The global paraxylene (PX) market seems to reach USD 125.35 billion by 2028, at a CAGR of 14.28% from 2021 to 2028. Paraxylene (PX) is an aromatic hydrocarbon, which is a colorless and flammable liquid and is produced from petroleum refining. It is used in the production of terephthalic acid, which is further used for producing polyester fibers, textiles, and plastic bottles.
Growing demand for paraxylene from the petrochemical and textile industries, as well as increasing demand for polyester, is expected to drive the market. Moreover, the increasing demand for xylene derivatives such as phthalic anhydride and dimethyl terephthalate is expected to fuel the market growth. The rise in the production of automobiles, particularly in the Asia Pacific, is expected to drive the growth of the market in the region.
Restraints of the Paraxylene (PX) Market
- High Capital Investments: Setting up a PX plant requires high capital investments, which poses a major restraint for companies entering the market.
- Complex Process: The process of producing PX is complex and requires complex technology and skilled personnel. This is a major factor restraining the growth of the PX market.
- Environmental Regulations: Stringent environmental regulations may limit the production and consumption of PX as it is released into the atmosphere during production and can be toxic.
- Fluctuating Prices of Raw Materials: The prices of raw materials such as benzene, methanol, and xylene can fluctuate, resulting in high production costs. This is a major restraint for the PX market.
- Low-Profit Margins: Low-profit margins due to the increasing cost of raw materials and the competition in the market are expected to restrict the growth of the PX market.
By application, the polyester segment is expected to dominate the market during the forecast period. The growth is attributed to the increasing demand for polyester from the textile industry, as it is used for producing apparel, carpets, home furnishings, and industrial fabrics. Moreover, the rising demand for polyester from the packaging industry is also driving segment growth.
By region, the Asia Pacific is expected to dominate the market during the forecast period. The growth is attributed to the increasing demand for polyester from the textile industry, as well as the rising demand for paraxylene from the petrochemical industry in the region. Furthermore, the presence of established players in the region is expected to fuel the growth of the market.
Key players in the market include BP PLC, Exxon Mobil Corporation, Reliance Industries Limited, Royal Dutch Shell PLC, Chevron Corporation, LyondellBasell Industries Holdings B.V, Chevron Phillips Chemical Company LLC, SABIC, Total S.A., and SK Global Chemical Co. Ltd.