Aniline Market - Growth, Trends, and Forecasts (2023 - 2028)

The global aniline market is expected to register a CAGR of greater than 5% during the forecast period 2022-2027.

The market was negatively impacted by the COVID-19 outbreak in 2020. Owing to the COVID-19 pandemic, the supply chain was disrupted due to a worldwide lockdown. Furthermore, all the construction work and other activities were put on hold to curb the spreading of the virus, thus, negatively affecting the market.

* The major factor driving the market is the increasing demand for MDI in the coatings, adhesives, and sealants, and polyurethane industries.

* Detrimental effect of methemoglobin on health is likely to hinder the market's growth.

* Innovation in the production of aniline from biomass is expected to act as an opportunity for the market in the future.

* Asia-Pacific dominated the market studied with about 50% share and is expected to witness the highest CAGR.

Key Market Trends

Growing Demand from the Building and Construction Sector

* Aniline-based methylene diphenyl diisocyanate (MDI) is crucial for the building and construction industry. It is an important chemical used in producing rigid polyurethanes that are used as an insulating material.

* The insulating quality of rigid polyurethane foam is high, enabling builders to make walls thinner, keeping the insulating properties intact and roof profiles lower, and creating more space for the inhabitants.

* Heating and cooling costs in an average American home amount to 56% of the energy used (according to the US Department of Energy), but rigid polyurethane foam can save money while maintaining uniform temperature and reducing noise levels.

* The building and construction industry in ASEAN countries and India represents one of the fastest-growing markets and is anticipated to account for a major share of the global construction market.

* India is likely to witness an investment of around USD 1.3 trillion in housing over the next seven years, during which it is likely to witness the construction of 60 million new homes. The availability rate of affordable housing is expected to rise by around 70% in 2024.

* Thailand is one of the largest hubs for tourists and has been witnessing huge investments in the expansion and construction of malls, luxury hotels, etc. For instance, Central Pattana PCL, Thailand's largest mall operator, was likely to invest USD 722.97 million, including for store renovations, by 2022.

* All the aforementioned factors are increasing the construction output, which, in turn, is expected to have a positive impact on the aniline market during the forecast period.

Asia-Pacific to Dominate the Market

* Asia-Pacific region dominated the global market due to the region's growing construction and automotive industry. The demand is majorly expected to be generated from developing nations, such as China, India, and Indonesia.

* China is considered a global manufacturing hub. According to ITC Trademap, the total export of aniline and its salts amounted to 154.68 thousand ton in 2020 and is expected to increase over the coming years.

* In the Asia-Pacific region, China is the largest producer and consumer of polyurethane products. According to the National Bureau of Statistics of China, in 2020, the construction industry in China generated an added value of approximately CNY 7.3 trillion.

* Moreover, the construction of Indonesia's new capital on Borneo Island, to be named Nusantara, is estimated to cost USD 32.4 billion. Started in 2021, its construction is expected to act as a major driver of the market studied.

* Also, the region is the largest automotive manufacturing hub and has one of the highest agricultural land areas. Hence, the requirement for rubber tires, insecticides, pesticides, and fertilizers is likely to drive the demand for aniline in the forecast period.

* The aforementioned factors are expected to drive the demand for aniline over the forecast period in the Asia-Pacific region.

Competitive Landscape

The aniline market is consolidated in nature, with the top five players accounting for around 60% of the global market. Key players include BASF SE, Huntsman Corporation LLC, Covestro AG, Jilin Connell Chemical Industry Co. Ltd, and Wanhua Chemical Group Co. Ltd, among others.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
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