Increase in R&D Activities to Boost the Global Toluene Market | Technavio

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LONDON–Technavio’s latest market research report on the global toluene market provides an analysis on the most important trends expected to impact the market outlook from 2017-2021. Technavio defines an emerging trend as a factor that has the potential to significantly impact the market and contribute to its growth or decline.

The demand for toluene is driven by its use in diverse industrial applications in automotive, building and construction, industrial, and oil and gas industries. It is generally used to manufacture polyurethane (PU) foams that are widely used in the automotive, construction, and other industries. PU foams are used as insulators in the building and construction industry. PU foams are also used in automobiles as it facilitates low fuel emissions.

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The top three emerging market trends driving the global toluene market according to Technavio research analysts are:

  • Fluctuation in crude oil prices
  • Alternatives for toluene
  • Increase in R&D activities

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Fluctuation in crude oil prices

Toluene is an aromatic compound that is used to manufacture benzene, toluene diisocyanate (TDI), and other derivatives. Toluene is a distillate product of crude oil, which is formed by the fractional distillation of crude oil. The fluctuating prices of crude oil affect the prices of the raw material, which affects the production cost of toluene.

According to Hitesh Bhatia, a lead analyst at Technavio for specialty chemicals research, “Fluctuations in the price of crude oil have a direct impact on the manufacturing cost of toluene. This will have a significant impact on the price of toluene in the global market. The decline in the price of oil has compelled vendors operating in the market to implement various strategies such as cost-cutting measures to manage the profit margins.”

Alternatives for toluene

Toluene is most commonly used for the manufacture of different derivatives such as benzene and xylene, TDI, and others for various end-use industries. In addition, toluene is known as an excellent solvent and is used as a thinner in paints. It is also used for degreasing and cleaning surfaces. However, exposure to toluene causes health hazards. In addition, volatile organic compound (VOC) emission in toluene-based products is also quite high. Thus, the use of toluene poses a serious threat to the environment.

To combat these serious environmental risks, the regulatory boards, such as the US Environmental Protection Agency (EPA), have imposed strict regulations on the permissible level and content of VOCs in everyday products. Owing to these regulations, the demand for eco-friendly, non-flammable, and bio-friendly substitutes has increased.

Increase in R&D activities

The major players in the global toluene market have increased their R&D expenditure to find cost-effective production techniques for toluene. In addition, vendors are opting for new innovations and product development strategies to offer products with better efficiency and enhanced properties.

“Toluene vendors are extensively relying on the R&D activities, new technologies, and innovations to gain a competitive edge in the market. In addition, the R&D activities are expected to foster the use of alternative raw materials used for manufacturing toluene. These R&D activities are expected to boost the growth of the toluene market during the forecast period,” says Hitesh.

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Maria Burns

Maria Burns

Maria is a Viral News Editor who graduated from the University Of California. She likes social media trends, being semi-healthy, Buffalo Wild Wings and vodka with lime. When she isn’t writing, Maria loves to travel. She last went to Thailand to play with elephants and is planning a trip to Bali.
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