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

The Nitrobenzene Market is Segmented by Application (Aniline Production, Dyes and Pigments, Pesticides, Intermediate in Pharmaceuticals, and Other Applications) and Geography (Asia-Pacific, North America, Europe, South America, and Middle East & Africa). The report offers market size and forecasts for nitrobenzene in volume (kilo tons) for all the above segments.

Market Snapshot

Nitrobenzene Market Overview
Study Period: 2016 - 2026
Base Year: 2020
Fastest Growing Market: Asia Pacific
Largest Market: Asia Pacific
CAGR: >3.5 %

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Market Overview

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 to curb the spread of the virus, thus leading 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 negatively impacted the market demand. However, the demand for paracetamol derived from nitrobenzene derivative aniline has increased during the current situation, 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.
  • The 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 the recovering construction industry in Europe is likely to act as opportunities for the market studied.
  • Asia-Pacific dominated the market across the globe, with the largest consumption in countries such as China, India, etc.

Scope of the Report

Nitrobenzene is a yellowish, oily, aromatic nitro compound with the chemical formula C₆H₅NO₂, which can be produced by treating benzene with concentrated nitric acid and concentrated sulphuric acid. Nitrobenzene is used to produce aniline, which can be further used to produce methylene diphenyl diisocyanate (MDI) and polyurethanes, and it finds its major application in various end-user industries, including automotive, construction, and others. Nitrobenzene and aniline are also used to produce paracetamol, a major product of the pharmaceutical industry. The nitrobenzene market is segmented by application and geography. By application, the market is segmented into Aniline Production, Dyes and Pigments, Pesticides, Intermediate in Pharmaceuticals, and Other Applications. The report also covers the market size and forecasts for the nitrobenzene market in 15 countries across major regions. For each segment, the market sizing and forecasts have been done on the basis of volume (kilo ton).

Application
Aniline Production
Dyes and Pigments
Pesticides
Intermediate in Pharmaceuticals
Other Applications (including Solvent, Explosives, etc.)
Geography
Asia-Pacific
China
India
Japan
South Korea
Rest of Asia-Pacific
North America
United States
Canada
Mexico
Europe
Germany
United Kingdom
Italy
France
Rest of Europe
South America
Brazil
Argentina
Rest of South America
Middle East & Africa
Saudi Arabia
South Africa
Rest of Middle East & Africa

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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 its 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 leading 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 produced in 2019, witnessing a decreasing growth rate of about 15.8%, thus leading 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, enhancing the demand for the nitrobenzene market.
  • The major players involved in the production of nitrobenzene, including 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.
Nitrobenzene Market Share

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The 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.
  • 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 also be 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. It is estimated to reach about USD 1,117.4 billion by 2021, with a growth rate of about 6.5%, leading to an increase in 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 accounted for about 127.55 million sq. m. in 2019 and reached about 113.74 million sq. m. in 2020, with a decline rate of about 10.5%, leading to a decrease in demand for MDI-based construction materials and negatively impacting the demand for the market studied.
  • The Indian construction sector 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 its various schemes, such as the Housing for All program, which aims to build 20 million urban homes and 30 million rural houses by 2022. The above initiative is expected to stimulate the demand for various MDI-based construction materials, which in turn is likely to 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 is used in the 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 2020 compared to 4.52 million vehicles produced in 2019, witnessing a decreasing growth rate of about 25%. The above factor led to a decrease in consumption of MDI-based automotive parts such as steering wheels, thereby negatively impacting the demand for the market studied.
  • Therefore, the aforementioned factors are expected to significantly impact the market in the coming years.
Nitrobenzene Market Growth By Region

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Competitive Landscape

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

Recent Developments

  • In July 2020, KBR Inc. awarded a contract for its proprietary Plinke Adiabatic Nitrobenzene solutions, which can be used to produce high purity nitrobenzene, by Kutch Specialities Pvt Ltd based in India, in order to provide equipment, engineering design, and advisory services for new nitrobenzene project, enhancing the company's business.
  • In July 2020, The Chemours Company planned to stop the production of aniline, nitrobenzene, and others at its Pascagoula, Mississippi site in the United States by the end of 2020, thereby impacting the company's business. DuPont acquired this plant as part of the 2002 purchase of ChemFirst and later included in the business of The Chemours Company. Furthermore, the company sold an aniline plant in Beaumont, Texas, to Dow in 2016, and it has been supplying Dow from the Pascagoula site.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Drivers

      1. 4.1.1 Increasing Demand for Aniline

      2. 4.1.2 Easy Availability of Raw Materials

      3. 4.1.3 Growing Construction Activities in the Asia-Pacific Region

    2. 4.2 Restraints

      1. 4.2.1 Growing Demand for Bio-based Chemicals

      2. 4.2.2 Impact of the COVID-19 Pandemic

      3. 4.2.3 Other Restraints

    3. 4.3 Industry Value Chain Analysis

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Suppliers

      2. 4.4.2 Bargaining Power of Consumers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitute Products and Services

      5. 4.4.5 Degree of Competition

    5. 4.5 Regulatory Policy Analysis

  5. 5. MARKET SEGMENTATION

    1. 5.1 Application

      1. 5.1.1 Aniline Production

      2. 5.1.2 Dyes and Pigments

      3. 5.1.3 Pesticides

      4. 5.1.4 Intermediate in Pharmaceuticals

      5. 5.1.5 Other Applications (including Solvent, Explosives, etc.)

    2. 5.2 Geography

      1. 5.2.1 Asia-Pacific

        1. 5.2.1.1 China

        2. 5.2.1.2 India

        3. 5.2.1.3 Japan

        4. 5.2.1.4 South Korea

        5. 5.2.1.5 Rest of Asia-Pacific

      2. 5.2.2 North America

        1. 5.2.2.1 United States

        2. 5.2.2.2 Canada

        3. 5.2.2.3 Mexico

      3. 5.2.3 Europe

        1. 5.2.3.1 Germany

        2. 5.2.3.2 United Kingdom

        3. 5.2.3.3 Italy

        4. 5.2.3.4 France

        5. 5.2.3.5 Rest of Europe

      4. 5.2.4 South America

        1. 5.2.4.1 Brazil

        2. 5.2.4.2 Argentina

        3. 5.2.4.3 Rest of South America

      5. 5.2.5 Middle East & Africa

        1. 5.2.5.1 Saudi Arabia

        2. 5.2.5.2 South Africa

        3. 5.2.5.3 Rest of Middle East & Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Market Share Analysis**/Ranking Analysis

    3. 6.3 Strategies Adopted by Leading Players

    4. 6.4 Company Profiles

      1. 6.4.1 Aromsyn Co. Ltd

      2. 6.4.2 Bann Quimica Ltda

      3. 6.4.3 BASF SE

      4. 6.4.4 Covestro AG

      5. 6.4.5 China Petroleum & Chemical Corporation (Nanjing Chemical Industrial Corporation)

      6. 6.4.6 Dow

      7. 6.4.7 Huntsman International LLC

      8. 6.4.8 SP Chemicals Holdings Ltd

      9. 6.4.9 Sumitomo Chemical Co. Ltd

      10. 6.4.10 The Chemours Company (DuPont)

      11. 6.4.11 Wanhua

      12. 6.4.12 Wilbur-Ellis Holdings Inc. (Connell)

    5. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability

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Frequently Asked Questions

The Nitrobenzene Market market is studied from 2016 - 2026.

The Nitrobenzene Market is growing at a CAGR of >3.5% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

Asia Pacific holds highest share in 2020.

Are the major companies operating in Nitrobenzene Market.

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