Solvents Market Size, Share & Industry Analysis, By Product Type (Alcohols, Ketones, Esters, and Others), Application (Paints & Coatings, Printing Inks, Industrial Cleaning, Adhesives, and Others), and Regional Forecast, 2024-2032

The global solvents market size was USD 49.42 billion in 2023 and is projected to grow from USD 52.65 billion in 2024 to USD 87.41 billion in 2032 at a CAGR of 6.0% over 2024 to 2032. Asia Pacific dominated the solvents market with a market share of 40.61% in 2023. Moreover, the solvents market size in the U.S. is projected to grow significantly, reaching an estimated value of USD 25.39 billion by 2032. the increasing demand for bio-solvents over chemical-based ones contributes to propelling the market growth.

A solvent is a substance that dissolves a solute and converts it into a solution. Generally, these are available in liquid form, but can also be solid or gaseous. They are categorized into methanol, ethanol, butanol, propylene glycols, glycol ethers, butyl glycol ethers, acetone, esters, toluene, and hydrocarbons.  These products have the ability to dissolve, absorb, and dilute other substances in a very fine distribution without changing them chemically. The rising innovation and advancement in chemicals coupled with the increasing demand for bio-based products owing to the increasing stringency of environmental regulations will drive the product demand. Furthermore, the rapid growth in the paints & coatings industry will also play a major role in boosting the global market growth during the forecast timeline.

However, the spread of the COVID-19 pandemic severely affected the paints & coatings industry and brought all the activity to a grinding halt. This is due to government regulations to control the pandemic, which put a restriction on the movement of goods and people. However, governments in these countries came up with supportive regulations, trying to bring the working of their industries back on track. Hence, the market is expected to be revived in the upcoming years.

Solvents Market Trends

Rising Demand for Bio-based Products over Chemical-based Products to Fuel Market Growth

The increasing demand for bio-solvents over chemical-based ones contributes to propelling the market’s growth. Alcohols and glycol ethers are being widely adopted owing to their organic nature. They are mainly manufactured from cellulose, sugars, oils & fats, and agricultural products. In addition, they offer non-toxic, carbon-neutral, and eco-friendly properties. Moreover, factors such as increasing VOC emissions, rising pollution, and stringent government regulations are providing growth opportunities for bio-based products. These factors have forced various manufacturers to produce bio-based products over chemical-based ones. For instance, in 2018, Circa Group launched Cyrene, a bio-based dipolar aprotic solvent and an alternative for conventional solvents such as N-Methyl-2-pyrrolidone (NMP) and petroleum-derived Dimethylformamide (DMF). Hence, the rising preference for bioproducts will flourish the market growth in the next couple of years.

Solvents Market Growth Factors

Increasing Demand from Paints & Coatings Industry to Boost the Solvents Market Growth

The growing demand from the paints & coatings industry is expected to boost the market growth. Properties such as temperature resistance, durability, and cost-effectiveness make this product a preferred choice in the paints & coatings industry. In paints, the product is highly used to avoid clumps or globs and provide the desired consistency in different applications. Moreover, the rising demand for paints due to the rapid growth in the construction industry and surging infrastructure development in countries such as China, India, and the US will boost the adoption of paints & coatings.

Increasing Product Demand from Building & Construction Industry to Boost the Market Growth

In the building and construction industry, solvents play a crucial role driven by several factors. The escalating demand for paints, coatings, adhesives, and sealants for construction projects fuels the product demand, as they are essential components in these formulations. Moreover, the expanding construction activities globally, particularly in developing regions, contribute significantly to the product demand. The growing emphasis on infrastructure development, urbanization, and renovation projects further propels the product utilization in the construction sector.

Furthermore, technological advancements leading to the development of low-VOC (volatile organic compound) and environmentally friendly solvents align with stringent regulations, fostering their adoption in building and construction applications. Overall, the robust growth in construction activities and regulatory pressures and technological innovations promoting sustainable solutions are set to drive the product demand in the building and construction industry.

RESTRAINING FACTORS

Hazardous Impacts Caused by Chemical Solvents to Hamper Market Growth

Chemical-based solvents can affect human health in different ways. They not only affect the environment but also severely affect the health of humans as well as animals. Also, the workers who work regularly in chemical factories deal with severe health issues due to the prolonged exposure to such substances. For instance, according to the U.S. Department of Labor, the health hazards associated with solvent exposure include reproductive damage, toxicity to the nervous system, respiratory impairment, liver and kidney damage, dermatitis, and cancer. These are some of the factors that may restrain product adoption.

Solvents Market Segmentation Analysis

By Product Type Analysis

Alcohols Segment to Hold Largest Share in the Market

On the basis of product type, the solvents market is segmented into alcohols, ketones, esters, and others. The alcohol segment accounted for the largest solvents market share in 2023. The growth is due to the increasing demand for ethanol, methanol, n-butanol, and isopropanol for various applications. Ethanol finds its consumption in perfumes, vegetable essences, and medical drugs, whereas methanol is highly utilized in inks and adhesive applications. Hence, the increasing adoption of these products will boost the segment’s growth.

Ketones are extensively utilized as a solvent owing to their low molecular weight. They find their application in adhesives, surface coatings, chemical intermediates, and printing inks. Moreover, increasing demand for esters to remove organic solutes from aqueous solutions will provide significant growth to the esters segment, from 2024 to 2032.

By Application Analysis

Paints & Coatings is the Dominating Segment in the Global Market

Based on application, this solvents market is segmented into paints & coatings, printing inks, industrial cleaning, adhesives, and others. Amongst these, the paints & coatings segment accounted for the dominant market share in 2023 and is expected to grow at the highest CAGR owing to its high usage in the construction industry. The rapid growth in the construction industry coupled with advancements in paints to make them more sustainable is contributing to the growth of this application segment.

Printing inks is the second-leading segment in the market. Solvents such as methanol, ethyl acetate, and aromatic hydrocarbons are used in printing applications.

The rising product demand to remove dirt, flux, greases, containments, and baked-on oils in various industries will fuel the industrial cleaning segment.

The growth of the adhesive segment is attributed to the increasing product demand from composites, metals, glass, and plastic applications.

REGIONAL INSIGHTS

The market size in Asia Pacific stood at USD 20.07 billion in 2023. In this region, China holds the highest market share owing to the large paints & coatings production in the country. The growth is due to the increasing demand in the paints & coatings industry. Further, rising infrastructure development coupled with innovation in bio-based products will fuel market growth in the Asia Pacific region.

North America is the second-leading region in the market. The rapid growth in the automotive industry and the increasing demand for industrial cleaners to remove oil and grease from vehicles will drive market growth in this region.

The rising use of alcohol in the cosmetic and food & beverage industries is anticipated to boost product demand in Europe. Moreover, the increasing use of bio-based products as an alternative to chemical-based products will propel market growth in the region.

The high adoption of ketones in industrial cleaning and paints & coatings adhesive applications will drive product consumption in the Middle East & Africa.

In Latin America, the market’s growth is associated with the increasing use of oxygenated solvents in adhesive and printing ink applications.

List of Key Companies in Solvents Market

Key Players Adopted Several Strategic Initiatives to Increase their Market Presence

Major market players operating in this industry are Royal Dutch Shell, Eastman Chemical Company, and BASF SE, who are involved in capacity improvements, product innovations, acquisitions, mergers, and collaborations in the global market. For example, in 2019, BASF SE expanded the capacity of its integrated ethylene oxide and derivatives complex at its Verbund site in Antwerp. The company specializes in the manufacturing and distribution of chemicals. Its operation facilities are located in 80 countries across North America, Europe, Asia Pacific, and the Middle East & Africa.

LIST OF KEY COMPANIES PROFILED:

• Royal Dutch Shell Plc (The Netherlands)


• Eastman Chemical Company (U.S.)


• LyondellBasell Industries Holdings B.V. (The Netherlands)


• Ashland        Global Holdings Inc. (U.S.)


• BASF SE (Germany)


• ExxonMobil Corporation (U.S.)


• Celanese Corporation (U.S.)


• Honeywell International Inc. (U.S.)


• INEOS Group AG (U.K.)


• Gandhar Oil (India)

KEY INDUSTRY DEVELOPMENTS:

• April 2019, Braskem launched HE-70S, a new partially renewable solvent. The product is made from sugarcane ethanol and is suitable for applications such as furniture, footwear, and ceramic industries. This new product will help to expand the company’s product portfolio. 

REPORT COVERAGE

The global solvents market research report offers a detailed study of the market and emphasizes crucial factors such as sources, applications, products, and leading companies. Also, the report gives quantitative data in terms of volume and value, research methodology of qualitative data, and insights into solvents market trends, and highlights vital industry developments. In addition, the report covers various factors that contributed to the progress of the market over past years.

Report Scope & Segmentation