July 14, 2024
Nitrobenzene Market

Expanding Nitrobenzene Market is driven by Growing Use in Pharmaceutical Industry

The nitrobenzene market offers a wide range of advantages like enhanced chemical resistance, excellent dielectric properties, and high flash point. Nitrobenzene is primarily used for the manufacturing of aniline, which is further used in rubber chemicals, pharmaceuticals, and pesticides. It also finds applications as a solvent in paints, cosmetics, and industrial cleaners.

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 include 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. Wanhua Chemical Group Co., Ltd is one of the largest producers and exporters of nitrobenzene. BASF SE and Covestro AG are also prominent players with significant market share in nitrobenzene production.

The growing demand from the pharmaceutical industry is boosting the nitrobenzene market. Nitrobenzene derivatives are used in manufacturing bulk drugs and medications. It is used as an intermediate in producing analgesic and antipyretic drugs. The increasing global disease burden and rising healthcare spending is fueling the demand.

Globally, the Nitrobenzene Market Demand is expanding in the Asia Pacific region led by China, India, and other developing countries. The availability of raw materials and low production costs are encouraging manufacturers to set up facilities in the Asia Pacific. Countries like India and China are witnessing rapid industrialization and increasing pharmaceutical production, which is propelling the nitrobenzene market growth.

Market key trends

Increasing applications in the production of sulfate chemicals is one of the key trends in the nitrobenzene market. Sulfate chemicals derived from nitrobenzene such as sulfanilic acid, sulfanilamide, and saccharin are increasingly used across industries like dyes, pharmaceuticals, agriculture, and consumer products. Nitrobenzene is an integral part in the manufacturing process of these industrial chemicals. The growing end-use industries are augmenting the demand for sulfate chemicals and subsequently nitrobenzene. This growing application is expected to drive the nitrobenzene market during the forecast period.

Porter’s Analysis

Threat of new entrants: New manufacturers will face high costs of building infrastructure for production and distribution along with compliance with strict environmental regulations making the threat of new entrants moderate.

Bargaining power of buyers: Buyers have moderate bargaining power as Nitrobenzene Market Size and Trends has substitutes however switching costs are high for most applications giving producers some market power.

Bargaining power of suppliers: Major raw material suppliers have low to moderate bargaining power due to availability of substitute raw materials and commodity products nature.

Threat of new substitutes: Threat from new substitutes is moderate as nitrobenzene has well established applications and substitutes face same compliance and manufacturing challenges.

Competitive rivalry: Intense competition exists among the major players due to maturity of the industry.

North America holds the largest share in the nitrobenzene market owing to high demand from construction and agrochemical industries of Canada and United States.

The nitrobenzene market in Asia Pacific is expected witness the fastest growth over the forecast period due to expansion of manufacturing base in China and India along with growth in construction and automotive sectors.

Geographical Regions

The nitrobenzene market in North America holds the largest share primarily due to presence of major agricultural and construction industries in United States and Canada that are major end-users of nitrobenzene. The region accounted for around 35% of the global market value in 2024.

Asia Pacific region is expected to witness the fastest growth over the forecast period 2024-2031 for the nitrobenzene market. Countries like China and India are witnessing rapid industrialization and expansion of manufacturing sector. Growth in automotive and construction industries will drive the nitrobenzene demand in Asia Pacific region. The nitrobenzene market in Asia Pacific is projected to grow at a CAGR of 6.5% during the forecast period.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it

About Author - Ravina Pandya

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. With an MBA in E-commerce, she has an expertise in SEO-optimized content that resonates with industry professionals.  LinkedIn Profile

About Author - Ravina Pandya

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. With an MBA in E-commerce, she has an expertise in SEO-optimized content that resonates with industry professionals.  LinkedIn Profile

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