April 21, 2024

Aniline Market Will Grow at Highest Pace owing to Rising Demand for Thermoplastics

Its derivatives are used in the manufacturing of various products such as polyurethanes, nylon, synthetic fibers, and rubber products. Aniline acts as a raw material or intermediate for various products such as toluenediisocyanate (TDI), methylene diphenyl diisocyanate (MDI) and others, which are used in the production of elastomers and thermoplastics. The increasing demand for light weight thermoplastics from the automotive industry is one of the major factors driving the growth of aniline market.

The Global Aniline Market is estimated to be valued at US$ 22032.95 Billion in 2024 and is expected to exhibit a CAGR of 10% over the forecast period 2024 to 2030.

Key Takeaways
Key players operating in the aniline market are Nokia Corporation, Ciena Corporation, Cisco Systems Inc., Huawei Technologies Co. Ltd, ZTE Corporation, Fujitsu Corporation, Infinera Corporation, Telefonaktiebolaget LM Ericsson, NEC Corporation and Yokogawa Electric Corporation. These key players are majorly focusing on expansion of manufacturing facilities and production of new grades to cater to the growing demand.

The major demand for aniline comes from the applications industries such as MDI, TDI, pesticides, and rubber processing chemicals. The growth in building & construction and automotive industries has been propelling the consumption of aniline and its derivatives. Asia Pacific region accounts for around 60% of global aniline demand led by China, India, and Japan.

Technological advancements in aniline production such as development of bio-based aniline using catalytic transformations are expected to make the process more sustainable and reduce dependency on crude oil. New routes using lignin and cellulose as starting material have been developed through research.

Market Trends
Increased use of composites and plastics in automotive Industry: The growing demand for light weight vehicles to improve fuel efficiency has increased the usage of composites and engineering plastics. This trend will drive the demand for aniline and its derivatives used in making thermoplastic polyurethanes and nylon.

Growing Infrastructure Development: Infrastructure development activities across regions especially in developing nations are expected to propel the demand for construction materials like concrete, cement and others. This will have a positive impact on aniline consumption.

Market Opportunities
Rising Thermoplastic Demand: Thermoplastics are replacing conventional materials in various end use industries owing to properties like recyclability and corrosion resistance. Increasing penetration of thermoplastics will spur opportunities for aniline market.

Bio-based Aniline Production: With sustainable alternatives gaining focus, developing bio-based technologies to produce aniline from renewable resources can present new opportunities for manufacturers.

Impact of COVID-19 on Aniline Market Growth
The COVID-19 pandemic has negatively impacted the growth of the global Aniline Market Size . The imposed lockdowns and restrictions led to closing down of many manufacturing facilities. This drastically reduced the demand for aniline from end use industries like rubber, pesticides, and dyes during 2020. The supply chain disruptions also created shortage of raw materials for aniline production.

However, with relaxation in lockdown norms and resumption of industrial activities from late 2020, the demand started recovering gradually. The aniline market is estimated to witness steady growth from 2021 onwards. The demand from pesticides and rubber industries remains high post pandemic for agricultural applications and production of various products like tires, hoses and belts. The textile and dye industry has also picked up pace contributing to the increasing consumption of aniline.

The key players in the aniline market need to focus on establishing flexible supply chains. Adopting innovative production technologies can help reduce costs and increase efficiency. Collaboration with end use industries can help understand demand trends and accordingly plan production. Investing in R&D for new aniline derivatives and applications would support long term growth.

Geographical Regions with High Aniline Market Value
Asia Pacific dominates the global aniline market in terms of value. Countries like China, India, Japan and South Korea are the major consumers due to large manufacturing base of downstream industries. China alone accounts for over 35% of the global aniline demand led by large scale production of agrochemicals, dyes, rubbers and plastics. North America and Western Europe are other prominent regions driven by well established chemical industries.

The aniline market in Middle East and Africa is growing at the fastest pace led by countries like Saudi Arabia, UAE and Egypt. The increasing industrialization along with initiatives by governments to develop manufacturing sectors is driving the demand for aniline from various end use industries in the region. The market players need to focus on tapping opportunities in emerging nations to maximize revenue growth potentials over the forecast period.

Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it