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. Stringent regulations over hazardous chemicals may negatively impact market growth. However, advancements in production technology and identification of newer applications are likely to offset this challenge.
The global Nitrobenzene Market Size is witnessing high growth on account of rising demand from end-use industries such as construction, agriculture, pharmaceuticals, and automotive. Nitrobenzene derivatives find extensive application as corrosion inhibitors, rubber chemicals, pesticides, dyes & pigments, and chemical intermediates. Rapid urbanization and growing infrastructure development activities are fueling the construction sector, thereby augmenting nitrobenzene consumption.
Key players are expanding their production capacities and geographic presence through collaborations, partnerships, and mergers & acquisitions to better cater to the growing demand. They are focusing on establishing facilities across Asia Pacific and Middle Eastern countries to leverage favourable business environment and lower production costs. Increasing foreign investments and supportive government policies are encouraging large scale manufacturing of agrochemicals and pharmaceuticals in developing Asian regions.
Market drivers
The automotive industry has been a major consumer of nitrobenzene and its derivatives such as aniline and chlorobenzene. Rising automobile production and sales driven by growing individual affordability are positively influencing the nitrobenzene market. Other key factors driving market growth include increasing agricultural productivity, expanding construction industry, and rising demand for agrochemicals, rubber chemicals, and pharmaceutical intermediates globally.
The ongoing geopolitical tensions and uncertainties are negatively impacting the growth of the nitrobenzene market. Several trade restrictions and sanctions imposed by countries amid ongoing conflicts are disrupting global supply chains. This is hampering the availability of raw materials required for the production of nitrobenzene. Rising crude oil and natural gas prices due to geopolitical issues are also escalating the manufacturing costs for producers. Furthermore, uncertainties over international trade relations and economic activities are causing major end-use industries like construction and automotive to cut down their capital investments, which is reflecting on the demand for nitrobenzene.
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