Solvents Market – Trends Forecast Till 2030

Market Snapshot

Market Overview

The global Solvents market size was estimated at USD 34.37 billion in 2023 and is projected to reach USD 53.06 billion in 2030 at a CAGR of 6.40% during the forecast period 2023-2030.

Solvents are substances that are mixed in solutes to create a solution. It is generally a liquid, but can also be present in solid, gaseous or supercritical fluid states. Different solvents are used in a variety of ways based on the need such as in paints, inks, as cleaners, etc. Hydrocarbon and oxygenated solvents have been widely used for more than fifty years. Solvents are sometimes used directly such as in nail paint removers and other times they are used as a part of another product or used in the manufacture of another product.

Solvents have a variety of applications in various products. In paints and coatings, solvents are used to make paint the desired consistency for application and to avoid clumps or globs. They are used in ink to make it evaporate quickly. They are used in cosmetic products to make the ingredients dissolve quickly so as to enable the product to work properly. Ethanol is used in perfumes because of its low odour. Ethyl Acetate is used in nail polish because of its fast-drying property. They are used in cleaning products due to their high-water compatibility and ability to dissolve grease and oils quickly. Isoparaffins are widely used in drying clothes. They are also known to be used in the pharmaceutical industry during the extraction process as they keep the impurities in the solution while the medicine is extracted. Solvents are also used in automotive industry in washer fluids, de icing of windshield. Aliphatic Hydrocarbons are used in the production of tires.

Paints and Coatings industry is driving the solvents market which can be owed to increased construction activities and increased production of vehicles in the automotive industry. This in turn increased the demand for paint and coats. Moreover, the need for construction chemicals is increasing which is driving the global solvent market. Ketones are widely used in the paint and coating industry due to their low viscosity and high solid content. Esters are used a paint hardener and are have prevalent usage in industrial cleaners. Bio-based solvents are used to dissolve colour in paints and increase its consistency. Moreover, glycol ether esters are widely used in spray paints to ensure that the paint doesn’t dry out mid-air.

The spread of COVID-19 had a negative impact on the market due to disruptions seen in the global supply chain. The growth of construction, automotive, shipbuilding and aircraft manufacturing was reduced during the pandemic which negatively affected the global solvent market as solvents are widely used in the paints and coatings in these industries. There was a decline seen in the paints and coatings demand in the first quarter of 2022 because of the pandemic. The lack of adequate supply of raw materials weakened the production of solvents which added to the disruptions.

Delvens Industry Expert's Standpoint

During the pandemic, due to reduced construction activity, decreased automobile demand and disrupted raw material supply chains, the global solvent market took a hit. However, post pandemic, due to increased construction activities and increased demand of automobile especially after the introduction of electric vehicles, the market is rapidly rising. This is because the solvent market is largely driven by the paints and coatings industry and due to increased construction activities and automobile demand all across the world, the demand for solvents for the paints and coats has also increased. APAC Is dominating in the solvent market as China has become the leading solvent producer in the world. Moreover, rapid industrialization and urbanization especially in developing countries like China and India has led to the increased demand for solvents.

Market Portfolio

Key Findings

• Based on Product, Solvents can be bifurcated into Hydrocarbons, Alcohols, Esters, Ketones, Chlorinated, and Others such as soy oil and glycols. Alcohol was the most widely used product in this segment, accounting for more than a one-fourths of the entire volume. Over the forecast years, it is expected to be one of the most rapidly-growing segments. The introduction of soy oil and glycol-based solvents is going to open up enormous market prospects for large players.
   
• Based on Application, solvents market is divided into Printing Inks, Paints and Coatings, Pharmaceuticals, and Adhesives and Cosmetics. Paints and coatings dominated the market in this segment due to its increasing demand in constructing and automobile industries. The paints and coatings application segment are predicted to elevate due to rising constructing activity in developing countries such as China, India, and Brazil.
   
• Based on region, the market can be bifurcated into North America, Europe, Asia Pacific, and the Rest of the world. Asia Pacific is the fastest growing and is predicted to dominate the market over the forecast period. This is due to the region’s growing demand for solvents in the construction, automobile, agricultural chemicals, personal care & cosmetics, and home care categories. Other reasons contributing to the increasing demand of solvents in the region include growing urbanization and changing lifestyles.

Regional Analysis

Asia Pacific to Dominate the Market

• Asia Pacific is estimated to account for the largest market share during the forecast period. This can be attributed to the increased construction activity in countries like India and China aided with rapid industrialization in these countries. Paint and Coatings industry and adhesives industry which make use of solvents in large quantities are flourishing in countries like China, Indonesia, Thailand, Vietnam, and Korea which is leading to the increase of solvent demand in the region over the period.
   
• Moreover, rapid industrialization and urbanization in countries in Asia Pacific along with the increased automobile demand is another driving factor of the market.

Competitive Landscape

• Arkema SA
• Ashland
• BASF SE
• Bharat Petroleum Corporation Limited
• Celanese Corporation
• Eastman Chemical Company
• Exxon Mobil Corporation
• Ascend Performance Materials
• Honeywell International Inc.
• Huntsman International LLC
• INEOS
• LyondellBasell Industries Holdings B.V.
• Royal Dutch Shell plc
• Solvay
• Janex S.A
• Shell
• Neste
• Koch Engineered Solutions
• Adrol
• Soltex Inc.
• Hengyi Industries Sdn Bhd

Recent Developments

• In February 2023, Clariter, a global cleantech company and TotalEnergy Fluids introduced the world’s first sustainable ultra-pure solvent which is made from plastic waste. Ultra-pure solvents are used in pharmaceutical and other markets that require safe, colourless, odourless, and tasteless products that meet the highest pharmacopoeia-standard purity criteria. Producing these solvents from plastic waste not only reduces their environmental footprint, but also contributes towards addressing the challenge of end-of-life plastics.
   
• In 2020, BASF SE, a German company and ExxonMobil, a US based organization, introduced a new gas treating solvent that helping customers lower sulphur and overall CO2 emissions by helping in the processing and refining of the gas.

Reasons to Acquire

• Increase your understanding of the market for identifying the most suitable strategies and decisions based on sales or revenue fluctuations in terms of volume and value, distribution chain analysis, market trends, and factors.
   
• Gain authentic and granular data access for the Solvents Market to understand the trends and the factors involved in changing market situations.
   
• Qualitative and quantitative data utilization to discover arrays of future growth from the market trends of leaders to market visionaries and then recognize the significant areas to compete in the future.
   
• In-depth analysis of the changing trends of the market by visualizing the historic and forecast year growth patterns.

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