advances in science and technology, innovation in the pharmaceutical industry is entering a new age in the production of medicines, resulting in reduced mortality. Chemical intermediates such as sodium ethoxide is used as a strong alkaline catalyst, reducing agent, and a coagulant for synthesizing various intermediate chemicals in drug manufacturing. The advances in medical science are expected to drive the pharmaceutical industry positively impacting the global chemical intermediate market.
By End Use – Segment Analysis
Automotive segment held the largest share in the Benzene and Methylbenzenes market in 2019 growing at a CAGR of 7%. As the economies are developing, people are spending more on automobiles. With the growth in vehicle production, demand for tires in the OEM market is expected to rise. There is a rise in demand for methylbenzene due to its broader use in gasoline blends. Methylbenzene serves as an octane booster and retains the fuel energy level. In addition, low sensitivity characteristics and high toluene octane levels make it suitable as a fuel in heavy-duty engines. In addition, toluene (in the form of benzene-toluene-xylene mixtures) is used in the blending of petrol and is developed as a by-product of the manufacture of styrene. It is expected to increase Benzene and Methylbenzenes demand during the forecast period. The most critical divisions of the automotive industry include commercial vehicles and passenger cars. China ranks among the world’s largest automobile markets, in terms of both sales and production. Car sales in China first plunged in 2018; the market has not since recovered.
Geography – Segment Analysis
Asia-Pacific (APAC) dominated the Benzene and Methylbenzenes market consisting share of 40% followed by North America and Europe. The growth in the region is supported by the automotive sector. The APAC has the greatest growth potential, with rising passenger mobility as well as a growing middle class and increased access to medical care, thus underscoring the urbanization trend, says the firm. Apart from Automotive, Increased demand for aromatics in the petrochemical industry for the production of synthetic fibers, elastomers, agrochemicals, dyes, nail paints are emerging factors that increase market growth. However, the change in the trend of the oil and gas industry towards lighter feed stocks, increased demand for methylbenzene substitutes and the discovery of shale gas as an alternative to natural gas are expected to impede the growth of the methylbenzene market. Furthermore, China is the leading producer and consumer of benzene in the region. This is due to improved living conditions, increased use of plastics in automotive applications, and increased use of polyurethane foams in the bedding and furniture industries. Other countries contributing to regional market growth include India, Japan, Taiwan, South Korea, and other South East Asian countries such as Thailand, Indonesia, and Malaysia. Amid COVID-19, the outlook for 2020 global automotive sales becomes more difficult. Currently the Benzene and Methylbenzenes industry has been affected due to COVID-19 pandemic where most of the industrial activity has been temporarily shut down. In in turn has affected the demand and supply chain as well which has been restricting the growth in year 2020.
Drivers –Benzene and Methylbenzenes market
Outstanding Properties of Benzene and Methylbenzenes and growth across end use industry will drive the market
The major amount of produced benzene is essentially used in the production of various chemicals and end use industries. In addition, the increasingly rising demand for Styrene or polystyrene, which are benzene derivatives, is used in various end-use industries which are likely to fuel the growth of the benzene industry.
The production of synthetic rubber and polystyrene are the primary uses of Styrene. The growing use of polystyrene in food processing, construction and manufacturing for isolation and industrial purposes is expected to contribute to the growth of the benzene market over the forecast period.
Challenges – Benzene and Methylbenzenes market
Fluctuation in the price of raw material and its production can restrict the market growth
Benzene development is affected by several different factors, which vary from region to region. Since benzene is manufactured primarily as a co-product, its production is not driven by global demand for benzene, but rather by demand for petrochemicals. Production volumes from refineries through the refinery remained relatively poor in the midst of reduced run-time at refining facilities, although there was some turnaround in refining rates. A significant turnaround in a refinery with a large aromatic recovery unit would have an effect on production.
Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Benzene and Methylbenzenes market. In 2019 the Benzene and Methylbenzenes market has been consolidated by the top five players accounting for xx% of the share. Major players in the Benzene and Methylbenzenes market are Exxonmobil Corporation, Covestro AG, BP plc, LG Chem, BASF SE, and Others.