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Nitrobenzene Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

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  • 120 Pages
  • April 2021
  • Region: Global
  • Mordor Intelligence
  • ID: 4515703
The Global Nitrobenzene Market is projected to register a CAGR of more than 3.5% during the forecast period (2021-2026).

The market was negatively impacted by COVID-19 in 2020. Considering the pandemic scenario, the construction, and automotive manufacturing activities were temporarily stopped as the governments of several countries imposed lockdown in order to curb the spreading of the virus, thus led to the decrease in demand for various nitrobenzene derivative-based products including methylene diphenyl diisocyanate (MDI) based adhesives, sealants, polyurethane-based steering wheels, bumpers, and others, which in turn negatively impacted the market demand. However, the demand for paracetamol derived from nitrobenzene derivative aniline has been increased during the current situation, thereby stimulating the demand for the nitrobenzene market.
  • Over the medium term, the increasing demand for nitrobenzene to produce aniline, easy availability of raw materials, and the growing construction activities in the Asia-Pacific region are expected to drive the market's growth.
  • Growing demand for bio-based chemicals and unfavorable conditions arising due to the impact of COVID-19 are likely to hinder the market's growth.
  • Investment in non-residential construction in the United States and recovering construction industry in Europe is likely to act as an opportunity for the market studied.
  • Asia-Pacific dominated the market across the globe with the largest consumption in countries such as China, India, etc.

Key Market Trends

Increasing Demand for Aniline Production
  • Aniline production accounts for the largest share of nitrobenzene's application, accounting for more than 90% of the share. It is majorly produced by the catalytic hydrogenation of Nitrobenzene. The root pertaining to the production of nitrobenzene by phenyl amination is no longer employed. Mitsui in Chiba, Japan was the last to close their plant in 2009 due to poor economics.
  • The methylene diphenyl diisocyanate (MDI) produced from aniline acts as a major precursor for polymers used in the various end-user industries including construction, automotive, and others. Furthermore, polyurethane foams produced from MDI, mainly used in various building insulation applications, acts as one of the major components in the construction both in their flexible and rigid form.
  • The global construction industry was valued at about USD 12 trillion in 2019, with a growth rate of about 4%, compared to the previous year, thus led to an increase in the consumption of MDI-based rigid polyurethanes, binders, adhesives, sealants, coatings, and other MDI products, thereby enhancing the demand for aniline and hence, in-turn stimulating the demand for the market studied.
  • Furthermore, according to OICA, around 77.62 million vehicles were produced globally in 2020 compared to 92.18 million vehicles that were produced in 2019, witnessing a decreasing growth rate of about 15.8%, thus led to a decrease in the consumption of MDI-based elastomers and polymers such as polyurethane, etc., which are used in the production of various automotive parts including steering wheels, airbag covers, waterproof floor materials, bumpers, and others, which in-turn negatively impacted the demand for the aniline and the market studied.
  • The pharmaceutical industry is one of the fastest-growing markets in the world, especially in the United States, India, and Germany. The analgesic acetaminophen or paracetamol is commonly made from aniline. Paracetamol is the most commonly used generic drug in the world. It is commercially available in tablet, capsule, and syrup formulations for people of all ages.
  • According to India Brand Equity Foundation (IBEF), the Indian pharmaceutical market turnover was valued at USD 20.03 billion in 2019, with a growth rate of 9.8% year on year basis, thereby increasing the demand for aniline from the pharmaceutical industry, mainly to produce paracetamol, which in-turn enhanced the demand for the nitrobenzene market.
  • The major players involved in the production of nitrobenzene include BASF SE, Huntsman International LLC, and Covestro AG are vertically integrated, indicating their domination in the manufacturing process of aniline and MDI.
  • Therefore, the aforementioned factors are expected to show a significant impact on the market in the coming years.

Asia-Pacific Region to Dominate the Market
  • Asia-Pacific was the largest market for nitrobenzene, in terms of consumption and production in 2019. With affordable infrastructure and labor costs, various international manufacturers have shifted their manufacturing units in the region. Expanding production capacities by major aniline and methylene diphenyl diisocyanate (MDI) manufacturing companies in recent years is also a major driver for nitrobenzene production and consumption in the region.
  • The construction industry is the most dominant end-user market for nitrobenzene due to the rising demand for various MDI-based products such as adhesives, sealants, elastomers, and polyurethanes. It can be also used as a binder for wood and furniture. Owing to these applications of nitrobenzene, the construction industry consumes about 48% of the total nitrobenzene produced globally, with significant consumption in the Asia-Pacific region.
  • In 2020, the Chinese construction industry was valued at about USD 1,049.2 billion and is estimated to reach about USD 1,117.4 billion by 2021, with a growth rate of about 6.5%, which led to an increase in the demand for MDI-based construction industry materials including sealants, adhesives, polyurethanes, and others, in-turn stimulating the demand for the studied market.
  • Furthermore, the total new construction in Japan was accounted for about 127.55 million square meters in 2019 and reached about 113.74 million square meters in 2020, with a decline rate of about 10.5%, thus led to a decrease in the demand for MDI based construction materials, thereby negatively impacted the market demand for market studied.
  • The construction sector of India has been growing at a higher rate owing to the increasing investments and increasing purchasing power of people. The government of India supports the higher growth of the construction sector through their various schemes such as Housing for All programme, which aims to build 20 million urban homes and 30 million rural houses by 2022, thereby is expected to stimulate the demand for various MDI-based construction materials, which in-turn will stimulate the demand for the market in the coming years.
  • Nitrobenzene also finds its application in the automotive industry. MDI derived from nitrobenzene via aniline production are used in production of various automotive interiors including steering wheels, airbag covers, waterproof floor materials, and others.
  • According to OICA, around 3.39 million vehicles were produced in India during the year 2020 compared to 4.52 million vehicles that were produced in 2019, witnessing a decreasing growth rate of about 25%, thus led to a decrease in the consumption of MDI-based automotive parts such as steering wheels, and others, thereby negatively impacted the demand for the market studied.
  • Therefore, the aforementioned factors are expected to show a significant impact on the market in the coming years.

Competitive Landscape

The nitrobenzene market is partially consolidated in nature. Some of the major players include BASF SE, The Chemours Company (DuPont), Covestro AG, Huntsman International LLC, and Wanhua, among others.

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Table of Contents

1.1 Study Assumptions
1.2 Scope of the Study
4.1 Drivers
4.1.1 Increasing Demand for Aniline
4.1.2 Easy Availability of Raw Materials
4.1.3 Growing Construction Activities in Asia-Pacific Regions
4.2 Restraints
4.2.1 Growing Demand for Bio - Based Chemicals
4.2.2 Impact of COVID-19 Pandemic
4.2.3 Other Restraints
4.3 Industry Value-Chain Analysis
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Consumers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products and Services
4.4.5 Degree of Competition
4.5 Regulatory Policy Analysis
5.1 Application
5.1.1 Aniline Production
5.1.2 Dyes and Pigments
5.1.3 Pesticides
5.1.4 Intermediate in Pharmaceuticals
5.1.5 Others (including Solvent, Explosives, etc.)
5.2 Geography
5.2.1 Asia-Pacific China India Japan South Korea Rest of Asia-Pacific
5.2.2 North America United States Canada Mexico
5.2.3 Europe Germany United Kingdom Italy France Rest of Europe
5.2.4 South America Brazil Argentina Rest of South America
5.2.5 Middle-East and Africa Saudi Arabia South Africa Rest of Middle-East and Africa
6.1 Mergers & Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Market Share Analysis**/Ranking Analysis
6.3 Strategies Adopted by Leading Players
6.4 Company Profiles
6.4.1 Aromsyn Co.,Ltd.
6.4.2 Bann Quimica Ltda.
6.4.3 BASF SE
6.4.4 Covestro AG
6.4.5 China Petroleum & Chemical Corporation (Nanjing Chemical Industrial Corporation)
6.4.6 Dow
6.4.7 Huntsman International LLC
6.4.8 SP Chemicals Holdings Ltd
6.4.9 Sumitomo Chemical Co., Ltd.
6.4.10 The Chemours Company (DuPont)
6.4.11 Wanhua
6.4.12 Wilbur-Ellis Holdings, Inc. (Connell)

Companies Mentioned

A selection of companies mentioned in this report includes:

  • Aromsyn Co.,Ltd.
  • Bann Quimica Ltda.
  • Covestro AG
  • China Petroleum & Chemical Corporation (Nanjing Chemical Industrial Corporation)
  • Dow
  • Huntsman International LLC
  • SP Chemicals Holdings Ltd
  • Sumitomo Chemical Co., Ltd.
  • The Chemours Company (DuPont)
  • Wanhua
  • Wilbur-Ellis Holdings, Inc. (Connell)