Isoparaffin Solvents Market Size, Share & Industry Analysis, By Application (Metal Working, Paints & Coatings, Pesticides, Polyolefin Synthesis, and Others), and Regional Forecast, 2024-2032

The global isoparaffin solvents market size was valued at USD 863 million in 2023 and is projected to grow from USD 893.9 million in 2024 to USD 1,185.7 million by 2032, exhibiting a CAGR of 3.6% during the forecast period. North America dominated the isoparaffin solvents market with a market share of 35.23% in 2023. Moreover, the isoparaffin solvents market size in the U.S. is projected to grow significantly, reaching an estimated value of USD 353.26 million by 2032, driven by the increasing demand for metal working fluids, pesticides, and cleaning product applications.

Isoparaffin solvents are hydrocarbon solvents used in the extraction, alkylation, and polymerization processes. These synthetic solvents are manufactured using regulated crude feedstock, which gives consistent structure with low impurities, performance properties, and composition to the resulting isoparaffin. Further, pure forms of isoparaffin solvents are produced using filtration and hydrocracking processes. Increasing demand for odor-free solvents from the paints & coatings industry and rising infrastructure activities across the globe will boost the market during the forecast period. Moreover, growing cosmetics and personal care industries will create growth opportunities for the market.

The COVID-19 pandemic severely affected the demand for isoparaffin solvents as the market expansion significantly relies on the growth of the automotive and building & construction industries. The abrupt termination of infrastructure development and construction activities slowed the consumption of paints and coatings, substantially reducing the demand for the product. Restrictions on the transportation of man and material during lockdown lowered automobiles demand globally as the necessity to travel was eliminated. Governments of several countries have changed regulations to normalize economies with backing from the rising construction and automotive industries.

Isoparaffin Solvents Market Trends

Rising Product Adoption in Cosmetics & Personal Care Industry to Bolster Market Growth

Technological advancements have created lucrative growth opportunities for small-scale and large-scale cosmetics businesses by spreading consumer awareness about the products. This led to increased consumption of isoparaffin solvents in the cosmetics & personal care industry for applications in body care products, hair & skin formulations, and cosmetics. Incorporating such solvents enhances the properties in the end products such as skin repair, moisture retention, matt finish, and bright appearance. The rise in disposable income and increase in consumer awareness of beauty and cosmetic products are the major factors boosting the isoparaffin solvents market growth.

Isoparaffin Solvents Market Growth Factors

Rising Consumption from the Paints & Coatings Industry to Surge Product Demand

The market is growing upward owing to the expansion of construction and automotive industries globally, where the product is utilized in paints & coatings applications. The product provides exceptional spread-ability & flow capabilities and low surface tension, making it helpful in producing odor-free paints & coatings. The construction industry is projected to fuel the product consumption, as its demand for architectural paints & coatings is rising due to healthy growth in spending on residential construction, especially in the U.S., Europe, and Japan. Further, growing infrastructure activities in developing countries and rising governmental investments in public housing will drive the paints & coatings industry and surge the product demand.

Relative Advantages Offered by Product are Driving Its Demand From Several Applications

Isoparaffins are high-purity, low-toxicity, and low-odor solvents synthesized from a broad range of hydrocarbons available in different flash points. The low odor of the product makes it more environmentally friendly and easier to use than mineral spirits and other aromatic solvents. The low toxicity of the product makes it an ideal choice for high solvent exposure or direct contact applications. Selective solvency and low surface tension offered by the product enable its applications in several major end-use industries, including paints & coatings and printing inks. The non-corrosive nature of the product makes it an excellent solvent for metalworking applications, including metal cleaning, metal degreasing, and varnishing fluids.  The non-reactive nature of isoparaffins makes them VOC-exempt under the Environmental Protection Agency guidelines. They also help avoid health issues caused by long-term exposure to VOCs.

RESTRAINING FACTORS

Expensive Nature and Availability of Substitutes is Hampering the Market

Isoparaffin solvents are produced by petroleum-derived naphtha, which is expensive. Moreover, the manufacturing process of these solvents is costly, which, in turn, increases the overall price of the end product. Further, the toxic emissions and pollutants released during the chemical reaction of the raw materials cause significant human health risks and environmental impact. Substitutes, such as paraffin, are readily available and easy to produce, and raw materials procurement is also convenient. Therefore, they have a lower price range. Furthermore, several small personal care manufacturers are increasing their production. These companies cannot afford expensive raw materials, thereby leading to higher consumption of isoparaffin solvents.

Isoparaffin Solvents Market Segmentation Analysis

By Application Analysis

Paints & Coatings Segment Held Leading Share Owing to Rising Safety Concerns

Based on application, the market is categorized into metal working, paints & coatings, pesticides, polyolefin synthesis, and others.

The paints & coatings segment accounted for the leading isoparaffin solvents market share in 2023. The properties of the solvents, such as eco-friendliness, high purity, low viscosity, and surface tension, facilitate their usage in paints & coatings. The increasing product use in developing low-odor paints & coatings for residential & commercial building interiors and wood manufacturing is fueling the market growth.

Isoparaffin solvents aid in achieving the desired shape through forming or machining and act as a protective coating material to keep moisture and oxygen away from metal surfaces. The rising demand for metals in automotive, aerospace, and machinery industries will promote the product adoption globally.

Isoparaffinic hydrocarbon is majorly used as a diluent and solvent for the active ingredients of pesticide or insecticide formulations. Hence, increasing pesticide use in agriculture to reduce insect infestation, control the growth of weeds, and decrease the spread of diseases will fuel the market growth during the forecast period. The increasing demand for polyolefin from packaging, consumer goods, industrial, and textile applications will flourish the product demand in the synthesis of polyolefin.

REGIONAL INSIGHTS

North America held the largest market share and was estimated to be valued at USD 304 million in 2023. The larger share of the region is attributed to the growing regulations to reduce the environmental and health effects caused by using solvents in various industries. The rising demand for synthetic polyolefin to manufacture textiles, packaging, and consumer goods is anticipated to drive the market in North America.

The growth of the market in Asia Pacific is associated with rapid industrial expansion and infrastructure development activities in the region. The metal working industry in this region has rapidly progressed owing to the use of advanced technologies for fabricating industrial machinery and transportation equipment. The presence of several small-scale and large-scale OEMs for automotive, aerospace, electrical machinery, and other metal products will boost the product consumption in this region.

The rapidly growing cosmetics industry in Europe is creating several new opportunities for the market. The increasing consumption of personal care products, such as hair serum, skincare, body wash, and lip care, will further propel the market growth. The favorable growth of key industries, including agriculture, building & construction, and automotive is estimated to surge the demand for isoparaffin solvents in Latin America.

The market growth in the Middle East & Africa is associated with the increasing use of isoparaffin solvents in paints & coatings, metal working, food, and cosmetics applications. The easy availability of raw materials at a low cost attracts the producers to establish their presence in this region.

List of Key Companies in Isoparaffin Solvents Market

Global Presence Allows Companies to Serve their Customer Needs Efficiently

Leading companies present in the market are TotalEnergies SE, Idemitsu Kosan Co., Ltd, ExxonMobil Corporation, Shell plc, and Chevron Phillips Chemical Company. TotalEnergies SE is involved in oil & gas exploration, production, and refining. It produces and distributes petrochemicals and low-carbon electricity to the end customer. The company has presence in over 130 countries around the globe. Similarly, Idemitsu Kosan Co., Ltd is a manufacturer, designer, and distributor of a wide range of oil & petroleum and fuel-based products. The company has a strong presence across the entire value chain in the construction business, with operational offices across the globe.

LIST OF KEY COMPANIES PROFILED:

• TotalEnergies SE (France)


• Idemitsu Kosan Co., Ltd. (Japan)


• ExxonMobil Corporation (U.S.)


• Shell plc (U.K.)


• Chevron Phillips Chemical Company (U.S.)


• Braskem (Brazil)


• Mehta Petro Refineries Limited (India)


• RB Products, Inc. (U.S.)

REPORT COVERAGE

The global isoparaffin solvents market research report covers detailed analysis and concentrates on crucial aspects such as competitive landscape, market dynamics, and applications. This report highlights vital industry developments and offers insights into market trends and forecasts. In addition to the factors mentioned above, the report encompasses various factors that have contributed to the growth of the market in recent years.

Report Scope & Segmentation