Preliminary research of Fairfield Market Research indicates a promising growth outlook for global benzene market during the course of next few years.
Benzene Market – Growing Need for Styrene Creates Tailwinds
The rising need for styrene across various end-use industries, including packaging, automotive, and electronics is one of the main factors driving benzene demand that fuels the expansion of global benzene market. As styrene is needed to make tires and numerous body parts for diesel and gasoline-powered vehicles and electric vehicles, new electric vehicle models have also increased demand for benzene. Niti Aayog claims that India is one of the nations with the fastest-growing automotive industries, with a compound annual growth rate of 4% from 2011 to 2020. The demand for benzene has surged due to the rise in automotive sales in several nations.
Ethylbenzene, a benzene derivative used to make styrene, is utilized in various industries. Most of the material is used to make polystyrene, employed in the packaging sector because of its flexibility, resilience, moisture resistance, and light weight. The derivative styrene is extensively used in styrene butadiene rubber (SBR) production. Over the past ten years, e-commerce has grown quickly in emerging economies like China, and India. This expansion of benzene market will likely continue because of the growing purchasing power and greater accessibility offered by e-commerce companies like Alibaba, Flipkart, and Amazon. The demand for benzene is anticipated to rise along with the worldwide demand for crude oil due to increased car production. Crude oil contains the chemical element benzene, which is a key ingredient in gasoline. Petroleum by-products can be made from crude oil, including tar, asphalt, paraffin wax, and lubricating oils. According to figures, the United States produced 4.1 billion barrels of crude oil in 2021. The U.S. Environmental Protection Agency limits the volumetric content of benzene in gasoline to 0.62% and a maximum of 1.3%.
Benzene Market: COVID-19 Impact
The COVID-19 outbreak and the economic slowdown were harmful to the petrochemical sector. The supply chain disruption brought on by the decline in Chinese manufacturing affected industries that depend on Chinese imports. During the early phases of the pandemic, lockdowns, mobility restrictions, and economic uncertainties seriously disrupted the supply chain and delayed major industrial projects. The pandemic's restrictions and trade disputes between the United States, and China significantly weakened the market, resulting in demand shifts, production interruptions, and logistical delays for manufacturing enterprises. Crude oil prices crashed early in the epidemic, which was bad for oil-producing nations like North America, and the Middle East.
Benzene Market – Rising Demand for Styrene Polymers Favors Growth
When styrene has been polymerized or co-polymerized, it is employed in many industries, including construction, automotive, packaging, and electronics. Most of the world's styrene production involves making polystyrene, a polymerized form of styrene available in solid, foam, and film forms. Polystyrene is widely used in packaging due to its outstanding durability, light weight, flexibility, and moisture resistance. Over the past ten years, e-commerce has grown quickly in emerging economies like China, and India. More consumers will likely be encouraged to shop online due to rising smartphone and internet usage and innovative marketing strategies.
Benzene Market – Shooting Sales of Household Cleaning Products Will Accelerate Expansion
Linear alkyl benzene is primarily utilized as a raw component to produce linear alkyl benzene sulfonate (LAS), a surfactant used in detergents. Liquid and powder detergents both frequently employ this component. With the increased demand for industrial and residential cleaners, the market will expand throughout the anticipated time frame. The linear alkyl benzene segment of the benzene market will maintain sustainable growth over the projected timeline due to the LAS's full biodegradability and absence of environmental impact, making it one of the principal application products of the market. This will contribute to an increase in the demand for benzene for residential uses.
Benzene Market – Potential Health Hazards May Induce a Slowdown in Growth
Increased benzene exposure-related health and environmental issues will probably limit the benzene market growth. International Agency for Research on Cancer has categorized benzene as human carcinogenic. Long-term exposure can result in major health issues such as anemia, decreased immunity, and cancer, while short-term exposure can induce narcosis, eye irritation, and skin irritation. The demand for environmentally friendly substitutes for these styrene polymers has continuously increased due to improved consumer awareness. More stringent environmental and health restrictions may restrict the use of derivatives, limiting market expansion as a whole.
Benzene Market – Ethylbenzene to Dominate
The rise in styrene demand across several industries is one of the main drivers of ethylbenzene's growth in global benzene market space. The demand for plastic polymers and synthetic rubbers is rising due to their various benefits, including high durability, lightweight injection molding capability, and increased applications of polystyrene in the packaging industry due to its high thermal resistance and insulation properties. These factors all contribute to the sector’s rapid expansion. Increased demand for paint and coating in the construction and automotive industries to enhance aesthetics and guard against environmental degradation, as well as increased use of the product in the production of ABS, SAN, SBR, polystyrene, styrene polyester, resins, and acrylonitrile butadiene, all have an impact on the segment.
Benzene Market – Catalytic Reforming Category Leads as Demand for Low Octane Naphtha Climbs up
With a major revenue share the catalytic reforming category dominated the benzene market. This is attributable to an increase in the use of low-octane straight-run naphtha that contains naphthenes for the manufacturing of high-octane aromatic benzene and low-sulfur fuel used in gasoline. Additionally, catalytic reforming produces hydrogen, which hydroprocessing units employ to create clean fuels. Another production method, steam cracking, comes in second on the market after catalytic reforming. This process is used because the feedstock includes specific hydrocarbons like propane and butane as well as naphtha or gas oil fraction. It creates a greater variety of products and avoids the expensive distillation procedure that is required. It is ineffective for mass production, though.
Benzene Market – North America Reigns Supreme Banking on Online Grocery Shopping
With an expanding market for end-users such as electronics and household appliances, packaging, and construction in China, India, and ASEAN nations, the region is also anticipated to have the fastest-growing market throughout the projection period. South Korea exported benzene for USD 2,254,944.80 thousand in 2021, whereas India exported it for US$ 1,674,461.73 thousand. Many building items, including adhesives, paints, floors, and fiberglass, are made from benzene. The National Bureau of Statistics estimated the production of buildings in China to reach around CNY 29.31 trillion (US$4.54 Tn) in 2021, which is projected to increase benzene demand in the area. These factors suggest that the Asia Pacific’s benzene market will soar high given the proliferating benzene requirement in near future.
Due to the developing petrochemical industry, North America’s benzene market is predicted to experience a considerable growth rate. The upstream petroleum industry in the area has grown dramatically over the past ten years due to technological advancements, particularly the hydraulic fracturing method for extracting shale oil. According to research, the United States currently generates 90% of its domestic natural gas and 75% of its domestic crude oil. Investors are focusing on value addition and developing new petrochemical complexes because the region's oil and gas production has outpaced domestic fuel demand.
Global Benzene Market: Competitive Landscape
In July 2022, INEOS agreed to buy a 50% share in Shanghai SECCO Petrochemical Company Limited, a China Petroleum & Chemical Corporation subsidiary (SINOPEC). SECCO now has a 4.2 MMT petrochemical production capacity, which includes ethylene, propylene, polyethylene, polypropylene, styrene, polystyrene, acrylonitrile, butadiene, benzene, and toluene. It is a 200-hectare complex in the Shanghai Chemical Industry Park. This will assist the corporation in strengthening its position in China. Moreover, in January 2021, Sinopec and Lyondell Basell reached an agreement in China to form a joint venture to produce propylene oxide and styrene monomer. Both companies agreed to form a 50-50 joint venture to meet the increased demand for propylene oxide and styrene monomer in China's domestic market. A new plant capable of producing 600 kilotons of styrene monomer annually will be built in Zhenhai, Ningbo, China, using cutting-edge technology from Lyondell Basell.
A few of the players in the global benzene market include Dow, INEOS Group, LyondellBasell Industries Holdings B.V., BASF SE, Royal Dutch Shell Plc, Reliance Industries Limited, Chevron Phillips Chemical Company LLC, China Petrochemical Corporation, Marathon Petroleum Corporation, and LG Chem.
Regional Classification of Global Benzene Market Can be Given as Below:
Middle East and Africa
*Regions and countries are subject to change based on data availability.
Key Elements Included In The Study: Global Benzene Market
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