Toluene is an aromatic hydrocarbon widely used as a precursor in the production of various other chemicals including benzene, xylene and styrene. It also has applications as a gasoline additive, solvent, paint thinner and many other industrial processes. The rising demand from end-use industries like automotive, chemical, construction and others have been boosting the toluene market.
The Global toluene market is estimated to be valued at US$ 28.12 Bn in 2024 and is expected to exhibit a CAGR of 6.3% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the Global Toluene market are BASF SE, Braskem SA, Chevron Phillips Chemical Company LLC, China Petroleum & Chemical Corporation (Sinopec), China National Petroleum Corporation, Covestro AG, CPC Corporation, Exxon Mobil Corporation, Formosa Chemicals & Fibre Corporation, INEOS, Lyondellbasell Industries NV, Mitsui Chemicals Inc., Mitsubishi Chemical Corporation, Royal Dutch Shell PLC, SABIC, SK Innovation Co. Ltd, Total SA, Shiv Chemicals, Pure Chemicals Co, Akshar international.
The rising demand from end-use industries is expected to open new growth opportunities for market players in the coming years. Moreover, increasing construction activities in developing regions of Asia Pacific and Middle East & Africa will further boost the product demand.
Major companies are focusing on strengthening their presence in key markets through capacity expansion plans and strategic collaborations with end-use industries to tap the high growth potential of Asia Pacific and other developing regions.
Market drivers
The key driver for the growth of Global Toluene Market Size is the rapidly growing automotive industry globally. Toluene is widely used in automobile engines as a gasoline additive to increase the octane rating of gasoline. In addition, it finds use in lacquers, thinners and paints which are abundantly used for automotive manufacturing and painting processes. With vehicles sales increasing around the world, the demand for toluene from automotive industry is projected to rise substantially over the coming years.
PEST Analysis
Political: The global toluene market is influened by several international regulations and environmental policies regarding pollution control and emission standards. Strict regulations in European Union and North America have led to development of eco-friendly production technologies.
Economic: Fluctuations in crude oil prices directly impact the production cost of toluene. As global economy recovers from the pandemic, demand from end use industries like automotive and construction is increasing thereby positively influencing the toluene market.
Social: Growing health awareness has increased demand for pharmaceuticals which use toluene as a solvent. However, strict safety norms are in place owing to the harmful effects of exposure to toluene.
Technological: Development of bio-based and oxygentated toluene production processes help reduce dependence on petroleum sources. Advances in extraction technologies have improved the yields and lowered the costs. Wide scale adoption of these innovative technologies will boost the toluene market in the long run.
In terms of value, North America represents the largest regional market for toluene accounting for over 35% of global demand in 2024. Abundant shale gas reserves, well established petrochemical industry and growing construction sector drive high consumption.
The Asia Pacific region is projected to be the fastest growing market during the forecast period. Countries like China, India, Indonesia and Vietnam are projected to account for over 40% of the incremental growth owing to rapidly expanding end use industries, economic development and rising living standards.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
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