Toluene Market Analysis & Global Opportunity

The global toluene market was valued at USD 20.02 billion in 2015 and is projected to reach USD 23.41 billion by 2021 at a CAGR of 6.3%. The market is expected to be driven by the growing end-user base of toluene and its derivatives in industrial, construction, automotive, and oil & gas applications. The growing petrochemical industry in the Asia-Pacific region is also supporting the growth of the toluene market.

North America is estimated to be the fastest growing toluene market. There is high potential in the North American toluene market as the region has a vast and varied industrial base. The growth in North America is mainly attributed to the expansion of industrial and commercial infrastructure in the U.S., Canada, and Mexico. North America has the largest manufacturing base of various industries such as cosmetics, paints & coatings, pulp & paper, printing, gums, and oils. Toluene has direct applications as solvents in these industries.

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Toluene diisocyanate (TDI) is projected to be the fastest growing segment of the toluene market during the forecast period. A major part of TDI is used in the manufacture of PU foams. These foams have unique insulating properties and are widely used in the automotive, building & construction, and oil & gas industries. The PU foam industry is highly regulated and its growth is dependent on the dynamics of the crude oil market. The growth of the foam market is attributed to the developments in the construction and automotive industries in the Asia-Pacific region countries such as India, China, and South Korea.

The value chain of the toluene market comprises of raw material suppliers, manufacturing processes, distribution, and end-use industries. Some of the major raw material suppliers of toluene are, Shell Chemicals (Netherlands), BP P.L.C. (U.K.), BASF SE (Germany), Chevron Philipps Chemical Co, LLC (U.S.), and SABIC (Saudi Arabia). In the entire value chain, maximum value is added at the manufacturing stage, as, the toluene content in the aromatic extract from naphtha depends upon the process chosen for its production. Some factors, such as, the high production cost, high export & import duties, and high royalties paid to the governments add to the strong entry barriers for new entrants in the toluene market.

The companies profiled in this report include, China Petroleum & Chemical Corporation (China), China National Petroleum Corporation (China), Exxon Mobil Corporation (U.S.), Covestro AG (Germany), BP P.L.C. (U.K.), SK Innovations (South Korea), BASF SE (Germany), GS Caltex (South Korea), Formosa Chemical & Fiber Corporation (Taiwan), Royal Dutch Shell (Netherlands), and CPC Corporation (Taiwan), among others.

Exxon Mobil Corporation (U.S.), Covestro AG (Germany), and BP P.L.C. (U.K.), are Leading key players in the Toluene Market

The global market for toluene is projected to witness steady growth during the forecast period. The factors contributing towards the growth of this market are, the growth of the end-user base in the emerging economies of the Asia-Pacific and the Middle Eastern & African regions. Countries such as China and India are witnessing a healthy increase in petrochemical industrial activities because of the relocation of manufacturing facilities from the high-cost European and North American markets to the low-cost markets of the Asia-Pacific and Middle Eastern & African regions. Along with these factors, the growing end-user base is driving the market for toluene.

The global toluene market has a large number of market players; however the market is led by some of the major players, such as China Petroleum & Chemical Corporation (China), China National Petroleum Corporation (China), Exxon Mobil Corporation (U.S.), Covestro AG (Germany), and BP P.L.C. (U.K.), among others. Together, these companies account for approximately 34% share of the toluene market. The other major players in the toluene market are, SK Innovation Co., Ltd. (South Korea), BASF SE (Germany), GS Caltex (South Korea), Formosa Chemicals & Fiber Corporation (Taiwan), Royal Dutch Shell PLC (Netherlands), and CPC Corporation (Taiwan), among others.

To know about the assumptions considered for the study, download the pdf brochure

Most of these companies are leaders in the production of toluene and its derivatives. These companies are focusing on eliminating the supply chain gaps with backward or forward integration, and expansions in the emerging markets of the Asia-Pacific region in order to widen and strengthen their market shares.
Market players are concentrating on increasing their production capacities and developing cost-effective technologies. The companies are investing in establishing new facilities, mainly in the emerging regions so as to increase their global presence. All these developments are due to the increasing demand for toluene from segments such as solvents, TDI, and gasoline additives.

Expansions and backward or forward integration are the key strategies adopted by the major toluene manufacture in the recent past. The top players in the toluene market are adopting these strategies for better penetration and expansions of their businesses into new emerging regions. These new ventures would help the companies to satiate the growing demand for toluene in several applications. ExxonMobil (U.S.), and BP PLC (U.K.) are the few among the other market players who have adopted these strategies in order to strengthen their shares in the toluene market.

Moreover, the leading market players are also focusing on expanding their existing production facilities in order to meet the growing demand for toluene, especially from the Asia-Pacific region. The market players are using this strategy as an excellent strategy to optimize their production facilities in the potential toluene markets.

Related Reports:

Toluene Market by Application and Derivative (Benzene and Xylene, Solvents, Gasoline Additive, Toluene Di-Isocyanate, Benzoic Acid, Trinitrotoluene, Andbenzaldehyde) – Global Forecast to 2021

Exxon Mobil Corporation (U.S.), Covestro AG (Germany), and BP P.L.C. (U.K.), are Leading key players in the Toluene Market

The global market for toluene is projected to witness steady growth during the forecast period. The factors contributing towards the growth of this market are, the growth of the end-user base in the emerging economies of the Asia-Pacific and the Middle Eastern & African regions. Countries such as China and India are witnessing a healthy increase in petrochemical industrial activities because of the relocation of manufacturing facilities from the high-cost European and North American markets to the low-cost markets of the Asia-Pacific and Middle Eastern & African regions. Along with these factors, the growing end-user base is driving the market for toluene.

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The global toluene market has a large number of market players; however the market is led by some of the major players, such as China Petroleum & Chemical Corporation (China), China National Petroleum Corporation (China), Exxon Mobil Corporation (U.S.), Covestro AG (Germany), and BP P.L.C. (U.K.), among others. Together, these companies account for approximately 34% share of the toluene market. The other major players in the toluene market are, SK Innovation Co., Ltd. (South Korea), BASF SE (Germany), GS Caltex (South Korea), Formosa Chemicals & Fiber Corporation (Taiwan), Royal Dutch Shell PLC (Netherlands), and CPC Corporation (Taiwan), among others.

Most of these companies are leaders in the production of toluene and its derivatives. These companies are focusing on eliminating the supply chain gaps with backward or forward integration, and expansions in the emerging markets of the Asia-Pacific region in order to widen and strengthen their market shares.
Market players are concentrating on increasing their production capacities and developing cost effective technologies. The companies are investing in establishing new facilities, mainly in the emerging regions so as to increase their global presence. All these developments are due to the increasing demand for toluene from segments such as, solvents, TDI, and gasoline additives.

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Expansions and backward or forward integration are the key strategies adopted by the major toluene manufactures in the recent past. The top players in the toluene market are adopting these strategies for better penetration and expansions of their businesses into new emerging regions. These new ventures would help the companies to satiate the growing demand for toluene in several applications. ExxonMobil (U.S.), and BP PLC (U.K.) are the few among the other market players who have adopted these strategies in order to strengthen their shares in the toluene market.

Moreover, the leading market players are also focusing on expanding their existing production facilities in order to meet the growing demand for toluene, especially from the Asia-Pacific region. The market players are using this strategy as an excellent strategy to optimize their production facilities in the potential toluene markets.