Key Market Overview:
Benzene and its Derivatives Market size was valued at USD 34.52 Billion in 2022, accounting for a CAGR growth of 6.3% during the forecast period (2023-2030), and the market is projected to be valued at USD 60.03 Billion by 2030.
Benzene and its derivatives are an organic compound that is drawn from crude oil through refinery processes. Benzene and its derivatives are equipped with beneficial features such as a melting point of 5.5 °C, boiling point at 80.1 °C, not miscible in water, density of 0.87 gm/cm3, and efficient solubility in organic solvents. Benzene and its derivatives are primarily deployed as raw materials in the production of various chemicals, including petrochemical, plastic, rubber, textile, and others. Thus, the increasing deployment of benzene and its derivatives in various applications is accelerating the growth of the market.
For instance, according to the European Chemical Industry Council (CEFIC), in the year 2021, the European Union region was the second largest manufacturer of chemicals, including specialty chemicals at the global level valued at EURO 4,026 billion. Hence, the increasing production of specialty chemicals is a primary determinant driving the benzene and its derivatives market growth. Furthermore, the rising production activities related to rubber will further boost the benzene and its derivatives market size growth during the projected forecast period.
Benzene and its derivatives Report Coverage:
|Market Size in 2030 (USD Billion)
|By Derivative Type
|Ethylbenzene, Naphthalene, Cumene, Cyclohexane, Phenol, Chlorobenzene, Nitrobenzene, Alkylbenzene, and Others
|Petrochemical, Plastic, Rubber, Textile, Specialty Chemicals, and Others
- Asia-Pacific [China, Southeast Asia, India, Japan, Korea, Western Asia]
- Europe [Germany, UK, France, Italy, Russia, Spain, Netherlands, Turkey]
- North America [United States, Canada, Mexico]
- Middle East & Africa [GCC, North Africa, South Africa]
- South America [Brazil, Argentina, Columbia, Chile, Peru]
|Exxon Mobil Corporation, LyondellBasell, Akshar Chemical India Private Limited, BASF SE, Dow Inc, Royal Dutch Shell plc, Saudi Basic Industries Corporation, Total S.A., Henan GP Chemicals Co., Ltd, and Fengchen Group Co., Ltd
Benzene and its derivatives act as a vital ingredient in the manufacturing process of specialty chemicals such as food additives, specialty coatings, and many more. The specialty chemicals industry is registering growth due to the factors such as increasing demand for base materials, rising demand for synthesizers, and others. For instance, according to the European Chemical Industry Council (CEFIC), in 2020, the chemicals market in the European Union region was valued at EURO 487 billion (USD 556.2 billion), and in 2021, it was EURO 594 billion (USD 702.5 billion). Hence, the manufacturing of specialty chemicals is increasing at the global level. Thus, the adoption of benzene and its derivatives is increasing to ensure efficient density. This factor is driving the benzene and its derivatives market growth.
Short-term and long-term exposure to benzene and its derivatives can pose serious health issues. For instance, according to the International Agency for Research on Cancer (IARC), a part of the World Health Organization (WHO), benzene and its derivatives has classified under the category of \"carcinogenic to humans\". Furthermore, the evaporation of benzene and its derivatives is hazardous and may cause air pollution. As a result, people with prolonged contact with benzene and its derivatives may result in serious diseases, including chronic lymphocytic leukemia (CLL) and acute lymphocytic leukemia (ALL). Thus, adverse health consequences associated with benzene and its derivatives are restraining the growth of the global market.
Benzene and its derivates are used as a solvent during the production of rubber in order to enhance the adhesive properties of rubber. The factors such as growing demand from the transport industry, international rubber manufacturers expansion strategy, and other factors are driving the synthetic rubber industrys growth in the future years. For instance, according to the International Rubber Study Group (IRSG), the rubber demand, including synthetic rubber, will increase by 2.8% in 2023, followed by an average annual growth rate of 2.4% between 2023 to 2031. The major markets will be China, the European Union region, U.S., among others. Thus, the future anticipated growth of the rubber industry will create a lucrative growth opportunity for the benzene and its derivatives market in the upcoming years.
Benzene and its Derivatives Market Segmentation:
By Derivative Type
The derivative type segment is classified into ethylbenzene, naphthalene, cumene, cyclohexane, phenol, chlorobenzene, nitrobenzene, alkylbenzene, and others. In 2022, the ethylbenzene segment accounted for the highest market share in the benzene and its derivatives market. Ethylbenzene is primarily used as an intermediate in the manufacturing process of polystyrene, which, in turn, is utilized in the production of chemicals, rubbers, and other products. The increasing demand for ethylbenzene is prompting the leading manufacturer are acquiring new manufacturing technologies to increase the manufacturing process for ethylbenzene. For illustration, in March 2021 Nizhnekamskneftekhim, headquartered in Russia, signed an agreement with Lummus Technology LLC for the supply of technology licenses for the manufacturing of styrene, ethylbenzene, and propylene for the olefin complex. Thus, the increasing technological advancements associated with the production of ethylbenzene will boost market growth during the projected forecast period.
Moreover, the cumene segment is expected to grow at the fastest CAGR during the forecast period, owing to its increasing adoption in plastic production. Thus, the increasing production activities associated with plastic products are benefiting the cumene segment growth.
The application segment is divided into petrochemical, plastic, rubber, textile, specialty chemicals, and others. In 2022, specialty chemicals accounted for the highest market share in the benzene and its derivatives market. Benzene and its derivates are employed as a critical material in the manufacturing of various specialty chemicals, such as specialty polymers, specialty building & construction chemicals, and others. The ease of shipments, favorable government policies for cross-border trade, and others are accelerating the growth of specialty chemicals production. For illustration, according to the American Chemistry Council, in 2021, the chemical industry in the United States, including specialty chemicals registered a growth of 1.5% in comparison with the year 2020. Henceforth, the increase in the production of specialty chemicals is driving the market growth.
Furthermore, the rubber segment is anticipated to be the fastest-growing segment during the forecast period due to the increasing use of resin in the production of rubber. The growth of rubber manufacturing is benefiting the demand growth for resin, which, in turn, is augmenting the growth of the benzene and its derivatives market.
By region, the market is segmented into North America, Europe, Asia-Pacific, Middle East & Africa, and Latin America. In 2022, Asia Pacific accounted for the highest market share in the benzene and its derivatives market. The Asia Pacific region specialty chemicals industry has the presence of large conglomerates that are often highly diversified and frequently establish agreements with leading global players to expand their market share in the global specialty chemicals market. This factor is boosting the growth of specialty chemicals production in the Asia Pacific region. For instance, according to the recent statistics published by the Japan Chemical Industry Association, in 2019 the chemical market, including specialty chemicals registered a growth of 3.1% in comparison with the previous year. Therefore, the growth of specialty chemicals products in the Asia Pacific region is benefiting the market growth.
Likewise, North America is expected to be the fastest-growing region over the forecast period due to growth of the various industries such as oil & gas, specialty chemicals, and others. Thus, the growth of the above-indicated industries in the North America region is driving the demand for benzene and its derivatives. As a result, driving the growth of the benzene and its derivatives market.
Benzene and its Derivatives Market Competitive Landscape:
The Benzene and its derivatives market is highly competitive, with several large players and numerous small and medium-sized enterprises. These companies have strong research and development capabilities and a strong presence in the market through their extensive product portfolios and distribution networks. The market is characterized by intense competition, with companies focusing on expanding their product offerings and increasing their market share through mergers, acquisitions, and partnerships. The key players in the market include-
• Exxon Mobil Corporation
• Akshar Chemical India Private Limited
• BASF SE
• Dow Inc
• Royal Dutch Shell plc
• Saudi Basic Industries Corporation
• Total S.A.
• Henan GP Chemicals Co., Ltd
• Fengchen Group Co., Ltd
• In February 2021, Hengyi Petrochemical Co announced the development of construction of the second phase of Brunei, its refinery, and integrated petrochemical project. The project will make the company produce 500,000 tons of Benzene per year.