INDIA DE AROMATIC SOLVENTS MARKET ANALYSIS

India De Aromatic Solvents market accounted for INR 4,868.9 Bn in 2022, exhibiting a CAGR of 7.7% in terms of revenue, over the forecast period (2023-2030) to reach INR 8,820.1 Bn 2030.

India De Aromatic Solvents Market- Impact of Coronavirus (Covid-19) Pandemic

The COVID-19 outbreak has majorly impacted the India De Aromatic Solvents market, owing to the strict lockdown and stringent regulations, followed by the government, and thus there was decrease in demand for De Aromatic Solvents across the various applications such as paint & coating, metal working and Adhesives & Sealants. Moreover, production process of De Aromatic Solvents is disrupted due to social distancing and lack of manpower. However, the demand for De Aromatic Solvents supplies is increasing as a result of COVID-19 in order to improve cleaning and maintain proper hygiene across the environment. The market in the future year will be driven by the increase in high-quality De Aromatic Solvents during forecast period.

India De Aromatic Solvents Market - Growth Drivers

• Increasing demand for de-aromatic solvents

Increasing demand for de-aromatic solvents for manufacturing of Household Insecticides, Mosquito Repellents, and aerosol is primarily fuelling the market growth of the India de-aromatic solvents. In India, there are a number of insecticides and mosquito repellents, such as sprays, coils, and electric mosquito repellent products are available in the market due to strong demand for these products in the country.

• Growth in the India paints and coatings industry in the country

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 De Aromatic Solvents Market - Restraints

• Rising demand for eco-friendly product bio-based raw materials

Rising demand for eco-friendly product bio-based raw materials is expected to restrict the market growth of de-aromatic solvents over the forecast period. Moreover, according to the Coherent Market Insights, demand for greener alternatives, bio-based solvents market is slated to register a steady CAGR of around 6–8% over the forecast period.

Figure 1. India De Aromatic Solvents Market, By Application, 2022

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• Increasing Cost of Raw Materials

The price of the raw materials needed to make de-aromatic solvents is anticipated to change, which would be detrimental to the industry. Naphtha is the most frequent raw material utilized to create de-aromatic solvents. Crude oil is used to make naphtha. Due to the Russian invasion of Ukraine and trade restrictions imposed on Iran and Russia, two major producers of oil and gas, crude oil prices are soaring. Thus, the market's expansion is hampered by the increasing price of crude oil and its impact on participants' profit margins. Additionally, crude oil must be refined before use, and using crude oil resources incurs additional expenditures. These factors are predicted to restrain the market growth for DE aromatized solvents over the forecast period.

Market Opportunities

• Various manufacturers are focusing on increasing production capacity of de-aromatized

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, in 2017, 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

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. According to the Invest India, total production of major chemicals and petrochemicals stood at 27,847 MT during 2018-2019, a growth of 4.15% over 2017 to 2018. Thus, growth in the chemical industry in India is expected to augment the market growth.

Market Trends

• Growing steel industry in India

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 was accounted as a world’s second-largest steel producer with production standing at 106.5 MT in 2018. 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 market growth.

Figure 2. India De Aromatic Solvents Market, By Sub Region, 2022

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Competitive Section:

Company Names 

Key players are operating in the India De Aromatic Solvents market are Exxon Mobil Corporation, Total S.A., Royal Dutch Shell plc, Isu Exachem, Mehta Petro Refineries, Avani Petrocehm Pvt Ltd., Raj Petro Specialties P. Ltd., and Eastern Petroleum Private Limited.

By application type, the India De Aromatic Solvents market is categorized into paints coating and inks, metal working, industrial cleaning, adhesives and sealants, drilling fluids and others. Paints coating and inks segment held largest market share in 2022 and is further projected to grow at highest CAGR during the forecast period owing to increasing demand of paint coating and inks in India.

India De Aromatic Solvents Market– Regional Insights

West sub region held the largest revenue share of 35.50 % in the India De Aromatic Solvents market in 2022, and is expected to maintain its dominance over the forecast period. Furthermore, West sub region is projected to be fastest growing region in the India De Aromatic Solvents market during the forecast period.

During the forecast period of 2023–2030, north is expected to experience the fastest growth, due to rising demand for De Aromatic Solvents.

Global India De Aromatic Solvents Market – Key Players

Major players operating in the India De Aromatic Solvents market include Exxon Mobil Corporation, Total S.A., Royal Dutch Shell plc, Isu Exachem, Mehta Petro Refineries, Avani Petrocehm Pvt Ltd., Raj Petro Specialties P. Ltd., and Eastern Petroleum Private Limited.

*Definition: De-aromatized hydrocarbon solvents, also known as ultra-low aromatic solvents or de-aromatized hydrocarbon solvents, are a subset of hydrocarbon solvents with iso-paraffinic, paraffinic, and naphthenic components and very little (less than 1%) aromatic content. De-aromatic solvents are hydrocarbon solvents that have low aromatic content around (<2%). They consist of iso-paraffinic, naphthene, and paraffinic compounds attached to them. De-aromatic solvents are majorly used across printing ink, industrial paints and coatings because they have very low VOC content and excellent faster-drying properties. Moreover, they are also used in the manufacturing de-aromatic insecticides and mosquitoes repellents. These solvents are much safer and eco-friendly products due to low VOC emissions.