I think that "friends with benifits" can work out, but both people have to be in the same place emotionaly and take it for what it is. This is certainly not the case here. He was honest with you about not wanting a commitment, so you need to be honest with him about the way you feel. It may end the relationship, such as it is, between the two of you, but if he is not ready to be in the type of relationship you are looking for it is time to move on before you become even more emotionally invested in this man.
Sure it is going to hurt, no way around that, but don't stay with him just on the hopes that he will one day fall for you as well. If something was going to "click" with him, I think it would have happened already in the eight months you have been seeing him. How will you feel if after staying with it for maybe years hoping for something more he does find someone he falls for? That would be much more devastating than ending it now.