Nitrobenzene, also known as nitrobenzol, is an organic
compound that has important industrial uses especially in the production of
aniline, used to manufacture polyurethanes, synthetic rubber and other
polymeric materials. Nitrobenzene acts as an intermediate in the production of
pharmaceuticals, explosives, pigments, lubricating oil and agrichemicals. It
can also be used in the manufacturing of synthetic resins, pigments, rubber
chemicals, corrosion inhibitors and agricultural pesticides. The nitrobenzene
market is driven by the growing pharmaceutical industry as it serves as an important
intermediate for various drugs like paracetamol, chloramphenicol, etc.
The global nitrobenzene market is estimated to be valued at US$ 17.68 Bn in
2024 and is expected to exhibit a CAGR of 5.5% over the forecast period 2024 to
2031.
Key Takeaways
Key players operating in the nitrobenzene market are
Wanhua Chemical Group Co., Ltd, Covestro AG, BASF SE, Huntsman Corporation,
Vizag chemical, Akshar International, Aarati Industries, Par Industries, Meru
Chem Pvt. Ltd., Shiv Chemicals, CDH Fine Chemical, Kamal Plastic, Greenwell
Biotech, and Panoli Intermediates (India) Pvt. Ltd.
Key players operating in the Nitrobenzene
Market Growth are focusing on
expanding their production capacities to cater to the growing demand from
end-use industries. For instance, in 2022, Wanhua Chemical Group, a leading
Chinese chemical company, announced plans to increase its annual nitrobenzene
production capacity to 450,000 tons per year.
The global nitrobenzene market is expected to be driven by the rising demand
from the pharmaceutical industry. Nitrobenzene acts as an important precursor
in the manufacturing of various APIs and drugs including antibiotics,
analgesics, and antipyretics. The increasing prevalence of diseases and growing
healthcare expenditures will boost the demand for drugs, propelling the
nitrobenzene consumption.
Technological advancements aimed at developing more efficient and sustainable
production processes are helping players increase their competitiveness.
Various companies are working on substituting traditionally used
petroleum-based raw materials with bio-based feedstock to reduce environmental
footprints.
Market Trends
Growing Adoption of Bio-Based Nitrobenzene: With rising awareness about
sustainability, various players are focusing on developing bio-based and
renewable alternatives to replace fossil fuel-derived raw materials. For
instance, researchers are exploring the potential of lignin, a major residue
from the paper industry, for producing nitrobenzene and its derivatives through
microbial conversions.
Increasing Applications in Lube Oil Production: Nitrobenzene continues gaining
traction as a raw material in the production of alkylated diphenylamine, an
important antioxidant and rust inhibitor used in automotive and industrial
lubricating oils. The massive lubricants industry offers significant
opportunities for Nitrobenzene
Companies producers.
Market Opportunities
Rise of Pharmaceutical Industry in Developing Regions: Emerging markets like
India, Brazil, China, and Southeast Asia are increasingly becoming global
pharmaceutical hubs, attributed to factors like low-cost manufacturing and
presence of qualified workforce. This provides opportunities for nitrobenzene
producers to tap into the growing API demand.
Expanding Applications in Agrochemicals: Nitrobenzene forms an intermediate in
the production of various herbicide, pesticide, and fungicide formulations. The
swelling agrochemicals industry, driven by the demand for high-value and
specialized crop protection products, offers scope for nitrobenzene consumption
growth.
Impact of COVID-19 on Nitrobenzene
Market
The COVID-19 pandemic has adversely affected the growth of the nitrobenzene
market. In 2020, demand reduced significantly with lockdowns imposed across
major economies. Several end-use industries where nitrobenzene is utilized such
as construction, automotive, pharmaceuticals experienced production halts and
supply chain disruptions. This impacted overall consumption of nitrobenzene
during the year. However, with vaccination drives and reopening of industries
in 2021, demand is recovering gradually. Though uncertainty continues due to
new virus variants, market is expected to bounce back supported by
infrastructure development programs globally.
In the pre-COVID period, the nitrobenzene market was growing at a steady pace.
Rising construction activities and expanding automotive sector were primary
demand drivers. Countries like China, India witnessed increased manufacturing
and investment in infrastructure which augmented chemical demand from
downstream industries. The pharmaceutical industry too contributed to steady
consumption. However, the pandemic disrupted economic activities worldwide
bringing the market to a standstill temporarily. Recovery is expected to be
slow in 2021 with selective lockdowns still implemented in few regions intermittently.
Going forward, market players will need to focus on strengthening supply chain
and logistics to minimize disruptions. Collaboration with end-users for
sustained off-take will be another strategy. Technology upgradation and
prioritizing employee safety are other measures to ensure resilience against
future crises. Governments support through fiscal incentives can expedite the
recovery process. Market is projected to regain momentum from 2022 onward
backed by vaccination coverage and resumption of global trade.
Geographical regions with major
concentration of Nitrobenzene market in terms of value:
Asia Pacific accounts for the largest share of the global nitrobenzene market
in terms of value. Within the region, China is the dominant country due to
large chemical production base and thriving end-use industries. China alone
contributes to over 35% of global nitrobenzene demand. Other Asian countries
like India, Japan, South Korea are also prominent consumers. Rising automotive
production in these countries along with expanding construction and
pharmaceutical sectors will continue driving the APAC nitrobenzene market.
The fastest growing region for the
Nitrobenzene market:
Middle East and Africa is projected to emerge as the fastest growing region for
the nitrobenzene market during the forecast period. This is attributed to
ongoing infrastructure development projects coupled with support from regional
governments. Countries like Saudi Arabia, UAE, Egypt, South Africa offer
lucrative opportunities owing to investments in urbanization, manufacturing and
healthcare sectors. Improving economic conditions along with rising population
will augment chemical demand from construction and automotive industries in MEA
region in coming years.
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Market
About Author:
Ravina Pandya, Content Writer, has a strong foothold
in the market research industry. She specializes in writing well-researched
articles from different industries, including food and beverages, information
and technology, healthcare, chemical and materials, etc. (https://www.linkedin.com/in/ravina-pandya-1a3984191)
