Solvent Market is projected to be worth USD 69.21 billion by 2028, registering a CAGR of 6.72% during the forecast period (2021 - 2028), The market was valued at USD 41.35 billion in 2021.
Solvents are chemical substances used to dilute or dissolve other substances (solutes) without chemical changes. Solvents play a vital role in industrial production such as paints and varnishes, inks, adhesives, pharmaceuticals, cosmetics, plastics, textiles, and detergents. Some of the trade names for solvents are Desoclean, DeSoto, Eldorado Exxsol, Isopar, Varsol, PROXITOL, Nappar, PURASOLV, and Solves.
Rapid industrialization, urbanization, and population growth are considered to be the key driving factors for the growth of the global solvent market. Furthermore, increasing demand for paints and coatings in the construction and automotive industries is expected to be another driving factor for the growth of the global solvent market. However, increasing environmental and health concerns, along with stringent regulations are compelling end-users to shift towards environmentally friendly alternatives such as water-based products. This development is expected to have an inhibiting effect on the growth of the global solvent market.
Nevertheless, stringent government regulations had paved the way for the growth of bio-based solvents demand across the globe. Furthermore, favorable government regulations and increasing R&D spending are augmenting the growth of bio-based solvents market.
Pricing Analysis and Regulatory Framework:
The average price for solvents varies form USD 200 per ton to USD 800 per ton. The prices witnessed an upward trend over the past few years and the same trend is expected to follow during the forecast period owing to increasing raw material prices.
Solvents due to high VOC emission are regulated under stringent regulations governed by regulatory bodies such as the US Environmental Protection Agency (EPA), and Registration, Evaluation, Authorization and Restriction of Chemicals (REACH). Furthermore, China’s Ministry of Environment and Ecology (MEE) in July 2019 launched a VOC management plan to reduce emissions of volatile organic compounds (VOCs). In accordance with the ‘blue skies' strategy, China aims to reduce VOC emissions by 10% by the end of 2020.
- Robust growth of the paints and coatings industry
- High demand in the construction and automotive industries
- Stringent government regulations
- High raw material cost and complex manufacturing process are hindering the demand for bio-based solvents
- Alcohols: Alcohol-based solvents include methanol, ethanol, isopropyl alcohol (IPA)/ isopropanol, and butanol. Due to their low toxicity compared with other solvents and the ability to dissolve non-polar as well as polar substances, alcohol can be used as a solvent in industrial, pharma manufacturing, and personal care applications.
- Ketones: Ketones are oxygenated chemical solvents primarily used as solvents in paint & coatings and adhesives applications. Ketone-based solvents include acetone, methyl ethyl ketone (MEK), methyl isobutyl ketone (MIBK), and diisobutyl ketone (DIBK).
- Esters: Esters are used as solvents in paints, coatings, and lacquers.
- Glycol Ethers: This group of solvents is used in paints, inks, and cleaners. Glycol ethers include E-series glycol ethers, P-series glycol ethers, and butyl glycol ethers.
- Halogenated Solvents: These solvents contain a halogen atom such as fluorine, bromine, chlorine or iodine in their molecular structure. These solvents are widely used in paint removers, cleaners, metal degreaser and precision cleaning due to its non-flammability, high solvent capacity and relatively low toxicity.
- Aromatic: These solvents are used in applications requiring high solvent power such as industrial paints, resins, adhesives, detergents, and others.
- Aliphatic: Aliphatic solvents are widely used in paints and coatings, degreasing, oil extraction, rubber manufacturing, and adhesives.
- Others: The other segment includes ammonia, hydrogen fluoride, carbon tetrachloride, carbon dioxide, sulfuric acid, and molten salt.
- Petrochemical-based: This segment dominated the global market in 2019 and is projected to maintain its dominance through the forecast period. The segment is expected to witness moderate growth during the forecast period owing to stringent regulations and increasing environmental concern.
- Bio-Based Solvents: These solvents are made from biomass sources such as beat, sugars, corn, aquatic biomass, and waste materials. The usage of bio-based solvents is increasing across paints, coatings, printing inks, cosmetics, personal care, sealants, and adhesives.
- Paint & Coatings: Paint & coatings accounted for the largest share of the global solvents market in 2019. The growing demand for paint and coatings in the construction and automotive industries is expected to support the growth of the solvents market during the forecast period.
- Pharmaceuticals: Solvents are used in a wide range of pharmaceutical products including active pharmaceutical ingredients (API), ointments, antibacterial creams, and corticosteroids. The growing pharmaceutical industry across Asia-Pacific, Europe, and North America is fueling the demand for solvents across the globe.
- Polymer: Solvents are used in the production of polymers and dissolving the raw resins.
- Agrochemicals: Solvents are used in the production of various agrochemicals-market-1267'>agrochemicals-market-1267'>agrochemical formulations fertilizers, and pesticides.
- Printing Inks: Solvents for diluting resins, regulating viscosity and drying time.
- Cleaners: Cleaning solvents include acetone, methyl ethyl ketone, isopropyl alcohol, trichloroethylene (TCE), toluene, and propylene glycol are used to remove oil, grease, solder flux, and other contaminants.
- Cosmetics & Personal Care: Increasing consumer spending, changing demographics, increasing number of affluent populations particularly in the developing markets is expected to augment the growth of the market during the forecast period.
- Adhesives & Sealants: The demand for solvents in the production of adhesives and sealants is expected to increase driven by their increasing demand in the automotive and construction industries.
- Others: This segment includes textile processing, electronics, and leather manufacturing.
- North America
- Latin America
- Middle East & Africa
- Asia-Pacific: The region accounted for the largest market in 2019 and is expected to witness significant growth during the forecast period. As the value chain in the chemical industry has shifted eastward due to the growing economy and rapid industrialization in countries such as India, China, Indonesia, Thailand, and the Philippines, the demand for solvents is also expected to increase. Further, increasing construction spending and growing automobile production in the region are augmenting the demand for solvents in various applications. The construction industry in China was valued at USD 2.5 Trillion in 2019. China is expected to maintain its dominance during the forecast period attributed to robust economic growth and urbanization.
- North America: The growth of the solvent market in North America is driven by the well-established presence of paint & coating, pharmaceutical, personal care, and cosmetics industries. The increasing spending on construction activities and healthcare in the US is driving the demand for solvent in the North American market
- Europe: Europe accounted for a significant share of the global market owing to well-established pharmaceutical and cosmetic industries. The regional market growth is expected due to the increasing automobile production and construction activities in Eastern Europe, the UK, and France.
- Latin America: Increasing automobile production in Brazil and Mexico along with growing pharmaceutical and cosmetics industries across the globe is likely the growth of the market during the forecast period.
- Middle East & Africa: The growth of construction, automotive, and cosmetics & personal care industries in the region is driving the demand for solvents for various applications.
- Celanese Corporation (US)
- Eastman Chemical Company (US)
- LyondellBasell Industries Holdings B.V. (The Netherlands)
- Royal Dutch Shell PLC (Netherlands) – PROXITOL
- Exxon Mobil Corporation (US) – Exxsol, Isopar, Varsol, Nappar, and Solvesso
- Chevron Phillips Chemical (US) – SOLTROL
- Dow Chemical Company (US)
- PPG Industries, Inc. (US) – Desoclean, DeSoto, Eldorado
- Corbion NV (US) – PURASOLV
- BASF SE (Germany)
2028: USD 69.21 Billion
Value (USD Billion)
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Type, Source, Application
North America, Europe, Asia-Pacific, and Rest of the World (RoW)
Celanese Corporation (US), Eastman Chemical Company (US), LyondellBasell Industries Holdings B.V. (The Netherlands), Royal Dutch Shell PLC (Netherlands) – PROXITOL, Exxon Mobil Corporation (US) – Exxsol, Isopar, Varsol, Nappar, and Solvesso, Chevron Phillips Chemical (US) – SOLTROL, Dow Chemical Company (US), PPG Industries, Inc. (US) – Desoclean, DeSoto, Eldorado, Corbion NV (US) – PURASOLV, BASF SE (Germany)
Key Market Opportunities
High raw material cost and complex manufacturing process are hindering the demand for bio-based solvents
Key Market Drivers
Robust growth of the paints and coatings industry. High demand in the construction and automotive industries
Frequently Asked Questions (FAQ) :
Solvent Market is projected to be worth USD 69.21 billion by 2028
The market is expected to exhibit a strong 6.72% CAGR over the forecast period from 2021 to 2028.
The growing paints and coatings and pharmaceutical industries are the major driver for the solvents market.
Asia Pacific accounted for the largest share in the global solvent market in 2018.
Leading players in the solvent market include Celanese, Eastman, and Shell, among others.