Ortho Xylene Market Analysis

Global Ortho Xylene Market Overview

Ortho Xylene Market Size was valued at USD 2.9 Billion in 2022. The Ortho Xylene industry is foreseen to grow from USD 3.03 Billion in the year 2023 to USD 4.30 Billion by 2032, exhibiting a compound yearly growth rate (CAGR) of 4.50% during the forecast period (2023 - 2032). Extensive use as a raw material in the production of phthalic anhydride and rising demand for isocyanates are the key market drivers enhancing the market growth.

Source: The Primary Research, Secondary Research, MRFR Database and Analyst Review

Ortho Xylene Market Trends

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  Extensive use as a raw material in the production of phthalic anhydride is driving the market growth

  
  

Market CAGR for ortho-xylene is being driven by the rising Extensive use as a raw material in the production of phthalic anhydride. Phthalic anhydride, a key chemical intermediate, is primarily manufactured through the catalytic oxidation of ortho-xylene. This compound is an important building block in the synthesis of various products, contributing to its substantial demand across diverse industries.

Phthalic anhydride holds a critical position in the production of plasticizers, which are integral components in the manufacturing of the polyvinyl chloride (PVC) and other polymers. Plasticizers enhance the flexibility and durability of PVC, making it a versatile material used in numerous applications like construction materials, automotive components, and consumer goods. The consistent demand for PVC and related products, driven by their widespread use in construction and manufacturing, directly influences the demand for ortho-xylene as a precursor in the generation of phthalic anhydride. Furthermore, ortho-xylene's role in the synthesis of phthalic anhydride extends to the production of resins and coatings. Phthalic anhydride is a key component in the manufacture of alkyd resins, which find applications in paints, varnishes, and coatings. The coatings industry, in particular, relies on these resins for their versatility, durability, and adhesion properties. As construction activities, automotive production, and consumer goods manufacturing continue to expand ly, the demand for coatings and related materials rises, subsequently driving the demand for ortho-xylene.

The plastic industry, being a major consumer of phthalic anhydride, further contributes to the growth of the ortho-xylene market. Plastic products, ranging from packaging materials to consumer goods, extensively utilize ortho-xylene-derived phthalic anhydride in their production. The ever-increasing demand for plastics across various sectors, including packaging, electronics, and healthcare, underscores the pivotal role of ortho-xylene in meeting these demands and fueling the growth of the plastics industry.

Additionally, ortho-xylene's importance in the production of unsaturated polyester resins adds another dimension to its market dominance. These resins serve as key components in the manufacturing of fiberglass-reinforced plastics used in construction, marine applications, and automotive components. The versatility and strength of unsaturated polyester resins make them valuable materials in composite manufacturing, contributing to the steady demand for ortho-xylene as a precursor in their synthesis. Thus driving the Ortho Xylene market revenue.

Ortho Xylene Market Segment Insights

Ortho Xylene Type Insights

The  Ortho Xylene market segmentation, based on type, includes Ortho-Xylene, Meta-Xylene and Para-Xylene. The para-xylene segment dominated the market, accounting for the largest market revenue due to its widespread applications in the production of purified terephthalic acid (PTA), a key precursor in the manufacturing of polyester fibres and resins. PTA is primarily derived from para-xylene through a series of chemical processes, establishing para-xylene as a crucial feedstock in the polyester value chain. The growing demand for polyester products, including textiles, packaging materials, and bottles, directly influences the demand for para-xylene. The para-xylene type's dominance in the ortho-xylene market is further reinforced by its significant role in addressing the increasing  demand for versatile and durable polyester-based materials.

Figure 1:  Ortho Xylene Market, by Type, 2022 & 2032 (USD Billion)

Source: The Primary Research, Secondary Research, MRFR Database and Analyst Review

Ortho Xylene Application Insights

The  Ortho Xylene market segmentation, based on application, includes Phthalic Anhydride, Bactericides, Herbicides and Lube Oil Additives. The phthalic anhydride category dominates the market due to its pivotal role as a key derivative of ortho-xylene. Ortho-xylene is a crucial raw material in the synthesis of phthalic anhydride, which, in turn, is extensively used in the production of plasticizers. Plasticizers, such as dioctyl phthalate (DOP), find widespread use in the manufacturing of PVC products, including cables, flooring, and medical devices, driving a substantial and consistent demand for ortho-xylene. The dominance of phthalic anhydride applications underscores ortho-xylene's integral position in the production of essential materials for diverse industries, particularly the plastics sector.

Ortho Xylene End-Use Insights

The  Ortho Xylene market segmentation, based on end use, includes Automotive, Building and construction, Paints & Coatings, Aerospace & Defense, Electric & Electronics, Agrochemical, Oil & Gas and Chemical. The building & construction category dominates the market due to the compound's integral role in the production of phthalic anhydride, a key component in the manufacturing of phthalate plasticizers. Phthalate plasticizers are widely used in the construction industry to impart flexibility and durability to polyvinyl chloride (PVC) materials, such as pipes, cables, and flooring. Additionally, ortho-xylene-derived products, including resins and coatings, play an important role in the formulation of paints and adhesives used in construction applications. The robust demand for these ortho-xylene-dependent materials in the building and construction sector underscores its dominance in driving the market. Further, the Automotive sector is experiencing the fastest growth in the ortho-xylene market.

Ortho Xylene Regional Insights

By region, the study gives market insights of North America, Europe, Asia-Pacific and the Rest of the World. The North American Ortho Xylene market area dominates this market due to a robust petrochemical industry and a high demand for phthalic anhydride, a key derivative of ortho-xylene, in the region. The well-established chemical manufacturing infrastructure, coupled with the increasing applications of ortho-xylene-derived products in construction, plastics, and coatings, contributes to North America's market dominance.

Further, the main countries studied in the market report are the US, Canada, Germany, France, the UK, Italy, Spain, Japan, China, India, Australia, South Korea, and Brazil.

Figure 2:  ORTHO XYLENE MARKET SHARE BY REGION 2022 (USD Billion)

Source: The Primary Research, Secondary Research, MRFR Database and Analyst Review

Europe Ortho Xylene market accounts for the second-largest market share owing to the requirement for the compound in the production of phthalic anhydride, which is extensively used in the manufacturing of plastics, coatings, and resins. Further, the German Ortho Xylene market held the largest market share, and the UK Ortho Xylene market was the fastest-growing market in European region.

The Asia-Pacific Ortho Xylene Market is expected to rise at the fastest CAGR from 2023 to 2032. This is due to rapid industrialization, expanding manufacturing activities, and the burgeoning demand for plastics and coatings in the region. Moreover, China’s ortho-xylene market held the largest market share, and the Indian ortho-xylene market was the fastest-growing market in the Asia-Pacific region.

Ortho Xylene Key Market Players & Competitive Insights

Leading market players are investing heavily in the research and development in order to expand their product lines, which will help the Ortho Xylene market grow even more. Market players are also undertaking different strategic activities in order to expand their  footprint, with important market developments inclusive of mergers and acquisitions, new product launches, contractual agreements, higher investments, and collaboration with the other organizations. To expand and survive in the more competitive and rising market climate, the xylene industry must offer cost-effective items.

Manufacturing locally to minimize the operational costs is one of the key business tactics used by the manufacturers in the Ortho Xylene industry to benefit the clients and grows the market sector. In recent years, the Ortho Xylene industry has offered some of the most significant advantages to several industries. Major players in the Ortho Xylene market, including Creasyn Finechem (Tianjin) Co., Ltd., Doe & Ingalls of North Carolina Inc., Dyna Chem Inc., Minda Petrochemicals Ltd., Shell Chemicals, Sonoco Chemicals, USA Petrochemical Industries Ltd., ExxonMobil Chemical Company, China National Petroleum Corporation, JXTG Nippon Oil & Energy Corporation, and others, are attempting to raise the market demand by investing in research and development operations.

ExxonMobil Chemical Company, a subsidiary of Exxon Mobil Corporation, stands as the leader in the petrochemical industry. Headquartered in Houston, Texas, the company operates as one of the biggest chemical companies ly, with a broad portfolio of products and solutions spanning various sectors. ExxonMobil Chemical is renowned for its innovation and expertise in developing advanced materials, including polymers, speciality chemicals, and fuels. The company plays an important role in providing essential raw materials for industries such as packaging, automotive, construction, and healthcare.

In November 2023, ExxonMobil Chemical Company and BASF SE announced a joint venture to build a world-scale ortho-xylene (OX) production facility in the United States. This partnership aims to leverage the companies' combined expertise and resources to meet the surging demand for OX in the North American market.

China National Petroleum Corporation (CNPC) is one of the biggest and most prominent state-owned oil and gas companies in the world. Headquartered in Beijing, China, CNPC operates across the entire spectrum of the oil and gas industry, including exploration, production, refining, marketing, and engineering. As a key player in the energy sector, CNPC is involved in domestic and international projects, with a focus on securing energy resources to meet China's growing demand. The company plays a pivotal role in upstream and downstream activities, managing vast oil and gas reserves, refining capacities, and an extensive network of pipelines.

In October 2023, China National Petroleum Corporation (CNPC) and Saudi Arabian Basic Industries Corporation (SABIC) signed a memorandum of understanding (MoU) to collaborate on the development of new technologies for producing OX from renewable feedstocks. This collaboration aims to reduce the environmental footprint of OX production and contribute to a more sustainable future.

Key Companies in the Ortho Xylene market include

• Creasyn Finechem (Tianjin) Co., Ltd.


• Doe & Ingalls of North Carolina Inc.


• Dyna Chem Inc.


• Minda Petrochemicals Ltd.


• Shell Chemicals


• Sonoco Chemicals


• USA Petrochemical Industries Ltd.


• ExxonMobil Chemical Company


• China National Petroleum Corporation


• JXTG Nippon Oil & Energy Corporation

Ortho Xylene Industry Developments

September 2023: JXTG Nippon Oil & Energy Corporation and Marubeni Corporation partnered to explore and develop joint projects related to OX production and downstream applications in Japan and Southeast Asia. This partnership aims to strengthen the companies' position in the Asian OX market and expand their business reach.

August 2023: Shell Chemicals and Indian Oil Corporation Limited (IOCL) agreed to collaborate on feasibility studies for potential investments in aromatics projects, including OX production, in India. This collaboration emphasizes to meet the growing demand for OX in the Indian market and contribute to the country's economic development.

July 2023: TotalEnergies SE and Reliance Industries Limited (RIL) signed a joint venture agreement to develop a petrochemical complex in India, including a world-scale OX production facility. This joint venture aims to leverage the companies' combined strengths and expertise to become a leading player in the Indian petrochemical industry.

Ortho Xylene Market Segmentation

Ortho Xylene Type Outlook

• Ortho-Xylene


• Meta-Xylene


• Para-Xylene

Ortho Xylene Application Outlook

• Phthalic Anhydride


• Bactericides


• Herbicides


• Lube Oil Additives

Ortho Xylene End User Outlook

• Automotive


• Building & Construction


• Paints & Coatings


• Aerospace & Defense


• Electric & Electronics


• Agrochemical


• Oil & Gas


• Chemical

Ortho Xylene Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America