This study intends to analyse diverse aspects of the global nitrobenzene market. The insights offered in this report are expected to aid in market growth examination over the forecast timeline.
Market Analysis in Brief
In 2022, the nitrobenzene market reflected modest growth and per industry figures, it stood at around US$11 Bn in terms of value. According to preliminary study carried out by Fairfield Market Research, the market will continue to experience moderate growth in the years to come. Although the worldwide nitrobenzene industry faced the heat of COVID-19 pandemic due to depleted demand for nitrobenzene derivative-based products, the market managed to survive and rebound with a visible growth in demand for paracetamol which is an aniline derivative. Aniline as is derived from nitrobenzene will continue to be significantly responsible for the growth of the nitrobenzene industry. Research however also points to a potential challenge facing the market in form of the bio-based chemicals that have been gaining ground recently.
Key Report Findings
Rising Demand and Production of Aniline
Rising demand for aniline continues to drive the growth of the nitrobenzene market. Industrially produced nitrobenzene is mostly hydrogenated to produce aniline. Aniline is a major precursor to rubber chemicals, urethane polymers, dyes, pesticides, pharmaceuticals, and explosives. Methylene Diphenyl Diisocyanate (MDI) which is derived from aniline is used to produce polymers for several end use industries including the automotive sector. That said, growing demand for MDI has propelled the use of aniline, which consequently has fuelled the market value of nitrobenzene.
Furthermore, significant expansion of the automotive industry has influenced the nitrobenzene market growth. According to the Organization Internaitonale des Constructeurs d’Automobiles (OICA), in 2022, total volume of new car registration and sales in its member nations was around 69 million units, only a percent less than the volume registered in 2021. The future of the automotive industry continues to remain optimistic, particularly in developing countries of the Asia Pacific. This has resulted in an increase in the sales of MDI based polymers and elastomers such as polyurethane. These derivatives of MDI are widely used in automotive parts such as airbag covers, bumpers, steering components, and waterproof floor materials. In this backdrop, increasing demand and use of aniline is expected to complement the revenue growth of the market.
Popularity of Fertilizers with Nitrobenzene that Boost Crop Yield
The production of fertilizers is another factor contributing towards the nitrobenzene market growth. Nitrobenzene is used in sustainable agriculture as an effective plant energizer. It supports the plant to improve its CN ratio. It also increases size of plants speeds up flowering. Other advantages of nitrobenzene in the agriculture sector includes enhancement of plant canopy, increase in yield, and can be applied to all major crops via foliar application. It is also compatible with fungicides and pesticides. Thus, fertilizers are expected to generate ample revenue opportunities for the market in the forthcoming years.
Booming Construction Sector
Similar to the automotive sector, the use of aniline derived from nitrobenzene is widely used in the construction sector. Polyurethane foams derived from Methylene Diphenyl Diisocyanate (MDI) find major applications in the construction sector. They are widely used in the insulation applications both in their rigid and flexible form. Moreover, MDI based derivatives such as polyurethanes, sealants, adhesives, and elastomers act as superior binding agent for furnishings. This has resulted in an increase in the processing of nitrobenzene to produce MDI and associated derivatives. Moreover, the scenario of the construction industry has been reshaping post the COVID-19 pandemic.
Reflecting a positive outlook, the construction activities have picked up speed, mostly owing to increase in the urban population. For instance, according to United Nations, overall share of urban population on the global front is expected to increase by 60% by end of 2030. In addition, between 20007 and 2030, the urban share in more developed countries is projected to increase from 75% to 81% while in less developed countries it is expected to increase from 44% to 56%. This factor is expected to create ample opportunities for the construction industry. In this backdrop, strong growth in the construction sector is likely to bode well for the growth of the nitrobenzene market.
Over the medium term, the increasing demand for nitrobenzene to produce aniline, the easy availability of raw materials, and the growing construction activities in the Asia Pacific region are expected to drive the market growth. Various investments in the construction industry across the globe are likely to act as opportunities for the market studied. Asia Pacific currently dominates the global nitrobenzene market, with the maximum consumption in countries such as China, and India.
Growth Opportunities Across Regions
Asia Pacific Accounts for a Significant Value Share
The demand of nitrobenzene in emerging economies of Asia Pacific is expected to increase at a significant pace in the forthcoming years. The region is likely to account for a major value share in the nitrobenzene market in terms of production, and utility. This can be attributed towards considerable expansion of the end use industries, particularly, pharmaceuticals, automotive, construction and tire. In addition, the region has remained a lucrative hub which is being tapped by major manufacturing organizations. The lucrativeness is mainly owing to high customer pool backed by increasing population, availability of cheap land and labor, favorable business and regulatory environment and stable economic growth. This has pushed the nitrobenzene providers to tap the high growth potential in Asian countries owing to high demand for MDI derived products that are used in automotive, pharmaceuticals, and construction industries.
The construction sector is expected to play a vital role in the expansion of the nitrobenzene market in Asia Pacific. For instance, according to National Bureau Statistics of China, the output of the construction industry in the country grew by approximately 50% in the last quarter of 2022. Likewise, according to the Ministry of Land, Infrastructure, Transport and Tourism (MLIT), the investments in the construction sector in Japan increased significantly to cross 66,990 billion yen in 2022. That said, in wake of the rise of the construction sector across economies such as China, Japan and India, the demand for MDI derivatives is expected to increase, in turn favoring the growth of the nitrobenzene market in Asia Pacific.
Nitrobenzene Market: Competitive Landscape
Some of the key players in the nitrobenzene market are carrying out research and development activities to innovate production processes along with other strategies such as mergers, collaborations, joint ventures, and acquisitions. Few of the major players in the market include The Dow Chemical Company, Covestro AG, Huntsman International LLC, The Chemours Company, Connell, China Qingdao Hongjin Chemical Co. Ltd., Aromsyn Co. Ltd., BASF SE, Wanhua Chemical Group Co. Ltd., Finetech Industry Limited, Sumitomo Chemical Co. Ltd., and Anhui Bayi Chemical Industry Co. Ltd.
Regional Classification of the Global Nitrobenzene Market is Described Below:
Middle East and Africa
*Regions and countries are subject to change based on data availability
Key Elements Included In The Study: Global Nitrobenzene Market
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