Global Solvent Market Overview
Solvent Market Size was valued at USD 23.4 billion in 2021. The Solvent industry is projected to grow from USD 25.6 billion in 2022 to USD 50.01 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 6.4% during the forecast period (2022 - 2030). The primary force behind the growth of the solvent market worldwide is the bigtime application of solvents across the Paint and Coating industry. The increased use of paints and coatings in the building and construction, automotive, and semiconductor industries over the past few years has resulted in the industry's tremendous expansion. The market for solvents will continue to grow as the paints and coatings sector prepares for a seismic shift in the near future. The sector will also experience a certain surge in demand, which will boost revenues throughout the forecast period.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Solvent Market Trends
Rapidly flourishing paints and coating industry to fuel the solvent market
The market's growth is anticipated to be boosted by the expanding demand from the paints and coatings sector. This product is a top pick in the paints and coatings sector due to qualities including temperature resistance, robustness, and affordability. The substance is heavily utilised in paints to prevent clumps or globs and to offer the desired consistency in various applications. Also, the demand for paints will increase due to the booming infrastructure development in nations like China, India, and the US as well as the rapid rise of the construction industry. Alcohols, polyhydric alcohols, aromatics, and aliphatics are a few of the several types of solvents. Methanol, ethanol, propanol, n-butanol, ethylene glycol, acetone, acetic acid, benzene, and ethyl acetate are a few of the most popular solvents used in a variety of sectors.
Owing to the propensity to have a high solid content and low viscosity, ketones are frequently used in paints and coatings. Ester solvents are frequently used as an industrial cleaning and as a hardener in paints. In order to breakdown binders and pigments and provide consistency, bio-based solvents are used in paints and coatings. Certain spray paints and decorative paints contain solvents like glycol ether esters to prevent them from drying in midair. Paints, thinners, and glues are just a few of the construction-related items that use solvents. The expansion of the paints and coatings application category is anticipated to be aided by rising building activity in nations like China, India, the United States, and Brazil. The market for solvents has grown particularly and is expected to grow even more robustly owing to the surge in the paint and coating applications, eventually boosting the Solvent Market revenue.
Solvent Market Segment Insights
Solvent by Type Insights
The Solvent Market segmentation, based on Type has been segmented as Alcohols, Ketones, Esters, Aromatic, Aliphatic and Other. Among these, the alcohol type is projected to dominate the solvent market revenue through the projected period. The demand for ethanol, methanol, n-butanol, and isopropanol for diverse uses is on the rise, which is the cause of the growth. Methanol is extensively used in inks and adhesive applications, whereas ethanol is consumed in perfumes, vegetable essences, and pharmaceuticals. Thus, the segment's expansion will be aided by the rising usage of these items. It is also anticipated to be one of the segments with the greatest growth during the projection period. Large players are expected to benefit greatly from the advent of soy oil and solvents based on glycol.
May 2022: Solvay launches a new Renewable Materials and Biotechnology platform, dedicated to developing innovative and sustainable solutions for a range of markets, using renewable feedstocks and biotechnology. The company is already a market leader in some bio-based products, including guar, bio-sourced solvents and natural vanillin, the latter of which is enabled by biotechnology.
Solvent by Source Insights
The Solvent Market segmentation, based on source, the market is segmented as Petrochemical-Based and Bio-based Solvents. Out of which the Petrochemical-Based segment dominated base year market and is also projected to be holding a dominating share in the forecasted period as well followed by the Bio-based Solvents. The majority of solvents come from synthetic compounds and petroleum. These derived sources are formulated appropriately to expand the solvent uses into newer fields. petroleum-derived hydrocarbon fractions that are used in industrial processes and commercial formulations to suspend, dissolve, or transport other components. The development of refinery operations intended largely for the conversion of low-octane feedstocks to high-octane fuels, as well as environmental restrictions and concerns, have resulted in a significant growth in the diversity of petroleum solvents in recent years.
June 2020: Elgi Equipments, one of the world’s leading solvent manufacturers,launched the ‘LD Series’ range of lubricated direct drive reciprocating solvents. Nearly all original equipment manufacturers (OEMs) and top component suppliers use the company’s products in their manufacturing facilities, making it one of the largest providers to the Indian automobile industry.
Solvent by Application Insights
The Solvent Market segmentation based on the Application, has been segmented as Paints And Coatings, Adhesives, Pharmaceuticals, Cosmetics and Personal care and Other. The market's largest share belonged to the Paints And Coatings sector. This is a result of the demand for construction chemicals, which is anticipated to result in an increase in their use in the application of paints and coatings. Construction activity is on the rise in economies including the United States, India, China, and Brazil, which is credited with the expansion. The need for paints and coatings, which is a significant application market for solvents, is being driven by the expanding construction industry. This product is a top pick in the paints and coatings sector due to qualities including temperature resistance, robustness, and affordability. The substance is heavily utilised in paints to prevent clumps or globs and to offer the desired consistency in various applications.
Another application category that will develop over the projection period is printing ink. The rising demand for printing inks in the packaging and advertising sectors is blamed for this expansion. The printing inks market is also predicted to benefit from advancements in production technology, the use of case-ready packaging, and enhanced packaging techniques. Moreover, improvements in food processing technology in the U.S. and Europe are anticipated to boost the development of the packaged food industry, driving up demand for printing inks and, in turn, increasing demand for solvents.
May 2018: BASF SE (Germany) and ExxonMobil (US) signed an agreement to jointly develop new gas treating solvents and process technologies to be used for natural gas processing and petroleum refining.
Solvent Regional Insights
By Region, the study segments the solvent market into North America, Europe, Asia-Pacific, Middle East & Africa and South America. Asia-Pacific solvent market holds the largest market share and is also anticipated to account for the largest revenue share during the forecast period. This is as a result of the region's expanding need for solvents in the sectors of home care, personal care, and cosmetics. Growing urbanisation and shifting lifestyles are two other factors driving the spread of solvents in the area. Market expansion in the region is projected to be boosted by rising building spending in nations like China and India as well as their developing industrialisation. In countries like China, India, Indonesia, Thailand, Vietnam, and Korea, end-user sectors including paints, coatings, and adhesives are booming, and this is projected to support product demand in the area over time.
In addition, the market for solvents is anticipated to expand as a result of rising urbanisation and industrialization as well as high car demand. Also, the need for solvents in the paints and coatings application is anticipated to be driven by the rapid expansion of building and construction activities and the increasing demand for automobiles. Also, the region's personal care market is experiencing tremendous growth, which is feeding the solvents market's expansion. The demand for solvents in the region is anticipated to rise throughout the forecast period as a result of the aforementioned causes.
Another place where the product market is expanding is Europe, owing to regulatory bodies' green policies. As a result, the region's growing preference for bio-based products over chemical-based ones is driving up demand for the good. Germany is also the fifth-largest e-commerce market in the world, and it is expanding quickly because to rising customer demand for online purchasing. To ensure that products are packaged safely and attractively, the e-commerce industry's expansion has significantly increased demand for corrugated cardboard, product packaging, and printed labels. Over the course of the forecast period, this is expected to fuel demand for printing inks, which will then lead to growth in the demand for solvents in the area.
May 2018: Royal Dutch Shell PLC, started the operation of the second ethylene cracker at Nanhai Petrochemicals Complex in Huizhou, Guangdong Province, China. The company started the production through a joint venture of China National Offshore Oil Corporation (CNOOC) and Shell Nanhai B.V. (Shell). The expansion helped the company manufacture ethylene oxide, ethylene glycol, propylene oxide, polyols, polyolefins, phenol and oxo-alcohols through OMEGA, SMPO, and polyols technologies.
Solvent Key Market Players & Competitive Insights
Major market players are spending a lot of money on R&D to increase their product lines, which will help the Solvent Market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, including new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the Solvent Market industry must offer cost-effective products to expand and survive in an increasingly competitive and rising market environment.
One of the primary business strategies adopted by manufacturers in the Solvent industry to benefit clients and expand the Solvent market sector is to manufacture locally to reduce operating costs. The market for Solvent is recognized as being extremely competitive and fragmented. The market for Solvent offers considerable potential opportunities for domestic and unorganised companies. Some of the key players operating in the Solvent Market are BASF SE, Exxon Mobil Corporation, Sasol Solvents, Chevron Phillips Chemical Company LLC and Total Energies SE. To increase their reach and client base, key firms are concentrating on acquisitions and product innovation.
BASF SE: is a major player in the solvents market, ly. It manufactures, markets, and sells chemicals, polymers, crop protection products, and performance products. Solvents, adhesives, surfactants, fuel additives, electronic chemicals, pigments, paints, food additives, fungicides, and herbicides are among its products. Construction, furniture and wood, agricultural, electronics and electrical, paints and coatings, automotive, home care, nutrition, chemicals, and other industries are served by the company. BASF conducts R&D in collaboration with clients, scientists, and partners. The corporation operates through a network of manufacturing plants. Its operations are spread over Europe, Asia Pacific, South America, Africa, the Middle East, and North America. BASF is based in Ludwigshafen, Germany. The company has been focusing new product launches, expansions, and agreements in order to remain competitive in the solvents market..
Solvay: is a chemical corporation. It manufactures and distributes speciality polymers, critical chemicals, and chemical materials. It serves customers in the aerospace and automotive industries, natural resources and the environment, electrical and electronics, agro-chemical, food, consumer goods, building and construction, healthcare, industrial applications, and other industries. To improve product quality and performance, the organisation employs unique chemicals created from environmentally safe ingredients. It innovates and collaborates with customers in a wide range of end markets around the world. The corporation has research and development centres and manufacturing facilities in Europe, North America, South America, and Asia. Solvay is based in Brussels, BelgiumIt is focusing on expansion as the key growth strategy. The company has been focusing on expansion and new product launches strategies to maintain its leading position in the market.
Key Companies in the Solvent Market includes
BASF SE (Germany)
Solvay SA (Belgium)
Eastman Chemical Company (US)
Exxon Mobil Corporation (US)
Royal Dutch Shell Plc (Netherlands)
Sasol Solvents (South Africa)
Ashland Inc. (US)
Chevron Phillips Chemical Company LLC (US)
Kuraray Co., Ltd. (Japan)
LyondellBasell Industries Holdings B.V. (Netherlands)
The Dow Chemical Company (US)
TotalEnergies SE (France)
INEOS AG (US)
Huntsman International LLC (US)
Solvent Industry Developments
February 2023, LyondellBasell and KIRKBI invest in APK to develop recycling technology: LyondellBasell (NYSE: LYB), a leader in the chemical industry and KIRKBI A/S, the family-owned holding and investment company of the LEGO brand, announces they have signed an agreement to make an investment in APK, which specializes in a unique solvent-based recycling technology for low density polyethylene (LDPE).
April 2022- Solvay : announces the production of a new generation solvent at its Melle site: Solvay announces the production of the new generation solvent Rhodiasolv®IRIS, with excellent eco-friendly properties. Previously manufactured in China, this solvent will now be produced from 2023 onwards at Solvay's Melle site(France). Rhodiasolv®IRIS is efficient, non-flammable, readily biodegradable, low volatile and non-CMR (carcinogenic, mutagenic and reprotoxic). It is used in many applications such as formulation of phytosanitary products, paint stripping, graffiti and resin clean-up, industrial cleaning and agrochemistry
June 2021, Neste and LyondellBasell today announced a long-term commercial agreement under which LyondellBasell will source Neste RE™, a feedstock from Neste that has been produced from 100% renewable feedstock from bio-based sources, such as waste and residue oils and fats. This feedstock will be processed through the cracker at LyondellBasell’s Wesseling, Germany, plant into polymers and sold under the CirculenRenew brand name.
Solvent Market Segmentation
Solvent Type Outlook
Solvent Source Outlook
Solvent Application Outlook
Solvent Regional Outlook
- North America
- Rest of Europe
- South Korea
- Rest of Asia-Pacific
- Rest of the World
- Middle East
- Latin America
|Market Size 2021
||USD 23.4 billion
|Market Size 2022
||USD 25.6 billion
|Market Size 2030
||USD 50.01 billion
|Compound Annual Growth Rate (CAGR)
||6.4 % (2022-2030)
||2019 & 2021
||Value (USD Billion)
||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
||Type, Source, Application and Region
||North America, Europe, Asia Pacific, Middle East & Africa and South America
||The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, Brazil, Saudi Arabia, UAE, Argentina,
|Key Companies Profiled
||BASF SE (Germany), Solvay SA (Belgium), Eastman Chemical Company (US), Exxon Mobil Corporation (US), Royal Dutch Shell Plc (Netherlands), Sasol Solvents (South Africa), Ashland Inc. (US), Chevron Phillips Chemical Company LLC (US), Kuraray Co., Ltd. (Japan), LyondellBasell Industries Holdings B.V. (Netherlands), The Dow Chemical Company (US), TotalEnergies SE (France), INEOS AG (US) and Huntsman International LLC (US)
|Key Market Opportunities
||Technological Innovations and Increased Use of Organic Solvents
|Key Market Dynamics
||Rapidly flourishing paints and coating industry Technological advancements
Frequently Asked Questions (FAQ) :
The solvent market size was USD 25.6 Billion in 2022
The solvents market registered a CAGR of 6.4% during the forecast period.
Asia-Pacific largest market share in the Solvent Market
BASF SE (Germany), Solvay SA (Belgium), Eastman Chemical Company (US), Exxon Mobil Corporation (US), Royal Dutch Shell Plc (Netherlands), Sasol Solvents (South Africa), Ashland Inc. (US), Chevron Phillips Chemical Company LLC (US), Kuraray Co., Ltd. (Japan), LyondellBasell Industries Holdings B.V. (Netherlands), The Dow Chemical Company (US), TotalEnergies SE (France), INEOS AG (US) and Huntsman International LLC (US)
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