The Global "Toluene Market" is expected to grow at a high CAGR during the forecasting period (2022-2029).
Toluene is colorless, liquid, and water-insoluble. Toluene, also known as methylbenzene, and toluol, is produced primarily by reforming naphtha during the production of gasoline. Toluene is widely used as an industrial raw material and a solvent for the manufacturing of many commercial products. It has low volatility due to the methyl group in its chemical structure, which makes it a good octane-enhancer for motor gasoline blending. Thus, demand for this product is increasing in industrial applications; thus the market is expected to grow at a high pace over the forecast period.
There is an increase in demand for toluene owing to its broader use in gasoline blends. Also, low sensitivity characteristics and high octane ratings of toluene make it ideal as fuel in heavily loaded engines. Besides, toluene is used in the blending of petrol and occurs as a by-product of styrene manufacture. Further, the increase in demand for aromatics in the petrochemical industry in the development of synthetic fibers, elastomers, agrochemicals, dyes, nail paints is emerging factors augmenting the market growth. Increasing automobile production and sales along with rising consumption of lubricants are estimated to fuel the growth of the market. For instance, according to the International Organization of Motor Vehicle Manufacturers (OICA) the global automobile production between 2000 and 2017. From 2012 to 2017 the production rate has grown up by approximately 7.5%.
Based on the application the global toluene market is broadly segmented as blends, drugs, dyes, cosmetic products, and others. Among all these blends accounted for major market share and is predicted to grow at a high CAGR of XX% over the forecast period. The rise in the application of toluene in the blends of petrol offers the maximum market potential in the global toluene market. Also, owing to rapid industrialization and expansion of oil & gas industries. Increased demand for toluene as an octane booster in gasoline has led to the growth in demand for global toluene market.
The global toluene market is segmented into North America, Europe, Asia Pacific, South America, and the Middle East & Africa. The Asia Pacific region accounted for a major market share in 2018 and is expected to grow at a high CAGR over the forecast period. The demand for toluene is predicted to surge in numerous countries of the region including China, India, Japan, Thailand, and Indonesia due to the high adoption rate by the crude oil producers and expanding oil & gas industry. In addition, an increase in construction activity, so this paint market has the potential to drive the toluene market since it is used as a solvent. For instance, according to the National Bureau of Statistics of China, in December 2018, approximately 12 million metric tons of gasoline were produced in China.
Significant players of the global toluene market are JX Nippon Oil and Energy, Chevron Phillips, Nova Chemicals, Sherwin-Williams, Total Petrochemicals, Lyondell Basel, Covestro, Royal Dutch Shell PLC, Valero, and others. The product launches, collaboration, and product agreements, and other key developments are the dominating strategies adopted by the market players to enhance their product portfolio in the toluene market. In September 2017, Sadara Chemical Company had announced the commercial startup of its toluene di-isocyanate (TDI) facility in Jubail Industrial City II, Saudi Arabia.
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