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The benzene market size is forecast to increase by USD 7.01 billion, at a CAGR of 3.77% between 2023 and 2028. The expansion rate of the market depends on several factors, including the rise in demand for benzene in developing economies, the increasing demand for benzene from various applications, and the growing demand for polymers in different industries. It also includes an in-depth analysis of drivers, trends, and challenges. Our report examines historical data from 2018-2022, besides analyzing the current market scenario.
Benzene is an organic solvent that is widely used in industry as a feedstock for manufacturing chemicals such as cumene, styrene, aniline, and others, which are further linked to different manufacturing industries.
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Our researchers analyzed the market research and growth data with 2023 as the base year, along with the key market growth analysis, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help companies refine their marketing strategies to gain a competitive advantage.
The rise in demand for benzene in developing economies is the key factor driving market growth. The market is witnessing a high growth rate in emerging economies such as Russia, India, China, Brazil, and Indonesia. A number of manufacturers are shifting their manufacturing units to these countries due to factors such as cheap labor, easy availability of land, low transportation costs, and less stringent government norms.
Moreover, the increasing income and purchasing power of people in the developing countries of APAC and ROW are driving higher investments in the automotive, construction, and chemical industries. Further, the rising disposal income, increasing population, and economic recovery will drive the end-use industries such as automotive, paints and coatings, and construction in these countries, which, in turn, will boost the demand for benzene. This will drive the market during the forecast period.
Rising preference for bio-based latexes is the primary trend shaping market. Owing to fluctuations in the prices of benzene, vendors of benzene are looking for an alternative to petroleum-derived benzene for manufacturing paints, detergents, and drugs, as these industries are the largest end-users of benzene. These manufacturers have started replacing petrochemical raw materials with plant-based sources in various end-user applications, including paint and coatings, construction, and textiles.
Furthermore, bio-based benzene consumes less energy compared with benzene and other synthetic aromatic phenols and, thus, is sustainable. Bio-based benzene consumption in end-user industries also reduces carbon footprint by up to 67%. Therefore, the rise in the use of bio-based benzene may positively impact the market during the forecast period.
The price fluctuation of crude oil is a significant challenge that affects the market. Fluctuations in crude oil prices act as a major threat and directly impact the demand for benzene as the key raw materials used in the production of benzene (styrene, cumene and others) are petroleum products, and fluctuations in crude oil prices affect their prices. For instance, in 2020, the average price of ethylene worldwide accounted for around USD 697 per metric ton. Thus, fluctuations in crude oil prices negatively impact the final cost of benzene and affect the profit margins of manufacturers.
An increase in crude oil prices reduces drilling activities, which results in a demand-supply imbalance for key petroleum-based raw materials. Owing to the resultant rise in raw material prices, manufacturers undertake cost-cutting measures, such as workforce layoffs, production shutdown, or production capacity reduction. Thus, the fluctuation in crude oil prices may negatively impact the market during the forecast period.
The market share by the catalytic reforming segment will be significant during the forecast years. Catalytic reforming is the method by which a feed stream of paraffin, olefin, naphthene, etc., is transformed into aromatics that can be used as motor fuel blend stock or as an aromatic source for petrochemical products such as benzene, tetrabenzoene, and xylene. Depending on the characteristics of the feed stream and the catalysts in the method, the reformates may contain high concentrations of gasoline blenders and other petrochemical feedstocks. Hydrogen (a major by-product) is separated from reformates for recycling and other processes.
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The catalytic reforming segment accounted for USD 14.10 billion in 2018. Additionally, in most processes, the active catalyst is platinum. In some cases, platinum is used in combination with a second catalytic catalyst (a bimetallic catalyst, e.g., rhenium/another noble metal). The catalytic reforming method produces less emission of harmful gas as it removes the by-product (hydrogen); thus, it is likely to boost the growth of the market through the catalytic reforming segment during the forecast period.
The styrene?segment will account for the largest share of this segment.? Styrene was the most widely produced and used benzene derivative in 2019. The market share of styrene is expected to decline marginally over the forecast period. It is primarily used to produce polystyrene plastics and resins. Further, styrene is naturally found in cranberry, bilberry, currants, grape, vinegar, parsley, milk and dairy products, whiskey, cocoa, coffee, tea, roasted filberts, and peanuts. It is also used as a flavoring agent. The growth of styrene in the market is expected to grow during the forecast period due to increasing demand for styrene from rubber and polymer manufacturers.
APAC is estimated to contribute 51% to the growth of the global market during the projection period.
Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the projection period.
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Market growth in APAC could be attributed to the rapid industrialization, population growth, and urbanization in the countries of this region. Many global companies, especially those operating in the manufacturing sector, are focusing on establishing production facilities and R&D centers in APAC. This is due to the favorable government policies, availability of low-cost resources and a skilled workforce, and low operational and labor costs in the region.
Moreover, the upswing in market growth in countries such as India, China, Indonesia, South Korea, and Japan will provide notable prospects for the market in this region. In Indonesia, the market for benzene is expected to grow because of the rising population, which will result in an increase in the use of benzene to manufacture derivatives, such as cumene, styrene, and cyclohexane. Hence, such factors are expected to drive market growth in this region during the forecast period.
Companies are implementing various market growth and forecasting strategies by analyzing factors such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product or service launches, to enhance their presence in the market.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Arsol Aromatics GmbH and Co. KG, Borealis AG, BP Plc, Braskem SA, Chevron Corp., China National Petroleum Corp., China Petrochemical Corp., Dow Chemical Co., Eastman Chemical Co., ENEOS Holdings Inc., Exxon Mobil Corp., Indian Oil Corp. Ltd., LyondellBasell Industries N.V., Merck KGaA, Mitsubishi Chemical Group Corp., Repsol SA, Saudi Basic Industries Corp., Shell plc, and TotalEnergies SE
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market report predicts market growth by revenue at global, regional & country levels and provides an analysis of the latest market growth and trends opportunities from 2018-2028.
The Benzene market is influenced by various factors, including phenol consumption and the demand for methylene diphenyl diisocyanate (MDI), which is crucial in polyester production. Packaging plays a significant role in distributing benzene products efficiently. Furthermore, understanding company-wise production and capacity is essential, along with optimizing network layouts of distributors and partners to ensure smooth operations. Price trend analysis helps stakeholders make informed decisions, while deficit analysis reveals gaps in the supply chain and demand.
Additionally, benzene serves as a vital aromatic hydrocarbon and petrochemical industrial solvent, contributing to the production of alkyl benzene, chlorobenzene, ethylbenzene, and nitrobenzene. Its applications span across various sectors, including consumer products, electrical & electronics, and medical industries. Thus, the market dynamics are characterized by the rising demand for polyester and the steady increase in phenol consumption, indicating sustained growth prospects in the industry.
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Market Scope |
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Report Coverage |
Details |
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Page number |
177 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 3.77% |
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Market Growth 2024-2028 |
USD 7.01 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
3.43 |
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Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
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Performing market contribution |
APAC at 51% |
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Key countries |
US, China, South Korea, Japan, and Germany |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Arsol Aromatics GmbH and Co. KG, BASF SE, Borealis AG, BP Plc, Braskem SA, Chevron Corp., China National Petroleum Corp., China Petrochemical Corp., Dow Chemical Co., Eastman Chemical Co., ENEOS Holdings Inc., Exxon Mobil Corp., Indian Oil Corp. Ltd., LyondellBasell Industries N.V., Merck KGaA, Mitsubishi Chemical Group Corp., Repsol SA, Saudi Basic Industries Corp., Shell plc, and TotalEnergies SE |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Method
7 Market Segmentation by Derivative Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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