Nitrobenzene Market Size, Share, Opportunities, And Trends By Application (Particle Board, Wood Adhesives, Plywood, Medium Density Fiberboard, Other Applications), By End-user Industry (Automotive, Electrical Appliances, Agriculture, Building and Construction, Other End-user Industries), And By Geography - Forecasts From 2024 To 2029

The nitrobenzene market is expected to grow at a compound annual growth rate (CAGR) of 4.12% during the forecast period. 

Nitrobenzene is a yellow, oily liquid with an odor of bitter almonds. It is available commercially at a purity of 99.9%. The driving factors for demand for nitrobenzene are the production of aniline, growing construction activities, the growing pharmaceutical industry, and its multiple uses in the chemical industry.

Nitrobenzene is used as a constituent of soap and polishes, and the growing demand for cleaning and sanitary products would create the requirement for nitrobenzene. Further, in growing construction activities where the need for spray paints is required, the demand for nitrobenzene would increase substantially.

• The production of pharmaceutical specialties and other pharmaceutical products in Germany was 31,876.386 million euros in 2022 and increased to 32,176.736 million euros in 2023. The total production of paints and thinners was 21,24,757 tons in 2022 and 20,35,573 in the country. Pharmaceutical raw materials production in the country was 4,844.092 million euros in 2022 and 4,664.429 million euros in 2023. Dyes and pigments production in the country was 3.7 billion euros in 2023.
• In July 2024, the U.S. Census Bureau and the U.S. Department of Housing and Urban Development announced building permits for 1,446,000.   
• In June 2024, the Federal government of Canada launched a $1.5 billion new program for the Co-operative House. The scheme would build thousands of new co-op homes by 2028. This is a project to provide affordable homes for people, and it will increase the number of homes in Canada.

NITROBENZENE MARKET DRIVERS:

• Increasing demand for aniline

Aniline is a significant chemical compound that is produced using nitrobenzene. It is a useful chemical that finds application in the rubber industry for processing rubber chemicals and products such as car tires, balloons, gloves, etc. With the growing automobile and medical industries, the use of rubber will also swell in demand. Further, the textile industry, where the dyeing agent is used, is manufactured by the input of Aniline; with the increase of fashionable clothing materials like jeans, jackets, etc, the demand for aniline would enlarge in application.

Anilines are used as input for pesticides and fungicides in the agricultural industry and in the manufacture of polyurethane, which is, in turn, used in the making of plastics. With the increased demand for plastic products, aniline will be utilized in the industry.

• Growing construction activities

The growth in the construction industry is due to the growing urbanization and economic development in different parts of the world. A significant part of the construction industry's development goes towards building houses, parks, hospitals, hotels, restaurants, schools, etc. for the population. This development is needed for the development of megacities worldwide. This would significantly cause the rise of material consumption in every sector, including the expanding construction and development industry.

Aniline is also used to manufacture polyurethanes, rubber processing chemicals, pesticides, fibers, dyes, and pigments. The need for nitrobenzene significantly depends on the major aniline and methylene diphenyl diisocyanate (MDI) manufacturing companies. The increased need for various MDI-based products such as adhesives, sealants, elastomers, and polyurethanes suggests that the construction industry is expanding in various regions worldwide.

• Multiple uses in the chemical industry

Nitrobenzene has a wide variety of uses in the chemical industry, although it is mostly used to manufacture aniline. Other industrial uses of nitrobenzene include electrolytic reduction to 4-aminophenol, nitration to give 1,3-dinitrobenzene, chlorination to give chlorinator benzene, sulfonation to give 3-nitrobenzene sulfonic acid, and chloro sulfonation to give 3-nitrobenzene sulfonyl chloride. The overall expansion in the chemical industry would lead to an increase in the required demand for nitrobenzene.

Nitrobenzene is also used as a solvent for cellulose ethers. This is used to modify the esterification of cellulose acetate, in the preparation of nitrocellulose (pyroxylin) derivatives, and in refining lubricating oils. Nitrobenzene is also utilized in pharmaceutical products and rubber industry applications. The use of nitrobenzene in the automobile would increase sales of the automobile industry.

Nitrobenzene Market Geographical Outlook

• The Asia Pacific region will dominate the nitrobenzene market during the forecast period.

The major economies like China, Japan, India, and South Korea dominate the Asia-Pacific region. Some of the fastest-growing emerging economies, such as ASEAN countries, are from this region. India's pharmaceutical industry is anticipated to be US$130 billion by 2030 and US$450 billion by 2047. About 20% of the global exports in generic drugs are met by India. Nitrobenzene, in terms of consumption and production, is also expected to reach a significant rate by the increased pharmaceutical industry, growing construction industry, and increased methylene diphenyl diisocyanate-based product consumption.

Nitrobenzene market restraints:

• The growing demand for bio-based chemicals will likely hinder the market's growth. Although the companies are moving towards the new production method. As such, in February 2024, Covestro implemented a unique process for producing the important chemical aniline based on plant biomass instead of petroleum for the first time. At its Leverkusen site, large quantities of bio-based aniline would be produced there so that the new technology can be further developed for production at an industrial scale.

Nitrobenzene Market Segment Analysis

• The nitrobenzene market has end-user applications in pharmaceuticals and agricultural fertilizers.

The nitrobenzene has the major application in the production of aniline. Aniline is used in pharmaceutical production, such as sulfamethizole, furosemide, mefenamic acid, sulfamethoxazole, ivacaftor, bromhexine, bupivacaine, etc. The growing demand for drugs increases the risk of chronic and infectious diseases increases the demand for nitrobenzene in the market. The pharmaceuticals production is mainly concentrated in the USA, Germany, the UK, China, and India.

Additionally, the growing population pressure and increasing population have led to the growing demand for food worldwide. The need for mass production of agricultural products is increasing. Thus, there is a need for production inputs such as diphenylamine, phenolics, herbicides, and fungicides. These chemicals are produced from aniline. As food items are needed for the large population residing in urban areas, the requirement for nitrobenzene to produce the end product would expand.

Nitrobenzene market key developments:

• In July 2023, BASF, Huntsman, Shanghai Hua Yi, Shanghai Chlor-Alkali Chemical Co. Ltd., and Sinopec Shanghai Gaoqiao Petrochemical Co. Ltd. announced separate joint MDI production in Caojing, China.  All employees in the joint venture moved to their respective organizations. The companies operated the two MDI plants located at the site in Caojing, China independently.
• In July 2023, BorsodChem inaugurated  Site IV and its new production units. The construction of the new site and units began five years ago. The investment includes constructing nitrobenzene and aniline production facilities on the new site. The technologies available are environment-friendly and ensure product quality, operational safety, and cost-effectiveness. The facilities have a sustainable development strategy aligned with the vertical integration of MDI production. The second new cogeneration power plant is also put into use, doubling the company's generation capacity to meet the company's growing demand for heat and electricity. This would generate electricity by green energy means.

The nitrobenzene market is segmented and analyzed as follows:

• By form
  • Liquid
  • Powder
• By Application
  • Aniline Production
  • Dyes and Pigments
  • Pesticides
  • Intermediate in Pharmaceuticals
  • Other Applications (including Solvent, Explosives, etc.)
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Rest of South America
  • Europe
    • United Kingdom
    • Germany
    • France
    • Italy
    • Spain
    • Rest of Europe
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Rest of the Middle East and Africa
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • Taiwan
    • Thailand
    • Indonesia
    • Rest of Asia-Pacific

1. INTRODUCTION

1.1. Market Overview

1.2. Market Definition

1.3. Scope of the Study

1.4. Market Segmentation

1.5. Currency

1.6. Assumptions

1.7. Base and Forecast Years Timeline

1.8. Key benefits for the stakeholders

2. RESEARCH METHODOLOGY  

2.1. Research Design

2.2. Research Process

3. EXECUTIVE SUMMARY

3.1. Key Findings

3.2. Analyst View

4. MARKET DYNAMICS

4.1. Market Drivers

4.1.1. Increasing demand for aniline

4.1.2. Growing construction activities 

4.1.3. Multiple uses in the chemical industry

4.2. Market Restraints

4.3. Porter’s Five Forces Analysis

4.3.1. Bargaining Power of Suppliers

4.3.2. Bargaining Power of Buyers

4.3.3. The Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4. Industry Value Chain Analysis

5. NITROBENZENE MARKET BY APPLICATION 

5.1. Introduction

5.2. Liquid

5.3. Powder

6. NITROBENZENE MARKET BY APPLICATION 

6.1. Introduction

6.2. Aniline Production

6.3. Dyes and Pigments

6.4. Pesticides

6.5. Intermediate in Pharmaceuticals

6.6. Other Applications (including Solvent, Explosives, etc.)

7. NITROBENZENE MARKET BY GEOGRAPHY

7.1. Global Overview

7.2. North America

7.2.1. United States

7.2.2. Canada

7.2.3. Mexico

7.3. South America

7.3.1. Brazil

7.3.2. Argentina

7.3.3. Rest of South America

7.4. Europe

7.4.1. United Kingdom

7.4.2. Germany

7.4.3. France

7.4.4. Italy

7.4.5. Spain

7.4.6. Rest of Europe

7.5. Middle East and Africa

7.5.1. Saudi Arabia

7.5.2. United Arab Emirates

7.5.3. Rest of the Middle East and Africa

7.6. Asia-Pacific

7.6.1. China

7.6.2. India

7.6.3. Japan

7.6.4. South Korea

7.6.5. Taiwan

7.6.6. Thailand

7.6.7. Indonesia

7.6.8. Rest of Asia-Pacific

8. COMPETITIVE ENVIRONMENT AND ANALYSIS

8.1. Major Players and Strategy Analysis

8.2. Market Share Analysis

8.3. Mergers, Acquisitions, Agreements, and Collaborations

8.4. Competitive Dashboard

9. COMPANY PROFILES 

9.1. Aarti Industries Ltd.

9.2. Aromsyn Co., Ltd.

9.3. Chemieorganics Chemical India Pvt. Ltd.

9.4. China Petrochemical Corporation (Sinopec)

9.5. Sadhana Nitro Chem Ltd.

9.6. Sumitomo Chemical Co., Ltd.

9.7. Merck KGaA, Darmstadt

9.8. Aseschem

9.9. Loba Chemie

9.10. Carl Roth

9.11. Cama Chem

9.12. Thermo Fisher Scientific Inc

9.13. Fisher Scientific

9.14. Vizag Chemicals

Aarti Industries Ltd.

Aromsyn Co., Ltd.

Chemieorganics Chemical India Pvt. Ltd.

China Petrochemical Corporation (Sinopec)

Sadhana Nitro Chem Ltd.

Sumitomo Chemical Co., Ltd.

Merck KGaA, Darmstadt

Aseschem

Loba Chemie

Carl Roth

Cama Chem

Thermo Fisher Scientific Inc

Fisher Scientific

Vizag Chemicals