Aromatic Compounds: Introduction
- Aromatic compounds consist of one or more rings and contain alternating single and double bonds in their chemical structure. These are cyclic and conjugated compounds, wherein all ring atoms are in a network of bonds, resulting in unusual stability.
- Aromatic compounds are produced from petroleum and coal tar. These compounds are less reactive than alkenes, making them useful industrial solvents for nonpolar compounds.
- Aromatic compounds are named so because of their fragrant properties and unsaturated hydrocarbon ring structures that exhibit special properties, including unusual stability
- Aromatic compounds are used to make plastics, synthetic fabrics such as nylon, packaging materials such as styrene, and explosives
Key Drivers and Restraints of Aromatic Compounds Market
- Aromatic compounds are primarily used in the paints & coatings sector industry due to their high solvency ability. These compounds are majorly used as thinners and diluents in paints & coatings, cleaners, adhesives, etc. Aromatic compounds are used in paints & coatings, which have major application in the construction industry. Thus, rise in population and expansion of the construction industry in developing economies such as China and India are key factors likely to drive the aromatic compounds market in the next few years.
- Growth in urbanization, rise in disposable income of consumers, and increase in preference of diverse culinary lifestyles have contributed to the rise in sales of automobiles. Aromatic compound benzene is an important compound used in automobile manufacturing units such as polyurethane based foam-seating, nylon tires, injection-molded vehicle parts, and paints. Rise in demand for automobiles is driving the aromatic compounds market across the globe.
- Increase in stringent government regulations for replacement of harmful chemicals with bio-based chemicals and availability of alternatives for aromatic compounds in the market are expected to hamper the aromatic compounds market in the near future
Aromatic Compounds Market: Type Segment
- Based on type, the global market can be divided into benzene, toluene, xylene, and others
- The benzene segment is projected to hold major share of the global market during the forecast period. Benzene is further segmented into ethylbenzene, cumene, chlorobenzene, nitrobenzene, alkylbenzene, cyclohexane, and other derivatives. Benzene is a major component of gasoline and is used in the manufacture of rubber, plastics, drugs, pesticides, textile, packaging, and building & construction and many other commonly used products.
- Xylene can be further segmented into p-xylene, m-xylene, and o-xylene, while toluene can be further segmented into solvents, toluene diisocyanate, and others. Toluene is widely used in drugs, dyes, blending, cosmetic nail products, pesticides, fertilizers, etc. Thus, the toluene segment is projected to follow the benzene segment during the forecast period.
COVID-19 Impact on Aromatic Compounds Market
- On January 30, 2020, the International Health Regulations Emergency Committee of the World Health Organization (WHO) declared the Coronavirus disease (COVID-19) outbreak a public health emergency of international concern. Originating in China, the virus has spread to at least 214 countries and territories around the world.
- Several governments and private sector businesses are operating at a limited capacity or have ceased operations completely due to recent events surrounding the COVID-19 pandemic
- Manufacture of various consumer goods and other products across the globe came to a halt due to the unavailability of raw materials, shortage of labor, etc. This is expected to hamper the aromatic compounds market.
North America to Hold Leading Share of Aromatic Compounds Market
- In terms of region, the aromatic compounds market can be divided into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa
- North America is expected to hold major share of the global aromatic compounds market, followed by Asia Pacific and Europe, during the forecast period. Rise in demand for paints and coatings and increase in demand for the automotive coatings are anticipated to create lucrative opportunities for the market in North America during the forecast period.
- The aromatic compounds market in Asia Pacific is driven by the rise in application of paints & coatings in the construction industry in the region. Growth in population and expansion of the construction industry are also driving the aromatic compounds market in the region.
- Rise in demand for aromatic compounds in the pharmaceutical sector in Europe is likely to drive the market in the region during the forecast period
- The market in Latin America and Middle East & Africa is projected to expand at a moderate pace in the near future
Key Manufacturers Operating in Aromatic Compounds Market
The aromatic compounds market was consolidated in 2020. Major players have prominent presence in developed and developing countries. Key manufacturers operating in the aromatic compounds market include:
- Exxon Mobil Corporation
- Shell Chemicals
- Reliance Industries
- China National Petroleum
- INEOS Group
- Koch Industries
- The Dow Chemical Company
- Caltex Corporation
- Honeywell International Inc
- Chevron Phillips Chemical Company
- Formosa Plastics Corporation
- JX Nippon Oil & Energy
Aromatic Compounds Market: Research Scope
Aromatic Compounds Market, by Type
Aromatic Compounds Market, by Application
Aromatic Compounds Market, by End-use
- Paints & Coatings
Global Aromatic Compounds Market, by Region
- North America
- Russia & CIS
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- Latin America
- Rest of Latin America
- Middle East & Africa
- South Africa
- Rest of Middle East & Africa
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The study strives to evaluate the current and future growth prospects, untapped avenues, factors shaping their revenue potential, and demand and consumption patterns in the global market by breaking it into region-wise assessment.
The following regional segments are covered comprehensively:
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- Latin America
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1. What can be the best investment choices for venturing into new product and service lines?
2. What value propositions should businesses aim at while making new research and development funding?
3. Which regulations will be most helpful for stakeholders to boost their supply chain network?
4. Which regions might see the demand maturing in certain segments in near future?
5. What are the some of the best cost optimization strategies with vendors that some well-entrenched players have gained success with?
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