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Toluene Market Size (2024 - 2029)

The toluene market is projected to experience growth despite challenges posed by the COVID-19 pandemic, which significantly impacted various sectors such as automotive and chemicals. The market's expansion is primarily driven by the increasing use of toluene as a solvent, although growth is somewhat constrained by stringent governmental regulations and a shift in demand from gasoline to diesel. The benzene and xylene segment leads the market, with the potential for further growth in toluene diisocyanate production. The Asia-Pacific region, particularly China and India, holds a dominant position in terms of consumption.

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Market Size of Toluene Industry

Toluene Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
CAGR > 5.50 %
Fastest Growing Market Asia-Pacific
Largest Market Asia-Pacific
Market Concentration Low

Major Players

Toluene Market Major Players

*Disclaimer: Major Players sorted in no particular order

Toluene Market Analysis

The toluene market is expected to register a CAGR of over 5.5% during the forecast period.

The COVID-19 pandemic hindered the market badly. The impact can be seen in almost all the major sectors, including automotive, chemicals, paint and coatings, and other end-user industries. However, the market is anticipated to retain its growth trajectory in 2022.

  • One of the major factors driving the market study is the growing usage of toluene as a solvent. Stringent governmental regulations are expected to hinder the growth of the market studied.
  • Compared to gasoline, increasing demand for diesel is a restraint for the market's growth.
  • The benzene and xylene segment dominated the market and is expected to record the highest CAGR during the forecast period.
  • Growing usage in toluene diisocyanate (TDI) production is likely an opportunity.
  • Asia-Pacific dominated the global market, with the largest consumption from countries such as China and India.

Toluene Industry Segmentation

Toluene, known as methylbenzene, is a colorless, flammable liquid with a sweet, pungent odor. It is produced from petroleum as an aromatic mixture with benzene and xylene primarily by catalytic reforming and pyrolytic cracking. Toluene is also produced while making gasoline and other fuels from crude oil, coke from coal, and as a by-product in styrene manufacturing. The toluene market is segmented by derivative, application, and geography. By derivative, the market is segmented into benzene and xylene, gasoline additives, toluene diisocyanates, and other derivatives (benzoic acid, trinitrotoluene, and benzaldehyde). By application, the market is segmented into paints and coatings, adhesives and inks, explosives, the chemical industry, and other applications (pharmaceuticals, solvents, dyes). The report also covers the size and forecasts for the toluene market in 15 countries across major regions. For each segment, the market sizing and forecast have been done based on revenue (USD million).

Derivative
Benzene and Xylene
Gasoline Additives
Toluene Diisocyanates
Other Derivatives (Benzoic Acid, Trinitrotoluene, and Benzaldehyde)
Application
Paints and Coatings
Adhesives and Inks
Explosives
Chemical Industry
Other Applications (Pharmaceuticals, Solvents, Dyes, etc.)
Geography
Asia-Pacific
China
India
Japan
South Korea
Rest of Asia-Pacific
North America
United States
Canada
Mexico
Europe
Germany
United Kingdom
Italy
France
Rest of Europe
South America
Brazil
Argentina
Rest of South America
Middle-East and Africa
Saudi Arabia
South Africa
Rest of Middle-East and Africa
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Toluene Market Size Summary

The toluene market is poised for significant growth, driven by its extensive use as a solvent in various industrial applications, particularly within the chemical industry. Despite the setbacks caused by the COVID-19 pandemic, which impacted sectors such as automotive, chemicals, and paints, the market is expected to regain its growth momentum. Toluene's role in producing essential chemicals like phenol and benzoic acid, along with its application in toluene diisocyanate (TDI) production, presents substantial opportunities for market expansion. However, the market faces challenges from stringent governmental regulations and a shift in demand from gasoline to diesel, which could restrain its growth. The Asia-Pacific region, led by China and India, dominates the global market, with increasing industrial activities and investments further bolstering demand.

The fragmented nature of the toluene market sees no single player commanding a significant share, with major companies like Exxon Mobil Corporation, INEOS, LyondellBasell Industries NV, SABIC, and BASF SE playing pivotal roles. The market's growth is supported by the chemical industry's recovery and expansion, as evidenced by investments in production facilities and the introduction of renewable toluene derivatives. The use of toluene as an octane booster in gasoline and its application in manufacturing flexible polyurethane foams for furniture and bedding are key drivers of demand. As the market evolves, innovations such as biobased feedstocks for TDI production are expected to enhance sustainability and meet growing environmental standards.

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Toluene Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Drivers

      1. 1.1.1 Growing Use of Toluene as a Solvent

      2. 1.1.2 Escalating Demand from the Paints & Coatings Sector

    2. 1.2 Restraints

      1. 1.2.1 Increasing Demand for Diesel as compared to Gasoline

    3. 1.3 Industry Value Chain Analysis

    4. 1.4 Porter's Five Forces Analysis

      1. 1.4.1 Bargaining Power of Suppliers

      2. 1.4.2 Bargaining Power of Consumers

      3. 1.4.3 Threat of New Entrants

      4. 1.4.4 Threat of Substitute Products and Services

      5. 1.4.5 Degree of Competition

    5. 1.5 Feedstock Analysis

    6. 1.6 Technological Snapshot

    7. 1.7 Trade Analysis

    8. 1.8 Price Index

    9. 1.9 Regulatory Policy Analysis

  2. 2. MARKET SEGMENTATION (Market Size in Value)

    1. 2.1 Derivative

      1. 2.1.1 Benzene and Xylene

      2. 2.1.2 Gasoline Additives

      3. 2.1.3 Toluene Diisocyanates

      4. 2.1.4 Other Derivatives (Benzoic Acid, Trinitrotoluene, and Benzaldehyde)

    2. 2.2 Application

      1. 2.2.1 Paints and Coatings

      2. 2.2.2 Adhesives and Inks

      3. 2.2.3 Explosives

      4. 2.2.4 Chemical Industry

      5. 2.2.5 Other Applications (Pharmaceuticals, Solvents, Dyes, etc.)

    3. 2.3 Geography

      1. 2.3.1 Asia-Pacific

        1. 2.3.1.1 China

        2. 2.3.1.2 India

        3. 2.3.1.3 Japan

        4. 2.3.1.4 South Korea

        5. 2.3.1.5 Rest of Asia-Pacific

      2. 2.3.2 North America

        1. 2.3.2.1 United States

        2. 2.3.2.2 Canada

        3. 2.3.2.3 Mexico

      3. 2.3.3 Europe

        1. 2.3.3.1 Germany

        2. 2.3.3.2 United Kingdom

        3. 2.3.3.3 Italy

        4. 2.3.3.4 France

        5. 2.3.3.5 Rest of Europe

      4. 2.3.4 South America

        1. 2.3.4.1 Brazil

        2. 2.3.4.2 Argentina

        3. 2.3.4.3 Rest of South America

      5. 2.3.5 Middle-East and Africa

        1. 2.3.5.1 Saudi Arabia

        2. 2.3.5.2 South Africa

        3. 2.3.5.3 Rest of Middle-East and Africa

Toluene Market Size FAQs

The Toluene Market is projected to register a CAGR of greater than 5.5% during the forecast period (2024-2029)

Exxon Mobil Corporation, LyondellBasell Industries NV, BASF SE, SABIC and INEOS are the major companies operating in the Toluene Market.

Toluene Market Report Snapshots

Toluene Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)