Global De-Aromatic Solvents Market Is Estimated to Witness Moderate Growth Owing to Increasing Paints and Coatings Demand and Growing Oil Refining Activities
The global de-aromatic solvents market is estimated to be valued at USD 2.34 Billion in 2024, exhibiting a CAGR of 6.5% over the forecast period (2024-2031). The growing demand for paints and coatings from various end-use industries such as automotive, construction, and transportation is expected to drive the market growth during the forecast period. Furthermore, the increasing consumption of gasoline due to rising vehicle ownership in developing nations will propel the oil refining activities, thus augmenting the sales of de-aromatic solvents.
Market Dynamics:
The demand for de-aromatic solvents is estimated to be propelled by the increasing paints and coatings consumption as well as expanding oil refining operations globally over the forecast period. Paints and coatings find wide application in the automotive, construction, and transportation industries for protection and decoration purposes. Moreover, with growing urbanization and infrastructure development projects, the paints and coatings demand is anticipated to surge significantly. On the other hand, de-aromatic solvents derived from petroleum refining process are widely used as solvent
Increased demand from paints and coatings industry driving the growth of de-aromatized solvents market
The global paints and coatings industry has witnessed significant growth over the past few years owing to increasing applications in construction and automotive sectors. De-aromatized solvents find major usage as thinners and diluents in paints and coatings formulations. Their excellent solvency properties and compatibility with a wide range of resin systems make them an ideal choice for this application. The growth in paints and coatings production is directly contributing to the rising demand for de-aromatics from this end-use segment.
Increasing need for bio-based and environment-friendly solvents augmenting market expansion
Stringent environmental regulations regarding Volatile Organic Compounds (VOCs) emissions have led paints and coatings manufacturers to shift towards more sustainable solvent options. De-aromatized hydrocarbon solvents provide a bio-based and eco-friendly alternative to conventional aromatic solvents. The favorable toxicity profile and renewable nature of de-aromatics make them compliant with various regulatory standards for green products. Many key players such as PPG Industries and other are investing in developing plant-derived or bio solvent formulations using de-aromatics to capitalize on the rising sustainability trend. This changing preference towards bio-renewable and low-VOC solvents among end-users is acting as a key growth driver for the global de-aromatized solvents market.
Volatility in crude oil prices posing a major challenge
De-aromatized solvents are petroleum-derived products and their prices are directly linked to fluctuations in the global crude oil market. Significant volatility in crude oil prices creates an atmosphere of uncertainty among buyers and hampers long-term investment decisions. It also negatively impacts the overall production costs for de-aromatic solvent manufacturers. Over the past years, geopolitical issues and supply concerns have increased crude price swings multi-fold. This volatility poses a critical restraint on the stable growth of the de-aromatized solvents industry. Price fluctuations make long-term contracts difficult and discourage capacity expansion plans of market players.
Stringent environmental regulations restricting market potential
Environmental agencies across major countries have formulated stringent norms pertaining to VOC emissions from solvents. The recent REACH regulations in Europe impose specific limitations on the aromatics content allowed in solvents used in paints, coatings and adhesive applications. Similarly, the Ozone Transport Commission (OTC) and California Air Resources Board (CARB) have stipulated restricted VOC levels for various end-use products. Although driving the bio-based solvent transition, such stringent norms restrict the application scope of conventional aromatics-based solvents. This, in turn, poses restrictions on the total attainable market size for de-aromatized hydrocarbon solvents.
Potential in high growth applications like industrial cleaners expanding opportunities
Apart from the mature paints and coatings segment, de-aromatized hydrocarbon solvents are gaining widening acceptance in other application industries as well. Industrial and institutional cleaners market is identified as an emerging high potential end-use area for these solvents. Properties like excellent solvency, low odor and toxicity make de-aromatics suitable as green replacements for chlorinated and petroleum-based solvents in varied cleaner formulations. Rapid industrialization and increased awareness about hygiene are fueling the global industrial cleaners industry.
Bio-based de-aromatic solvents present a lucrative untapped opportunity
While petroleum-based de-aromatic solvents dominate the current market, bio-based variants produced from renewable feedstocks are gaining traction. The inherent renewable and sustainable quality of plant-derived de-aromatics provides an edge over conventional formulations. Although in a nascent phase, increasing R&D towards large-scale production of various green chemistries and bio-solvents using agricultural waste is expected to promote the availability of bio-based de-aromatics. With sustainability becoming the new mantra, this presents lucrative opportunities for new players to establish themselves in this untapped segment over the coming years.
Link - https://www.coherentmarketinsights.com/market-insight/de-aromatic-solvents-market-3577
Key Developments:
- In 2023, Clariter and TotalEnergies Fluids achieved a remarkable milestone by producing the world’s first ultra-pure solvents derived from plastic waste. This innovative collaboration highlights a significant advancement in sustainable chemistry, demonstrating the potential to convert plastic waste into high-quality solvents. By utilizing advanced technologies, the partnership aims to tackle environmental challenges while fostering a circular economy.
- In August 2023, BASF SE, a global leader in the chemical industry recognized for its commitment to innovation and sustainability, teamed up with a startup to develop bio-based de-aromatic solvents. This collaboration seeks to combine the startup's cutting-edge technologies with BASF's extensive expertise in chemical production to create sustainable solvent solutions for a variety of applications. The development of these bio-based solvents is crucial, as they are designed to be less harmful to human health and the environment, aligning with global regulations aimed at reducing volatile organic compounds (VOCs) and promoting safer chemical alternatives. This initiative reflects BASF's commitment to advancing sustainable practices while addressing the increasing demand for eco-friendly products in the market.
- In 2022, Solvay launched Rhodiasolv® IRIS, a new generation solvent known for its exceptional eco-friendly properties. While previously manufactured in China, production of this innovative solvent will transition to Solvay's Melle site in France starting in 2023. This shift emphasizes Solvay's dedication to sustainability and local production, enhancing its capacity to meet the rising demand for environmentally responsible solvents.
- In February 2021, Eastman Chemical Company announced its acquisition of a specialty chemical firm to strengthen its portfolio of sustainable solvents. This strategic decision aims to expand Eastman's range of environmentally friendly solutions, aligning with the increasing demand for sustainable products across various industries. By integrating the expertise of the acquired firm, Eastman seeks to enhance its capabilities in the specialty chemicals market and reinforce its commitment to sustainability.
Key Player:
ExxonMobil Chemical Company, Shell Chemicals, TotalEnergies, SABIC, Chevron Phillips Chemical Company, Huntsman Corporation, LyondellBasell Industries, INEOS Group, Evonik Industries, Eastman Chemical Company, BASF SE, Repsol, Mitsubishi Chemical Holdings, Delek US Holdings, Clariant AG, Solvay S.A., Fuchs Petrolub SE, Oxea GmbH, Cepsa, and Kraton Corporation
