ID: MRFR/CnM/4685-CR | June 2018 | Region: Global | 190 pages
Hydrocarbon Solvents Market size was assessed to reach an estimated value of USD 6.18 Bn by the conclusion of 2023 while escalating growth at a CAGR of 2.85% in the forecast period.
The global hydrocarbon solvents market is projected to reach 8,589.8 thousand tons roughly in terms of volume in the forecast period. Despite the considerable need for hydrocarbon solvents in the paint & coatings industry, augmented water-based products' penetration continues to threaten the market's prospects.
The amplified worth of digital technologies in the workplace is changing the workforce in the hydrocarbon solvents industry. The companies in the market have seen a state of surplus in individual market segments. The market customers are employing a higher worth on sustainability and considering products based on circuitousness and carbon footprint. The start of COVID-19 has further stressed the automotive and construction sectors. Efficiency gains and increased reliability have primarily driven the upsurge in oil, gas, and chemicals businesses' deployment of digital technologies. Enhanced optimization of operations. The resulting closure of plants and worksites, companies' existing digital technologies provided an advantage with the sudden arrival of COVID-19. The hydrocarbons industry trends have decelerated considerably and will continue to and eventually reverse. It may still not be satisfactory for the isolated working and cybersecurity level that was unexpectedly vital. Specific vital trends are being fast-tracked due to the crisis, redesigning both supply and demand through chemicals and materials. Finally, the inclinations that were vital before the pandemic will likely remain for the foreseeable future.
Robust Need for Paints & Coatings
The paints & coatings have control over a substantial share of the global hydrocarbon solvents consumption. A vast number of hydrocarbon solvents products in paints and coatings remain a vital driver for market development.
Rising Demand for Rubbers & Polymers In End-User Industries
The tire industry's growth is reproduced in the hydrocarbon solvents market's balanced growth due to its primary tire production application.
High Demand from Emerging Economies of Asia Pacific
The APAC region's demand has risen considerably due to expansion in the consumer base through the impending period.
Mounting Infiltration of Water Base Over Solvent Base
Hydrocarbon solvents' production process often includes harsh chemicals that lead to considerable environmental damage, leading to the augmented adoption of water-based products. Furthermore, water-based substitutes extend superior properties over hydrocarbon solvents, presenting them the edge needed for the limited use of solvent-based products.
Rising Preference for Bio-Based Solvents
The steady change from synthetic solvents to bio-based solvents is a daunting hurdle to hydrocarbon solvents market share growth. The mounting concern for the environment has been vital in encouraging bio-based solvents that are ecological and have minimal VOC.
Growth in Industrial Cleaning Applications
The application in industrial cleaning is projected to generate promising future growth in the hydrocarbon solvent market.
The aliphatic segment reports for the principal market share between these two segments and is expected to grow at the highest CAGR during the assessment period. The segment's market advantage is principally due to the collective requirement for aliphatic hydrocarbon solvents in industrial paints and coatings, price, low toxicity, and other promising factors. The use of Aliphatic solvents is likely to surge as they have relatively lower toxicity level and thus can be exploited in a diverse range of industrial applications.
The mounting demand for solvent-borne industrial paints and coating have propelled the paint & coatings segment into a strong position. This segment is anticipated to uphold its spot in the course of the forecast period.
APAC Region to Hold a Primary Stake in Market
The hydrocarbon solvents market has been consistently run by the Asia Pacific and is expected to maintain its market lead throughout the forecast period. The region has appeared as the principal producer for income and volume for the hydrocarbon solvents market. The region is anticipated to attain the highest CAGR throughout the forecast period due to the enormous paints and coatings industry in the region perceiving a high demand for hydrocarbon solvents. Furthermore, the building and enhancement of infrastructure in this region's developing economies have augmented the product's need.
European Region to Be Spurred By Automotive Sector
Europe is the second prime market in the hydrocarbon solvent markets. The existence of a massive automotive industry in Europe is reflecting favorably on the region's market. The incidence of many Tier-2 sectors and the incidence of crucial hydrocarbon solvents producers
The central contenders in the hydrocarbon solvents market are:
Dec 2020 The Special Fluids business component of Total, one of the important hydrocarbon fluids creators for industry, has commenced BioLife, a variety of renewable, pure, and biodegradable isoparaffins in the UK market. They have been developed in retort to calls for more sustainable and environmentally friendly products. BioLife bio-based hydrocarbon solvents deliver a safe, sustainable, and odorless substitute to other conventional fossil-based solvents. BioLife can be used in degreasing, paints & coatings, lubricants, and hydraulic & metalworking fluids. The usage of patented high-pressure hydrogenation HDA technology combined with narrow-cut distillations means.
July 2020 VIVA Energy, one of Australia's biggest energy companies and the Shell brand's licensee in Australia, will shape a liquified natural gas facility, solar generation, hydrogen production, and a novel fuel storage capability at Geelong under schemes stated at its annual general meeting. The 235-hectare expansion is in its last design stage, will generate an energy center that would raise the supply of natural gas to Victoria and lead to proposals such as hydrogen manufacture and gas-powered electricity creation. Viva's current plant at Geelong creates more than 50% of Victoria's liquid fuel supplies and is Australia's single bitumen manufacturer, hydrocarbon solvents, and avgas.
|Market Size||2023 : USD 6.18 Bn|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Type, Application|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Total S.A, Royal Dutch Shell, DowDuPont Inc., Sinopec, ExxonMobil Corporation, Ashland Inc., BP Plc., Reliance Industries Limited, Engen Petroleum Ltd., Reliance Industries Limited|
|Key Market Opportunities||Growth in Industrial Cleaning Applications|
|Key Market Drivers||
Frequently Asked Questions (FAQ) :
The global hydrocarbon solvents market is predicted to touch USD 5200 million by 2023.
Asia Pacific is predicted to lead the hydrocarbon solvents market during the forecast period.
Growing demand from the construction and automobile industry is boosting market growth.
Preference for bio-based solvents and strict regulations imposed by SEPA, EPA, and EU on the use of these solvents may limit the market growth.
Leading players profiled in the hydrocarbon solvents market include Engen Petroleum Ltd. (South Africa), Formosa Petrochemical Corporation (Taiwan), BP Plc (U.K), Total S.A. (France), DowDuPont, Inc. (U.S.), Royal Dutch Shell (Netherlands), Reliance Industries Limited (India), Ashland Inc. (U.S.), Exxon Mobil Corporation (U.S.), Sasol Solvents (South Africa), and Sinopec (China).
The global hydrocarbon solvents market, which was valued at USD 5.22 Bn in 2017, is expected to reach an estimated value of USD 6.18 Bn by the end of 2023, expanding at a CAGR of 2.85% during the forecast period (2017-2023). In terms of volume, the market is projected to reach an approximate 8,589.8 thousand tons over the review period. Despite the substantial demand for hydrocarbon solvents in the paint & coatings industry, increased penetration of water-based products continues to threaten the future prospects of the market.
The paints & coatings sector accounts for a considerable share of the global hydrocarbon solvents consumption. A wide number of applications for hydrocarbon solvents in the preparation of paints and coatings remains a key driver for market growth. Meanwhile, the growth of the tire industry is reflected in the proportional growth of the hydrocarbon solvents market due to its major application in tire production.
The manufacturing process of hydrocarbon solvents often involves the use of harsh chemicals which cause environmental damage; this has led to the increased adoption of water-based products. Moreover, water-based alternatives offer superior properties over hydrocarbon solvents given them the edge that is responsible for the restricted consumption of solvent-based products. Growing concern for the environment has been crucial in promoting the production of bio-based solvents which are eco-friendly in nature and have low VOC. The gradual transition from synthetic solvents to bio-based solvents is a formidable barrier to the market growth. However, hydrocarbon solvents may find a novel application in industrial cleaning, creating an opportunity for future growth.
The global hydrocarbon market has been segmented on the basis of type, application, and region. By type, the market has been segmented into aliphatic and aromatic. Between these two segments, the aliphatic segment accounts for the largest market share and is expected to grow at the highest CAGR during the assessment period. The segments market lead is primarily due to the increasing demand for aliphatic hydrocarbon solvents in industrial paints and coatings combined with low toxicity, price, and other favorable factors.
By application, the market has been segmented into paints & coatings, cleaning & degreasing, printing inks, rubbers & polymers, adhesives, aerosols, agriculture chemicals, pharmaceuticals, and others. Among these, the growing demand for solvent-borne industrial paints and coating have catapulted the paint & coatings segment into a leadership position. This segment is expected to maintain its position over the course of the assessment period.
The global market for hydrocarbon solvents has consistently led by the Asia Pacific and is expected to maintain its market lead over the course of the forecast period. The region has emerged as the largest generator for revenue and volume for the hydrocarbon solvents market. The region is expected to achieve the highest CAGR during the assessment period due to the presence of a massive paints and coatings industry in the region which is witnessing a high demand for hydrocarbon solvents. Moreover, construction and enrichment of infrastructure in the emerging economies of this region have increased the demand for the product.
Europe, the second largest market, is closely followed by North America and both regions represent a substantial share of the total market. In Europe, this is due to a large number of Tier-2 industries and the presence of key hydrocarbon solvents producers.
The Middle East & Africa and Latin America have the smallest shares of the total market. However, they are expected to experience some growth in the next few years. In Latin America, the automotive industry is expected to facilitate growth, while the Middle East & Africa is expected to grow due to the presence of thriving construction industry.
Prominent market leaders who are currently contributing to the global competitive landscape of the hydrocarbon solvents market includes Total S.A, Royal Dutch Shell, DowDuPont Inc., Sinopec, ExxonMobil Corporation, Ashland Inc., BP Plc., Reliance Industries Limited, Engen Petroleum Ltd., and Reliance Industries Limited. Key market strategies employed by these companies include expansions of existing manufacturing units, and mergers & acquisitions.
Global Hydrocarbon Solvents Market: Competitive Landscape
Some of the prominent players in the global hydrocarbon solvents market include Total S.A., ExxonMobil Corporation, Royal Dutch Shell, DowDuPont, Inc., Sinopec, Ashland Inc, BP Plc, Reliance Industries Limited, Sasol Solvents, and Engen Petroleum Ltd.
Among the aforementioned companies, Total S.A., ExxonMobil Corporation, Royal Dutch Shell, Sinopec, and BP Plc collectively account for the lion’s share of the markey. The global hydrocarbon solvents market is fragmented and is lacking a substantial presence of the established tier-1 companies. Asia Pacific and Europe remain the two most important markets for hydrocarbon solvent, and global players are focusing on these two regions for business expansion by building new petrochemical plants or by investing in solvents unit of local players. The industry players are adopting collective approaches such as acquisition and expansion to increase revenue and leverage the opportunities existing in the market due to presence of limited competition.
Exxon Mobil Corporation is one of the five leading players in this market. Exxon Mobil Corporation acquired world’s largest aromatics plant, i.e., Jurongs aromatics plant in August 2017. The acquired production facility is capable of producing 1.9 million tons of ethylene, which would complement Exxon Mobiles olefin production capacity. This acquisition is likely to complete company’s aromatic solvent business over the next three financial years.
In April 2017, Reliance Industries expanded paraxylene production to 4.3 million metric tons and benzene production to 1.4 million metric tons per year. With this expansion, overall benzene and paraxylene production capacity has reached 5.7 million metric tons per year. Reliance Industries is aiming to become a supplier of choice in Asia Pacific region, and the expansion has undertaken considering the predetermined vision.
Honeywell International Inc. specializes in sensing & security techniques, specialty chemicals, electronic & advanced materials, process technology for refining & petrochemicals, and energy efficient products & solutions for homes, business, and transportation. With a workforce of around 130,000, the company operates within the following segments: aerospace, performance materials & technologies, home & building technologies, and safety & productivity solutions. The company offers process solutions for automation control, instrumentation, advanced software, and services for the oil & gas, refining, chemicals & petrochemicals, biofuels, life sciences, and others.
British Petroleum operates as an integrated oil and gas company globally. The company is one of the world’s largest oil & gas organizations. It operates through two core business segments: upstream and downstream. The upstream segment deals with oil and natural gas exploration and production, and transportation activities. Whereas, the downstream segment includes refines, manufactures, markets, transports, supplies, and trades in crude oil, petroleum, and petrochemicals products and related services.
The company also has a stake in Rosneft, a a Russian integrated energycompany headquartered in the Russian capital of Moscow. Through Rosneft it engages in the production of hydrocarbons in the United States, Canada, Vietnam, Venezuela, Brazil, Algeria, the United Arab Emirates, Turkmenistan, and Norway and offers jet fuel, bunkering, bitumen, and lubricants.
Sasol is a global leader in chemicals and energy based in South Africa and has operates across 33 countries. The company engages in the development and commercialization of technologies and operate world-scale facilities to offer a wide range of products including liquid fuels, chemicals, and low-carbon electricity. The company comprises business units namely mining & exploration, and production of oil & gas activities. The company focusses on its key strategies, some of which are expansion of business through the construction of new plants and facilities, technology up gradation in the field of coal mining, and focus on the chemicals business in the U.S. by leveraging existing technology.