Ortho-Xylene Market

Global Ortho-Xylene Market:

The global ortho-xylene market size reached US$ 4.0 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 5.8 Billion by 2032, exhibiting a growth rate (CAGR) of 4% during 2024-2032. The extensive growth in the building and construction sector, which significantly increases the demand for related materials, expansion of paint industries, and the advancements in polyester manufacturing units, are some of the key factors driving the market growth.

Ortho-Xylene Market Analysis:

• Major Market Drivers: The increasing utilization of ortho-xylene in the paints and coatings industries for phthalic anhydride production is primarily driving the growth of the market. Furthermore, the escalating application of ortho-xylene in the polyester industry for manufacturing purified terephthalic acid (PTA) and dimethyl terephthalate (DMT) is also contributing to the market growth. 
• Key Market Trends: The growing trend towards bio-based alternatives in the chemical industry on account of the increasing concerns about environmental sustainability and regulations on chemical usage is offering lucrative growth opportunities to the overall market.
• Competitive Landscape: Some of the leading ortho-xylene market companies include Braskem S/A, China Petroleum & Chemical Corporation (China Petrochemical Corporation), Exxon Mobil Corporation, Flint Hills Resources LLC (Koch Industries Inc.), Formosa Chemicals & Fibre Corp., Honeywell International Inc., Lotte Chemical Corporation, Nouri Petrochemical Company, Reliance Industries Limited, and SK geo centric Co. Ltd. (SK Innovation Co. Ltd.), among others. 
• Geographical Trends: According to the report, Asia Pacific accounted for the largest market share. This can be attributed to the rapid industrialization and urbanization in countries, such as China and India. This region's substantial growth in the building and construction, automotive, and chemical industries significantly contribute to the high demand for ortho-xylene.
• Challenges and Opportunities: Compliance with stringent environmental regulations regarding emissions and waste disposal poses a challenge for ortho-xylene manufacturers. However, rapid industrialization and urbanization in emerging economies present opportunities for increased ortho-xylene consumption in the construction, automotive, and electronics sectors.
   

Ortho-Xylene Market Trends:

Increasing Demand from the Paint and Coating Industry

The growing demand from the paint and coating industry across the globe is primarily driving the growth of the market. Ortho-xylene, a critical raw material for producing phthalic anhydride, plays a vital role in the manufacturing of various coatings and plasticizers. Furthermore, the rise in construction activities, especially in emerging economies, is bolstering the demand for paints and coatings, thereby stimulating the ortho-xylene market revenue. For instance, the construction industry in India is expected to reach US$ 1.4 Trillion by 2025. Similarly, North America witnessed healthy growth in the commercial construction sector due to significant investments in the United States and Canada. According to the US Census Bureau, in December 2021, construction spending in the country was estimated at a seasonally adjusted annual rate of US$ 1,639.9 Billion, 0.2% more than the revised November estimate of US$ 1,636.5 Billion. Moreover, in China, the housing authorities of Hong Kong launched several measures to push the construction of low-cost housing. The officials aim to provide 301,000 public housing units by 2030. Such significant growth in the construction industry is anticipated to positively impact the ortho-xylene market outlook in the coming years.

Expansion of the Polyester Industry

The increasing utilization of ortho-xylene in the polyester industry for the production of terephthalic acid (TPA), a key precursor in the manufacturing of polyethylene terephthalate (PET) resin, is significantly catalyzing the market growth. PET resin is further used in the production of polyester fibers and packaging materials such as bottles for beverages, food, and personal care products. Moreover, the escalating demand for packaged drinking water among consumers worldwide is driving the market for PET bottles for packaging bottled water as it offers a high shelf life. According to the British Soft Drink Association Annual Report 2021, bottled water consumption in the United Kingdom accounted for 2,542 million liters. Besides this, the bolstering usage of polyester in the expanding textile industry to manufacture sportswear and activewear is further creating a positive outlook for the ortho-xylene market. The textile industry in India substantially contributes to the Indian economy, accounting for around 14% of industrial production. After China, India is the world's second-largest manufacturer of textiles. In 2021, India exported US$ 209.63 million in textiles and apparel, a 30% increase over the previous year, according to the International Trade Administration. The surge in the textile industry and rising utilization of PET bottles are projected to propel the ortho-xylene market demand in the coming years.

Growing Product Applications in Automotives

Ortho-xylene is extensively used in the automotive industry due to its versatility and functional properties. Ortho-xylene is a key component in the production of automotive coatings and paints. These coatings protect vehicles from corrosion, weathering, and mechanical damage, enhancing the durability and lifespan of vehicles​. Moreover, ortho-xylene is increasingly being used to produce phthalic anhydride, a precursor for various plasticizers such as dioctyl phthalate (DOP). These plasticizers are essential in manufacturing flexible PVC, which is widely used in automotive components like dashboards, cables, and floor mats​. As per the ortho-xylene market overview, a significant growth in the automotive industry is offering lucrative growth opportunities to the ortho-xylene market. For instance, according to IMARC, the global passenger cars market size is projected to exhibit a growth rate (CAGR) of 7.17% during 2024-2032. Similarly, in China, approximately 23.56 million units of passenger cars were sold in 2022. Moreover, worldwide car sales grew to around 75.3 million automobiles in 2023, up from around 67.3 million units in 2022. The bolstering application of ortho-xylene in the automotive industry is anticipated to propel the ortho-xylene market share in the coming years.

Global Ortho-Xylene Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2024-2032. Our report has categorized the market based on application and end use.

Breakup by Application:

• Phthalic Anhydride
• Bactericides
• Soybean Herbicides
• Lube Oil Additives
• Others
   

Phthalic anhydride accounts for the majority of the market share

The ortho-xylene market report has provided a detailed breakup and analysis of the ortho-xylene market based on the application. This includes phthalic anhydride, bactericides, soybean herbicides, lube oil additives, and others. According to the report, phthalic anhydride represented the largest segment.

The phthalic anhydride segment holds the largest share of the global market. This dominance is primarily due to the extensive use of phthalic anhydride in the production of plasticizers, which are crucial in manufacturing flexible PVC. This segment's growth is closely tied to the construction and automotive industries, where PVC finds significant applications. As these industries continue to expand, especially in emerging economies, the demand for phthalic anhydride remains high, thereby sustaining its leading position in the market.

Breakup by End Use:

• Automotive
• Building and Construction
• Paints and Coatings
• Aerospace and Defense
• Marine
• Electrical and Electronics
• Agrochemical
• Oil and Gas
• Chemical
• Others
   

Building and Construction holds the largest share of the industry

A detailed breakup and analysis of the ortho-xylene market based on the end use has also been provided in the report. This includes automotive, building and construction, paints and coatings, aerospace and defense, marine, electrical and electronics, agrochemical, oil and gas, chemical, and others. According to the report, building and construction accounted for the largest market share.

The building and construction segment is the predominant consumer, primarily due to its extensive application in paints and coatings and producing phthalic anhydride, a key ingredient in plasticizers for PVC. The growth in this sector is propelled by the global increase in construction activities, including residential and commercial buildings, particularly in emerging economies. For instance, according to ortho-xylene market statistics by IMARC, the global building construction market size is expected to exhibit a growth rate (CAGR) of 5.13% during 2024-2032. Moreover, by 2025, the Indian construction industry is estimated to reach close to a US$ 1.4 Trillion market. With a major boost in the residential sector, it is expected that 600 million people will be living in urban centers by 2030, thereby creating a demand for about 25 million residential units. As a result, the demand for durable and versatile materials in construction activities is further anticipated to propel the growth of this segment.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

Asia Pacific leads the market, accounting for the largest ortho-xylene market share

The market research report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, Asia Pacific accounted for the largest market share.

The Asia Pacific region dominates the global market, largely due to the rapid industrialization and urbanization in countries such as China and India. This region's substantial growth in the building and construction, automotive, and chemical industries significantly contribute to the high demand. The major proportion of ortho-xylene is used in the manufacturing of phthalic anhydride that is used in the production of phthalate-based PVC plasticizers. China is the single largest market for plasticizers, with more than 40% of the global consumption. Moreover, PVC is widely used in the automotive industry, and China is by far the largest automotive manufacturer in the world since 2009, with a current production share of about 29.06%. Additionally, as per the ortho-xylene market forecast, the expanding polyester industry in the Asia Pacific, particularly for textile applications, is also contributing to the market growth. After China, India is the world's second-largest manufacturer of textiles. In 2021, India exported US$ 209.63 million in textiles and apparel, a 30% increase over the previous year, according to the International Trade Administration. The region's large population base and growing middle class also drive the demand for ortho-xylene in end-use sectors, propelling the ortho-xylene market’s recent price.

Competitive Analysis:

The key players in the global market are actively engaged in various strategic initiatives to strengthen their market positions. These include investments in capacity expansion to meet the growing demand, particularly in the Asia Pacific region. Additionally, companies are focusing on technological advancements to enhance production efficiency and environmental compliance. Mergers and acquisitions are another prominent strategy, allowing companies to diversify their product portfolios and enter new markets. Furthermore, these market leaders are increasingly investing in research and development to innovate and develop sustainable and high-performance products, responding to the changing industry requirements and stringent environmental regulations. This proactive approach by the key players is vital in maintaining their competitiveness and adapting to the dynamic market landscape.

The market research report has provided a comprehensive analysis of the competitive landscape. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

• Braskem S/A
• China Petroleum & Chemical Corporation (China Petrochemical Corporation)
• Exxon Mobil Corporation
• Flint Hills Resources LLC (Koch Industries Inc.)
• Formosa Chemicals & Fibre Corp.
• Honeywell International Inc.
• Lotte Chemical Corporation
• Nouri Petrochemical Company
• Reliance Industries Limited
• SK geo centric Co. Ltd. (SK Innovation Co. Ltd.)
   

(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)

Ortho-Xylene Market Recent Developments:

• May 2024: Researchers from Swansea University found that introducing compatible hole-transport materials (HTLs) like ortho-xylene between perovskite and carbon can significantly enhance the performance of perovskite solar cells (PSC).
• Jan 2024: Idemitsu Kosan Co., Ltd., OPTC, and Marubeni Corporation collaborated to create a supply chain dedicated to biobased purified terephthalic acid (PTA). The primary objective of this partnership is to utilize PTA in the production of biobased polyethylene terephthalate (PET), with the inaugural plant set to commence operations in Taiwan later this year. Ortho-xylene-based PTA is expected to gain immense utilization in the coming years.

Global Ortho-Xylene Market Report Scope:

Key Questions Answered in This Report:

• How has the global ortho-xylene market performed so far, and how will it perform in the coming years?
• What are the drivers, restraints, and opportunities in the global ortho-xylene market?
• What is the impact of each driver, restraint, and opportunity on the global ortho-xylene market?
• What are the key regional markets?
• Which countries represent the most attractive ortho-xylene market?
• What is the breakup of the market based on the application?
• Which is the most attractive application in the ortho-xylene market?
• What is the breakup of the market based on the end use?
• Which is the most attractive end use in the ortho-xylene market?
• What is the competitive structure of the market?
• Who are the key players/companies in the global ortho-xylene market?

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the ortho-xylene market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global ortho-xylene market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the ortho-xylene industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.