The global Aniline Market is estimated to be valued at US$ 19125.82 Mn in 2023 and is expected to exhibit a CAGR of 7.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Aniline is an aromatic organic compound with the chemical formula C6H5NH2. It is a colorless, toxic liquid that has a strong disagreeable odor. It is produced by the catalytic hydrogenation of nitrobenzene. Aniline is a precursor to many industrial chemicals. Its main use is in the manufacture of precursors for polyurethane foam, MDI, rubber processing chemicals, agricultural chemicals, dyes and pigments. It is mainly used to produce methylene diphenyl diisocyanate (MDI), which is a precursor for rigid and flexible polyurethane foams as well as spray foams, binders, sealants, and coatings. The growing construction and automotive industry globally is driving the demand for aniline to produce MDI and hence, driving the growth of the global aniline market.
Market key trends:
One of the key trends in the aniline market is growing demand for MDI and other downstream chemicals. Methylene diphenyl diisocyanate (MDI) is a precursor for polyurethane production which finds wide usage in the construction, automotive and packaging industries among others. As per estimates, over 10 million metric tons of MDI is produced annually worldwide and around 60% of MDI demand is fulfilled by aniline. Hence, the projected growth in the global polyurethane market at over 6% during the forecast period will substantially drive the demand for aniline in the coming years.
Porter’s Analysis
Threat of new entrants: The aniline market requires high R&D investments and capital to establish manufacturing facilities. Hence, the threat of new entrants is relatively low.
Bargaining power of buyers: The aniline market has several buyers from various end-use industries. However, the bargaining power of individual buyers is low due to the availability of substitutes.
Bargaining power of suppliers: Major suppliers have established presence with diverse product portfolio and economies of scale. This gives them higher bargaining power over buyers.
Threat of new substitutes: Substitutes like toluene and phenol pose moderate threat. However, aniline has certain performance advantages over substitutes.
Competitive rivalry: The global aniline market is moderately competitive due to presence of large established players. However, pricing pressure exists due to overcapacity.
Key Takeaways
The Global Aniline Market Forecast is expected to witness high growth, exhibiting CAGR of 7.0% over the forecast period 2023 to 2030, due to increasing demand from automobile and construction industries. Aniline is used in manufacturing various industrial chemicals and resins that are used in automobile and construction sectors.
Regional analysis: Asia Pacific dominates the global aniline market and is expected to grow at the fastest pace during the forecast period. Chinaaccounts for more than one-third of the global production capacity. This is attributed to presence of major aniline producers and ample availability of raw materials in the region. North America and Europe are other major markets for aniline.
Key players operating in the aniline market are BASF SE, Bayer Material Science LLC, E.I du Pont De Nemours and Company, Huntsman Corporation, Jilin Connell Chemical Industry Co., Ltd., SP Chemicals Holdings, Ltd., Sumitomo Chemical Co. Ltd., The Dow Chemical Company. Key players are investing in capacity expansion to meet growing demand for aniline.
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1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it