The solvents market is expected to grow at a CAGR of around 5% globally. Major factor driving the market studied is the significant demand from construction and automotive industry along with stringent regulations in place to minimize VOC emissions. On the flip side, high manufacturing costs and performance issues of solvents and the unfavorable conditions arising due to the COVID-19 outbreak is hindering the growth of the market.
- Development of oxygenated based industrial solvents is expected to create new opportunities for the market to grow.
- The paints & coatings industry is expected to dominate the application segment of global solvents market over the period on account of significant demand for construction chemicals and growing automotive industry.
- Asia Pacific region represents the largest market and is also expected to be the fastest-growing market over the forecast period owing to the consumption from countries such as China and India.
Key Market Trends
Significant Demand from Construction and Automotive Industry
- Significant demand in automotive sector is generating lucrative opportunities for innovation in the paints & coatings aftermarket, which in turn surge the demand for solvents market.
- Ketones are widely employed in paints and coatings owing to their ability to acquire low viscosity property and high solid content. Ester solvents are largely used in paints as a hardener and finds its usage as an industrial cleaner. Bio-based solvents are employed in paints and coatings to dissolve binders and colors and offers consistency. Solvents like glycol ether esters are added to some decorative paints and spray paints to avoid them from drying in mid-air.
- Solvents are used in many construction products such as paints, thinners, and glues. Increasing construction activities in countries such as China, India, United States and Brazil are expected to boost growth of the paints and coatings application segment.
- Solvents finds various applications in automotive industry. Additives in gasoline help keep the water from separating out of the gasoline. Furthermore, solvents assist the fuel burn cleaner, which in turn can help reduce tailpipe emissions. Solvents aids de-ice frozen door locks, clean carburetors, keep the engine cool, and clean upholstery and carpet.
Asia Pacific Region to Dominate the Market
- Increasing construction spending in countries like China and India, along with expanding industrialization in these countries is anticipated to boost market growth in the region. End-user industries such as paints and coating and adhesives are flourishing in countries such as China, India, Indonesia, Thailand, Vietnam, and Korea and is expected to fuel product demand in the region over the period.
- In addition, rapid industrialization and urbanization coupled with significant demand for automobiles are expected to contribute to the growth of the solvents market.
- The region accounts for 3% of the world’s proven oil reserves and 10% of the world’s proven gas reserves, out of which, China holds 28% of the regional total. This is driving the production of petrochemicals, which in turn, is expected to fuel the growth of the solvents market.
- Additionally, rapid growth in building & construction activities and strong demand for automobiles are expected to drive the demand for solvents in the paints & coatings application. Also, the personal care market is booming in the region, and, in turn, fueling the growth of the solvents market.
- Due to the aforementioned factors, the demand for solvents is expected to increase in the region during the forecast period.
The Global Solvents Market is partially consolidated in nature with a few major players dominating a significant portion of the market. Some of the major companies are Royal Dutch Shell plc, Eastman Chemical Company, BASF SE, Exxon Mobil Corporation and LyondellBasell Industries Holdings B.V. and among others.
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