Nitrobenzene Industry Driven By The Growing Automotive Sector

---

07 Sep 2024

Table of Content

The nitrobenzene industry size will increase to USD 18.42 billion by 2032 from valued at USD 11.23 billion in 2022, it is growing at a CAGR of 5.07% from 2023 to 2032.

The nitrobenzene industry growth is driven by the increasing construction industry, the growing pharmaceutical sector, and the growing demand from the paint and coating industry.

Nitrobenzene is a compound that occurs spontaneously. It is frequently produced as an aniline precursor. Despite being an uncommon flavoring or perfume component, nitrobenzene is highly toxic when used in large quantities. In the laboratory, it is infrequently used as a solvent, especially for electrophilic compounds. In leather coverings, paint solutions, shoe and floor polishes, and other materials, it is also employed to mask unpleasant odors. A significant industry for nitrobenzene is the production of the painkiller acetaminophen. It is also employed in Kerr cells due to its enormous Kerr constant.

Regional Snapshot:

The Asia Pacific is expected to capture the largest industry share during the forecast period. The regional growth is attributed to the growing construction industry, especially in the countries like India and China. Moreover, the growing infrastrustructural projects such as roads, smart cities and others are creating an attractive opportunity for industry expansion. For instance, according to the United Nations Department of Economic and Social Affairs, two out of every three individuals are expected to live in cities or other urban areas by the year 2050.

Between 2018 and 2050, the expected increase in the world's urban population will be accounted for by 35% by India, China, and Nigeria combined. According to estimates, India, China, and Nigeria will each have gained 416 million, 255 million, and 189 million urban residents. Thus, the growing number of projects in the nations positively impacted the industry expansion over the forecast period.

Europe is expected to grow at a significant rate during the forecast period. The growth in the region is attributed to the increasing presence of major players. The product's primary European customers were Belgium and Germany. The two biggest makers of aniline with factories in these two nations are BASF and Bayer. Recent research indicates the robustness of the European construction industry, with total expenditure rising by 5.2% in 2021. The European construction Industry Federation (FIEC) forecasts a 2.4% rise this year, with civil engineering and new house expanding. The fastest-growing building industry places in the EU will be found in Slovenia (+10.4%), Spain (+5.4%), Ireland (+7.3%), and the Netherlands (+5.0%) in 2022, according to the organization's 65th Statistical Report.

The North American industry is growing at a rapid pace over the forecast period. The regional growth is supported by the United States due to the presence of a robust pharmaceutical industry and the presence of major players. For instance, according to the secondary analysis, the US is responsible for 22% of the global pharmaceutical industry's production and about 45% of its total revenue. Due to the continuing global immunization campaign and the increased demand for both essential and voluntary medical treatments in 2022, the US produced and sold a lot of pharmaceuticals. Thus, the aforementioned facts support the industry expansion during the forecast period.

Nitrobenzene Industry Report Scope:

Report Highlights:

• By application, the aniline segment is expected to dominate the industry during the forecast period. Since nitrobenzene serves as the primary raw material for the manufacture of aniline, the demand for aniline dominates the nitrobenzene industry. Aniline is a key ingredient in the creation of many chemicals, including MDI, which is then used in end-user sectors like building, cosmetics, pharmaceuticals, automotive, horticulture, and others. It is also used in the construction sector for the manufacturing of insulators.
• By end-user, the construction industry captures the largest industry share during the forecast period owing to the increase in demand for a variety of MDI-based goods, including elastomers, polyurethanes, adhesives and sealants. It works well as a binding agent for timber and furnishings. Due to these causes, 48% of nitrobenzene is utilized by the construction sector. Over the coming years, new possibilities for the industry are anticipated to arise as a result of the expanding urban populace. According to a study by the UN Department of Economics and Social Affairs, there were 4.2 billion metropolitan dwellers worldwide in 2018 and that number is projected to rise to 6.7 billion by 2050, with nearly 90% of that growth occurring in Asian and African nations. Thus, this is expected to rise the product demand in the construction industry.

Market Dynamics:

Drivers:

Increasing automotive industry

The industry growth is driven by the growing automotive sector. For instance, according to the Society of Indian Automobile Manufacturers, from April 2021 to March 2022, From April 2020 to March 2021, the automobile industry created a total of 22,933,230 vehicles, including passenger cars, industrial trucks, three-wheelers, two-wheelers, and quadricycles. Moreover, the consumer demand for cutting-edge technologies in automobiles further propels the industry expansion over the projected timeframe.

Restraint:

Growing demand for bio-based fertilizers

To reduce the emissions of volatile organic compounds (VOCs), the EU Commission and the US EPA established regulatory standards. These standards are expected to raise demand for bio-based chemicals and impede the industry development of nitrobenzene. The United States EPA classified nitrobenzene as a possible workplace carcinogen, and the sector is likely to face significant obstacles soon as a result. The development of the nitrobenzene industry will be constrained in the near future by rising demand for organic fertilizer as a result of increasing environmental concerns.

Opportunities:

Rise in agricultural sustainability

Crop output rises as a result of nitrobenzene's use by plants as an energy source. The agricultural sector has undergone substantial change due to technological advancements in cultivation methods, drip irrigation, crop safety, and land management. Governments are consistently putting more emphasis on organic farming on behalf of the economy, society, and ecology by giving producers instruction and training to enhance the quality of crops, output, and soil texture.

Recent Developments:

• In April 2022, the adhesive resins division of Eastman Chemical company acquired by the UK-based chemicals company Synthomer PLC. With this acquisition, the company intended to strengthen its dominant places in lucrative end industry like transportation, consumables, and the building and construction industries. A US-based manufacturer of chemicals is Eastman Chemical Company.
• In July 2020, the Chemours Company intended to cease manufacturing aniline, nitrobenzene, and other chemicals at its Pascagoula, Mississippi located in the United States by the end of 2020, which would affect the company's operations. When DuPont purchased ChemFirst in 2002, this facility was part of the deal, and The Chemours Company subsequently added it to its portfolio of companies. Additionally, the business supplied Dow from the Pascagoula location after selling an aniline facility in Beaumont, Texas, to the latter in 2016.

Major Key Players:

• BASF SE
• Covestro AG
• Huntsman International LLC
• Chevron Phillips Chemical Company
• Exxon Mobil Corporation
• SABIC
• Royal Dutch Shell
• Total
• Aromsyn Co., Ltd
• FINETECH INDUSTRY LIMITED
• The Chemours Company
• Dow
• China National Petroleum Corporation
• Sumitomo Chemical Co., Ltd.
• bp p.l.c.

Market Segmentation:

By Application

• Aniline Production
• Pesticide Additive
• Synthetic Rubber Manufacturing
• Paint Solvent
• Others

By End-User

• Construction
• Agriculture
• Pharmaceutical
• Automotive
• Others

Buy this Research Report@ https://www.precedenceresearch.com/checkout/2660

You can place an order or ask any questions, please feel free to contact at sales@precedenceresearch.com| +1 9197 992 333