The global benzene market is estimated to be worth USD 61,573 million in 2024 and reach a value of USD 109,685.2 million by 2034. Sales are projected to rise at a CAGR of 5.9% over the forecast period between 2024 and 2034. The revenue generated by the compound in 2023 was USD 58,727.1 million. It is anticipated to exhibit a Y-o-Y growth of 4.8% in 2024.
East Asia is set to exhibit the most significant CAGR of 5% in the forecast period, holding a value share of around 22% globally in 2034. Countries like China, Japan, and South Korea house well-established industries that extensively use the chemical compound for various applications.
| Attributes | Description |
|---|---|
| Estimated Global Benzene Market Size (2024E) | USD 61,573 million |
| Projected Global Benzene Market Value (2034F) | USD 109,685.2 million |
| Value-based CAGR (2024 to 2034) | 5.9% |
Countries like China and Japan are considered key automotive producers, with the former leading in terms of manufacturing. The country produced over 27 million vehicles in 2023. Benzene or benzol is significant for manufacturing automotive components, such as synthetic rubber and plastic parts. As the automotive industry continues to broaden, demand for benzol-derived materials will also increase, thereby augmenting the market.
The chemical industry is one of the most significant consumers of this chemical compound. It relies heavily on aromatic hydrocarbons to manufacture key derivatives, such as ethylbenzene, cumene, and cyclohexane.
Globally, the compound is essential for the production of ethylbenzene, which is used to produce styrene. Styrene is a key component in the manufacturing of polystyrene and other plastics. The chemical industry’s increasing demand for the compound is evident from the increasing consumption of its derivatives in end-use industries.
The increasing focus on sustainability has led to a growing focus on bio-based chemicals as a viable alternative to petroleum-derived products. The bio-based compound is produced from renewable feedstock like lignin or biomass that offer an environmentally friendly alternative over traditional production techniques that use petroleum as feedstock.
One notable example is Anellotech, Inc., a United States-based company that has recently developed a technology for producing bio-based aromatics, including benzene, from non-food biomass. The company’s Bio-TCat process converts renewable feedstock into bio-based benzol, toluene, and xylenes, offering a sustainable alternative for industries dependent on aromatic chemicals.
Chemical compounds produced via biomass as feedstock are set to showcase a 4.5% CAGR in the forecast period, signifying tremendous growth opportunities. This rise is mainly pushed by increasing consumer demand for eco-friendly products and strict environmental regulations, particularly in Europe and North America.
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The table below presents the anticipated CAGRs for the global benzene market over several semi-annual periods spanning from 2024 to 2034. In the first half (H1) from 2023 to 2033, the business is predicted to surge at a CAGR of 5.6%, followed by a higher growth rate of 6.1% in the second half (H2) of the same time period.
| Particular | Value CAGR |
|---|---|
| H1 | 5.6% (2023 to 2033) |
| H2 | 6.1% (2023 to 2033) |
| H1 | 5.8% (2024 to 2034) |
| H2 | 6% (2024 to 2034) |
Moving into the subsequent period, from H1 2024 to H2 2034, the CAGR is projected to drop slightly to 5.8% in the first half and remain relatively moderate at 6% in the second half. In the first half (H1), the market witnessed an increase of 20 BPS while in the second half (H2), it showcased a decline of 10 BPS.
Automakers Seek Innovative Chemicals to Redesign Conventional Components for EVs
Rising automotive production across the globe has been a key driver for the growing sales of benzol due to its use in the manufacturing of tires and synthetic fibers. These are extensively used in the automotive industry. Recent data from the International Organization of Motor Vehicle Manufacturers shows that global vehicle production reached around 83 million units in 2023.
The growth directly correlates with high consumption, as tires and synthetic fibers constitute substantial portions of automotive parts. For instance, sales of synthetic rubber have surged with the market anticipated to showcase a CAGR of 6.2% through the forecast period.
Another example is the surge in electric vehicle (EV) production. As EVs gain immense popularity, traditional automotive components are being redesigned with new types of synthetic materials and unique composites. These materials rely heavily on benzol derivatives for their production. The compound is crucial for producing nylon and polyester fibers, which are widely used in automotive interiors and safety components.
Increasing Production of Derivatives like Phenol and Acetone Boosts Sales
The demand for benzene is on the rise due to its essential role in producing key compounds, such as phenol and acetone. The chemical acts as a critical feedstock for these compounds. These derivatives are used in a wide range of applications, including plastics, resins, adhesives, and pharmaceuticals.
The rising production of phenol in Asia Pacific, especially in China and India, is one of the key trends in the market. These countries have seen exponential growth in their chemical manufacturing sectors, which is being driven by both domestic consumption and exports.
In 2023, China's phenol production capacity reached over 3.5 million metric tons per year, up from around 2.8 million metric tons in 2020. It reflects a robust demand for benzol as a raw material.
Principal Consultant
The global benzene market recorded a CAGR of 2.4% during the historical period between 2019 and 2023. The growth rate was positive as it reached a value of USD 58,727.1 million in 2023 from USD 53,422.3 million in 2019.
The chemical compound experienced steady growth due to its wide-ranging applications across multiple industries in the historical period. The chemical industry was one of the most prominent consumers as the compound was extensively used as a feedstock for its derivatives. The automotive industry also employed it to manufacture synthetic fibers and tires.
The demand for this chemical compound is closely tied to the growth of these downstream industries. It is mainly utilized in the production of a wide range of derivatives, such as ethylbenzene, cumene, and cyclohexane. These derivatives are essential for manufacturing products like styrene, phenol, and nylon. In 2022, ethylbenzene accounted for around 50% usage of benzol due to the booming styrene and polystyrene demand.
Following the pandemic, cost-effectiveness became a primary concern for several businesses, leading to increased demand for affordable materials like benzol. International trade experienced a rapid recovery in 2021 and 2022, with global trade growing by about 13% in 2021 and over 5% year-on-year in 2022, according to the European Central Bank. This resurgence facilitated steady growth in the market during this period.
The reduced trade barriers between emerging economies interconnected different regions, boosting cross-border trade and demand for the chemical compound. This interconnectedness allowed for more efficient distribution and supply chains, making it convenient for businesses to access this essential chemical.
The growing focus on reducing waste, recyclability, and reusability in manufacturing processes also positioned the compound as a highly attractive material across various industries. Overall, the pandemic's aftermath coupled with the resurgence of global trade and a focus on sustainability, drove significant growth in the market, making it a key component in several applications.
The benzene market is anticipated to show a fairly fragmented scenario, with a diverse mix of global and regional players. Tier 1 companies like Reliance Industries Limited, China Petroleum & Chemical Corporation, Marathon Petroleum Company, Exxon Mobil Corporation, BASF SE, Shell PLC, JFE Chemical Corporation, and a few other players hold around 40 to 45% of the global share.
The aforementioned companies have extensive production capacities, integrated supply chains, and a strong presence across multiple regions, allowing them to maintain a significant share. Their ability to leverage new technology and research and development capabilities makes them dominant by a fair share.
The remaining 55 to 60% is occupied by Tier 2 and Tier 3 companies, which include small-scale and regional firms. These companies often focus on specific geographic regions or niche applications, catering to local demands and benefiting from the proximity to raw materials or customers.
Tier 2 and Tier 3 include players like SIBUR, Mitsubishi Chemical Corporation, Chevron Phillips Chemical Company LLC, and SABIC. These players may not have the same production capacity as Tier 1 companies. But, they are often more agile, which enables them to adapt quickly to changes and capitalize on emerging opportunities.
The fairly fragmented nature of the benzene market, with its mix of large-scale leaders and several small-scale regional players, creates a dynamic environment. This nature of the industry fosters competition and innovation, as companies continuously seek to enhance their product offerings, improve production efficiencies, and explore sustainable alternatives to meet evolving needs.
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The section covers the industry analysis of benzol for different countries. Demand analysis on key countries in several regions of the globe, including North America, East Asia, Europe, and others, is provided. China is anticipated to remain at the forefront in East Asia, with a value share of over 70% through 2034. In Western Europe, Germany is projected to witness a CAGR of 5.4% through 2034.
| Countries | CAGR 2024 to 2034 |
|---|---|
| United States | 5.5% |
| Germany | 5.4% |
| Japan | 5.3% |
| India | 5.2% |
| China | 4.9% |
The United States is poised to exhibit a CAGR of 5.5% between 2024 and 2034, reaching over USD 9,000 million by 2034. Currently, it holds around 48% of the share in North America, and this trend is set to continue during the forecast period.
The revival of the automotive industry in the United States is pushing demand for benzene-derived products like styrene. These are essential for the manufacturing of tires, plastics, and synthetic rubber.
In 2023, total vehicle sales in the United States reached around 15.4 million units, highlighting a steady recovery from the downturn experienced during the pandemic. This high sales is anticipated to augment demand for benzol-derived products.
As automotive production ramps up to meet growing consumer demand, the consumption of this compound is likely to rise. For instance, ExxonMobil’s recent investment in broadening its chemical plant in Baytown, Texas, is aimed at increasing the production of benzol and its derivatives, reflecting the anticipated demand.
Germany currently holds around 32% of the Western Europe benzene market share. The country is anticipated to rise at a CAGR of 5.4% during the forecast period, amounting to a value of around USD 4,950 million by 2034.
In 2023, Germany's chemical industry generated revenues exceeding USD 220 billion, with benzol playing a critical role in the production of several high-value products. It stands as one of the most unique and dynamic sectors globally due to substantial investments in research, development, and cutting-edge technologies.
A key player in this landscape is BASF, which continues to broaden its production capacities for benzene derivatives, such as styrene, phenol, and aniline. These derivatives are crucial in producing specialty chemicals used across various industries, including pharmaceuticals, construction, and consumer goods.
Another company is Covestro, which has a significant presence in Western Europe, particularly in Germany. The company has been focusing on broadening its production of polycarbonates and polyurethanes, both of which require benzol as a feedstock. These materials are considered important in the manufacturing of lightweight and durable components for the automotive and electronics industries, where Germany plays a leading role.
India’s benzene market is set to rise significantly with a CAGR of 5.2% during the forecast period. It will likely reach over USD 12,100 million by 2034. The country also holds around 56% of the share in South Asia and Pacific.
The increasing focus of high authorities on infrastructure development projects and construction activities is set to significantly push demand for benzol. It is considered an important raw material for the production of various essential compounds used in building and construction. As India undertakes massive infrastructure projects, the need for insulation materials has increased, directly boosting the consumption of the compound.
The emergence of large-scale projects like the Delhi-Mumbai Industrial Corridor (DMIC) and the expansion of metro networks in cities like Bengaluru and Chennai are anticipated to augment demand. These projects utilize benzene-derived products, such as epoxy resins and phenolic resins, which are essential for ensuring durability and safety in construction.
India’s construction industry is poised to rise at a considerable CAGR of around 7.1% in the assessment period. This high growth rate directly benefits the country’s chemical compound consumption.
The section contains information about the two leading segments. By product type, the bio-based segment is estimated to surge at a CAGR of 6.2% through 2034. By derivative type, the ethylbenzene segment will likely grow at 5.6% CAGR in the forecast period. By end-use, the chemical segment is anticipated to showcase a CAGR of 5.5% by 2034.
| Segment | Bio-based (Product Type) |
|---|---|
| Value Share (2034) | 15% |
By product type, bio-based benzol is anticipated to experience a higher growth rate compared to petroleum-based products. Bio-based products are set to showcase a CAGR of 6.2% in the assessment period. Key factors attributed to this growth include the global emphasis on sustainability and reduction of carbon footprints as well as implementation of stringent environmental regulations in developed countries.
Bio-based compounds provide a highly sustainable option due to their eco-friendly production process. These are produced using sources like lignin and biomass. A few manufacturers are focusing on allocating high budgets toward research and development in the field of bio-based chemicals. One such company is Virent and it has developed novel technologies to produce bio-based aromatics, including benzol from plant-based feedstock.
The regulatory landscape in regions like Europe and North America is pushing several manufacturers toward the adoption of bio-based chemicals across various industries. For instance, in the European Union (EU), the Renewable Energy Directive (RED II) has mandated the use of bio-based products, further pushing industries to explore bio-based benzol to comply with these regulations.
| Segment | Ethylbenzene (Derivative Type) |
|---|---|
| Value Share (2034) | 58.4% |
In terms of derivative type, ethylbenzene is anticipated to showcase a CAGR of 5.6% in the forecast period. It holds a higher share compared to other derivatives due to its extensive use in the production of styrene and its applications in a wide range of industries.
Ethylbenzene is a key precursor in the production of styrene, which is a key component in the manufacturing of polystyrene and other styrene polymers. It is widely used in packaging, automotive parts, and consumer goods due to its lightweight and durable properties. The growing demand for polystyrene among packaging material vendors, especially in the food and beverage industry, is boosting the consumption of ethylbenzene.
Key players operating in the benzene market are investing huge sums in research and development activities to broaden their product offerings. They are also focusing on taking several strategic initiatives to surge their presence worldwide.
These include partnerships with local companies, acquisitions and mergers, contracts, and novel product launches. A few small-scale companies are striving to provide cost-effective products to attract a large client base.
A few leading companies are further focusing on investing in local manufacturing facilities to reduce operating costs and gain a competitive edge. SIBUR, for instance, is one of the most prominent petrochemical firms in Russia. It offers unique solutions to a wide range of industries, such as automotive, pharmaceutical, agriculture, healthcare, and food. It has planned to construct innovative manufacturing facilities across the country to gain profit.
Industry Updates
Petroleum-based and bio-based are the key product types.
Ethylbenzene, cumene, nitrobenzene, and cyclohexane are the leading derivative types. Ethylbenzene is sub-segments into styrene and others. Cumene is segregated into phenol, bisphenol A (BPA), and acetone. Nitrobenzene is divided into aniline and others.
In terms of end-use, the industry is divided into oil and gas, chemical, paints and coatings, automotive, and others.
Key countries of North America, Latin America, Europe, East Asia, South Asia, and the Middle East and Africa have been covered in the report.
It is projected to witness a CAGR of 5.9% between 2024 and 2034.
It stood at USD 58,727.1 million in 2023.
It is anticipated to reach USD 109,685.2 million by 2034.
East Asia is set to record a CAGR of 5% and lead through 2034.
BASF SE, Braskem, SABIC, Exxon Mobil Corporation, INEOS, and LyondellBasell Industries Holdings BV are the key players.
India is anticipated to witness a 5.2% CAGR through 2034.
It costs around USD 0.96/KG in North America and USD 1.1/KG in Europe.
1. Executive Summary 2. Industry Introduction, including Taxonomy and Market Definition 3. Market Trends and Success Factors, including Macro-economic Factors, Market Dynamics, and Recent Industry Developments 4. Global Market Demand Analysis 2019 to 2023 and Forecast 2024 to 2034, including Historical Analysis and Future Projections 5. Pricing Analysis 6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034 6.1. Product Type 6.2. Derivative Types 6.3. End Use 7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Product Type 7.1. Petroleum Based 7.2. Bio Based 8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Derivative Types 8.1. Ethylbenzene 8.1.1. Styrene (vinyl benzene) 8.1.2. Others 8.2. Cumene (isopropyl benzene) 8.2.1. Phenol 8.2.2. Bisphenol A (BPA) 8.2.3. Acetone 8.2.4. Others 8.3. Nitrobenzene 8.3.1. Aniline 8.3.2. Others 8.4. Cyclohexane 8.5. Others 9. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By End Use 9.1. Oil & Gas 9.2. Chemical Industry 9.3. Paints & Coatings 9.4. Automotive 9.5. Others 10. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region 10.1. North America 10.2. Latin America 10.3. Western Europe 10.4. South Asia 10.5. East Asia 10.6. Eastern Europe 10.7. Middle East and Africa 11. North America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 12. Latin America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 13. Western Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 14. South Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 15. East Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 16. Eastern Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 17. Middle East and Africa Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 18. Sales Forecast 2024 to 2034 by Grade and Application for 30 Countries 19. Competition Outlook, including Market Structure Analysis, Company Share Analysis by Key Players, and Competition Dashboard 20. Company Profile 20.1. BASF SE 20.2. Braskem 20.3. SABIC 20.4. Exxon Mobil Corporation 20.5. INEOS 20.6. LyondellBasell Industries Holdings BV 20.7. Mitsubishi Chemical Corporation 20.8. Reliance Industries Limited 20.9. Shell PLC 20.10. SIBUR 20.11. Anellotech 20.12. Chevron Phillips Chemical Company LLC 20.13. China Petroleum & Chemical Corporation 20.14. Marathon Petroleum Company 20.15. JFE Chemical Corporation 20.16. Arkema Group 20.17. Borealis 20.18. Cabot Corporation 20.19. Celanese Corporation 20.20. Dow Chemical
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