Ortho xylene Market size is forecast to reach $4.3 billion by 2025, after growing at a CAGR of 4.8% during 2020-2025, owing to the extensive usage of ortho xylene in the manufacturing of phthalic anhydrides. The oxidation of o-xylene permits a simpler feed system than that of the oxidation of naphthalene because of the liquid state of o-xylene. The major factor driving the growth of the ortho xylene market globally is the increasing application of phthalic anhydride in wire & cable, swimming pool liners, roofing membrane, coated fabrics manufacturing. The wide usage of phthalic anhydride as a precursor to phthalate esters and as a plasticizer in polyvinyl chloride industries is driving the ortho xylene market substantially during the forecast period.
Ortho Xylene Market Segment Analysis – By Application
The phthalic anhydride segment held the largest share in the ortho xylene market in 2019 and is growing at a CAGR of 3.6%, owing to the growing demand for phthalic anhydride from the automotive, aviation, construction, and furniture industries because of its properties such as lightweight, chemical rotting, high transparency, resistant to weather, corrosion, abrasion and impact resistance. The phthalic anhydrides are generally used in various end-use industries as they increase the polymer’s flexibility and elongation or ease of processing by reducing the cohesive intermolecular forces along the polymer chains. In the automotive and aviation sector, phthalic anhydride is also widely used as it can be easily cut, shaped, welded, and joined in a range of styles. Owing to these extensive properties of phthalic anhydrides the demand for phthalic anhydride is on an upsurge, which is anticipated to further drive the ortho xylene market during the forecast period.
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Ortho Xylene Market Segment Analysis – By End-Use Industry
The building & construction sector held the largest share in the ortho xylene market in 2019, owing to the increasing usage of ortho xylene for phthalic anhydride production, which is then largely employed in the production of polyvinyl chloride (PVC). Due to the extensive properties of Polyvinyl chloride such as low cost, high strength, and dimensional stability, the demand for PVC is increasing in the building and construction sectors for applications such as flooring, wiring, and plumbing. Building and construction activities are expanding at a lucrative rate across the world. According to the US Census Bureau, in February 2020 total construction was at a seasonally adjusted annual rate of 1,366,697 which is 6.0 percent above the February 2019 rate of 1,288,951. According to the European Commission, the total construction investment in Germany increased by 9.5% over 2008-2015. The building and construction activities are also increasing owing to the various government initiatives such as Foreign Direct Investments (FDI). Thus with the increasing building and construction sector, the demand for polyvinyl chloride will also increase, which is anticipated to propel the ortho xylene market during the forecast period.
Ortho Xylene Market Segment Analysis – By Geography
Asia Pacific region held the largest share in the ortho xylene market in 2019 up to 31%, owing to the flourishing automotive and construction sector in the region. According to the International Trade Centre (ITC), in 2018 India held the largest share of 17.8% in world imports of phthalic anhydride i.e. worth USD 158,974 while only 3.1% of exports were made. According to the International Trade Administration (ITA), the Chinese construction industry is forecasted to grow at an annual average of 5% in real terms between 2019 and 2023. Moreover, the Indian government has initiated projects, such as ‘100 smart cities’ and ‘Housing for All by 2022,’ which are expected to drive the Indian residential construction market over the forecast period. Such initiatives are leading to increased building and construction activities by the government in the region. In 2018, according to OICA, the automotive production in India, Thailand, Indonesia, and Malaysia has increased up to 5174645, 2167694, 1343714, and 564800, i.e., 8.0%, 9.0%, 10.3%, and 12.2% higher than the previous year due to rising per capita income of the individuals which further led to the massive demand for advanced automotive manufacturing in the APAC region. Thus with the flourishing automotive and construction industry, the demand for phthalic anhydride is also substantially increasing, which is anticipated to drive the ortho xylene market in APAC during the forecast period.
Ortho Xylene Market Drivers
Growing Applications Of Phthalic Anhydride
Phthalic anhydride is often used as a monomer for synthetic resins such as alkyd resins, glyptal, and polyester resins, which are used for heat-resistant paints, marine coatings, and insulation varnishes applications. Phthalic anhydride is also used as a precursor of anthraquinone, phthalein, rhodamine, phthalocyanine, fluorescein, and xanthene dyes, which are used for medical diagnosis research. Also, Phthalic anhydrides are used to yield antibiotics for bowel surgery and infections of the colon such as phenolphthalein, benzoic acid, phthalylsulfathiazole, and orthophthalic acid. Functional characterization and molecular modeling of methyl catechol 2,3-dioxygenase from o-xylene. Moreover, phthalic anhydride is an important chemical intermediate in the plastics industry from which numerous phthalate esters have derived that function as plasticizers in synthetic resins. These extensive properties and applications of phthalic anhydride are driving its demand in the market, which acts as a driver for the ortho xylene market.
Increasing Aviation Industry
There is an increasing demand for ortho xylene from the aerospace sector as a lube oil additive. According to the International Trade Administration (ITA), in 2019 China was the world’s second-largest civil aerospace and aviation services markets and one of the fastest-growing markets. In 2016, according to Boeing, China is estimated to require around 6,810 new commercial aircraft, valued at USD 1 trillion, over the next two decades. By the end of 2018, China had more than 59 airlines and 3,615 civil aircraft (an increase of 10% over 2017). According to the International Trade Administration (ITA), in 2018 the Indian government spent a total of $645 in the civil aviation sector. Also, according to Boeing India is expected to drive the demand for 2,300 aircrafts worth US$320 billion over the next 20 years. Thus, with the increasing aerospace industry, the demand for ortho xylene will also increase, which acts as a driver for the ortho xylene market during the forecast period.
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Ortho Xylene Market Challenges
Health Hazards Due To Exposure of Phthalic Anhydride
Exposure to phthalic anhydride may occur by inhalation of its aerosol and by ingestion. The substance is severely irritating to the eyes, skin, and respiratory tract on short term exposure while long term exposure may cause skin sensitization, conjunctivitis, rhinitis, rhino conjunctivitis, bronchitis, and irritation of the skin and mucous membranes of the respiratory tract. Also, exposure to phthalic anhydride vapor causes congestion, irritation, and injury to lung cells. Xylene has been found to bioaccumulate to very modest levels (e.g., bioconcentration factors of <100). These health hazards of phthalic anhydride may restrain the ortho xylene market growth during the forecast period.
Covid-19 Impact on The Ortho Xylene Market
The COVID-19 pandemic outbreak is having a huge impact on the automotive industry. The production of automobiles has been disruptively stopped, contributing to a major loss in the total automotive sectors. According to the European Automobile Manufacturers Association, In June 2020, demand for new commercial vehicles across the EU remained weak (-20.3%), although the rate of decline slowed compared to April and May. Three out of the four largest markets in the region posted double-digit percentage declines last month: Germany (-30.5%), Spain (-24.2%), and Italy (-12.8%), while France recorded a modest increase (+2.2%). With the decrease in automotive production, the demand for ortho xylene has significantly fallen, which is having a major impact on the ortho xylene market.
Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the ortho xylene market. In 2019, the market of ortho xylene has been consolidated by the top five players accounting for xx% of the share. Major players in the ortho xylene market are Royal Dutch Shell PLC, Reliance Industries Limited, China Petroleum & Chemical Corporation, Exxon Mobil Corporation, and Formosa Chemicals & Fibre Corp.
Asia-Pacific dominates the diketene market, owing to the increasing demand for ortho xylene from the automotive industries to manufacture interior parts and bumpers of automobiles. According to OICA, the production of light commercial vehicles has augmented by 10.2 % in 2018 in the APAC region.
Ortho xylene is an intermediate for phthalic anhydride which is used in the production of PVC. And because of its lightweight, durability, readily shapeable quality, and attractive appearance, PVC is widely used in the automotive industry. It has a lower cost of manufacturing methods compared to the cost of other methods, which is driving the ortho xylene market growth.
Due to the Covid-19 outbreak, all the building and construction activities are stopped until the pandemic, no new orders can be taken over neither the existing order production could be completed, which is heavily affecting the ortho xylene market negatively.
Related Reports :
A. Global Phthalic Anhydride Market
B. Plasticizers Market
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