Global ethylbenzene market share is expected to increase considerably over 2022-2028. This can be credited to the mounting deployment of this compound as a component of solvents, as it is a constituent of commercial xylene. Moreover, its rising employment in the production of styrene and the subsequent increase in its usage as a solvent in the rubber and chemical manufacturing industries will further augment industry demand in the years ahead. Ethylbenzene refers to a volatile organic compound present in natural products including coal tar and petroleum. The compound appears as a colorless, clear liquid and is widely used as a solvent, in fuels, and to make other chemicals including styrene.
Commendable increase in investment across the healthcare sector is among the major trends amplifying the overall ethylbenzene market size through 2022-2028. According to data from Centers for Medicare & Medicaid Services, healthcare spending in the U.S. is likely to reach over $6.2 trillion and account for over 20% of the GDP by 2028. Such factors could boost ethylbenzene production, given the use of styrene monomer as an intermediate material in the manufacturing of synthetic rubber products and plastics with key applications in healthcare and other industries. However, the growing concerns regarding ethylbenzene hazards, including throat and eye irritation, dizziness, and other neurological impacts, may hinder industry expansion to some extent over the forthcoming years.
With regards to end-use, the automobile segment will account for a remarkable share in the ethylbenzene industry by 2028. Growth from the segment is due to the robust demand for effective mobility and the thriving automotive sector, especially in Asian countries. This factor could positively influence market outlook, as acrylonitrile butadiene styrene is widely used as a substitute to metals in the automotive sector, owing to its lightweight, cost-effectiveness, and high impact strength. In addition, the high emphasis on mitigating chip shortage to boost auto production is also projected to stimulate the segmental expansion over the forecast spell.
Regionally, the Middle East and Africa ethylbenzene market is set to register a high revenue by 2028, as a result of the potential rise in demand for new construction projects across the UAE. Situations such as these could drive the regional industry dynamics, provided the adoption of technical xylene as a solvent in lacquers and paints used in construction activities. The introduction of varied schemes to help OEMs boost vehicle production in countries like Saudi Arabia will also proliferate ethylbenzene uses across the region.
Tianjin Jixin Industrial & Trade, Carbon Holdings, Changzhou Dohow Chemical, Versalis, LyondellBasell Industries Holdings, Synthos (FTF Galleon S.A.), and Chevron Philips Chemical Company are among the key companies functioning in the ethylbenzene industry. These market participants are incorporating several strategies like business expansions and new product launches to strengthen their presence in the competitive market.
The ongoing coronavirus pandemic has caused massive disruptions in food services and other industry verticals. These were mainly due to reduced workforces, rising hygiene concerns, and the subsequent decline in sales of foods from eateries, especially during the initial phase of the pandemic. These aforesaid conditions may have impacted the ethylbenzene industry share, due to the use of polystyrene as a food packaging material. Amid these unprecedented challenges, the cosmetics sector, however, witnessed a massive boom over the past months, thus boosting industry recovery.
According to CosmeticsDeisgn-Asia, Japanese cosmetics firm Shiseido recorded a 194.8% hike in operating profits, due to the escalating sales of prestige and skin beauty products across other regions and the burgeoning e-Commerce channels. This factor could amplify the deployment of ethylbenzene in the production of polystyrene for use as a finishing material in cosmetics and perfume packaging.