Solvents Market

Solvents Market Size, Share & Trends (2023-2028):

The Solvent Market was valued at USD 40.4 billion in 2022 and is determined to grow at a compound annual growth rate of 7.4% during the foreseen period of 2023-2028

A solvent is a material that breaks down a solute (a synthetically processed fluid). Generally, a solvent is a fluid; however, it can also be a solid, gas or supercritical liquid. The amount of solute that can decompose in a particular volume of solvent varies with temperature. Basic uses of natural solvents are cleaning, as nail polish removers and solvent paste (CH3) 2CO, methyl acetic acid derivative, ethyl acetic acid derivative), in stain removers in cleaners and in perfumes (ethanol). Water is a solvent for polar particles and the most recognized soluble used by living things. Each of the particles and proteins in a cell breaks down in the water inside a cell. Solvents find different applications in blending, pharmaceutical, oil and gas companies, being incorporated into synthetic combinations and cleaning forms.

Solvents Market Drivers:

The urban population is constantly increasing in most developing regions. According to the World Bank, most of the APAC countries, such as India, Myanmar, Nepal and Afghanistan, have less than 35% of their population living in urban areas. These economies are expected to grow at a promising rate in the future. In developing countries, there is an increasing displacement of the population to Tier 1 and metropolitan areas of countries, which creates demand for residential construction. In addition, according to the International Monetary Fund (IMF), the rapid growth rate of several developing economies is supposed to provide opportunities for manufacturers and suppliers of petrochemical-based solvents, particularly those serving the construction and infrastructure sector in emerging economies.

Solvents Market Restraints:

A significant limitation of conventional solvents is that consumers opt for bio-green alternatives, as they are less reactive and do not contain VOCs by nature.

Opportunities in the Solvents Market:

Technological advancements create an opportunity for the growth of the global solvents market. Europe and North America are characterized by extensive experience and knowledge of the solvent market. The market is growing rapidly in emerging economies. Advanced technologies and the latest equipment, as well as the application of new systems, are driving demand for improved products in developed and developing countries.

Challenges in the Solvents Market:

Exposure to petrochemical-based solvents causes both short- and long-term effects. Short-term effects include hallucinations, fainting, nausea, severe headache, prolonged inhalation, and dizziness, among others. Some solvents can freeze the lungs and cause suffocation. Examples of these types of solvents include polyethylene glycols (PEGs), which pose risks to health and the environment. During the manufacturing process, PEGs can become contaminated with a measurable amount of ethylene oxide and 1, 4-dioxane, which are known to be carcinogens to humans and affect the central nervous system. Therefore, the harmful effects of petrochemical-based solvents pose a challenge for the solvent market.

SOLVENTS MARKET REPORT COVERAGE

Solvents Market Segmentation as per the research report until 2028.

Solvents Market - By Product:

• Hydrocarbons
• Alcohols
• Esters
• Ketones
• Chlorinated
• Others

Alcohol has become the main product segment of the market, accounting for over a quarter of the total volume. It is also expected to emerge as one of the fastest growing segments during the forecast period. The emergence of glycol and soybean oil based solvents is expected to provide immense market opportunities for major players.

Ketone solvents such as acetone, methyl ethyl ketone, and methyl isobutyl ketone are used in a wide variety of applications, including paints and coatings, adhesives, chemical treatment, cleaners, and printing inks.

Solvents Market - By Application:

• Paints and Coatings
• Pharmaceuticals
• Printing Inks
• Adhesives
• Cleaning Products
• Other

Paints and coatings became the first application segment and accounted for over 65% of the total volume in 2020. Increased construction activity in emerging countries such as China, India and Brazil is expected to drive growth of the paints and coatings application segment. The paints and coatings segment is expected to become the fastest growing segment during the forecast period.

Ester solvents are primarily used in paints as activators or hardeners and find moderate use as industrial cleaners. Due to the shift in trend towards the use of water-based paints in construction, automotive and electronics applications, the use of solvents in paints and coatings will be challenged by sustainable alternatives.

Solvents Market - By Region:

• North America 

• Europe 

• Asia Pacific

• Latin America 

• Middle East & Africa 

Asia-Pacific dominated the global solvents market and accounted for over 42.4% of total volume in 2020. The region is expected to be the fastest growing regional market, with an estimated CAGR of 4.4% during the predicted period. Rising construction spending in China and India, along with the increasing industrialization of these countries, is estimated to drive market growth in the area. Growing end-use industries such as paints, coatings and adhesives in countries like China, India, Indonesia, Thailand, Vietnam and Korea are foreseen to drive demand for products in the region during the conjecture period.

North America and Europe are fairly mature markets, which are on the verge of reaching saturation. These regional markets are notably driven by the green initiatives taken by the regulatory authorities. Increased regulatory intervention, coupled with strict environmental laws regarding the use and manufacture of solvents in these regions, is foreseen to restrain market growth in the locale. The emergence of organic solvents, coupled with increased consumer awareness of the benefits of environmentally friendly products, is expected to influence the demand for the products during the envisioned period.

Recent Developments:

• In June 2020, Evonik released the substitute of TOMAKLEEN® G-14 Solvent for more environmentally friendly cleaning applications in N.A. Evonik's new product, TOMAKLEEN® G-14, was developed to replace oxygenated solvents in cleaning formulations.

Impact of COVID-19 on Solvents Market:

The solvent market is expected to be affected by the disruption of the global supply chain. The industry is greatly dependent on the development of construction, automotive, shipbuilding, and aircraft construction as solvents are utilized in paint and coating applications in these industries. China is the world's largest manufacturing and construction market. Strict lockdowns in the country's main provinces have affected construction activity in China. Demand for paints and coatings declined in the first quarter of this year, mainly due to the coronavirus outbreak, thus affecting the demand for solvents. China is one of the largest producers and consumers of solvents. North America and Europe are also severely affected by COVID-19; therefore, economic recession in countries like the United States, Canada, Italy and Spain is anticipated in the next two or three years.

Solvents market key players:

The key market players profiled in the report include

1. Royal Dutch Shell Plc (Netherlands)

2. Eastman Chemical Company (US)

3. LyondellBasell Industries Holdings B.V. (Netherlands)

4. Ashland Global Holdings Inc. (US)

5. BASF SE (Germany)

6. Huntsman Corporation (US)

7. ExxonMobil Corporation (US)

8. Celanese Corporation (US)

9. Honeywell International Inc. (US)

10. INEOS AG (Switzerland)