Biphenyl Market Analysis

Biphenyl Market Analysis

Pharmacokinetics of biphenyl derivatives have been studied for the development of new compounds with improved therapeutic potential. The agrochemical industry benefits from the use of biphenyl compounds as intermediates in the manufacture of herbicides and fungicides. Also, the electronics industry uses biphenyl, which is strong and conductive, in the manufacture of advanced products and devices. These increasing R&D activities are driving the demand for biphenyl as industries seek new solutions to improve product performance and sustainability, thus driving market expansion and creating new investment opportunities.

Despite the promising growth, there are several roadblocks to the biphenyl market. Stringent regulatory framework and environmental concerns are severely hampering market expansion. Biphenyls, as naturally occurring pollutants, pose potential health and environmental hazards, leading to strict safety regulations and manufacturing costs.

These factors, in turn, influence the raw materials price fluctuations and the availability of high-purity biphenyls, affecting production costs and profitability. The market faces competition from new chemicals and materials offering similar benefits but lesser environmental impact and regulatory burden. All these factors collectively challenge the growth trajectory of the market and require solutions and new and sustainable practices to overcome these obstacles.

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The biphenyl market, driven by its use in industrial applications, is seeing significant growth, with the crude oil biphenyl segment holding a dominant market size of USD 114.7 million in 2024 and projected to register a 5.5% CAGR through 2025-2034. Biphenyl, an aromatic hydrocarbon obtained during crude oil processing, is economically viable and extensively used in the petrochemical industry, especially for heating purposes during the transportation of sensitive materials. The steady supply of biphenyl from crude oil and the growing global demand for such products contribute to market growth. However, challenges such as fluctuations in crude oil prices and environmental concerns about the raw materials used in its production are factors that may influence demand
 

Based on application, the market from the heat transfer fluids segment is held 33.1% share in 2024 and is expected to dominate the market. Diphenyl, and diphenyl oxide, are eutectic compounds are widely used in high-temperature transport applications. Industries such as pharmaceuticals, need skilled communications and rely on these fluids to transport materials without damage from high temperatures. As the industries activity grow and expands globally, so does the need for efficient heat transfer solutions, leading to segment growth.
 

The China biphenyl market, valued at USD 15.5 million in 2024, is witnessing rapid growth fueled by several factors. Increasing demand from the petrochemical industry, where biphenyl is used for applications like heat transfer in the transportation of sensitive materials, is one of the key drivers. The ongoing industrialization and expansion of manufacturing sectors in China contribute to the growing need for biphenyl. Additionally, the country's significant crude oil production and refining capacity provide a steady supply of biphenyl, enhancing its availability and economic viability. The market is also supported by the rising demand for high-performance chemicals in various applications, such as electronics, agriculture, and pharmaceuticals. However, the market faces challenges such as fluctuations in crude oil prices and environmental concerns regarding the raw materials used in biphenyl production. Despite these hurdles, China's growing industrial base and demand for chemicals ensure strong market prospects for biphenyl in the coming years.