Global De-Aromatic Solvents Market was valued at US$ 2.1 Bn in 2022, and is expected to exhibit a CAGR of 7.7% over the forecast period (2023-2030) and is expected to reach US$ 3.8 Bn by 2030. The increasing demand for De-Aromatic Solvents in various applications such as paints, coatings, Inks, Metal Working, Industrial Cleaning, Adhesives and Sealants and others is driving the market growth.
Global De-Aromatic Solvents Market - Impact of Coronavirus (COVID-19) Pandemic
The recent coronavirus outbreak negatively affected the market for sputtering targets and De-Aromatic Solvents. The severe disruptions in various manufacturing and supply-chain operations caused by various precautionary lockdowns imposed by governments to combat disease spread result in massive financial losses for the market. As a result of the COVID-19 pandemic, the production of electronics parts has been halted due to a logistical bottleneck and a global shortage of manpower. On the other hand, aromatic solvents are manufactured in refinery complexes, they are impacted by the overall downturn in the oil and gas industry as a result of the current pandemic. The market for paints and coatings sector has fallen as a response to COVID-19, and as an outcome, the demand for solvent has decreased as well. Over the forecast period, the described factors will have a negative impact on the market's revenue growth path.
On the positive side, as COVID-19 cases decline, the market is expected to revive as individual regulatory bodies begin to relax these enforced lockdowns. The operations that have been halted and canceled will continue, and as a result, it is anticipated that the market will grow. As a result, the market will recover and grow, following COVID-19.
Global De-Aromatic Solvents Market: Growth Drivers
Growing replacement of traditional solvents with de-aromatic solvents are driving the market
Growing replacement of traditional solvents with de-aromatic solvents due to its less Volatile organic compounds content and toxicity is propelling the market growth of de-aromatic solvents. De-aromatic solvents have various properties such as fast drying time, low Volatile organic compounds (VOC) content, and low odor. All of these characteristics make de-aromatic solvent a preferred choice for paint and coatings formulations. The de-aromatic solvent are odorless with lower Volatile organic compounds content and toxicity than traditional solvents is accelerating their demand around the globe. Therefore, rising awareness regarding the negative environmental impact of solvents is fueling the market growth of de-aromatic solvents over the forecast timeframe.
De-Aromatic Solvents Market Report Coverage
Report Coverage | Details | ||
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Base Year: | 2022 | Market Size in 2022: | US$ 2.1 Bn |
Historical Data for: | 2017 to 2021 | Forecast Period: | 2023 to 2030 |
Forecast Period 2023 to 2030 CAGR: | 7.7% | 2030 Value Projection: | US$ 3.8 Bn |
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Key players operating in the global De-Aromatic Solvents market includes Exxon Mobil Corporation, Royal Dutch Shell plc., Total S.A., Idemitsu Kosan Co., Ltd., Neste Oyj, Calumet Specialty Products Partners, L.P., CEPSA, Gandhar Oil Refinery India Ltd., SK Global Chemical Co., Ltd., DHC Solvent Chemie GmbH |
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Rising demand for flexographic inks from the packaging industry
Rising demand for flexographic inks from the packaging industry used in the printing of packaging material such as labels, cardboard, and paper bags is expected to be a major trend in the market. The growth of the de-aromatized market can also be attributed to growth in the packaging industry due to rising demand for packaged product. For instance, according to data published by India Brand Equity Foundation in December 2020, the food & beverages industry accounts for ~3% of India’s GDP and is the single largest employer in the country, with more than 7.3 million workforce in 2020. Thus, such rapidly expanding food and beverages industry is expected to boost the demand for de-aromatic solvents and therefore drive the market growth as de-aromatic solvents use in flexographic inks from the packaging industry.
Global De-Aromatic Solvents Market: Market Restraints
Fluctuating prices of feedstock for de-aromatized hydrocarbon solvents
Growing demand for green products made from bio-based raw materials is projected to stifle the expansion of the de-aromatic solvents market. Furthermore, the bio-based solvents market is expected to grow at a stable CAGR of roughly 6-7% over the forecast period, according to Coherent Market Insights. Another key factor expected to limit the growth of the de-aromatized solvents market is the increasing use of water-based paints and coatings. As a result, the aforementioned issues are projected to hinder the expansion of the de-aromatic solvents market.
Global De-Aromatic Solvents Market: Market Segmentation
On the basis of application, in 2022, paints and coatings segment has accounted the largest market share of 48% in terms of value. The global expansion of the automotive OEM, machinery, and appliances sectors, together with an increase in building and construction activities, is likely to fuel demand for this application over the projection period.
The industrial cleaning segment by application is expected to grow at the fastest Y-o-Y rate during the forecast period. Over the forecast period, the electronics application segment is expected to be the most appealing in terms of incremental opportunity factor.
Figure 1. Global Evaporation Materials Market, By Application, in 2022
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Global De-Aromatic Solvents Market: Regional Analysis
On basis of the region, Asia Pacific region dominated the global evaporation material market, in 2012, accounting for 30% share in terms of volume, followed by North America and Europe respectively. The Asia Pacific construction sector is expanding as a result of rising population, fast urbanization, and industrialization. The region's expanding construction demand has resulted in a spike in the paints and coatings industry, which has contributed to the overall expansion of the aromatic solvents market. Furthermore, expanding industrial development, particularly in China, India, and Japan, will drive market expansion throughout the evaluation period.
Due to the rising demand from numerous end use industries in the region, North America dominant the second-largest position in the market for De-Aromatic Solvents.
Figure 2. Global De-Aromatic Solvents Market, By Region, 2022
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Global De-Aromatic Solvents Market: Recent Developments
Global De-Aromatic Solvents Market: Key Companies
Key players operating in the global De-Aromatic Solvents market includes Exxon Mobil Corporation, Royal Dutch Shell plc. Total S.A., Idemitsu Kosan Co., Ltd., Neste Oyj, Calumet Specialty Products Partners, L.P., CEPSA, Gandhar Oil Refinery India Ltd., SK Global Chemical Co., Ltd., DHC Solvent Chemie GmbH
Definition: De-aromatic solvents also referred to as de-aromatized hydrocarbon solvents and are an effective alternative to conventional solvents. They have a wide range of application across paints & coatings, industrial and institutional cleaning, metalworking fluids, solvents for printing inks, drilling fluids, adhesives and sealants, and consumer products. De-aromatic solvents are odorless and have low VOC content and is comparatively less toxic to conventional solvents. Therefore, these solvents are much safer than traditional solvents such as chlorinated solvents and are consider as eco-friendly products that have a less environmental impact.
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