Global Aniline Market - 2024-2031

Overview

Global Aniline Market reached US$ 9.7 billion in 2023 and is expected to reach US$ 20.6 billion by 2031, growing with a CAGR of 9.9% during the forecast period 2024-2031.

The growing demand for polyurethane rigid foams is projected to continue to drive global aniline market growth. More than half of global aniline production is due to methylene diphenyl diisocyanate. MDI is used extensively in the production of stiff polyurethane foams. Rising requirements for PU insulation in the construction, automotive and plastic sectors is likely to fuel aniline market growth during the forecast period.

Increasing aniline usage in medicines is expected to boost the global market. Aniline demand as a solvent and antiknock additive is predicted to rise due to rising gasoline demand and increased industrialization, particularly in emerging countries. The EPA updated (2002) NIOSH's (1992) proposal to classify aniline as a carcinogen. It creates a favorable regulatory framework for aniline market expansion.

In 2023, North America is expected to be the second-dominant region with over 20% of the global Aniline market. Regulatory frameworks supporting energy efficiency and sustainability encourage the use of aniline-derived polyurethane foams, which are well-known for their superior insulating characteristics. Such regulations increase the need for aniline in building and construction applications. Continuous R&D resulted in the development of high-performance aniline-based products with enhanced characteristics, driving market demand.

Dynamics

Growing Demand for Automotive

Aniline is a key ingredient in the synthesis of methylene diphenyl diisocyanate, which is used to make polyurethane foams for automobile seating, insulation and other applications. The growing automobile industry, notably the rise of electric vehicles, fuels demand for aniline. According to the International Trade Administration, China is the world's largest vehicle market, both in terms of production and sales.

According to the OICA correspondent's poll, automotive manufacturing in the country would reach 26.08 million in 2021, up 3% from 25.23 million in 2020. OICA forecasts that automotive production in India increased by 30% in 2021. According to figures from the Society of Indian Automobile Manufacturers, the country manufactured 4,399,112 units of passenger cars and light vehicles in 2021.

Rising Demand for Aniline-based Methylene Diphenyl Diisocyanate (MDI)

With rising demand from industries like construction, furniture, electronics and automotive in countries such as China, India and Japan, the use of aniline-based MDI is expanding globally. Aniline-based methylene diphenyl diisocyanate is critical in the building and construction industries. MDI is predominantly utilized for polyurethane in China, which is the world's largest producer and user of polyurethane products.

It is a key chemical for the production of rigid polyurethanes, which are utilized as insulators. India has around 2,500 decorative coatings and 800 industrial coatings producers. The growing need for paints and coatings has prompted enterprises globally to expand their manufacturing facilities. It is expected to enhance global demand for aniline-based methylene diphenyl di-isocyanate.

Raw Material Price Volatility and Regulations

Aniline manufacture relies significantly on benzene, which is obtained from crude oil. Fluctuations in crude oil pricing and availability have a direct impact on benzene prices, causing cost instability for aniline producers. Global supply chain disruptions, such as those induced by geopolitical conflicts or natural catastrophes, reduced the availability of benzene and other raw materials, resulting in production delays and higher costs.

Owing to the potential environmental and health consequences, aniline manufacturing and usage are governed by strict environmental standards. Compliance with these regulations necessitates a large investment in pollution prevention and safety measures. Aniline is classed as a hazardous material, requiring special handling, storage and disposal precautions. It increases the operational expenses and complexity for manufacturers and consumers of aniline.

Segment Analysis

The global aniline market is segmented based on application, end-user and region.

Rising Demand for Building & Construction Drives the Segment Growth

Building & construction is expected to be the dominant segment with over 30% of the market during the forecast period 2024-2031. Aniline-based methylene diphenyl diisocyanate is important element in the building & construction industries. It is a key chemical for the production of rigid polyurethanes, which are utilized as insulators. In accordance to the National Statistical Office (Thailand), 280.72 thousand permits were issued in 2021, representing an increase from 273.14 in 2020.

The insulation quality of rigid polyurethane foam is great, allowing builders to make walls thinner while maintaining insulating characteristics and lowering roof profiles, resulting in more space for occupants. According to U.S. Census Bureau, building spending in U.S. has climbed from US$ 1,469.2 billion in 2020 to US$ 1,590.4 billion in 2021.

Geographical Penetration

Rapid Growth in Automotive & Construction in Asia-Pacific

Asia-Pacific is expected to be the dominant region in the global aniline market covering over 30% of the market. The region dominates the global market due to its expanding construction and automotive industries. The demand is likely to come from developing countries like China, India and Indonesia. In Asia-Pacific, China is the leading manufacturer and user of polyurethane products.

In accordance to the National Bureau of Statistics of China, construction investment in China has risen from US$ 1036 billion in 2020 to US$ 1146.5 billion in 2021. Furthermore, the region is the greatest car production hub and has one of the largest agricultural land areas. As a result, the need for rubber tires, insecticides, pesticides and fertilizers is projected to drive demand for aniline in the region.

Competitive Landscape

The major global players in the market include BASF SE, Covestro AG, Dow, Huntsman International LLC, Bayer AG, Sinopec Nanjing Chemical Industries Co., Ltd, Wanhua Chemical Group Co. Ltd., Tosoh Corporation, Sumitomo Chemical Co. Ltd. and SP Chemicals Holdings Ltd.

COVID-19 Impact Analysis

Global lockdowns and travel restrictions created logistical issues, such as shipping delays and higher transportation costs. The interruptions hampered the timely delivery of raw materials and finished aniline products, affecting production timetables and market availability. Many chemical facilities experienced staff shortages due to disease, quarantine procedures and social distancing practices. Reduced workforce impacted production capabilities and efficiency in aniline manufacturing facilities.

In response to government-mandated lockdowns and safety concerns, aniline production facilities in several regions were forced to close temporarily or operate at reduced capacity. The shutdowns reduced total production output. Aniline is an important component in the manufacturing of methylene diphenyl diisocyanate, which is used in polyurethane foams in the automotive sector. The decline in vehicle manufacturing and sales during the epidemic resulted in lower demand for aniline.

Russia-Ukraine War Impact

Aniline manufacture is dependent on benzene, which is obtained from crude oil. Russia is a major oil producer and the conflict has caused interruptions in oil supply lines, affecting the availability and pricing of benzene and so aniline. The conflict has created severe interruptions to logistical and transportation lines, particularly in Eastern Europe. The disruptions have caused delays and increased prices in the supply of raw materials and final goods, affecting the aniline market.

The conflict has increased geopolitical tensions and uncertainty, resulting in a surge in global energy costs. As aniline production is energy demanding, rising energy costs have resulted in increasing production costs for aniline manufacturers. The war-related volatility in crude oil and benzene prices has resulted in variable production costs for aniline, making it difficult for producers to maintain stable pricing and profitability.

By Application

• Methylene Diphenyl Diisocyanate (MDI)
• Dye and Pigment
• Rubber-processing
• Specialty Fiber
• Plant Protecting Products
• Others

By End-User

• Packaging
• Building & Construction
• Agriculture
• Consumer Goods
• Automotive
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• In October 2022, Covestro has announced the development of a new aniline manufacturing facility in Antwerp, Belgium, with an expenditure of more than US$ 300 million. The expansion broadens its European manufacturing network for the foam component MDI.

Why Purchase the Report?

• To visualize the global aniline market segmentation based on application, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of aniline market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global aniline market report would provide approximately 54 tables, 48 figures and 191 pages.

Target Audience 2024

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies