REPORT DESCRIPTION

Market Size and Overview:

In the year 2023, the valuation of the Aromatic Hydrocarbon Market on a global scale amounted to $370.65 Million, with a forecasted expansion leading to an anticipated market size of $547.10 Million by 2030. Throughout the forecast period spanning from 2024 to 2030, there is a projected growth trajectory for the market, indicating a Compound Annual Growth Rate (CAGR) of 5.72%.

INDUSTRY OVERVIEW

Aromatic hydrocarbons, characterized by one or more rings with alternating single and double bonds in their chemical structure, exhibit an exceptional level of stability due to the interconnected web of bonds among the cyclic, conjugated compounds' ring atoms. These compounds are derived from petroleum and coal tar, serving as valuable industrial solvents for nonpolar substances owing to their lower reactivity compared to alkenes. Named for their fragrant qualities and unique unsaturated hydrocarbon ring structures, aromatic compounds contribute to the production of various materials, including plastics, synthetic textiles like nylon, packaging materials like styrene, and explosives.

The escalating demand for aromatic compounds in diverse end-user applications such as packaging, detergents and dyes, automobiles, electronic devices, household goods, PVC pipes and cables, among others, is propelled by increased government investments in research and development activities and a surge in industrialization, notably in developing nations like India and China. Aromatic compounds, cyclic organic molecules with alternating single and double bonds, find applications in the paint and coatings sector, driving market growth in both developed and developing economies. Expanding applications, such as pharmaceuticals and medical devices, coupled with the development of various end-user sectors, especially in emerging nations, contribute to the market's positive trajectory. Factors like consumer preferences, substantial investments in research and development by major companies, rapid urbanization, technological advancements, and modernization of production methods further stimulate market expansion. However, challenges such as raw material supply constraints, high costs of research and development, stringent government regulations favoring bio-based chemicals, the emergence of cost-effective alternatives, and international trade restrictions pose impediments to market growth.

COVID-19 IMPACT ON THE AROMATIC HYDROCARBON MARKET

The World Health Organization's designation of the COVID-19 outbreak as a public health emergency of international significance on January 30, 2020, has led to disruptions in both governmental and private sector operations globally. Reduced capacity and suspended operations, driven by factors like raw material shortages and labor issues, have halted the production of numerous consumer goods and products, impacting the aromatic compound market.

MARKET DRIVERS:

Rising Demand for Paints:

The market expansion is driven by the increasing demand for paints, as aromatic compounds, known for their strong dissolving capacity, are predominantly utilized in the paints and coatings industry. These compounds serve as diluents and thinners in adhesives, cleansers, and paints, influencing the market through their incorporation in the building sector, particularly in emerging nations like China and India.

Rise in Disposable Income and Diverse Culinary Lifestyles:

The market is positively influenced by the surge in automobile sales, driven by urbanization, increased discretionary income, and consumer preferences for diverse culinary lifestyles. The essential chemical benzene, an aromatic component, plays a crucial role in the production of paints, polyurethane-based foam seats, nylon tires, and injection-molded car parts, contributing to the global demand for aromatic hydrocarbons.

MARKET RESTRAINTS:

Harmful Effects of Chemicals:

Aromatic compounds, widely used as solvents, contain chemicals that can be harmful, posing both short-term and long-term health risks. Certain aromatic chemicals, including benzene, have been classified as "carcinogenic to humans" by the World Health Organization's International Agency for Research on Cancer (IARC), limiting the global market expansion due to concerns about negative health impacts.

AROMATIC HYDROCARBON MARKET – BY TYPE

• Benzene
• Toluene
• Xylene
• Others

The aromatic hydrocarbon market, categorized by type, includes Benzene, Toluene, Xylene, and Others. Over the forecast period, Benzene is projected to dominate the global market significantly. Subdivisions of Benzene comprise derivatives such as Ethylbenzene, Cumene, Chlorobenzene, Nitrobenzene, Alkylbenzene, Cyclohexane, and others. Benzene, a major component of gasoline, finds applications in the production of widely used items such as rubber, plastics, medicines, insecticides, textiles, packaging, and building materials. Toluene, further divided into solvents, toluene diisocyanate, and other compounds, while Xylene is segmented into p-, m-, and o-xylene. Toluene, extensively used in herbicides, fertilizers, cosmetic nail treatments, dyes, and blends, is anticipated to follow the Benzene segment during the projection period.

AROMATIC HYDROCARBON MARKET - BY APPLICATION

• Solvent
• Additive
• Others

Segmented by application, the aromatic hydrocarbon market includes Solvent, Additive, and Others. In 2021, the Solvent category held dominance, with examples like Naphtha, Toluene, and Xylene, forming part of aromatic solvents. These solvents serve as diluents in various industrial sectors, with Toluene playing a crucial role in paints, adhesives, and varnishes. Aromatic solvents, known for their high rates of solvency, facilitate the creation of coatings and paints by dispersing binders, pigments, additives, and extenders. The Solvent category's substantial market share is expected to witness significant growth, driven by rising global demand for paints and coatings and their expanded usage in the automotive industry.

AROMATIC HYDROCARBON MARKET - BY END-USER

• Paints & Coatings
• Pharmaceuticals
• Chemicals
• Others

The end-user segmentation of the aromatic hydrocarbon market includes Paints & Coatings, Pharmaceuticals, Chemicals, and Others. In 2021, the pharmaceutical industry accounted for the largest proportion, approximately 22% of the market for aromatic hydrocarbons. Benzene, a significant aromatic hydrocarbon, is extensively utilized in the pharmaceutical sector as a solvent for various substances, contributing to drug delivery and drug discovery applications. The rise in benzene demand within medicines supported the global pharmaceutical business, reflecting the pharmaceutical industry's substantial contribution to the aromatic hydrocarbon market.

AROMATIC HYDROCARBON MARKET - BY REGION

• North America
• Europe
• The Asia Pacific
• Latin America
• The Middle East
• Africa

Regionally, the aromatic hydrocarbon market is categorized into North America, Europe, Asia Pacific, Latin America, The Middle East, and Africa. North America is anticipated to hold a substantial portion of the global market during the forecast period, followed by the Asia Pacific and Europe. North America's market growth is attributed to increased demand for paints and coatings, particularly automotive coatings. The Asia Pacific region sees market growth driven by the construction industry's use of paints and coatings, coupled with population growth and the expanding building sector. The European market is projected to witness growth due to increased demand for aromatic compounds in the pharmaceutical industry. Latin America, the Middle East, and Africa are expected to experience moderate growth in the aromatic hydrocarbon market.

AROMATIC HYDROCARBON MARKET - BY COMPANIES

Major players in the aromatic hydrocarbon market include:

• Exxon Mobil Corporation
• Shell Chemicals
• Sinopec
• LyondellBasell
• Reliance Industries
• China National Petroleum
• SABIC
• INEOS Group
• Koch Industries
• The Dow Chemical Company
• Caltex Corporation
• Honeywell International Inc
• Chevron Phillips Chemical Company
• Formosa Plastics Corporation
• JX Nippon Oil & Energy

NOTABLE HAPPENINGS IN THE AROMATIC HYDROCARBON MARKET

• EXPANSION (April 2021): Iran achieves self-sufficiency in benzene supply, with the Bu Ali Sina Petrochemical Plant reaching full production capacity in March 2020.
• APPROVAL (February 2021): Honeywell grants licenses and solution designs to Hengyi Industries for the implementation of advanced reforming and aromatics technology, utilizing Totray technology to nearly double benzene production.
• EXPANSION (February 2021): Hengyi Petrochemical plans the launch of the second phase of its refinery and integrated petrochemical project in Brunei, expected to produce 500,000 tons of benzene annually.