Ethyl Benzene Market - Forecast(2022 - 2027)

Ethyl Benzene market size is forecast to reach $28.2 billion by 2027, after growing at a CAGR of 4.3% during 2022-2027. Ethyl benzene is a colorless liquid with a gasoline-like odor and high inflammability. It is widely used in the Petrochemical industry in the manufacturing of styrene. It is also used as an intermediate material in the production of plastic products and is utilized as one of the basic raw materials in the production of various chemicals. Ethyl Benzene is a good solvent that finds its application in different sectors like in the rubber industry, ink industry, and other related industries. The global ethyl benzene market is expected to expand significantly over the forecast period owing to increasing applications in styrene production which is applied in expanding synthetic rubber and other end-use industries.

Report Coverage

The report: "Ethyl Benzene Market- Forecast (2022-2027)", by IndustryARC, covers an in-depth analysis of the following segments of the Ethyl Benzene Industry.

By Application: Styrene, Gasoline, Diethylbenzene, Natural Gas, Paint, Asphalt & Naphtha and Others.

By End-Use Industry: Packaging, Electronics, Construction, Agriculture and Others.

By Geography: North America, South America, Europe, APAC, and RoW

Key Takeaways

New product developments and increasing investments in research and development of ethyl benzene are expected to drive the growth of this market.

Among application, styrene segment is projected to lead the ethyl benzene market during the forecast period.

By Application - Segment Analysis

Styrene segment held a significant share in ethyl benzene market in 2019. Styrene is a precursor to several industrial polymers, including acrylonitrile-butadiene-styrene, polystyrene, styrene-butadiene elastomers and latex, styrene-acrylonitrile resins, and unsaturated polyester. The aforementioned styrene-based polymers, elastomers, and resins find a wide range of applications in various end-user industries, such as electronics, packaging, agriculture, petrochemicals, and construction. Innovative snow technology has been developed by key players of the industry, which represents economic and technological breakthrough in styrene production. Under this process raw materials such as ethane and benzene are dehydrogenated together to produce ethyl benzene. Such developments are further anticipated to boost global ethyl benzene demand in diverse industrial applications.

By End-User Industry - Segment Analysis

Construction segment held a significant share in ethyl benzene market in 2019 growing at a CAGR of XX% during the forecast period. Styrene acrylic emulsions offer excellent adhesion, gloss development, and water resistance in buildings and deck enamels, thus, boosting the demand for ethyl benzene in the production of styrene. Polystyrene is majorly used in disposables, packaging and low-cost consumer products. Packaging applications, such as containers, lids, closures, and vending cups are the key end-uses for polystyrene. Expandable polystyrene beads are majorly used in food and beverage packaging, cushion packaging and insulation. Enhanced grades of resins are used in higher performance applications, including home electronics and appliances. The increasing construction activities, rising automotive production, driven by increasing demand for SUV's and electric vehicles, and the growth in the pharmaceutical industry are driving the ethyl benzene demand.

The prevalence of COVID-19 has led to decreased utilization rates of refineries across the globe, resulting in supply shortages for various end-use sectors. The health crisis has, on a different note, has led to a sudden spike in demand for olefins which find usage in the formulation of sanitizers and other cleaning products.

Geography- Segment Analysis

Asia Pacific dominated the ethyl benzene market with a share of more than XX%, followed by Europe and North America with growing construction and packaging industries, and increasing application as solvent and reagents in paints and coatings, dyes, perfumes, inks, and synthetic rubber in countries, such as China, India, and Japan, the usage of ethyl benzene has been increasing in the region. In January 2018, construction of a USD 6.8 billion crude oil refinery and petrochemical complex commenced in Barmer, Rajasthan, India by Hindustan Petroleum Corporation Limited (HPCL) and Rajasthan Refinery Limited (HRRL). More petrochemical projects are coming up in Asia-Pacific, which is expected to create new demand for ethyl benzene in the coming years. With Increasing investments in public infrastructure, renewable energy, infrastructure, and commercial projects, the construction sector is expected to record growth at a moderate pace over the next five years, thereby, improving both consumer and investor confidence, in turn, stimulating the demand of ethylbenzene over the forecast period.

Drivers - Ethyl Benzene Market

Increasing usage of ethyl benzene in the production of styrene

The extensive usage of ethyl benzene for the production of styrene will drive the demand growth for ethyl benzene market. The knocking of the internal combustion (IC) engines is reduced effectively with the addition of ethyl benzene in gasoline. The octane rating of the fuel is also raised above its normal levels making it one of the efficient fuels available. The increasing demand for gasoline across the world has initiated the development of effective fuels. This demand for newer fuels is successfully being met by the addition of ethyl benzene to gasoline which in turn is driving the ethyl benzene market. The recovery of natural gas from beneath the earth's surface is accomplished smoothly by the utilization of ethyl benzene. The fueled demand for natural gas is thereby fostering the ethyl benzene market globally. Furthermore, growing demand for the ethyl benzene for packaging and low-cost consumer products will further suffice the demand growth for the ethyl benzene market.

Challenges - Ethyl Benzene Market

Health effects

The human body suffers from perilous impacts due to long and overexposure to ethyl benzene. Ethyl benzene traces are usually found in the soil and air as it easily moves from soil and water. The impacts of ethyl benzene have impelled environmental regulatory bodies to implement regulated usage of ethyl benzene in various materials. The implemented and impending regulations are together hampering the market growth globally. EPA has set an enforceable regulation for ethyl benzene known as maximum contaminant level (MCL) and stated the limit at 0.7 mg/L or 700 ppb which are protective for human health. Acute exposure of the product to humans has resulted in eye irritation, dizziness and respiratory ailments such as chest constriction and throat irritation may hamper ethyl benzene market growth.

Market Landscape

Technology launches, acquisitions and R&D activities are key strategies adopted by players in the ethyl benzene market. In 2019, the market of ethyl benzene has been consolidated by the top five players accounting for xx% of the share. Major players in the ethyl benzene market are BASF SE, BP PLC, The Dow chemical company, CPCC, CNPC, TOTAL S.A, SABIC, Exxon Mobil Corp, Jx Nippon Oil and Energy group, Royal Dutch Shell Plc, Qufu Xindi Chemical Research Limited Company, Tianjin Jixin Industrial & Trade Co., Ltd., Zhejiang Weishi Biotechnology Co., Ltd., among others.

Technological Innovation/ Geographical Expansion

In March 2018, Hengli Petrochemical Chemical Co., Ltd. has selected Badger's proprietary technologies for a 720 KTA grassroots ethylbenzene/styrene monomer (EB/SM) plant being built in China. The new plant, one of the largest EB/SM plants in China, will utilize Badger's proprietary EBMax™1 technology integrated with Badger's proprietary styrene technology.