Xylene is a petrochemical obtained from crude petroleum by catalytic reforming and also from coal carbonization processes. They are manufactured primarily as a part of benzene, toluene, and xylenes aromatics that are a part of catalytic reforming. It is a colorless liquid with a sweet odor and is flammable in nature. There are primarily three types of xylenes: meta-xylene, ortho-xylene, and para-xylene, and collectively, they are referred to as total xylenes. Growing application of xylenes as a cleaning agent, paint thinners, in gasoline, pesticides, and other application areas has created growth avenues for the market growth for Xylene.
To learn more about key trends >> Download Sample Report
The aviation industry has seen an upswing in growth over the years. As per the data provided by the Ait Transport Action Group, the number of passengers carried by the global airlines increased from 4.3 billion in 2018 to 4.5 billion in 2019. Also, the average occupancy of aircraft was 82 percent greater than other forms of transport. Furthermore, in order to achieve the target of 1. 5 percent fleet fuel efficiency per year from 2010 to 2020, airlines globally have purchased aircraft to the tune of USD 1 Trillion since the year 2009, highlighting the enormous potential of the aviation sector. Aircraft use a special fuel known as Aviation Turbine Fuel (ATF) that has a higher energy content per unit volume as compared to conventional fuel. Xylene is used as a blend in aviation fuel to obtain a higher octane level of gasoline for better performance. In light of the cut-throat competition in the aviation industry and lower profit margins, it has become necessary for airlines to reduce costs by making their airplanes more efficient by improving their performance. All these aforementioned factors are likely to boost the market demand for Xylene.
The International Agency for Research on Cancer (IARC), a division of the World Health Organization (WHO), and the U.S. Environmental Protection Agency (EPA) have studied the effect of high concentration of xylene exposure. These include labored breathing, impaired pulmonary functioning, increased heart palpitations, fatigue, dizziness, among others. Furthermore, Xylene is liquid in nature, and it easily percolates into the soil and in groundwater. When it comes in contact with other chemicals underground, it can turn toxic and enter the food chain. Governments have come up with stringent laws to regulate the use of Xylene, which may hamper the growth of the market. Also, the threat from substitutes such as limonene reagents, aliphatic hydrocarbons, mixtures, aromatic hydrocarbons mixtures, will further act as a deterrent for the market growth.
Ortho-xylene is an aromatic hydrocarbon and is extensively used in the coating and plastic industry. It is predominantly used in the manufacturing of Polyethylene terephthalate(PET) bottles. With the growing demand for bottled water globally, the growth of Xylene used in the manufacture of PET bottles will see an upswing in the coming years. As per the International Bottled Water Association 2018 report, the total bottled water volume grew from 12.9 billion gallons in 2016 to 13.7 billion gallons in 2017, an increase of 7 percent. This highlights the growth potential of xylene market in the coming years
The automobile sector remains one of the most lucrative sectors in Europe's industrial activities and contributes a significant share of the region's GDP. As per the data provided by the European Commission, the automobile industry employs roughly 14 million Europeans, and the turnover generated by this industry contributes around 7 percent of the total GDP. Automobile plays a crucial role in many upstream industries such as chemicals, steel, textiles, among others. The growing demand for the electric cars will further complement the growth of the automotive industry in the coming years. As per the International Energy Agency, the totally number of electric cars sold in 2018 surpassed 3 million units globally. Xylene works as an efficient thinner and has higher drying times compared to other chemicals in varnish, synthetic enamels, adhesives, oil-based paints, and epoxys. This helps in creating a robust, protective, and glossy end finish on automobiles. Furthermore,
Asia-Pacific is not only the biggest but also one of the most diverse regions in terms of land area and population. The region's economic outlook continues to be healthy and dynamic.
To understand geography trends >> Download Sample Report
Increasing government subsidies in countries such as India and China has led to increasing investments in the construction sector to meet the growing population's demand for housing and infrastructure. In countries such as India, government-supported projects such as Pradhan Mantri Awas Yojana, whose mission is to provide housing for all till the year 2022, are providing an impetus to the residential housing construction sector. This, in turn, is positively influencing the demand for paints and varnishes that are used extensively by the construction sector. Besides, as per the World Economic Outlook report by IMF, Indonesia's economic growth increased to 5.5% in 2019, underpinned by a pick up in the infrastructure activity. Similarly, the Philippines has seen robust investments in infrastructure projects. Such developments in South East Asian countries are expected to further strengthen the growth trend in the Asia-Pacific Xylene market.
The demand from agriculture-intensive countries such as India and China will further propel the market growth since Xylene is used extensively in pesticides.
The trade war between the U.S and China, however, are causing friction in the growth of the manufacturing and construction sector. Xylene is mainly extracted from crude oil, and the recent market fluctuation in oil prices on account of oil wars is likely to impact the growth of the market. Furthermore, the recent outbreak of coronavirus has caused widespread disruptions in the supply chain and is affecting almost every industry. China is one of the biggest exporters of chemicals, and the recent pandemic has hampered the growth prospects of this region. This can, however, come as a blessing in disguise for countries like India and South Korea to fill the gap created by China's absence.
Some of the prominent players in the global Xylene market include PTT Global Chemical Public Company Limited, Merck KGaA, Braskem, Formosa Chemicals & Fibre Corp, Reliance Industries Limited, Exxon Mobil Corporation, Flint Hills Resources, SK global chemical Co. Ltd., BASF, DUpont, LOTTE Chemical CORPORATION, MP Biomedicals, Nutan Chemicals, Honeywell International Inc., Puritan Products, Tokyo Chemical Industry Co., Ltd., Doe & Ingalls, Gadiv Petrochemical Industries Ltd, Cepsa and others.