Categories: Chemical & Material
Toluene market is expected to grow at a significant CAGR of 5.48% from 2023 to 2030, reaching a valuation of US$ 27.66 billion in 2023.
A colourless liquid with no water solubility is toluene. A CH3 group and a phenyl group are joined to form a monosubstituted molecule. The majority of toluene is created when naphtha, also known as methylbenzene, phenylmethane, and toluol, which is used to generate petrol, is reformated. Toluene is a widely used solvent and industrial raw material, producing benzene, p-xylene for PET resins, and toluene diisocyanates for polyurethane. Its chemical composition contains a methyl group, which contributes to its low volatility and makes it a desirable octane-enhancer for blending motor petrol.
The use of toluene has increased across many crucial applications due to the compound's expanding potential applications in a variety of end-use industries, including the production of insecticides and fertilisers, cosmetic nail products, medicines, and blends. The toluene market may experience increase as a result of this throughout the anticipated timeframe. The paints and coatings industry is also predicted to witness stable increase as a result of rising demand from the automotive, consumer durables, and construction sectors because toluene is widely used as a solvent for thinning paints, enamels, varnishes, and alkyd resins. This reason is anticipated to cause the toluene market to grow.
However, prices for toluene have been increasing over the past few years as a result of a shortage brought on by production issues. Toluene is a seasonal material, however despite this, its high cost is due to constant price increases. In order to enter the toluene market, this prevents firms with lower investment potential. The toluene market's expansion could be hampered by this. Additionally, the installation of strict restrictions towards volatile organic compounds (VOCs) restricts the usage of toluene in a number of end-use industries, which is anticipated to restrain market expansion in the future.
>>>Download Sample Report Now:- https://marketreportservice.com/request-sample/toluene-market-54407
The global toluene market is segmented by product type, including benzene and xylene, gasoline additives, solvents, trinitrotoluene (TNT), and toluene diisocyanate (TDI). It is categorized into ends, coatings, fuel additives, cleaning agents, heating oils, polymer production, and others. Fuel additives dominate the market, as toluene is the primary source for boosting octane levels in gasoline fuel. The end-user industry includes automotive, healthcare, oil and gas, building and construction, and packing, with the oil and gas segment holding the largest market share and being the dominant segment during the forecasted period.
Toluene is a solvent used in industrial applications like paints, glues, printing, and leather tanning processes. The chemical industry application segment is expected to dominate the market, with global chemical production expected to grow by 4.4% in 2021. The European Chemical Industry Council (AISBL) reported a 15.2% increase in worldwide chemical sales from 2020 to 2021, with China contributing 43% of global chemical sales. The global chemical production grew by 2.7% in 2022, indicating China's dominance in the market.
Toluene is used in chemical production, including benzene, xylene, and benzoic acid.
Opportunities in styrene manufacturing and toluene blending in petrol.
Experts analyze major market trends influencing the Toluene Market.
Global chemical production is expected to grow by 4.4% in 2021, with the chemical industry application segment dominating the market. The European Chemical Industry Council (AISBL) reported a 15.2% increase in worldwide chemical sales from USD 3759.89 billion in 2020 to USD 4332.38 billion in 2021. China is the largest global chemicals producer, contributing 43% of global chemical sales. Toluene, an octane booster in gasoline fuels, is used in internal combustion engines for two-stroke and four-stroke engines. Toluene di-isocyanate is a key ingredient in flexible polyurethane foams, used in the UK furniture manufacturing industry.
Toluene is also used in gasoline manufacturing and as a gasoline additive to improve octane ratings in race cars and automobiles. The chemical industry is expected to experience rapid growth in demand for TDI over the forecast period due to its widespread use in various industries.
Recent developments in the Toluene Market, even after the report's release, support the overall trends outlined in our analysis. These developments, even post-release, contribute to the ongoing market landscape.
27-Feb-2023 BASF is Shutting Down Its Toluene Diisocyanate (TDI) Plant in Germany
BASF, one of the world's largest chemical companies, has announced that it is shutting down its Toluene Diisocyanate (TDI) plant in Ludwigshafen, Germany. This news has sent shockwaves throughout the industry, as BASF is one of the major suppliers of TDI. This closure could have implications for the industry, as it will affect the availability of TDI and possibly lead to higher prices. It is yet to be seen how this decision will affect the European markets.
In September 2022, Covestro has introduced polyether polyols using biobased feedstock. Company is now offering renewable1 toluene diisocyanate (TDI) and methylene diphenyl diisocyanate (MDI) for the production of polyurethane foams.
In March 2022, Covestro has expanded the range of renewable toluene diisocyanate (TDI) and provides it to customers from different regions. This TDI can be used as a raw material for flexible polyurethane foam.
The Indian pharmaceutical industry's growth, as the largest global generic medicines provider, drives the demand for raw materials and solvents like toluene. Toluene is a widely used solvent due to its excellent properties, allowing it to dissolve various compounds. It is essential in drug manufacturing stages like extraction, purification, and formulation, aiding in the extraction of active pharmaceutical ingredients (APIs) from natural sources and forming drugs in liquid or solid dosage forms. The industry's global exports and leadership in generic medicines contribute to the demand for toluene as a vital solvent in drug production and formulation.
The toluene market in the US is booming due to China's petrochemical and refining industries' growth, driving demand for essential chemicals like benzene and xylenes.
Toluene can be used as a feedstock for energy production, particularly in toluene diisocyanate (TDI), which is used in polyurethane foams and coatings in construction and automotive industries. As China invests in renewable energy sources, it may need to produce energy-storage materials or alternatives, driving the demand for toluene-based products.
Asia Pacific accounted for the major market in the Toluene Market. Asia Pacific accounted for 44.7% market share of the global market value.
China, the largest producer of chemicals, paints, coatings, and adhesives in the Asia-Pacific, is expected to drive the market studied in China during the forecast period. In May 2021, PPG completed a 13 million USD investment in its Jiading facility, enhancing R&D capabilities and increasing plant capacity by over 8,000 tons annually. The Indian government allocated $32.2 million to the Department of Chemicals and Petrochemicals under the Union Budget 2021-22, considering launching a production-linked incentive (PLI) scheme to boost domestic manufacturing and exports, potentially boosting the toluene market.
Europe is expected to experience growth due to governmental policies promoting toluene use in regions. However, slow growth is expected due to the mature automotive market using toluene in gasoline fuel to improve fuel quality. Middle East and Africa's demand is driven by petroleum derivative production and consumption in GCC countries. Latin America is expected to experience some retarded growth in the toluene market during the review period.
By Product Type
By End-Use Industry
What is the expected growth rate of the Toluene market over the next 7 years?
The global toluene market is expected to grow at a significant CAGR of 5.48% from 2023 to 2030, reaching a valuation of US$ 27.66 billion in 2023.
Who are the major players in the Toluene market and what is their market share?
Exxon Mobil Corporation (US), Covestro AG (Germany), BP p.l.c. (UK), China Petroleum & Chemical Corporation (China), BASF SE (Germany), Royal Dutch Shell plc (The Netherlands), Formosa Chemicals & Fiber Corporation (Taiwan), Indian Oil Corporation Ltd (India), TOTAL S.A. (France), DuPont de Nemours, Inc (US), SK innovation co. Ltd (South Korea), CPC Corporation (Taiwan), GS Caltex Corporation (South Korea) and China National Petroleum Corporation (China)
What are the end-user industries driving Toluene market demand and what is their outlook?
The global toluene market is categorized into automotive healthcare, oil and gas, building and construction, and packing, with oil and gas holding the largest market share and dominating it in the forecasted period.
What are the opportunities for growth and expansion in the Toluene market?
Opportunities such as styrene manufacturing process and utilization in the blending of petrol of toluene.