AROMATIC HYDROCARBON MARKET SIZE  (2023 - 2030)

In 2022, the Global Aromatic Hydrocarbon Market was valued at $350.6 Million and is projected to reach a market size of $547.10 Million by 2030. Over the forecast period of 2023-2030, market is projected to grow at a CAGR of 5.72%.

INDUSTRY OVERVIEW

In their chemical structure, aromatic hydrocarbons have one or more rings and alternate single and double bonds. All of the ring atoms in these cyclic, conjugated compounds are connected by a web of bonds, giving them an extraordinary level of stability. Petroleum and coal tar are used to make aromatic chemicals. These substances are advantageous industrial solvents for nonpolar substances because they are less reactive than alkenes. Because of their fragrant qualities and unsaturated hydrocarbon ring structures that display unique traits, such as remarkable stability, aromatic compounds are given their name. Plastics, synthetic textiles like nylon, packaging materials like styrene, and explosives are all made from aromatic compounds.

Increased use of aromatic compounds in a variety of end-user applications, including packaging, detergents and dyes, automobiles, electronic devices, household goods, PVC pipes and cables, and other applications, increased government investment in research and development activities, and a surge in industrialization, particularly in developing nations, are the major factors driving the rise in the demand for aromatic compounds, particularly in developing economies like India and China. Organic molecules that are cyclic and have alternating single and double bonds in their structure are known as aromatic compounds. They may be made from coal tar or petroleum, but because they are less reactive than alkenes, they are good industrial solvents for nonpolar chemicals. The primary factor driving the market growth rate is an increase in the demand for aromatic hydrocarbons by the paint and coatings sector in both developed and developing economies. The market's growth rate will be directly and favorably impacted by expanding applications for aromatic hydrocarbons, such as in pharmaceuticals and medical devices, as well as by the development and expansion of several end-user sectors, particularly in emerging nations. Growing consumer preference for a variety of culinary lifestyles, increased major company investment in research and development capabilities, rapid urbanization of developing nations and regions, increased attention to technological advancements, and modernization of production methods will all contribute to the market's expansion. However, a key obstacle to the market's expansion would be the deficiency in raw material demand and supply due to the tightness and volatility in their pricing. The market growth rate will be slowed down by high costs associated with research and development expertise, strong government rules for replacing dangerous chemicals with bio-based chemicals, the advent of inexpensive replacements, and severe international trade restrictions.

COVD-19 IMPACT ON THE AROMATIC HYDROCARBON MARKET

The World Health Organization (WHO) Worldwide Health Regulations Emergency Committee designated the COVID-19 outbreak a public health emergency of international significance on January 30, 2020. The virus started in China and has already reached at least 214 nations and territories. Due to recent events involving the COVID-19 pandemic, several governmental and private sector firms are either working at reduced capacity or have suspended operations. Due to a lack of raw materials, labor shortages, and other factors, the production of many consumer items and other products was halted globally. The market for aromatic compounds is anticip -ated as a result of this.

MARKET DRIVERS: 

The rising demand for the paint is driving the market expansion

Due to their strong capacity to dissolve, aromatic compounds are predominantly employed in the paints and coatings industry. These substances are mostly employed as diluents and thinners in adhesives, cleansers, paints, and other products. Paints and coatings, which are widely employed in the building sector, include aromatic chemicals. Thus, the market for aromatic hydrocarbons is predicted to be influenced by the growth of the building sector and the population in emerging nations like China and India.

The rise in disposable income and preference for diverse culinary lifestyles is propelling the market positively

Automobile sales have increased as urbanization, consumer discretionary money, and customer choice for a variety of gourmet lifestyles have all increased. The vital chemical benzene, which is an aromatic component, is used in the production of paints, polyurethane-based foam seats, nylon tyres, and injection-molded car parts. The global market for aromatic hydrocarbons is being driven by the increase in demand for vehicles.

MARKET RESTRAINTS:

Harmful effects of the chemical to hamper the market growth

The aromatic compound has a wide range of industrial uses and is used as a solvent. But it contains a chemical that might be harmful. Long-term and short-term exposure both have the potential to cause major health problems. Some aromatic chemicals, including benzene, have been labelled "carcinogenic to humans" by the World Health Organization's (WHO) International Agency for Research on Cancer (IARC). In the atmosphere, benzene evaporates quickly. People are mostly exposed to benzene by breathing in polluted air. Additionally, it has ties to chronic lymphocytic leukaemia (CLL) and acute lymphocytic leukaemia (ALL) (CLL). As a result, negative health impacts are limiting the expansion of the worldwide market.

AROMATIC HYDROCARBON MARKET REPORT COVERAGE:

This research report on the Enhanced water market has been segmented and sub-segmented based on Type, Application, End User and By Region.

AROMATIC HYDROCARBON MARKET – BY TYPE

• Benzene

• Toluene

• Xylene

• Others

Based on type, the aromatic hydrocarbon market can be segmented into benzene, toluene, xylene, and others. During the forecast period, the benzene sector is anticipated to account for a significant portion of the worldwide market. Ethylbenzene, cumene, chlorobenzene, nitrobenzene, alkylbenzene, cyclohexane, and other derivatives of benzene are further subdivided. A significant portion of gasoline is benzene, which is also used to make many other widely used items including rubber, plastics, medicines, insecticides, textiles, packaging, and building materials. Toluene can be further divided into solvents, toluene diisocyanate, and other compounds, whereas xylene can be further divided into p-, m-, and o-xylene. Toluene is frequently utilized in a variety of items, including herbicides, fertilizers, cosmetic nail treatments, dyes, and blends. As a result, over the projection period, the toluene sector is anticipated to behind the benzene segment.

AROMATIC HYDROCARBON MARKET - BY APPLICATION

• Solvent

• Additive

• Others

Based on application, the aromatic hydrocarbon market can be segmented into Solvent, Additive and Others. Among these, the solvent category dominated the market in 2021. Naphtha, toluene, and xylene are examples of aromatic hydrocarbons found in aromatic solvents, which are a family of solvents. In a variety of industrial sectors, these solvents are generally employed as diluents. Toluene, in particular, an aromatic solvent, is frequently employed as a chemical intermediary as well as in paints, adhesives, and varnishes. Different binders, pigments, additives, and extenders used in the creation of coatings and paints are dispersed by these groups of solvents. The development of an effective homogeneous solution is facilitated by the high rates of solvency seen in aromatic solvents including benzene, ethylbenzene, toluene, and mixed xylenes (BTEX). Additionally, these solvents are renowned for having high rates of evaporation, which aid in accelerating the curing and drying processes. There are several industrial uses for aromatic solvents. One of the main sectors where these solvents are extensively employed as thinners is paints and coatings. Aromatic solvents are also used in industrial cleaning solutions, insecticides, foundry resins, oilfield chemicals, etc. The total market share for aromatic solvents is anticipated to grow significantly over the course of the assessment period as a result of the rising demand for paints and coatings throughout the world and their expanding use in the automotive industry.

AROMATIC HYDROCARBON MARKET - BY END-USER

• Paints & Coatings

• Pharmaceuticals

• Chemicals

• Others

Based on end-user, the aromatic hydrocarbon market can be segmented into Paints & Coatings, Pharmaceuticals, Chemicals and Others. In 2021, the pharmaceutical industry accounted for almost 22% of the market for aromatic hydrocarbons, which was its greatest proportion. The pharmaceutical sector makes substantial use of benzene, an aromatic hydrocarbon. It serves as a solvent for alcohol, acetone, diethyl ether, waxes, fats, and waxes. Drug delivery can benefit from this quality. The aromatic ring of benzene has a well-established synthesis and modification route. This has application in drug discovery. Changes to the benzene ring have a significant impact on the properties of the resultant chemical. The global pharmaceutical business benefited from US$ 1.2 trillion in pharmaceutical spending in 2019, according to Lancet. The worldwide market is therefore being supported by the rise in benzene demand in medicines.

AROMATIC HYDROCARBON MARKET - BY REGION

• North America

• Europe

• The Asia Pacific

• Latin America

• The Middle East

• Africa

By region, the aromatic hydrocarbon market is grouped into North America, Europe, Asia Pacific, Latin America, The Middle East and Africa. During the forecast period, North America is anticipated to account for a significant portion of the worldwide market for aromatic compounds, followed by the Asia Pacific and Europe. The market in North America is predicted to have profitable growth during the projected period as a result of rising demand for paints and coatings and automotive coatings.

The increasing use of paints and coatings in the region's construction industry is what is driving the market for aromatic compounds in the Asia Pacific. Additionally boosting the market for aromatic compounds in the area are population growth and the rise of the building sector.

During the forecast period, the market in the area is projected to be driven by an increase in demand for aromatic compounds in the pharmaceutical industry in Europe.

Shortly, it is anticipated that the market in Latin America, the Middle East, and Africa would grow moderately.

AROMATIC HYDROCARBON MARKET - BY COMPANIES

Some of the major players operating in the aromatic hydrocarbon market include:

1. EXXON MOBIL CORPORATION

2. SHELL CHEMICALS

3. SINOPEC

4. LYONDELLBASELL

5. RELIANCE INDUSTRIES

6. CHINA NATIONAL PETROLEUM

7. SABIC

8. INEOS GROUP

9. KOCH INDUSTRIES

10. THE DOW CHEMICAL COMPANY

11. CALTEX CORPORATION

12. HONEYWELL INTERNATIONAL INC

13. CHEVRON PHILLIPS CHEMICAL COMPANY

14. FORMOSA PLASTICS CORPORATION

15. JX NIPPON OIL & ENERGY

NOTABLE HAPPENING IN THE AROMATIC HYDROCARBON MARKET

• EXPANSION- Iran's benzene supply is now self-sufficient as of April 2021. In March 2020, the Bu Ali Sina Petrochemical Plant achieved full production capacity.

• APPROVAL- Honeywell declared in February 2021 that it will give Hengyi Industries licenses and solution designs for the usage of cutting-edge reforming and aromatics technology. The Totray technology will be used by the Hengyi industries, nearly doubling benzene production.

• EXPANSION- Hengyi Petrochemical intends to launch the second phase of Brunei, its refinery and integrated petrochemical project, in February 2021. The plant will eventually be able to produce 500000 tons of benzene annually for the corporation.