Nitrobenzene Market to Grow 1.4X; High Demand for Paint Solvents to Support COVID-19 Recovery
Global nitrobenzene market exhibits a very modest 3.6% CAGR during the forecast period of 2020 - 2030. Accelerating demand for high-performance plastics across the globe will continue to generate revenue for nitrobenzene manufacturers. Applications in producing methyl diphenyl diisocyanate (MDI) to enhance the durability of plastic are a prime factor for this growth.
Need for industrial chemicals manufactured using nitrobenzene is another factor that contributes to nitrobenzene sales. The pale yellow chemical (nitrobenzene) is produced by forming nitronium ion (NO2+) from sulfuric acid and nitric acid. Hence, the availability of these raw materials will influence the profit margins of manufacturers.
Increasingly stringent norms by statutory organizations such as the Environmental Protection Agency (EPA) to curb carbon emissions from nitrobenzene production forces market players to shift capacity expansion plans. The dependency of nitrobenzene production on crude oil raw materials also influences market growth.
Aniline Production to be Primary Revenue Source
Aniline production emerges as the most lucrative application of nitrobenzene. The application segment generates maximum demand with more than 74% of total market value share. Aniline employed in MDI manufacturing is a major factor for growing demand for this application segment. Financially rewarding opportunities can be found in the paint solvent market.
The increase in disposable income of millennial consumers drives the demand for high-grade paint solvents for a satisfactory finish. The segment will continue to capture market value share with an impressive 6.5% CAGR through 2029.
East Asia to Maintain Hegemony over Global Sales
East Asia is the leader of global sales with over 33% of the total market value among six major regions (North America, Latin America, Europe, East Asia, South Asia & Oceania, and MEA). China is the largest producer of nitrobenzene. The presence of prominent nitrobenzene manufacturers in East Asia position the region as the largest demand generator.
South Asia & Oceania presents the most remunerative growth opportunities. The region is witnessing a surge in demand for high performance plastic and rubber products. Booming digital economies such as Indonesia, Singapore, and Malaysia will continue to bolster demand for nitrobenzene employed in manufacturing electric automotive and rubber tires for the same. South Asia & Oceania Nitrobenzene market will grow at a healthy 5.3% CAGR through 2030.
Market Dynamics during the COVID-19 Pandmeic
Oil & gas production plants are at an all-time low capacity. The Covid-19 pandemic has disrupted the value chain for nitrobenzene. For the time being, raw material availability, procurement, and logistics are primary concerns for market players.
The impact of COVID-19 on crucial regions such as China, and the US will influence the recovery pattern of the market. More than 20 million cases have been reported, with deaths close to a 10th of a million. Countries are extending lockdowns to curb the rampant spread of covid-19.
However, nitrobenzene organizations can find sustainable opportunities in pharmaceuticals. As the word struggles with anxiety and stress of extended lockdowns. The demand for analgesic acetaminophen will witness a surge during the forecast period. Another opportunity lies in the need for sanitization of residential and commercial infrastructure due to Covid-19. It will create demand for fresh paint and repainting of infrastructure.
Such trends post the pandemic will further the demand from paint solvents applications of nitrobenzene. Successful recovery strategies can be formed by targeting low impact regions and mapping alternate distribution and raw material procurement routes.
Companies with digitized business operations are leveraging the benefits of technology in terms of reduced losses. A popular recovery strategy is integrating industry 4.0 technologies to reduce the dependency on human labor post Covid-19.
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Strategic Capacity Expansion to Shape Competition
Manufacturers are targeting capacity expansion in Asia Pacific countries with comparatively lenient chemical manufacturing laws than developed countries such as the US. Gainful opportunities can be discovered in multiplying construction projects in developing countries.
Countries such as India, and Indonesia are heavily invested in developing infrastructure to support the development of digital economies. Resurgent housing projects in North America and Europe are an area of interest for many market players.
Global Nitrobenzene Market: In-Depth Assessment on Key Segments
The global nitrobenzene market is segmented on the basis of application, end use and region.
- Aniline Production
- Pesticide Additive
- Synthetic Rubber Manufacturing
- Paint Solvent
- North America
- Latin America
- East Asia
- South Asia & Oceania
- Middle East & Africa
This taxonomy and the detailed TOC prepared are confidential and intended exclusively for the individual or entity with whom it is being shared. Reading, disseminating, distributing, or copying this to any party other than the addressee(s) is unauthorized and prohibited.
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