Solvent Market - Forecast(2024 - 2030)

Solvent Market size is forecast to reach $41.2 billion by 2030, after growing at a CAGR of 5.5% during 2024-2030. The solvent market continues to expand driven by diverse applications in domestic, commercial, and research sectors. Solvents, typically in liquid form but also found in solid or gaseous states, facilitate the dissolution of solutes to form solutions. The infrastructure industry's moderate growth contributes to the rising demand for solvents. This solvent is a crucial component of various industries, including pharmaceuticals, chemicals, paints and coatings, and agriculture. Solvents serve as the medium for dissolving, diluting, or suspending other substances to facilitate various processes. As industries evolve and adapt to technological advancements and environmental considerations, the solvent market undergoes significant shifts. The solvent market is witnessing significant shifts driven by evolving environmental regulations and technological advancements. 

One prominent trend is the growing demand for eco-friendly or green solvents, fueled by increasing environmental consciousness and stringent regulations on volatile organic compound (VOC) emissions. Companies are investing in research and development to formulate solvents with lower toxicity and reduced environmental impact, catering to the rising demand for sustainable solutions across various industries. Another trend reshaping the solvent market is the surge in demand for bio-based solvents derived from renewable sources such as plants, biomass, or waste materials. This trend aligns with efforts to reduce reliance on fossil fuels and minimize carbon footprint. Bio-based solvents offer comparable performance to conventional counterparts while offering environmental benefits, driving their adoption across industries like paints and coatings, pharmaceuticals, and cosmetics. Overall, the solvent market is evolving towards sustainability, with bio-based solvents driving notable trends in the industry.

The report: “Solvent Market – Forecast (2024-2030)”, by IndustryARC, covers an in-depth analysis of the following segments of the Solvent Market Industry.

By Source: Natural Sources and Derived Sources (Petroleum Sources and Synthetic Sources)

By Type: Organic Solvents and Inorganic Solvents.

By End-Use Industry: Paints & Coatings, Pharmaceutical, Adhesives, Printing Inks, Cosmetics, Food and Beverage, Agricultural, Industrial Cleaning, Oil and Gas, Chemical, and Others

By Geography: North America, South America, Europe, APAC, and RoW

• Asia Pacific dominated the Solvent Market with the share of 54%, driven by factors like industrial growth, urbanization, and expanding manufacturing sector.

• New product developments and increasing investments in research and development of solvents are expected to drive the growth of this market.

• Among applications, the paints & coatings segment is projected to lead the Solvent Market during the forecast period.

 

The derived Sources segment held the largest share of 84% in the Solvent Market in 2023. Solvents are mostly derived from petroleum and synthetic chemicals. For extending the solvent applications into newer areas these derived sources are formulated accordingly. Hydrocarbon fractions are obtained from petroleum for use in industrial processes and commercial formulations to dissolve, suspend, or transport the other ingredients of the process or formulation. In recent years, the variety of petroleum solvents has increased considerably due to the development of refinery processes designed primarily for the transformation of low-octane feedstocks to high-octane fuels, as well as due to environmental regulations and concerns.

The organic segment dominated the Solvent Market in 2023 with a revenue share of 87%. Conventional solvents consist of glycol ethers, hydrocarbons, acetate esters, alcohols, chlorinated, and ketones. Organic ones are majorly used in traditional applications, such as dry cleaning, as well as in manufacturing industries. Ketone solvents such as acetone, methyl ethyl ketone, and methyl isobutyl ketone are used across a wide range of applications including paints and coatings, adhesives, chemical processing, cleaning products, and printing inks. Ketones such as MEK are widely used in paints and coatings due to their ability to obtain low-viscosity solutions and high solid content. Ester solvents are largely used in paints as an activator or hardener and they find moderate usage as an industrial cleaner.

The paints & Coatings segment held the largest share in the Solvent Market in 2023 growing at a CAGR of 3.1% during the forecast period. This is due to the demand for construction chemicals which is expected to lead to their increasing usage in the paints & coatings application. In addition, rapid population growth, accompanied by the growing Automotive industry in the region, is expected to boost the growth of the petrochemical-based solvents segment in the paints & coatings application. Also, the growth of the automotive, OEM, machinery, and appliances markets globally is expected to drive demand for this application segment during the forecast period globally. Bio-based solvents are used in paints and coatings to dissolve binders and colors and provide consistency.

However, the spread of the novel coronavirus has started impacting ongoing construction projects in APAC, especially in India, with workers increasingly not reporting at the sites. More than 30% construction workers are staying away from work sites due to fear over coronavirus infection and many of them may have returned to their villages or are planning to do so.

Asia Pacific dominated the Solvent Market with a share of more than 54%, followed by Europe and North America. The Asia Pacific region is expected to lead the Solvent Market during the forecast period, owing to the increasing demand from emerging economies, such as China and India. In addition, rapid industrialization and urbanization accompanied by the rising demand for automobiles are expected to contribute to the growth of the Solvent Market in the region. Middle East & Africa is estimated to grow at the highest CAGR during the forecast period. The region accounts for half of the world’s oil reserves and 40% of the world’s gas reserves. This is driving the production of petrochemicals, which in turn, is expected to fuel the growth of the Solvent Market. Additionally, rapid growth in building & construction activities and rising demand for automobiles are expected to drive the demand for solvents in the paints & coatings application. Also, the personal care market is growing in the region, and, in turn, fueling the growth of the Solvent Market.

The urban population is steadily increasing in most of the developing regions. According to the World Bank, most of the countries in APAC such as India, Myanmar, Nepal, and Afghanistan have less than 35% of their population living in urban areas. These economies are expected to grow at a promising rate in the future. In developing countries, there is an increasing shift of population to Tier 1 and metro locations of the countries, which is creating a demand for residential construction. The growth of the construction industry is driving the demand for paints and coatings, which, in turn, is boosting the Solvent Market. Moreover, according to the International Monetary Fund (IMF), the rapid growth rate of several developing economies is expected to provide opportunities to the petrochemical-based solvent manufacturers and suppliers, especially those catering to the construction and infrastructure sectors in the emerging economies.

Exposure to petrochemical-based solvents causes both short-term and long-term effects. Short-term effects include hallucinations, blackouts, sickness, severe headaches, prolonged sniffing, and dizziness among others. Long-term effects include damage to the brain, heart, liver, neurons, and kidneys. Some solvents can cause the lungs to freeze and cause suffocation. The examples of these types of solvents include polyethylene glycols (PEGs), which cause both health and environmental hazards. During the manufacturing process, PEGs can be contaminated with a measurable amount of ethylene oxide and 1, 4- dioxane, which are known to be a human carcinogen and affects central nervous systems. Thus, the harmful effects of petrochemical-based solvents are a challenge for the Solvent Market. 

Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Solvent Market. Major players in the Solvent Market are BASF SE, Exxon Mobil Corporation, Dow Chemicals, Shell Chemicals, Eastman Chemical Company, Archer-Daniels-Midland Company, Honeywell International Inc, Bharat Petroleum Corporation Limited, Huntsman International LLC, Ineos Group Limited, among others.

 In April 2022, Solvay's Melle site in France commenced production of Rhodiasolv IRIS, a new generation solvent boasting eco-friendly qualities: non-flammable, readily biodegradable, low volatile, and non-CMR. Widely applicable in various industries including phytosanitary formulation, paint stripping, industrial cleaning, and agrochemistry.

 In September 2023, BASF introduced bio-based 2-Octyl Acrylate, boasting a 73% 14C content per ISO 16620. This expansion enhances their monomers portfolio, offering a sustainable alternative for adhesives and coatings, rivaling fossil-based counterparts like 2-ethylhexyl Acrylate and n-butyl Acrylate, with balanced solvency for diverse applications.

 In February 2023, Honeywell was chosen by Ecopetrol to conduct a prefeed engineering study for an Advanced Solvent Carbon Capture (ASCC) modular demo unit. The unit aims to assess CO2 capture from Ecopetrol's Fluid Catalytic Cracking (FCC) units, marking a significant step in sustainable energy initiatives.