The global benzene market was worth more than USD xx billion in revenue in 2018 and is expected to cross USD xx billion in 2023, growing at a healthy CAGR of over xx% during the forecast period.
Benzene is an aromatic hydrocarbon extracted from crude oil and coking coal. It is a major feedstock for producing many downstream derivatives. Important derivatives of benzene include ethylbenzene/styrene, alkylbenzene, nitrobenzene/aniline, cumene/phenol, cyclohexane and chlorobenzene. Benzene and its derivatives are mainly used as a feedstock in the manufacturing of numerous chemicals.
Rising demand for polystyrene and other copolymers of styrene from various industries such as automobiles, construction, and packaging industry is likely to drive the benzene market. As styrene is a major feedstock for polystyrene production, demand for polystyrene is expected to fuel the growth of this market. Demand for automobiles, construction, and packaging industry are actually increasing because of growing population and extra income in developing countries. Additionally, demand for cumene/phenol is likely to increase at a greater rate because of an upsurge in demand from phenolic resins and bisphenol A end-use markets. Phenol demand is growing at a higher rate, which in turn will boost consumption of benzene. Phenolic resins, bisphenol A are feedstocks for different markets like epoxy resins, polycarbonate among others.
Drivers and Restraints of Benzene Market
Growing investments in downstream industries in regions like the Middle East and the Far East are likely to offer tremendous possibilities for benzene market in the future. As a result of accessibility to raw material, multinational businesses are investing in resource-rich regions to be able to limit the overall production cost.
Benzene and its derivatives are exposed to the probability of volatility in supply and price of crude oil. Benzene has an adverse effect on human body if exposed to it for a longer duration. Its remnants are normally found in soil and air which often makes environmental regulatory institutions to implement strict regulations on usage of benzene. Existing and future regulations concerning the use of benzene and its derivatives in end products are likely to hinder the market growth.
Benzene Market by Region
Asia was the largest consumer of benzene and its derivatives and this pattern is anticipated to continue to be identical over the following few years. Consumption in Asia is showing upward trend because of increase in economic activity in China and India. China, Japan and South Korea were the largest consumers of benzene in this region, whereas India is likely to grow at a higher pace. Growing demand for automobile, construction, textiles electricals/electronics and other industries will drive benzene and its derivatives market in Asia. Consumption of benzene and its derivatives in rest of the world was minimal however it is likely to grow at a reasonable rate next to Asia. North America is likely to grow at a significant rate due to demand from construction and textiles industry. Demand from Europe was low relatively and is likely to stay same in the next few years due to strict environmental regulations.
Top key players in this market include China National Petroleum Corporation, China Petroleum & Chemical Corporation, ExxonMobil Corporation, JX Holdings, Royal Dutch Shell Plc., Dow Chemical Company, CNPC, Total S.A., BASF SE and Saudi Basic.
The report covers exhaustive analysis on:
- Global Market Segments
- Global Market Size
- Supply & Demand
- Global Market Competitive Landscape
- Production Technology
- Global Market Value Chain
Regional analysis includes:
- Middle-East and Africa
- In depth summary of parent market
- Altering market characteristics in the industry
- Detailed market segmentation
- Historical and forecast market size in terms of volume and value
- Current industry developments
- Competitive landscape
- Strategies of key players and products available
- Potential and niche segments, regions showing promising growth