Global Nitrobenzene Market by End Use (Automotive, Construction), by Application (Aniline Production, Synthetic Rubber Manufacturing) and Region (North America, Latin America, Europe, Asia Pacific and Middle East & Africa), Forecast To 2028

Summary of the Report

Global nitrobenzene market was valued at USD 9.3 Billion in 2019. It is projected to grow at a revenue-based CAGR 5.6% between 2020 and 2027. The market is expected to grow due to rising global demand for aniline made from nitrobenzene, which is used in the manufacture of various automotive and building chemicals.

The intermediary organic chemical nitrobenzene has a pale yellow color and an almond-like smell. It is insoluble and can be produced commercially by the nitration. The reaction between sulfuric acid (Nitric acid) and nitronium acid (NO2+) results in the formation of the nitration product. To be used in high-performance plastics, however, the chemical must first be converted to aniline, then to methylene diphenyl dimisocyanate. The manufacturing of MDI requires more than 85% of all the aniline that is produced globally. Therefore, MDI and aniline will be followed by nitrobenzene.

Due to strong demand from the electronics, automotive and construction sectors, the U.S. was the dominant North American market in 2019. In 2018, the U.S. automotive production grew from 11.2 Million Units in 2017 to 11.3 Million units in 2018. It is used in high-volume automotive manufacturing as polyurethane (PU), foams made from MDI. MDI-based products can be found in various sections of the vehicle, including windows, rear and front glass panes, paints, and coatings.

The stringent standards set by the Environmental Protection Agency (EPA) have a significant impact on the U.S. production of nitrobenzene. The Environmental Protection Agency (EPA) has strict regulations that the chemical is toxic to humans and the environment. It is also considered likely to cause cancer and other serious health problems. Due to relatively lenient laws, these factors have led to manufacturers moving production to South America and Asia Pacific.

China is seeing a significant increase in the production of aniline, MDI, and this is driving demand for nitrobenzene. The regional government approved the BASF-Huntsman Chinese MDI Plant's request to double its production capacity of MDI in May 2014. The growing construction industry is expected to drive demand for MDI in emerging countries like China, Brazil, Indonesia and Vietnam. Because of their versatility, durability, corrosion resistance and high strength-to-weight ratio, polyurethane-based products are used in the construction industry.

Although nitrobenzene production is concentrated in China's, raw material availability is mainly in the United States and Saudi Arabia. The U.S.-China Trade War is expected to have a negative effect on raw material supply and thus hinder the production cycle.

Application Insights

The most important application of nitrobenzene in the world was aniline production, accounting for 85.5% total consumption in 2019. It is used mainly to produce MDI, antioxidants activators, accelerators and other chemicals for rubber industry. Aniline can also be used in small amounts as an additive to the production of herbicides and fungicides.

The product can also be used as a pesticide addition. Greenwell Biotech claims that nitrobenzene will increase plant energy and stimulate flowering plants. Its penetration as a pesticide addition is expected to be slow because of the availability of substitutes worldwide. The forecast period for Aniline applications will see a steady CAGR in revenue of approximately 5.7%.

Paracetamol is the most widely used medicine in the world. The pharmaceutical industry uses nitrobenzene to produce paracetamol. Paracetamol is made from nitrobenzene, which is then converted to aniline during manufacturing. The drug formulations are then completed. Paracetamol production is concentrated in India and China. This makes Asia Pacific the largest consumer of aniline, and thus nitrobenzene, in the pharmaceutical industry.

End-use Insights

Due to the rising demand for MDI-based products like adhesives, sealants, and polyurethanes, the construction industry is the dominant end-use market. It can also be used as a binder for wood and furniture. This has led to 48% of global nitrobenzene production being consumed by the construction industry.

The key challenges facing the construction market will be the current economic slowdown and trade war. The sector will be able to capitalize on the increasing urban population in the years ahead. A report from the United Nations Department of Economics and Social Affairs states that the global urban population reached 4.2 billion in 2018, and will reach 6.7 billion by 2050. Nearly 90% of this increase is in Asian and African countries.

The global pharmaceutical industry is one the fastest growing, particularly in the U.S.A and Germany. The production of paracetamol or analgesics acetaminophen is common use of nitrobenzene. Paracetamol is the most commonly used generic medicine worldwide. Paracetamol is available in syrup, capsules, tablets and tablets for all ages. The growing paracetamol market is expected to boost global demand for nitrobenzene, and increase its use in the pharmaceutical industry with a revenue-based CAGR 6.0% between 2020-2027.

Regional Insights

Asia Pacific was the largest market in nitrobenzene consumption and production in 2019, according to 2019. Many international manufacturers have moved their manufacturing units to the region due to its low infrastructure and low labor costs. In recent years, major aniline- and MDI manufacturing firms have increased their production capacity. This is a key driver of nitrobenzene consumption and production in the region. Asia Pacific's demand for nitrobenzene is forecast to grow rapidly over the forecast period, with a revenue-based compound annual growth rate of 6.7% between 2020 and 2027.

China is the major driver of the Asia Pacific market for nitrobenzene. China was responsible for more than half of global aniline production in 2018. Five major shareholders of aniline in China are Wanhua Chemical (China), Shanghai Tian (China), SINOPEC and Dow Chemical. Wanhua Chemical increased its aniline production capacity annually by 180 kilotons in 2018, making it one the biggest producers of the chemical globally.

Europe was the second largest consumer of the product, with a global volume share around 21.7% in 2019, The major European markets for the product were Germany and Belgium. Bayer and BASF are the two largest producers of aniline in Europe, with production facilities in these two countries. Germany's petrochemical industry accounts for 25% of EU total sales. While companies operating in Germany are working to reduce costs due to multiple trade barriers and the procurement of raw materials, this will not stop the country from manufacturing. The key demand generators for chemical intermediates are expected to be the automotive and construction industries.

Market Share Insights & Key Companies

To ensure strong forward integration, companies involved in the manufacture of nitrobenzene engage in continuous capacity expansion, acquisition, merger and joint venture with other companies in the production aniline, MDI and polyurethane. To ensure a constant supply of raw material, manufacturers of the product also collaborate with market leaders in the petrochemical industry.

Wanhua Chemical Group Co., Ltd, Covestro AG, BASF SE, Huntsman Corporation are some of the major industry players. With a combined contribution of approximately 40% to total nitrobenzene production, Wanhua and BASF are the leaders.

Nitrobenzene Market Report Scope

The Report Covers Certain Segments

This report forecasts volume and revenue growth at the global, regional and country level. It also provides analysis of industry trends for each sub-segment from 2016 through 2027. Grand View Research segmented the global market for nitrobenzene on the basis, of end use and application.

• Application Outlook (Volume of Kilotons; Revenue USD Millions, 2016-2027)

  • Aniline Production

  • Pesticide Additive

  • Synthetic Rubber Manufacturing

  • Paint Solvent

  • Other

• End-use Outlook (Volume of Kilotons; Revenues, USD Million, 2016-2027)

  • Construction

  • Agriculture

  • Pharmaceutical

  • Automotive

  • Other

• Regional Outlook (Volume of Kilotons; Revenue USD Millions, 2016-2027)

  • North America

    • The U.S

    • Canada

  • Europe

    • Germany

    • France

    • The U.K.

    • Netherlands

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

  • Central & South America

    • Brazil

  • Middle East & Africa

These are the most frequently asked questions about this report

b. Global nitrobenzene market was valued at USD 9.27 Billion in 2019, and is projected to grow to USD 9.76 Billion by 2020.

b. Global nitrobenzene markets are expected to expand at a compound annual rate of 5.7% between 2020 and 2027, to reach USD 14.47 Billion by 2027.

b. With a 36.0% share in 2019, Asia Pacific was the dominant region for nitrobenzene. This can be attributed to the expansion of production capacity by major aniline or MDI manufacturing firms.

b. Wanhua Chemical Group Co., Ltd, Covestro AG, BASF SE, Huntsman Corporation are some of the key players in the nitrobenzene industry.

b. The market growth is driven by the rising demand for aniline made from nitrobenzene. This is used in the manufacture of many automotive and construction chemicals.

Up Market Research published a new report titled “Nitrobenzene Market research report which is segmented by End Use (Automotive, Construction), by Application (Aniline Production, Synthetic Rubber Manufacturing), By Players/Companies Wanhua Chemical Group Co, Covestro AG, Huntsman Corporation, Ltd, BASF SE”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.

The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.

Global Nitrobenzene Market Report Segments:

The market is segmented by End Use (Automotive, Construction), by Application (Aniline Production, Synthetic Rubber Manufacturing).

Nitrobenzene Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.

Key Benefits for Industry Participants & Stakeholders:

• Industry drivers, restraints, and opportunities covered in the study
• Neutral perspective on the market performance
• Recent industry trends and developments
• Competitive landscape & strategies of key players
• Potential & niche segments and regions exhibiting promising growth covered
• Historical, current, and projected market size, in terms of value
• In-depth analysis of the Nitrobenzene Market

Overview of the regional outlook of the Nitrobenzene Market:

Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.

Highlights of The Nitrobenzene Market Report:

1. The market structure and projections for the coming years.
2. Drivers, restraints, opportunities, and current trends of Nitrobenzene Market.
3. Historical data and forecast.
4. Estimations for the forecast period 2028.
5. Developments and trends in the market.

                1. Automotive

                2. Construction

                1. Aniline Production

                2. Synthetic Rubber Manufacturing

8. Market scenario by region, sub-region, and country.
9. Market share of the market players, company profiles, product specifications, SWOT analysis, and competitive landscape.
10. Analysis regarding upstream raw materials, downstream demand, and current market dynamics.
11. Government Policies, Macro & Micro economic factors are also included in the report.

We have studied the Nitrobenzene Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.

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Reasons to Purchase the Nitrobenzene Market Report:

• The report includes a plethora of information such as market dynamics scenario and opportunities during the forecast period
• Segments and sub-segments include quantitative, qualitative, value (USD Million,) and volume (Units Million) data.
• Regional, sub-regional, and country level data includes the demand and supply forces along with their influence on the market.
• The competitive landscape comprises share of key players, new developments, and strategies in the last three years.
• Comprehensive companies offering products, relevant financial information, recent developments, SWOT analysis, and strategies by these players.