Market Outlook:

The Solvents market size is poised to reach USD 34,908.74 Million by 2024, with a projected escalation to USD 42,916.58 Million by 2032, reflecting a compound annual growth rate (CAGR) of 4.5% during the forecast period (2024-2032). 

The demand is further driven from the increased use of solvents in end-use industries of ketones, hydrocarbons, alcohols and other related solvents in pharmaceuticals, paint & coatings, cosmetics, among others. Rising construction industry and the favorable industrial trend in Asia Pacific and Europe is also likely to boost the demand for solvents over the forecast time. Moreover, solvents are also chemicals, which dissolve in the chemically various solute to create solution that is mainly used in numerous end user industries. Oranic solvents are widely used in their conventional use of dry, cleaning and other manufacturing industries. It turns out they are inflammable, but chlorinated products are hazardous to health as they affect the kidney and the lungs. Moreover, extraction agents or solvents used to dissolve, absorb and dilute other agents without chemically altering them remain crucial to industries ranging from auto to pharmaceuticals to personal care industries and beyond. For example, solvents are used in water borne coating and in the production of the electronic vehicles sector within automotive industry. In the pharmaceutical manufacturing solvents are employed in formulation and manufacturing of the pharmaceutical products. Recent developments in the synthesis of solvents as well as the methods of their utilization have enhanced efficiency and applicability of solvents. The market also observed growth in focus on enhancing the capability and scope of solvents to respond to higher demand industries, including more potential in applications like 3D Printing and Nanotechnology. Furthermore, Green solvents and bio-solvents have steadily risen to prominence than their chemical counter parts. Ethyl and glycol ether are other solvents, based on cellulose and sugars, non-toxic and friendly to the environment/atmosphere, being dissociated from oils and agricultural products. More factors like rise in VOCs emissions, environmental pollution, regulatory policies precipitate the growth of bio-based solvents.

Market Dynamics:

Driver:

They attributed the calls for the market to rise to the increasing need from paints and coatings business. This product is ranked as the best product in the paints and coating industry because of such features as heat resistance, durability, and cheap. A lot of manufacturers use the substance in the production of paints to avoid formation of lumps or globs and to achieve the right texture in several uses. Alao, the supply of paints will be high because of the emergence of additional infrastructure in nations such as China, India, and the US, and the fast-growing construction sector. Several types of solvents include the following; alcohols, polyhydric alcohols, aromatics, aliphatics etc. The widely used solvents include methanol, ethanol, propanol, n-butanol, ethylene glycol, acetone, acetic acid, benzene and ethyl acetate to name a few. Due to their characteristic of having high solid content and low viscosity, ketones are used in paints and coatings. Ester solvents act in many times as an industrial solvent cleaner and as a coalescing agent in many types of paint. To give paints and coating the needed consistency as well as to dispel binders and pigments, bio- based solvents are employed. Some spray paints and decorative paints include such solvents like glycol ether esters for they do not dry up while mid air. Solvents such as paint, thinner, glue etc, are some products which have application in construction field. The growth in the paints and coatings application segments is expected to be further supported by the increasing construction business in countries like China, India, United States, and Brazil. This application has particularly grown in the market for solvents and lining up to grow even more robustly as a result of increasing paint and coating applications to ultimately drive the Solvent Market revenue.

Restraint:

The following has been identified as the most powerful negative factor against the growth of the solvents market: limited environmental policies governing the utilization of solvents. These regulations are presently limiting the growth of the market, particularly in the European region where the(REACH) Registration, Evaluation, Authorisation and Restriction of Chemicals supervises the use of doses of chemical substances. The EU regulation REACH requires all manufacturers and importers of chemicals including solvents to report and prove the lack of negative impact of these chemicals on the people and the environment. This legal environment puts administrative and financial burden on the manufacturers of solvents particularly those who manufacture or utilize severe solvents that came under a specific or absolute restriction or ban category. Customer fidelity to the REACH regulation and other laws in other countries has prolonged the supply chain for solvents despite the limitations that such legislation puts on the type of solvents available, thereby slowing their uptake and the market for the same.

Opportunity:

Policymaker pressure, consumer awareness, and improved knowledge in sustainable chemistry should lead to greater demands for green/bio solvents, which should open up opportunities in the solvents market. This move to green solvents is a step towards sustainability and the minimisation of the adverse impacts as usually realised by petroleum based solvents. Increased sensitivity from the public due to awareness of health consequences and the adverse effects of environment has led to invention of green and bio-based solvents that have low or no VOCs that are detrimental with our wellbeing and the main cause of pollution. Another location where the product market is growing is Europe because of the appearances of numerous regulatory bodies with the green policy. This has occasioned a preference by the region for bio based rather than chemical based goods which has enhanced the demand for the good. Germany is also the fifth largest e commerce market globally and the market is growing fast due to increased customers’ appetite for online shopping. That the e-commerce industry has grown fast because to market products safely and attractively, there is high demand for corrugated cardboard, product packaging, and printed labels. Thus, during the forecast period, it will foster the requirements for printing inks subsequently, boosting the demand for solvents in the area.

Key Players:

• Shell plc (UK)
• BASF SE (Germany)
• Exxon Mobil Corporation (US)
• LyondellBasell Industries Holdings B.V. (Netherlands)
• Eastman Chemical Company (US
• Ashland Global Holdings Inc. (US)
• Celanese Corporation (US)
• Huntsman International LLC (US)
• Solvay SA (Belgium)
• Honeywell International Inc. (US)
• BP p.l.c. (UK)
• INEOS Group Holdings S.A. (UK)
• TotalEnergies SE (France)
• Sasol (South Africa)
• Arkema SA (France)

Recent Development:

• In March 2024, The MG plant of BASF was inaugurated in March 2024, at the company’s Verbund site in Zhanjiang, China. The new plant will have the mass production capability of 46,000 metric tons for the year, and will aim at satisfying the fast growing demand in the region for brake fluids.

• In April, 2023, INEOS Group Holdings S.A completed a takeover deal of Mitsui Phenols Singapore Ltd in April 2023. By doing so INEOS Group Holdings S.A. will be better positioned to meet international customers needs while penetrating new markets and creating partnerships in Asia.

Segment Insights:

By Product Type

Among the analyzed products, Alcohols accounted for the largest market share of 30.4% in the upcoming year of 2023due to the reason that these products super efficiency used for paints and coatings, adhesive, pharmaceuticals and home care applications. Furthermore, these products provide solvency power, their low viscosity and high rates of evaporation enables them to be perfect for the industrial process. Furthermore, hydrocarbon solvents are used in the insecticides and pesticides too. In formulations of agricultural chemicals and pest control the compound has play a key role in the market growth. Solvents that are aromatic and are widely used in stickers and other products that are popular with the printing industry were the other drivers of demand for hydrocarbon solvents. The alcohol segment is predicted to evoke the highest CAGR during the forecast period due to a higher demand for ethanol used in perfumes, vegetable essences, and medical drugs. Alcohol is more polar in nature than hydrocarbons’ and ketones. Their low toxicity, the fact they emit low levels of Volatile Organic Compounds, VOCs and strong solvency make them useful for many applications such as cosmetics and pharmaceutical uses. Besides, the enhanced characteristics of using liquid transportation fuel, and the possibility of bio-based alcohols being renewable and being sourced through sustainable methods contribute to the market growth.

By Application

Paints & Coatings was the largest revenue segment in 2023 with 56.5% market share. This he said was compounded by increasing construction industry particularly in the developing countries whose demand for decorative paints and coatings increased as a result. Some of the key driver for protective and aesthetic coating include infrastructure development mainly in North America, Asia-Pacific and Latin America. The Associated General Contractors of America estimated that 2.1 trillion US dollars worth of structures are built in the United States annually. Besides, the construction subdivision in India registered 13.3 % during July-September 2023 and 7.9 % higher against the previous quarter to boost the growth of the Indian GDP. In addition, solvent enhanced coatings were very useful in the area of industrial structures, machineries and equipments used in marine industries, coil coating, general manufacturing and industrial protective coatings.

Regional Insights:

Currently Asia Pacific is the largest consumer of solvents due to increasing government intervention towards the industrialization process and increasing foreign direct investment. China and India have also introduced different polices in development infrastructure construction and manufacturing in which are driving the demand of solvents. Consumption of solvent has also gone high due to these countries becoming industrialised due to relatively cheaper labor and skilled workforce. Also, the growth in paint and coatings industry in the region is anticipated to have a positive impact on the product market in the global level during the forecast period. For instance, in 2024 Berger Paints Company expects to spend approximately USD 250.0 million of capital to build plants in India over the three-year period.

Segmentation:

By Type 

• Alcohols
• Ketones
• Esters
• Aromatic
• Aliphatic 
• Other

By Application 

• Paints & Coatings
• Pharmaceuticals
• Adhesives
• Printing Inks
• Personal Care
• Agricultural Chemicals

By Source 

• Natural
• Derived

By Region

North America

• USA

• Canada

• Mexico

Europe

• France

• UK

• Spain

• Germany

• Italy

• Rest of Europe

Asia Pacific

• China

• Japan

• India

• South Korea

• Rest of Asia Pacific

Middle East & Africa

• GCC

• South Africa

• Rest of the Middle East & Africa

South America

• Brazil

• Argentina

• Rest of South America

What to Expect from Industry Profile?

1. Save time carrying out entry-level research by identifying the size, growth, major segments, and leading players in the Solvents market in the world.

2. Use the PORTER’s Five Forces analysis to determine the competitive intensity and therefore market attractiveness of the Global Solvents market.

3. Leading company profiles reveal details of key Solvents market players’ global operations, strategies, financial performance & recent developments.

4. Add weight to presentations and pitches by understanding the future growth prospects of the Global Solvents market with forecast for the decade by both market share (%) & revenue (USD Million).

FAQ’s

1) What are the major factors driving the growth of the Global Solvents Market?

• Increasing demand for high-resolution displays, advancements in display technologies, and the expanding applications of solvents across various industries.

2) What would be the CAGR of the Global Solvents Market over the forecast period?

• The Global Solvents Market is poised to grow at a CAGR of 6.5% from 2024 to 2032.

3) Which region will provide more business opportunities for the growth of the Global Solvents Market in the future?

• The Asia Pacific region is expected to create more opportunities in the market.

4) Who are the major players dominating the Global Solvents Market?

• Shell plc (UK), BASF SE (Germany), Exxon Mobil Corporation (US), LyondellBasell Industries Holdings B.V. (Netherlands), Eastman Chemical Company (US, Ashland Global Holdings Inc. (US), Celanese Corporation (US), Huntsman International LLC (US), Solvay SA (Belgium), Honeywell International Inc. (US), BP P.L.C. (UK), INEOS Group Holdings S.A. (UK), TotalEnergies SE (France), Sasol (South Africa), Arkema SA (France), Others.

5) What are the segments in the Global Solvents Market?

• By Source, By Type, By Application, are the industry key segments considered for research study.

6) What is the estimated market revenue for the Global Solvents Market in 2032?

• The estimated revenue for the Global Solvents Market in 2032 is USD 42,916.58 Million.