India De Aromatic Solvents Market is estimated to be valued at USD 0.19 Mn in 2025 and is expected to reach USD 0.3 Mn in 2032, exhibiting a compound annual growth rate (CAGR) of 6.1% from 2025 to 2032.
Rapid expansion in India's industrial and household sectors is fueling demand for de‑aromatic solvents—particularly for paints, coatings, insecticides, and cleaning agents. These solvents offer low‑VOC content and reduced toxicity, making them an eco‑friendlier alternative to conventional aromatic solvents. Growth in the paints and coatings industry, coupled with rising use in household insecticide and mosquito repellent products, is boosting market uptake. However, volatility in crude oil prices—due to disruptions like geopolitical tensions—and a rising preference for bio‑based, environmentally sustainable alternatives are tempering growth to some extent.
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Current Events |
Description and its impact |
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India's Green Chemistry Initiative and Environmental Regulations |
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Global Supply Chain Disruptions and Raw Material Volatility |
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Technological Advancements in Solvent Purification |
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Medium Flash Point (41°C – 80°C) solvents contribute the highest share of the market, accounting for 46.7% in 2025, owing to their balanced performance and broad industrial usability. These solvents are particularly valued for their moderate volatility, making them safer to handle while still delivering effective solvency for applications in metalworking fluids, coatings, and industrial cleaning. Their compatibility with regulatory standards around low VOC emissions further boosts their market presence amid tightening environmental regulations. Industries across paints, adhesives, and consumer products increasingly prefer medium flash point variants due to reduced fire hazards and improved workplace safety. For instance, several Indian manufacturers have scaled production of medium flash point de-aromatic solvents in response to VOC restrictions imposed under India’s Green Chemistry Initiative.
Paints, Coatings, and Inks command the highest market share in 2025 and are projected to grow the fastest during the forecast period. This dominance is propelled by escalating demand from residential, commercial, automotive, marine, and railway sectors. For instance, the de-aromatic solvents segment utilized as thinners and diluents in paints, coatings, inks, and adhesives is being driven by significant demand, with the paints & coatings segment alone comprising over 30% of total consumption. The surge in demand has been directly influenced by the strong growth of infrastructure projects, construction, and automotive manufacturing in India.
Type 2 (185 °C – 240 °C) solvents are the leading segment in 2022, offering optimal volatility and versatility across applications. For instance, in terms of boiling point, Type 2 (185 -240) de-aromatic solvents are assumed to remain considerably profitable to manufacturers in India.
| Report Coverage | Details | ||
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| Base Year: | 2024 | Market Size in 2025: | USD 0.19 Mn |
| Historical Data for: | 2020 To 2024 | Forecast Period: | 2025 To 2032 |
| Forecast Period 2025 to 2032 CAGR: | 6.1% | 2032 Value Projection: | USD 0.3 Mn |
| Geographies covered: |
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| Companies covered: |
Bharat Petroleum Corporation Limited, Exxon Mobil Corporation, Royal Dutch Shell Plc., TotalEnergies, Enilive S.p.A. |
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The growing steel industry in India is expected to foster the market growth of the de-aromatic solvents. According to the India Brand Equity Foundation, India ranks as the world's second-largest crude steel producer, having produced 137.96 million tonnes (MT) of crude steel and 132.57 MT of finished steel in FY25. The growth in the Indian steel sector has been driven by the domestic availability of raw materials such as iron ore and cost-effective labor. Hence, growth in the steel industry is expected to fuel the De Aromatic solvents market demand.
Various manufacturers are focusing on increasing production capacity of de-aromatized in order to expand their presence in India. This is expected to offer potential growth opportunities in the near future. For instance, Exxon Mobil expanded its production capacity by 250,000 tons for global hydrocarbon solvents. It produces a range of de-aromatic solvents in its facilities located in Singapore and Antwerp.
Growth in the chemical and petrochemical industry in India due to the increasing production of chemicals will favor the market growth of de-aromatized solvent over the forecast period. For instance, The revised PCPIR Policy 2020-35 targets investment inflows of ₹12.4 trillion in the petrochemicals sector by 2025, ₹18.6 trillion by 2030, and ₹24.8 trillion by 2035. Thus, growth in the chemical industry in India is expected to augment the market growth.
Growth in the India paints and coatings industry in the country is expected to augment the market growth over the forecast period. Rising demand for paints and coatings from residential as well as commercial sectors is expected to fuel the market growth. Moreover, rising demand for paints from industries such as automotive, marine, and railways is further expected to propel the India de-aromatic solvents market growth.
India's de-aromatic solvents market demonstrates robust momentum driven by stringent environmental regulations and growing health consciousness across industrial applications. The automotive and paints & coatings sectors are primary growth catalysts, as manufacturers increasingly prioritize worker safety and environmental compliance over traditional aromatic alternatives. Rising demand from pharmaceutical and agrochemical industries further strengthens market fundamentals, with companies seeking safer formulation ingredients.
However, the market faces notable restraints including higher production costs compared to conventional solvents and limited domestic manufacturing capabilities. Supply chain dependencies on imports create pricing volatility, while slower adoption rates among small-scale manufacturers present implementation challenges. Technical limitations in specific high-performance applications also constrain broader market penetration.
Significant opportunities emerge from expanding industrial infrastructure and increasing foreign direct investment in manufacturing sectors. The government's push toward sustainable industrial practices through policy frameworks creates favorable conditions for de-aromatic solvent adoption. Growing awareness about occupational health standards and corporate sustainability initiatives present additional growth avenues.
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About Author
Yash Doshi is a Senior Management Consultant. He has 12+ years of experience in conducting research and handling consulting projects across verticals in APAC, EMEA, and the Americas.
He brings strong acumen in helping chemical companies navigate complex challenges and identify growth opportunities. He has deep expertise across the chemicals value chain, including commodity, specialty and fine chemicals, plastics and polymers, and petrochemicals. Yash is a sought-after speaker at industry conferences and contributes to various publications on topics related commodity, specialty and fine chemicals, plastics and polymers, and petrochemicals.
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