DE-AROMATIC SOLVENTS MARKET ANALYSIS

Regional Analysis

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North America has established itself as the dominant region in the global de-aromatic solvents market over the past decade. The region is expected to hold 39.4% of the market share in 2024. This can primarily be attributed to the large industrial and manufacturing base within the region focusing on sectors such as construction, automotive, and aerospace where de-aromatic solvents are widely used. In particular, the U.S. is home to some of the largest paints & coatings producers such as PPG Industries and others, who are major consumers of de-aromatic solvents. In addition, the well-established oil & gas industry provides abundant feedstock availability and has aided regional producers in achieving economies of scale.

However, it is the Asia Pacific region which is emerging as the fastest growing market for de-aromatic solvents globally. Countries such as China, India, and Indonesia are witnessing massive growth in end-use industries for de-aromatic solvents such as construction activity fueled by rapid urbanization. For instance, according to data by Invest India released in 2022, the construction industry in India is expected to reach US$ 1.4 Tn by 2025. This has propelled the demand for paints, coatings, sealants, and adhesives. The growing middle-class population with higher disposable incomes is also driving demand for consumer goods where de-aromatic solvents have applications. Further, government policies supporting local manufacturing is encouraging more regional producers to enter this market. This is enabling greater availability and accessibility of products at competitive prices.

On the other hand, major exporters of de-aromatic solvents such as countries in the Middle East benefit from access to raw materials giving them a competitive edge in international markets. However, certain environmental regulations regarding VOCs in that region may pose challenges to growth. Overall, buoyed by the industrialization across developing nations, the Asia Pacific region stands to gain the most in terms of demand growth for de-aromatic solvents despite North America holding the largest share currently.