The global sales of Aromatic Solvents Market in 2021 was held at US$ 5.1 Bn. With 3.4%, the projected market growth during 2022 - 2032 is expected to be slightly higher than the historical growth, and the market is expected to reach a valuation of US$ 8.2 Bn by 2032. Benzene-based Aromatic Solvent is expected to be the highest revenue-generating segment, projected to grow at a CAGR of over 3.8% during 2022 – 2032.
Global Aromatic Solvents Market Size (2022)
US$ 5.9 Bn
Global Aromatic Solvents Market Size (2032)
US$ 8.2 Bn
Global Aromatic Solvents Market CAGR (2022-2032)
U.S. Aromatic Solvents Market CAGR (2022 – 2032)
Key Companies Covered
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As per the Global Aromatic Solvents Market research by Fact.MR - a market research and competitive intelligence provider, historically, from 2017 to 2021, the value of the Aromatic Solvents Market increased at around 2.9% CAGR.
The key revenue drivers which affect the Aromatic Solvent demand include an increased usage of the aromatic solvents for paints, coatings, cleaners and various oil and gas industry. The demand for these solvents is predicted to expand due to the expansion of the machinery, appliance, and automotive industries, as well as the corresponding expansion of the building and construction sector, throughout the course of the forecast period.
The demand for aromatic solvents in the paint and coating business has increased as a result of the ability of aromatic solvents to dissolve or disperse a variety of components, including fillers, binders, pigments, and additives. This aspect is anticipated to significantly fuel the growth of the global market for aromatic solvents over the forecast period.
The need for adhesives and sealants made with aromatic solvents has also grown as a result of the expanding automobile industry. The global market for aromatic solvents is expanding in part due to the oil and gas industry. The Oil & Gas Journal predicts that the oil and gas sector will expand soon, driving up demand for oil and its by co-products globally.
The main purpose of aromatic solvents in oil & gas industry is to prevent corrosion in pipelines while fractional distillation is taking place. In addition to this, the growing use of aromatic solvents in developing economies is positively stimulating the global market.
The growth of the market is also supported by government policies which supports the growth of the market. For instance, the Netherlands government's policy of providing financial assistance to companies engaged in the petrochemical industry in order to expand its production capacity (aromatic solvents) is one of the recent examples.
As an illustration, it was stated in Article 6 of the Netherlands Law that "extra premium for significant schemes" was created for projects when investment surpasses Fl 30 million. The premium can make up as much as 4% of the investment under consideration and is based on how many jobs are generated.
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The key factors which are propelling the Aromatic Solvent demand are the increase in the usage of aromatic solvents in various industries such as agrochemicals, paints & coatings, automotive, and pharmaceuticals.
The agricultural sector has considerable challenges due to an expanding worldwide population, an increase in the need for food, feed, and crops, as well as climate change-related floods and droughts. Agrochemicals and cutting-edge techniques are used nowadays in modern agriculture to increase crop quality and yield.
The use of aromatic solvents is therefore supported by new, innovative crop protection products that are practical, cost-effective, and environmentally friendly in addition to being user and customer safe and easy to apply. Due to the rise in the industry, the growth in aromatic solvent consumption is projected.
Solvents are crucial for the manufacturing of paints as they enhance the overall performance when included in the color composition. The solvent in paints evaporates when they are applied to a surface, enabling the resin and pigment to swiftly dry and form a paint coating.
Although they evaporate during the process and are not present in the finished product, solvents play a significant influence in the coating's composition. Solvents regulate the viscosity, film appearance, corrosion, and adherence of paint and coatings, which supports the expansion of the aromatic solvent industry.
The use of aromatic solvents has also helped the pharmaceutical industry since they are utilized for either research and development for conventional analyses or for processing, crystallizing, extracting, and washing purified active ingredients for medications.
The aromatic solvents for such delicate applications must have particular physical characteristics to guarantee dependable production methods. Thus, avoiding contaminants can help stop potential shutdowns. Hence, the usage of aromatic solvents in pharmaceutical industry is fuelling the aromatic solvents market.
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The market for aromatic solvents faces certain roadblocks due to the increased focus on environment-friendly solvents made from agricultural commodities. Green solvents are entirely biodegradable, non-corrosive, and do not cause cancer. Examples include ethanol, 1-propanol, acetone, acetonitrile, 2-propanol, and methanol. Additionally, due to the severe restrictions and regulations put in place by various governments throughout the world, businesses are concentrating more on employing greener products in their industrial operations for sustainable development.
Due to awareness about the hazards of using aromatic solvents to humans and environment there have been recent development of green solvents. The enzyme-assisted extraction method typically uses green solvents.
Green solvents are bio-solvents or solvents that are beneficial to the environment and are made from the processing of agricultural crops. The majority of chemical processes depend heavily on the usage of petrochemical solvents, however, this has negative effects on the environment. To combat this, green solvents is created which is a more environment-friendly substitute for petrochemical solvents.
For instance, digesting corn yields the green solvent ethyl lactate. A lactic acid ester is ethyl lactate. The paint and coatings industry frequently uses lactate ester solvents, which have a variety of appealing benefits such being completely biodegradable, easily recyclable, non-corrosive, non-carcinogenic, and ozone-friendly.
During the projection period, North America is expected to be the largest Aromatic Solvents Market. Demand growth of aromatic solvents in the region was recorded at 2.9% during 2017 – 2021, while it is expected to grow at a CAGR of over 3% during 2022 – 2023. A key factor that is responsible for it includes the high spending cost of North American countries on chemicals. The regions high value market for aromatic solvents is supported by the presence of companies like ExxonMobil Corporation, BASF, Cargill, Chevron Philips, Dow, and Dupont among others, in the region.
The United States aromatic solvents market is expected to account for the highest share of US$ 2.2 Bn by the end of 2032. It is projected to account for an absolute dollar growth of US$ 608.9 Mn. The growth observed in the U.S market is due to its rise in usage of aromatic solvents due to rising oil and gas exploration operations, primarily as a result of the shale gas boom.
The cost of corrosion in oil and gas exploration and production can reach US$ 1.4 billion yearly, according to a corrosion research by the US Department of Commerce's National Technical Information Service. This is further accelerating the demand for heavy aromatic solvents over the projected period.
The U.S Energy information administration department estimates that by 2024, total U.S. natural gas output would surpass 35 trillion cubic feet, up from just under 20 trillion cubic feet in 2010. The market for aromatic solvents in the chemical sector of the oil fields will thereafter experience expansion in response to this trend in natural gas production.
The country's expansion in all areas and the high value of paint usage as a result of regional expansions both contribute to the market growth for aromatic solvents.
Benzene aromatic solvents is the highest used solvent type whose demand growth was recorded at 3.6% during 2017 – 2021, while it is expected to grow at CAGR of 3.8% during 2022 – 2023.
The usage of benzene is rising because it can be used for multiple uses. Gasoline contains a significant amount of the commonly used industrial chemical benzene. Benzene is also used to make polymers, synthetic fibers, rubber lubricants, dyes, resins, detergents, pharmaceuticals, and other things. Benzene is frequently employed as a solvent in a variety of industrial, commercial, and academic fields.
Products containing benzene are utilized by manufacturers as solvents during different phases of production, and it is used in the creation of chemical and plastic products. Examples include resins, and artificial goods like nylon and polystyrene, among others. Additionally, benzene is utilized to make the asphalt that roofing and tiling businesses use.
Several manufacturers utilize benzene as fuel because of its high octane rating and natural availability. Some people have added it to gasoline as a way to improve fuel efficiency.
Demand for aromatic solvents went down due to Covid-19 which disrupted the supply chain. Market expansion in sectors like transportation, construction, shipbuilding, and aviation is crucial for the industries such as aromatic solvents, which went down due to the lockdowns.
For instance, ExxonMobile one of the leaders of aromatic solvent stated that from April 7 it is decreasing its capital expenditures by 30% and its cash operating expenses by 15% in 2020 as a result of the declining energy demand brought on by the covid-19 epidemic and low commodities prices.
From the previously estimated US$ 33 billion, capital investment for 2020 is now anticipated to be around US$ 23 billion. The purposeful actions taken to improve efficiency and cut costs, including anticipated lower energy costs, are what have led to the 15% reduction in cash operating expenses.
The demand for solvents dropped as a result of Covid-19, as a result of decreased demand for paints and coatings. China is the largest producer of solvents; however, due to the Covid-19 pandemic, there was a shortage of raw material supplies, which affected solvent production in the country. A reduction in the market for paints and coatings as a result of the cancellation of construction projects also affected the demand for aromatic solvents.
In the first few months of 2020, the majority of nations halted production in their car manufacturing factories, which decreased the need for aromatic solvents. This further eroded the revenue through aromatic solvents.
Players in the market are constantly developing improved analytical solutions as well as extending their product offerings. The companies in the aromatic solvents market are focused on alliances, technology collaborations, and product launch strategies. The Tier 2 Players in the market are targeting to increase their aromatic solvents market share.
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The global Aromatic Solvents Market is worth more than US$ 5.9 Bn at present.
The value of Aromatic Solvents Market is projected to increase at a CAGR of around 3.4% during 2022 – 2032.
The value of Aromatic Solvents Market increased at a CAGR of around 2.9% during 2017 – 2021.
The global demand for Aromatic Solvents is being fueled by a considerable increase in the usage of aromatic solvents in various industries such as agrochemicals, paints & coatings, automotive, and pharmaceuticals.
The market for aromatic solvent in China is projected to expand at a CAGR of around 3.9% during 2022 – 2032.
The growth of the market for aromatic solvents in the United States is projected to expand at a CAGR of around 3.2% during 2022 – 2032.
While the market in South Korea is expected to grow at nearly 4%, the market in Japan is projected to register a CAGR of nearly 3.5% during 2022 - 2032.
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