At 5.2% CAGR, the North America Basic Aromatics Market is Projected to be Worth US$ 30,941.34 Million by 2031, Says Business Market Insights

According to Business Market Insights' research, the North America basic aromatics market was valued at US$ 20,690.13 in 2023 and is expected to reach US$ 30,941.34 million by 2031, registering a CAGR of 5.2% from 2023 to 2031. Growth of paints & coatings industry and rising demand for solvents across end-use industries are among the critical factors attributed to the North America basic aromatics market expansion.

Paints and coatings are used for decorative purposes and enhancing surface properties such as corrosion resistance, scratch-resistance, adhesion, appearance, and water resistance. Paints & coatings are increasingly used in end-use industries such as construction, furniture, automotive & transportation, and other industrial applications. Basic aromatics such as benzene, toluene and xylene play major role in the paints and coatings industry. Benzene is used as precursor to produce various resins and polymers such as styrene, which are major components in paints & coatings formulations. Toluene and xylene are utilized as feedstock in the production of toluene diisocyanate and xylene-based isocyanates, further used for making polyurethane resins and coatings. A wide range of paints & coatings are used in automotive applications for high gloss surface finishes. The growing global sales of electric vehicles drive the demand for high-performance coatings and electrical insulating coatings. According to the International Energy Agency, the electric car market has witnessed exponential growth in the past few years, with reported global sales of more than 10 million electric cars in 2022.

According to the US Census Bureau, the total construction spending in the US accounted for US$ 740.8 billion during the first five months of 2023. The investment was spent on the development of offices, commercial spaces, transportation, highways, and streets. The growth in the global construction industry propels the demand for architectural paints and coatings. According to the American Coatings Association report published in February 2023, in 2021, the US coatings industry shipped architectural coatings worth more than US$ 14 billion; industrial OEM coatings worth US$ 8.7 billion; and special purpose coatings such as marine paints, military-specified coatings, and automotive refinish paints worth US$ 4 billion. Thus, growth in the paints & coatings industry fuels the basic aromatics market.

Global Electric Car Sales (2016–2023)

Source: International Energy Agency, 2023

On the contrary, fluctuation in raw material prices hampers the growth of North America basic aromatics market.

Based on type, the North America basic aromatics market is segmented into styrene monomer, divinylbenzene, benzene, toluene, xylene, cresol, and pyridine. The xylene segment held 31.2% share of the North America basic aromatics market in 2023, amassing US$ 6,446.71 million. It is projected to garner US$ 10,135.53 million by 2031 to expand at 5.8% CAGR during 2023–2031.

By end user, the North America basic aromatics market is segmented into pharmaceuticals, pesticides, agriculture, food and beverages, cosmetics and personal care, paints and coatings, and solvents. The solvents segment held 25.9% share of the North America basic aromatics market in 2023, amassing US$ 5,356.23 million. It is projected to garner US$ 8,274.36 million by 2031 to expand at 5.6% CAGR during 2023–2031.

Based on country, the North America basic aromatics market is segmented into the US, Canada, and Mexico. The US held 82.9% share of North America basic aromatics market in 2023, amassing US$ 17,143.74 million. It is projected to garner US$ 25,871.11 million by 2031 to expand at 5.3% CAGR during 2023–2031.

Key players operating in the North America basic aromatics market are BASF SE, Exxon Mobil Corp, Jubilant Ingrevia Limited, Lanxess AG, LyondellBasell Industries NV, Nippon Steel Corp, Sasol Ltd, Shell Plc, and The Dow Chemical Co, among others.

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