De-aromatic solvents are categorized under hydrocarbon solvents or ultra-low aromatic solvents that have iso-paraffinic, paraffinic, and naphthenic components attached to them. They have very low aromatic content around (<2%) and are widely used across printing ink applications. Most of the industrial paints and coatings used around the globe are solvent-based as they have low VOC content and faster drying properties. De-aromatic solvents are also used in the production of De-aromatic insecticides and mosquitoes repellents. Automotive, marine, and railways are some of the major application areas of De-aromatic solvents.
The global de-aromatic solvents market is estimated to account for US$ 1.7 billion in terms of value in the year 2018 and it predicted to grow at a CAGR of 5.9% during the forecast period (2019-2027)
The booming end-user industry of de-aromatic solvents especially in developing region is projected to foster the market growth over the forecast period. De-aromatic solvents have a wide range of application across metalworking, industrial & institutional cleaning, paints, coatings & inks, and oilfield chemicals. According to the Coherent Market Insights analysis, the global paints & coatings and industrial cleaners markets are expected to register a steady growth of around 4–5% over the forecast period. Therefore, growing end-user industry is estimated to augment the market growth of de-aromatic solvents.
Expanding automotive industry especially in the U.S region is expected to offer potential growth opportunities over the forecast period. According to the report published by the balance, in 2018, the U.S. automotive industry contributed 2.7% to U.S. gross domestic product. That's US$ 545.4 billion out of the total US$ 20.5 trillion produced. Of that, $327.1 billion was auto manufacturing and US$ 218.3 billion was vehicle retail sales. Therefore, the growing automotive industry where de-aromatic solvents have application in paints, which is further used to paint the automobile in order to give an aesthetic look is expected to propel the market growth.
The slow growth of economies across developed regions such as North America and Europe is expected to hinder the market growth. These two regions together account for a significant share in global de-aromatic solvents market volume. However, these markets are mature and hence, we are witnessing slow growth and this condition is projected to remain the same over the forecast timeframe. Also, China, is other major market for de-aromatic solvents, which is experiencing an economic downturn. Therefore, the aforementioned factors are projected to hamper the growth of the global de-aromatic solvents market over the forecast timeframe.
On the basis of applications, the paint & coating segment has dominated the global de-aromatic solvents market in 2018 with a 32% market share in terms of value, followed by drilling fluids and metal working, respectively.
Growing focus of major players in the de-aromatic solvents market to introduce de-aromatic solvents that are customized to fulfill the specific need of end-use. For example, ExxonMobil Corporation is one of the prominent players in the de-aromatic solvents market, offers Exxsol D80, which finds application specifically in metalworking. This product has a high flash point and narrow boiling range, which provides faster drying and more safety during usage (According to the Coherent Market Insights). Therefore, growing demand for the customized de-aromatic solvent is expected to accelerate the market growth.
The growing demand for drilling fluid from the oil& gas industry where it is used in drilling operations is estimated to augment the market growth over the forecast timeframe. According to the Industrial Sky Works, the total global crude oil production in the year 2015 increased by 2.8 million barrels per day. USA led with an increase of 1 million barrels per day, while OPEC added 1.6 million barrels per day. Therefore, the growing production of crude oil is expected to propel the market growth of de-aromatize solvents.
Key players operating in global de-aromatic solvents market are 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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