Xylene Market Forecast 2023 - 2031

By Type :

The type is categorized into ortho-xylene, meta-xylene, para-xylene, and mixed xylene. In 2022, the para-xylene segment accounted for the highest market share in the xylene market. Para-xylene (PX), a key organic compound, is the primary raw material used to produce terephthalic acid (PTA), an essential component in the manufacturing of polyethylene terephthalate (PET). The demand for PET is increasing driven by several factors, including rising disposable incomes, urbanization, and growing consumer preference for packaged goods. PET's versatility, strength, and cost-effectiveness make it an attractive material for various applications, fueling the demand for para-xylene. Significant growth in the packaging industry is driving the demand for para-xylene in PET manufacturing. For instance, according to the report by the Indian Investment Promotion and Facilitation Agency report in October 2021, The India Packaging Market is expected to reach USD 204.81 Bn by 2025, registering a CAGR of 26.7% during the period of 2020-2025. thus, the growing packaging industry is driving segment growth across the globe.

Moreover, the meta-xylene segment is expected to hold the highest CAGR over the forecast period. The fastest-growing type of xylene is m-xylene, driven by its increasing demand in the production of high-performance solvents and specialty chemicals. M-xylene is used in the formulation of high-solvency coatings, adhesives, and lubricants, which are finding increasing applications in various industries, including automotive, electronics, and construction, which is expected to create lucrative opportunities.

By Application :

The application segment is categorized into solvents, monomers, specialty chemicals, and others. In 2022, the solvents segment accounted for the highest market share in the xylene market. Xylene is a solvent used in the printing, rubber, and leather industries. Xylene is used in the leather industry as a glue additive. increasing investment in the leather industry is driving the segment's growth. For instance, in February 2022, Hermès announced plans to open new leather goods factories in France to meet demand for its Birkin and Kelly handbags. The company's goal was to increase production capacity as these products became more difficult to find in stores. The company also opened a new 50,600-square-foot building next to the location of its current facility in the New Aquitane region. The new factory will eventually house 250 artisans, the majority being 210 leather artisans with the addition of 40 glove makers. The growing investment in the leather industry is driving the segment growth and is expected to create lucrative growth opportunities.

By End-user Industry :

The end-user industry segment is categorized into petrochemicals, paints and coatings, textile, electronics, pharmaceutical, leather, and others. In 2022, the petrochemicals segment accounted for the highest market share of 31.55% in the overall xylene market. Xylene in the petrochemical industry is used for solvent extraction, hydrocracking, fluid catalytic cracking, and others. Xylene is used as a feedstock in hydrocracking processes, which are used to convert heavy hydrocarbons into lighter, more valuable products. Significant growth in the production of petrochemicals across the globe is driving the demand for xylene in the petrochemical industry. For instance, In 2022, SABIC produced around 37.7 million metric tons of chemicals, 5.7 million metric tons of performance polymers and industrial solutions, and 4.6 million tons of polyethylene. Thus, the growing petrochemical production is driving the demand for xylene in the petrochemicals industry across the globe.

Moreover, the electronics segment is expected to hold the highest CAGR over the forecast period. Xylene is used to clean and decrease electronic components before they are assembled or packaged. They are also used in the production of semiconductors to clean and etch silicon wafers. Increasing initiatives for the expansion of consumer electronics production facilities are expected to create lucrative growth opportunities for the segment growth globally. For instance, in March 2023, Apple supplier Foxconn announced that it plans to increase investment outside of China and efforts to attract automakers to its contract manufacturing business. Foxconn said it would ramp up investment outside China to meet customer demand and lower its reliance on China for production. The growing initiative for consumer electronics production is creating lucrative growth opportunities for xylene over the forecast period.

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By Region :

The regional segment includes North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

In 2022, Asia Pacific accounted for the highest market share at 37.26% valued at USD 14.11 billion in 2022 and USD 14.89 billion in 2023, it is expected to reach USD 23.56 billion in 2031. Asia Pacific is also the fastest growing region across the globe, growing with a CAGR of 6.3% over the forecast period. In the Asia Pacific region, China accounted for a dominant market share of 24.18% in year 2022. The Xylene market across the Asia Pacific region is growing owing to the significant growth of a variety of industries, such as construction, paints and coatings, adhesives, leather, and other industries. The significant growth in the investment of the paint and coatings industry is driving the market growth across the region. For instance, In October 2022, Asian Paints announced plans to invest USD 25.21 million to set up a manufacturing facility for Vinyl Acetate Ethylene Emulsion (VAE) and Vinyl Acetate Monomer (VAM) in India. The installed capacity of the facility would be 100,000 tons per annum for VAM and 150,000 tons per annum for VAE. furthermore, according to the report by the Government of China, China's petrochemical industry grew 14.4% in 2022, reaching a total revenue of USD 2.41 trillion. However, its total profit eased 2.8% to USD 0.16 trillion. All these above-mentioned factors are collectively driving the demand for xylene from various end user industries across the Asia Pacific region and creating lucrative growth opportunities for the xylene market in the Asia Pacific region.