Dibenzyl Toluene Market

Dibenzyl Toluene Market Outlook (2022-2032)

The global dibenzyl toluene market is anticipated to value at US$ 57.0 million in 2022 and further expand at a CAGR of 3.3% to reach US$ 79.4 million by the end of 2032.

Sales of dibenzyl toluene accounted for nearly 0.3% of the global toluene market at the end of 2021. The surging demand from various end-use verticals offers sales growth opportunities for the market.

Report Attributes	Details
Dibenzyl Toluene Market Size (2022)	US$ 57.0 Million
Toluene (Parent Market)	US$ 21.1 Billion
Forecasted Market Value (2032F)	US$ 79.4 Million
Global Market Growth Rate (2022-2032)	3.3% CAGR
North America Market Share (2022)	~22.8%
North America Market Value, (2022)	US$ 13.0 Million
Europe Market Share (2022)	~32.0%
Europe Market Value (2022)	US$ 18.3 Million
Key Companies Profiled	Arkema Eastman Chemicals Soken Technix Yantai Jinzheng

Market’s Comprehensive Analysis

With the growing need for temperature control solutions to deliver and regulate the temperature of various materials and chemicals, the market witnessed constructive growth over the period. Further, with the investment in R&D coupled with the adoption of reliable marketing strategies to enhance customer portfolio, the market projects immense growth opportunities.

• Early Growth Factors: Growth projected by the Toluene market also contributes to the market’s growth over the projection period.
• Factors Determining Medium Term Growth: The surging demand from petrochemical and chemical industries offers the market, immense growth opportunities.
• Long Term Growth Opportunities: R&D opens new application areas for the market, which in turn, upsurge the market’s demand in the long-run.

Over the 2017-2021 historical period, the global dibenzyl toluene market registered a CAGR of 2.5%, and according to the Fact.MR, a market research and competitive intelligence provider, the market is projected to exhibit growth at 3.3% CAGR between 2022 and 2032.

Market share analysis of dibenzyl toluene based on application and region is provided in a nutshell in the above image. Under the application segment, the heat transfer fluid segment dominates with 58.8% market share in 2022.

“Integration of Dibenzyl Toluene to Transport Hydrogen: Spur Market’s Growth”

Most of the hydrogen produced is used in industries for production of chemicals. Transportation of hydrogen in the form of liquefied or ammonia poses a major threat to the carrier as well as the environment as hydrogen is highly explosive and flammable in nature.

To act as a solution to the above problems, LOHC is one of the profitable techniques for hydrogen transportation. Among the LOHCs present in the market such as Methylcyclohexane (MCH), DBT, and others, DBT provides numerous opportunities for stakeholders to expand their foothold in the hydrogen supply chain in Europe and North America.

An increase in the demand for DBT as LOHC from logistics stakeholders and hydrogen market leaders is set to boost the market growth. Moreover, enhanced safety owing to the non-flammable and non-explosive nature of DBT is expected to slightly increase the demand. Various demand factors to assess the DBT growth in the market such as MCH as an alternative or substitute the DBT.

“Safe Transportation of Hydrogen with DBT as LOHC New Trend in Market”

Safety is the key notable point to deliver hydrogen to longer distances. Highly explosive and flammable nature poses a greater threat to the environment as well as the company’s financials delivering hydrogen.

LOHC carriers are the talk of the town and Hydrogenious has been constantly pursuing research on DBT LOHC techniques. The company produces LOHC- unloaded, which is DBT. LOHC DBT is loaded with hydrogen over a catalyst where the reaction occurs and the absorption takes place.

Further, DBT loaded with LOHC is transported to the desired location where again the DBT is heated over the catalyst to produce hydrogen. LOHC DBT is cheaper compared to liquefaction and ammonia techniques.

While at the time of unloading, the cost ultimately rises still owing to the normalized costs and comparing safe transportation of hydrogen through LOHC, DBT is talk of the town.

“Fluctuation in Prices and Demand Hampering Growth of Market”

BTX (Benzene Toluene Xylene) is the key petrochemical manufactured out of crude oils in the refinery. Fluctuation in crude oil prices is set to affect the toluene prices in the market, which in turn affects the price of dibenzyl toluene. Dibenzyl toluene is indeed an oil manufactured utilizing Toluene as key raw material. Higher prices lead to low demand across the regions are set to decline the demand for the market.

Moreover, the fluctuating market demand and the high prices of products don’t invite new players thus disrupting the supply chain of DBT. The presence of substitutes such as MCH in LOHC and BT and other oils in heat transfer fluids makes the DBT market extremely elastic in nature.

“Multiple Factors to Negatively Affect DBT Market”

There are other perfect substitutes of heat transfer oils available in the market, which exhibit better properties than DBT in the market.

Further, DBT as LOHC is a novel concept, and its integration into the supply chain is difficult as hydrogen manufacturer needs to incur the cost of catalyst, which adds to the ultimate hydrogen price.

Moreover, its inability to integrate with the conventional system is a major setback to DBT as LOHC. Furthermore, Japanese manufacturers such as Chiyoda Corporation, Mitsubishi Corporation, Mitsui Co. Ltd, and Nippon Yusen K.K joined an alliance to use MCH as LOHC and are set to change the supply chain of hydrogen. This poses a major drawback for DBT as LOHC utilization.

Country-wise Insights

What Aspects Drives the Market’s Demand in US?

The US is the biggest shale oil producer and its oil consumption rate is 11.6 Million barrels per day. Heat generation in particular units of oil & gas operations attracts the DBT demand in the region owing to its high flame-resistant properties.

The presence of LyndollBassel, INEOS, Chevron Phillips, Shell, and bundle of other firms operating in the US has a large requirement for both dielectric fluids and heat transfer fluids in their plants. Johnson & Johnson, Pfizer, Merck & Co.

AbbVie Inc. and many other pharmaceutical firms formulate medicines that require the optimum temperature around the unit operations present in the facility. Heat transfer fluid DBT is one of the preferred materials used in heat transfer equipment. Such factors augment the market's growth across the country.

Why is the China Market Anticipated to Be Extremely Profitable?

East Asia has been a key hub for all heat transfer fluids and dielectric fluids, including dibenzyl toluene. The region holds less than one-quarter of revenue share in the global market. China is at the forefront of demand; the country is the largest consumer of DBT in the region.

Presence of large consumers in the region such as Evonik, Sinopec, ArcelorMittal, Nippon Steel, Showa Denko, and many other firms which manufacture a range of products. These companies demand high heat transfer coefficient fluids.

DBT is the perfect product to integrate into the heat transfer systems owing to the high flash point.

China ordered factory shutdowns across many of its provinces during April and May 2022 as it struggled to control a new variant of COVID-19. Though production has initiated in the region, the market will witness high growth opportunities due to the presence of major market players and end-users.

Category-wise Insights

Why DBT as Heat Transfer Fluid Application Rule the Market?

Dibenzyl toluene is being used as a heat transfer fluid for more than three decades. <98% is the most used purity for this type of application.

Industries such as petrochemicals, chemical, plastic and rubber, and many other industries are dependent on the heat transfer fluid, especially DBT owing to its high flash point, heat transfer coefficient, nonflammable and high boiling point properties has driven the DBT market as heat transfer fluid. Heat transfer fluid is the target market for the market stakeholders such as Arkema and Eastman.

Hence, DBT as heat transfer fluid captures the majority of the market owing to the amount of usage of DBT as heat transfer fluid.

Which Product Type Holds Highest Share in the Market and Why?

DBT plays a critical role in the petrochemical industry. Many unit operations require optimum heat transfer owing to the conversion rate and yield of the petrochemicals in the reactors. Thus increasing the requisite at certain unit operations, the demand is up for the market over the study period.

Further, the integration of DBT in heat transfer equipment and switchgear coupled with transformers present in the industry premises propel the segment's growth over the forecast period.

Key Market Stratagems

Major market players are, Arkema, Eastman Chemicals, Soken Technix, and Yantai Jinzheng, among others.

Market players are focused on expanding their business territories to untapped markets to cater to the needs of the end-use verticals and earn high-profit margins. The companies are also in long-term trade relations with raw material suppliers to survive in unfavorable trade conditions, and the market relies on crude oil, and fluctuating crude oil may impact production and sales.

Thus, global expansion and investment in maintaining trade relations with suppliers and end-use verticals offer immense growth opportunities to the market players in the long run.

Fact.MR has provided detailed information about the price points of key manufacturers of dibenzyl toluene positioned across regions, sales growth, production capacsuby, and speculative technological expansion, in the recently published report.

Segmentation of Dibenzyl Toluene Industry Research

• By Grade :

  • <98%
  • >98%

• By Application :

  • Dielectric Fluid
  • Heat Transfer Fluid
  • Others

• By End-Use Industry :

  • Chemicals
  • Petrochemicals
  • Plastics & Rubber
  • Oil & Gas
  • Pharmaceuticals
  • Others 

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • MEA