The Global Nitrobenzene Market is Anticipated to Witness High Growth Owing to Increasing Use in Construction Materials
Nitrobenzene Market |
Nitrobenzene is an aromatic organic compound that
consists of benzene substituted with a nitro functional group. It finds
applications as an intermediate in chemical production, including the
production of aniline, pharmaceuticals, pesticides, and other industrial
chemicals. The increasing use of nitrobenzene as a synthesis intermediate for
various chemical compounds such as lubricating oil additives, rubber processing
chemicals, crop protection chemicals, and dyes & pigments has been
propelling the global nitrobenzene market.
The Global nitrobenzene market is
estimated to be valued at US$ 17.68 Bn in 2024 and is expected to exhibit a CAGR
of 5.5% over the forecast period 2024 to 2031.
Increasing construction activities worldwide along
with the rising need for insulation systems have augmented the demand for
nitrobenzene as a synthesis intermediate for polyurethane foam manufacturing. Additionally,
the expanding electronics and automotive industries have been boosting the
consumption of nitrobenzene for the synthesis of lubricants, coolants, brake
fluids, and plasticizers.
Key Takeaways
Key players operating in the nitrobenzene market are Wanhua Chemical Group Co.,
Ltd, Covestro AG, BASF SE, Huntsman Corporation, Vizag chemical, Akshar
International, Aarati Industries, Par Industries, Meru Chem Pvt. Ltd., Shiv
Chemicals, CDH Fine Chemical, Kamal Plastic, Greenwell Biotech, and Panoli Intermediates
(India) Pvt. Ltd. These players are adopting strategies such as capacity
expansions, acquisitions, new product launches, and partnerships to strengthen
their global presence.
There exists significant growth opportunities for Nitrobenzene
Market Demand manufacturers from the thriving electronics,
construction, transportation, and agriculture industries. Moreover, the
increasing R&D activities towards developing bio-based and green
nitrobenzene production techniques will further drive the market growth over
the forecast period.
Geographically, Asia Pacific dominates the global nitrobenzene market, with
China being the world's largest producer and consumer. However, North America
and Europe are also expected to grow substantially due to the increasing
consumption of nitrobenzene in construction and automotive lubricant
applications.
Market Drivers
One of the key drivers propelling the nitrobenzene market growth is the
increasing use of nitrobenzene as a precursor for isocyanates used in
polyurethane foams. Nitrobenzene serves as an essential synthesis intermediate
in the production of MDI and TDI, which are extensively used to manufacture
polyurethane foams for insulation in construction, automotive, and furniture
industries.
Additionally, the rising demand for lubricating chemicals from the automotive
industry has been positively impacting the nitrobenzene market. Nitrobenzene
and its derivatives such as nitrophenol and dinitrobenzene find wide
applications in the production of lubricating oil additives, coolants, brake
fluids, and plasticizers used in the automotive sector.
Market Restraints
Stringent environmental regulations regarding nitrobenzene emissions during its
production and processing could hamper the market growth. Nitrobenzene is
considered toxic if inhaled or absorbed through the skin and has been
designated as a hazardous air pollutant by environmental agencies. This compels
producers to invest in advanced pollution control equipment, increasing the
overall production costs. Additionally, availability of alternatives such as
phenol for certain applications also challenges the nitrobenzene market to some
extent.
Segment Analysis
The Nitrobenzene
Market Size and Trends is dominated by the aniline production sub
segment. Around 75% of total nitrobenzene demand comes from aniline production.
Nitrobenzene is primarily used to produce aniline, which is further converted
to products like MDI, analine and other derivatives. Since nitrobenzene is the
most commonly used intermediate in aniline production, the increasing demand
for aniline from end use industries has prompted the growth of this sub segment
in the nitrobenzene market.
Global Analysis
The Asia Pacific region dominates the global nitrobenzene market with the
largest market share of over 50%. China contributes significantly to the Asia
Pacific market owing to its large production capacities and consumption. The
increasing investment towards agrochemicals and construction industries in
countries like India and China has augmented nitrobenzene demand in the region.
North America and Europe also account for sizable shares due to their prominent
end use sectors. However, the market in these regions is nearing saturation and
growth is expected to be modest during the forecast period. The Asia Pacific
region is projected to be the fastest growing market for nitrobenzene on
account of surging demand from end use industries and expansion activities by
major players in emerging nations.
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About Author:
Ravina Pandya, Content Writer, has a strong foothold
in the market research industry. She specializes in writing well-researched
articles from different industries, including food and beverages, information
and technology, healthcare, chemical and materials, etc. (https://www.linkedin.com/in/ravina-pandya-1a3984191)
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