Cyclohexylbenzene Market Size, Share, Growth Report 2032

Cyclohexylbenzene Market & Industry Analysis:

The global cyclohexylbenzene market size was worth around USD 375 million in 2021 and is predicted to grow to around USD 560 million by 2030 with a compound annual growth rate (CAGR) of roughly 4.1% between 2022 and 2030. The report analyzes the global cyclohexylbenzene market’s drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the cyclohexylbenzene market.

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Cyclohexylbenzene Market: Overview

A cyclohexyl substituent gives the derivative of benzene the name cyclohexylbenzene. It is a colorless liquid that is created when benzene and cyclohexene are alkylated. Cyclohexylbenzene is produced when dibenzothiophene is hydrodesulfurized. Cyclohexylbenzene is a high-boiling-point solvent and penetrant that can be utilized in a variety of industries, including plastics, paints, and adhesives. Cyclohexanone is typically produced as a byproduct of the cyclohexane-to-caprolactam process. Manufacturers have developed innovative and sustainable manufacturing procedures in addition to regular manufacturing processes.

Key Insights

• As per the analysis shared by our research analyst, the global cyclohexylbenzene market is estimated to grow annually at a CAGR of around 4.1% over the forecast period (2022-2030).
• In terms of revenue, the global cyclohexylbenzene market size was valued at around USD 375 million in 2021 and is projected to reach USD 560 million, by 2030.
• The increase in the production of electric vehicles and their component is expected to drive the growth of the market during the forecast period.
• Based on the type, the electronic grade segment accounted for the largest revenue share in 2021.
• Based on the application, the solvent segment is projected to dominate the market during the forecast period.
• Based on region, the Asia Pacific is expected to hold the largest market share during the forecast period.

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Cyclohexylbenzene Market: Growth Drivers

The increasing adoption of electric vehicles across the globe drives the market growth

One of the key factors that drive the growth of the global cyclohexylbenzene market is the growing adoption of electric vehicles across the globe. In electric vehicles, the use of the lithium-ion battery is very high as compared to the other batteries and cyclohexyl benzene (CHB) is widely used as an electrolyte additive for overcharge protection of lithium-ion batteries. For instance, according to the International Energy Agency, the global sales of electric cars have kept rising strongly in 2022, with 2 million sold in the first quarter, up 75% from the same period in 2021.

Moreover, the increasing government initiatives across the globe positively influence the growth of the EV industry, which in turn, drives the market growth. For instance, China’s Ministry of Transport offers subsidies and other benefits for developing low-emission bus fleets, thereby further positively influencing the market. For instance, 61,000 more new energy buses were sold by Chinese bus makers in 2020, despite the COVID-19 pandemic. Thus, electric vehicles provide a potential opportunity for the market expansion of the cyclohexylbenzene market.

Cyclohexylbenzene Market: Restraints

The adverse health effect is expected to limit the market growth

The adverse health effect of cyclohexylbenzene is expected to limit the growth of the market during the forecast period. The substance defats the skin, which may cause dryness or cracking. The substance may have effects on the central nervous system and immune system. The substance may have effects on the bone marrow. This may result in anemia. This substance is carcinogenic to humans and may cause heritable genetic damage to human germ cells.

Cyclohexylbenzene Market: Opportunities

The increasing use of cyclohexylbenzene in various industries is expected to provide lucrative opportunity for the market growth

The increasing use of cyclohexylbenzene in various end-use industries such as automotive, electronics, plastics, adhesives, and others is expected to provide a lucrative opportunity for global cyclohexylbenzene market growth during the forecast period. In the automotive sector, cyclohexylbenzene is used in EV batteries to protect from damage. Between the separator and cathode, cyclohexyl benzene is electrochemically polymerized to create polymer at potentials lower than those for electrolyte breakdown.

The polymer prevents the battery from being overcharged. In a real cell, the addition leads to a slight capacity loss and rise in impedance; however, these effects can be reduced if the operating voltage is significantly lower than the polymerization voltage. Moreover, this material is utilized as a penetrant in painting, plastics, and adhesives industries, and as a high boiling point solvent in chemical engineering. These are also being deployed as carriers for disinfectants and aerosols.

Cyclohexylbenzene Market: Challenges

Stringent regulation enforced by the government act as a major challenge to the market growth

The cyclohexylbenzene market is anticipated to be hindered throughout the forecast period by strict regulations laid by the governing authorities of various regions on the production and usage of cyclohexylbenzene. For instance, the list of probable marine contaminants in Appendix B to 172.101 of the list of marine pollutants includes cyclohexylbenzene. Thus, the aforementioned facts act as a major challenge to market growth.

Cyclohexylbenzene Market: Segmentation

The global cyclohexylbenzene market is segmented based on type, application, and region

Based on the type, the global market is bifurcated into electronic grade and industry grade. The electronic grade segment accounted for the largest market share in 2021 and is expected to show its dominance during the forecast period. Cyclohexylbenzene is a significant raw material used in the manufacture of the LCD material intermediary 4-ethyl cyclohexyl benzoic acid. To improve battery safety, LCD devices are utilized as an anti-overcharge additive in lithium-ion battery electrolytes.

Lithium-ion phosphate, lithium cobalt oxide, and manganese oxide batteries are only a couple of the popular lithium-ion battery chemistries that have seen widespread acceptance in a variety of applications. The implementation of favorable regulations to promote electric vehicles, as well as increased economies of scale and overcapacity in component manufacturing, have dramatically reduced the per kWh cost of batteries, hence increasing demand for lithium-ion batteries. Furthermore, rising smartphone and PC sales will increase global demand for electronic-grade cyclohexylbenzene.

For instance, in 2019, global smartphone sales reached 1.37 million units, while personal computer sales reached 2.2 million units. Thus, this would help to drive segmental growth during the forecasted period. On the other hand, the industrial segment is expected to grow significantly over the forecast period. The segment growth is attributable to the growth of industrialization and government support for industrialization such as tax incentives for R&D investments, duty rationalization for raw materials, and improved infrastructure. Furthermore, the government has continuously supported the development of the transportation infrastructure through several updated regulations and programs.

The need for industrial-grade cyclohexylbenzene as a high boiling point solvent and penetrant in numerous sectors, including plastics, paints, inks, and adhesives, is predicted to increase throughout the forecast period.

Based on the application, the global cyclohexylbenzene market is bifurcated into intermediate, solvent, and others. The solvent segment is expected to grow at the highest CAGR over the forecast period. Cyclohexylbenzene finds wide application scope in numerous end-use industries. It is used as a high boiling point solvent in chemical engineering and as a penetrant in plastics, paintings, and adhesives industries.

They are also used as carriers for disinfectants and aerosols. The shifting focus of manufacturers towards R&D to develop more efficient renewable and environmental products and to expand business in the potential application industries will also boost the market.

Recent Developments:

• Tokyo Chemicals Industry, Co., Ltd. has announced the introduction of a digital storefront designed by Capgemini and built on SAP Commerce Cloud and Digital Customer Experience (DCX) methodology. The new digital customer platform supports operations in 20 countries and contains nine languages and currencies spread across eight different regional websites. This strategy will assist Tokyo Chemical Industry in improving the B2B customer experience and product sales in approximately 20 countries worldwide.

Cyclohexylbenzene Market Report Scope:

Cyclohexylbenzene Market: Regional Analysis

The Asia Pacific is expected to hold the largest market share during the forecast period

The Asia Pacific region is expected to hold the largest share in the global cyclohexylbenzene market during the forecast period. The growth in the region is attributed to the increasing demand for lithium-ion batteries and liquid crystal displays from the automotive and consumer electronics industries. Cyclohexyl benzene (CHB) is widely used as an electrolyte additive for the overcharge protection of lithium-ion batteries. For instance, despite a global drop in auto sales caused by a shortage of semiconductor supply caused by the COVID-19 pandemic, electric vehicle sales in China soared by 154% last year as more people selected cleaner automobiles.

In China, electric vehicle (EV) manufacturers sold 3.3 million units in 2021, up from 1.3 million in 2020 and 1.2 million in 2019. In addition, growing demand, increasing investment, enhanced supportive facilities and legislation, as well as technology developments, are all propelling the country's NEV sector forward. The Chinese government aims for 20% of all vehicle sales to be electric by 2025, including embracing NEVs as the next generation of government vehicles, which in turn drives the cyclohexylbenzene market during the forecast period.

On the other hand, in 2020, the European cyclohexylbenzene market surpassed USD 110 million and is expected to witness substantial growth during the forecast period. The robust automotive and manufacturing sectors are attributed to the expansion. The European automotive paints and coatings sector will exhibit promising growth possibilities, due to the strong presence of key manufacturers. This will almost certainly increase demand for intermediates and organic solvents.

Mergers and acquisitions are being pursued by industry participants to strengthen their market position. Furthermore, the expansion of automobile production facilities in Germany, the United Kingdom, and France will aid product penetration throughout the region. For instance, according to Statista, in 2021, 3.1 German automobiles were made. This was a reduction from the previous year's estimate of 3.5 million vehicles. The German automobile industry is a pillar of the German economy as well as a well-established global economic heavyweight. Thus, the aforementioned facts supported the market expansion over the forecast period.

Cyclohexylbenzene Market: Competitive Analysis

The global cyclohexylbenzene market is dominated by players like Sigma Aldrich, Thermo Fischer, Kishida Chemical, TCI Chemicals, Schultz Chemicals, J&H Chemical, Santa Cruz Biotechnology, AA Blocks, Sinfoo Biotech, ABCR Gmbh, Alfa Chemistry, among others.

The global cyclohexylbenzene market is segmented as follows:

By Type

• Electronic Grade
• Industry Grade

By Application

• Intermediate
• Solvent
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa