Biphenyl Market Expected to Reach $1.98 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Biphenyl Market," The biphenyl market was valued at $1.24 billion in 2021, and is estimated to reach $1.98 billion by 2031, growing at a CAGR of 4.8% from 2022 to 2031.

Biphenyl is a water-soluble organic compound also identified as a diphenyl, phenylbenzene. It possesses various properties such as antimicrobial, antifungal, and flavorants that makes it best-suited for use in a wide range of end use industries including foods & beverages, chemical manufacturing, textile, oil & gas, and others.

Factors such as rise in population of millennial, increase in fashion consciousness, and adoption of western culture among people in both developed and developing countries such as the U.S., China, and India has led the textile sector to witness remarkable growth where biphenyl is widely used as dye carrier. This acts as one of the key drivers responsible for growth of the biphenyl market. In addition, increase in severity of diseases has led the pharmaceutical sector to witness a significant growth where biphenyl is widely used as an active pharmaceutical intermediate for manufacturing various drugs for treatment of several health-related disorders including hypertension, diabetic nephropathy, osteoarthritis, rheumatoid arthritis, Alzheimer’s disease, prostate cancer, and other chronic diseases. This propels growth of the biphenyl market in the growing pharmaceutical sector.

However, biphenyl is a benzenoid aromatic compound that occurs naturally in coal tar, crude oil, and natural gas. Prices of these materials vary that eventually affects prices of biphenyl. This factor hampers growth of the biphenyl market.

On the contrary, rise in population has led to rise in demand for a wide range of consumer goods, which has led to establishment of chemical manufacturing units in both developed and developing economies where biphenyl is widely used as heat transfer fluid and chemical intermediate during production of various organic chemicals. For instance, according to a report published by the India Brands Equity Foundation, the chemical industry is expected to contribute $300 billion to India's GDP by 2025. This is anticipated to increase demand for biphenyl in the growing chemical manufacturing sector; thus creating remunerative opportunities for the market.

The biphenyl market is segmented on the basis of source, application, and region. By source, the market is segregated into crude oil, coal tar, and natural gas. The coal tar segment dominated the global market, in terms of revenue in 2021, with half of the total share. This is attributed to the fact that coal tar sourced biphenyl acts as a major pharmaceutical ingredient for various drugs used to cure dermatitis-related disorders. Furthermore, coal tar sourced biphenyl is used to produce aviation turbine fuels. This has led to rise in its popularity in the aerospace sector.

By application, the global biphenyl market is classified into dye carrier, foods & beverages, pharmaceuticals solvent, and others. The dye carrier application segment dominated the global market, in terms of revenue in 2021, with one-third of the total share. This is attributed to factors such as rise in disposable income and increase in fashion trends, which propels number of potential premium textile buyers and textile manufacturers to focus on fabric quality. Biphenyl acts as an excellent dye carrier that assists disperse dyes to enter polyester polymer, thus enhances overall quality of fabric. This factor has led the textile manufacturers to become linear toward using biphenyl for dye carrier applications.

Region wise, the biphenyl market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. The North America biphenyl market accounted for a major biphenyl market share in 2021, owing to rise in international trade, expansion of domestic and international economies, and increase in the tourism industry in the U.S., which had led to rise in demand for biphenyl among various end use sectors. Furthermore, the aerospace sector in the U.S is witnessing a significant growth where biphenyl is widely used as a heat transfer agent. For instance, according to a report published by the International Air Transport Association in 2019, the air transport industry, including airlines, and their supply chain, is estimated to support US $641,000 million of GDP in the U.S. by 2025.

Key players operating in the global biphenyl market include ABacipharm Corporation, Alfa Aesar, Biosynth Carbosynth, Daken Chemical Limited, Eastman Chemical Company, Henan Tianfu Chemical Co., Ltd, JIANGSU ZHONGNENG CHEMICAL TECHNOLOGY CO., LTD, Lanxess AG, MainChem, Merck kGaA, Oakwood Products, Inc. Otto Chemie Pvt. Ltd., Springchem New Material Technology Co., Limited, Taj Pharmaceuticals Ltd., and TCI America.

COVID-19 analysis:

The novel coronavirus is an incomparable global pandemic that has spread to over 180 countries and caused huge losses of lives and the economy around the globe. The biphenyl market has been negatively impacted due to the wake of the COVID-19 pandemic, owing to its dependence on food & beverages, chemical, textile, polymer, agriculture, and other sectors. According to a report published by the Ministry of Energy and Mineral Resources, the second quarter of 2020 registered a decrease in the economic growth by -5.3%, owing to the lockdown imposed amid the COVID-19 period.

In addition, around 60% of the manufacturing industries were hardly hit by the pandemic while other industries such as food & beverages and pharmaceuticals are moderately affected due to high demand. This has led the biphenyl market to witness a downfall in demand, attributed to its use in various manufacturing & other end-use sectors. Furthermore, the fuel consumption (gasoline) was decreased by 34% in April 2020 as compared to April 2019, owing to restrictions for the transportation of non-essential items. This has reduced the refining capacities of the major refineries; thus, decreasing the consumption of organic chemicals where biphenyl is widely used for organic synthesis purposes.

However, new emerging geographic scenario, enhanced domestic supply chain, and strong public investments in the chemical & agriculture sector is projected to drive growth of the biphenyl market. For instance, according to an interim report published by the Australian Chemical Industry Forum (ACIF), the chemical industry is expected to return to pre-COVID-19 levels driven by strong public investments.

Key findings of the study

• By source, the coal tar segment is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 4.7% from 2022 to 2031.
• By application, the dye carrier application segment is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 4.6% from 2022 to 2031.
• North America garnered the highest share of 40.4% in 2021, in terms of revenue, growing at a CAGR of 4.0%.