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The aromatic solvents market size is forecast to increase by USD 1.27 billion at a CAGR of 3.54% between 2023 and 2028. Market growth hinges on several key factors. Firstly, the uptick in building and construction activities fuels demand for various materials and chemicals, including aromatic solvents. Secondly, technological advancements in solvent recovery and recycling processes optimize resource utilization, aligning with sustainability goals. The increased utilization of these chemicals in specialty chemicals further propels market expansion, driven by their unique properties and applications across industries like paints, coatings, and pharmaceuticals. These intertwined factors create a synergistic effect, shaping the market's growth trajectory. As industries emphasize sustainability and efficiency, innovations in recovery processes and the strategic use of these chemicals contribute significantly to meeting evolving market demands while addressing environmental concerns. It also includes an in-depth analysis of drivers, trends, and challenges. Our report examines historic data from 2018 - 2022, besides analyzing the current market scenario.
Aromatic solvents are a class of organic solvents primarily composed of aromatic hydrocarbons, which are molecules containing one or more benzene rings. These solvents are characterized by their distinct chemical structure, which imparts unique properties such as high solvency, low polarity, and relatively high boiling points. Aromatic solvents are commonly used in various industrial applications, including paint and coatings, adhesives, printing inks, and chemical manufacturing. They serve as effective solvents for dissolving and dispersing a wide range of substances, making them essential components in many formulations. However, aromatic solvents may pose health and environmental risks due to their toxicity and potential for volatility, requiring careful handling and disposal practices.
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The market is driven by diverse factors, such as the oil refining industry's demand for crude petroleum stock to produce organic liquids and aromatic hydrocarbons like toluene and xylene. These solvents find extensive use in paints & coatings, cleaning & degreasing, and nail polish removers across industries like the automotive OEM, cosmetics industry, and construction sector. Challenges include regulatory pressures due to environmental concerns, pushing for alternative drivetrains, and cleaner production methods in response to sustainability trends driving the market's evolution. Our researchers analyzed the market research and growth data with 2023 as the base year, along with the key market growth analysis, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help companies refine their marketing strategies to gain a competitive advantage.
The rise in building and construction activities is notably driving the market. With the growing urbanization and infrastructure development projects worldwide, the construction industry's demand for paints, coatings, adhesives, and sealants has surged. In addition, aromatic solvents are vital components in the formulation of these construction materials, contributing to their durability, weather resistance, and overall performance.
For instance, major construction projects, including the development of skyscrapers, commercial complexes, and residential buildings in rapidly growing urban centers, including Dubai, Shanghai, and New York City, have propelled the demand for aromatic solvents. In addition, these solvents are essential for producing high-quality architectural coatings and adhesives, meeting the stringent requirements for modern construction designs and standards. Hence, such factors are driving the market during the forecast period.
An upsurge in demand for low-VOC formulations is a primary trend in the market. The increasing demand for low-VOC formulations is a significant driver of growth in the global market, with a growing emphasis on environmental sustainability and regulatory compliance across various industries. In addition, as industries seek to minimize their environmental footprint and meet stringent VOC regulations, the demand for aromatic solvents with low VOC content continues to escalate. Furthermore, manufacturers are responding to this trend by developing innovative formulations that offer reduced emissions without compromising performance.
Moreover, leading vendors in the global market, such as Exxon Mobil Corp., BASF SE, and Eastman Chemical Co., are at the forefront of developing low-VOC solutions to meet market demand. In addition, Exxon Mobil Corp., for instance, offers a range of low VOC aromatic solvents under its Exxsol line, which is designed to provide excellent solvency power while reducing environmental impact. BASF SE has also introduced low VOC aromatic solvents as part of its AromaBalance portfolio, leveraging its expertise in sustainable chemistry to develop eco-friendly solutions for various applications. Hence, such factors are hindering the market during the forecast period.
Fluctuation in crude oil price is a major challenge hindering the market. The fluctuations of crude oil prices can negatively impact the cost of production and raw materials for aromatic solvents, leading to uncertainty in pricing and supply chain management for manufacturers and end-users alike. In addition, sudden spikes in crude oil prices can result in higher production costs for aromatic solvents, squeezing profit margins for manufacturers and potentially leading to increased prices for consumers.
Moreover, periods of low crude oil prices may incentivize higher production levels, leading to oversupply and downward pressure on prices, which can also negatively affect profitability and market dynamics. In addition, price fluctuations in crude oil can disrupt investment decisions and long-term planning in the global market. Hence, such factors are hindering the market during the forecast period.
The Market is segmented based on various key factors and applications across industries. Toluene and xylene, being prominent aromatic hydrocarbons, are extensively utilized in diverse sectors such as paints & coatings, cleaning & degreasing, and nail polish removers within the cosmetics industry. These solvents are derived from crude petroleum stock and are vital components in the oil refining industry for producing organic liquids and hydrocarbon products. Furthermore, ethylbenzene plays a crucial role in the production of adhesive films and varnishes used in the building & construction activities and automotive OEM sectors. The demand for aromatic solvents also stems from the growing market for electric vehicles, autonomous vehicles, and alternative drivetrains, where these solvents are used in manufacturing machinery components.
The paints and coatings segment is estimated to witness significant growth during the forecast period. The significant use of aromatic solvents in the paints and coatings industry is one of the drivers for market growth. In addition, aromatic solvents have special properties, such as a higher solvency rate, compared with aliphatic hydrocarbon solvents, which increases their demand in the paints and coatings industry.
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The paints and coatings segment was the largest segment and was valued at USD 3.14 billion in 2018. Moreover, aromatic solvents play a significant role in the formulation of paints and coatings, serving as essential components in various stages of production and application. In addition, examples of aromatic solvents commonly used in this industry include toluene, xylene, and high-flash aromatic naphthas. Furthermore, these solvents are prized for their ability to dissolve resins, adjust viscosity, and improve drying characteristics, thereby contributing to the overall performance and quality of the coating. In addition, they facilitate proper dispersion of pigments and additives, enhance film formation, and promote adhesion to substrates. Hence, such factors are fuelling the growth of this segment, which in turn drives the market during the forecasting period.
Based on the type, the market has been segmented into Toluene, Xylene, Ethylbenzene, Benzene, and others. The Toluene segment will account for the largest share of this segment. The Toluene segment, also known as toluol or methylbenzene, is a mono-substituted colorless liquid. In addition, it is a water-soluble aromatic hydrocarbon solvent. Its chemical formula is C6H5CH3. Moreover, its natural source is crude oil, and it is also found in the tolu tree. Furthermore, toluene is obtained as a by-product during the production of gasoline from crude oil. It is also obtained during the production of coke from coal. Hence, such factors are fuelling the growth of this segment, which in turn drives the market during the forecasting period.
APAC is estimated to contribute 50% to the growth of the global market during the projection period. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the projection period.
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Factors such as rapid industrialization, urbanization, and infrastructure development across APAC countries are expected to fuel the demand for aromatic solvents, particularly in sectors such as construction, automotive, and electronics. In addition, as these industries expand, the need for solvents in applications such as coatings, adhesives, sealants, and electronic cleaning is projected to increase, bolstering market growth.
Moreover, the shift toward eco-friendly and sustainable solvent solutions is anticipated to shape the future of the APAC market. In addition, growing awareness of environmental concerns and regulatory pressure to reduce VOC emissions are driving the adoption of bio-based and low-VOC aromatic solvents in the region. Furthermore, market players are investing in research and development to innovate and introduce eco-friendly solvent alternatives that meet regulatory requirements and consumer preferences. Hence, such factors are driving the market in APAC during the forecast period.
Companies are implementing various market growth and forecasting strategies by analyzing factors such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product or service launches to enhance their presence in the market.
AGROFERT AS: The company offers aromatic solvent products such as toluene, xylene, and solvent naphtha for paints, varnishes, adhesives, and sealants applications under its subsidiary, Deza.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Arham Petrochem Pvt. Ltd., BASF SE, Chevron Phillips Chemical Co. LLC, Compania Espanola de Petroleos SA, Eastman Chemical Co., Exxon Mobil Corp., HCS Group GmbH, Honeywell International Inc., Korea Petrochemical Ind. Co. Ltd., Monument Chemical, Neste Corp., ORG CHEM GROUP, Pampa Energia SA, RB Products Inc., Reliance Industries Ltd., Resolute Oil LLC, Saudi Arabian Oil Co., Shell plc, Shri Parth Petrochem, SK Innovation Co. Ltd., and Vinati Organics Ltd.
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The Market is intricately linked to various industries and applications, leveraging a range of organic chemicals like toluene and xylene derived from crude petroleum stock in the oil refining industry. These solvents find extensive use as diluents and chemical intermediates, contributing to the chemical composition of products across sectors such as paint thinners, ink, and corrosion coatings in the paint and pigments manufacturing industry. Notably, aromatic solvents play crucial roles in the tire additives for the rubber industry and as binders and extenders in the formation of efficient homogeneous solutions for the varnishes industry. Their low toxicity makes them preferred choices in sectors like the pharmaceutical industry for active pharmaceutical ingredients and the cosmetics industry for nail polish removers.
In addition to their industrial chemical applications, these solvents contribute to green initiatives through biodegradable, non-corrosive, and non-carcinogenic properties, appealing to sectors like agricultural crops and food and beverages for crop protection products and processing. As industries evolve towards sustainable practices, aromatic solvents also find uses in cleaners for cleaning pharmaceutical equipment and vehicle parts, supporting industrial and automotive OEM operations alike. With the advent of electric vehicles, autonomous vehicles, and alternative drivetrains, the demand for aromatic solvents in adhesive films, synthetic lubricants, and construction materials continues to grow, highlighting their integral role in diverse sectors driving innovation and efficiency.
Market Scope |
|
Report Coverage |
Details |
Page number |
188 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 3.54% |
Market Growth 2024-2028 |
USD 1.27 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
3.12 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 50% |
Key countries |
US, United Arab Emirates, China, India, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
AGROFERT AS, Arham Petrochem Pvt. Ltd., BASF SE, Chevron Phillips Chemical Co. LLC, Compania Espanola de Petroleos SA, Eastman Chemical Co., Exxon Mobil Corp., HCS Group GmbH, Honeywell International Inc., Korea Petrochemical Ind. Co. Ltd., Monument Chemical, Neste Corp., ORG CHEM GROUP, Pampa Energia SA, RB Products Inc., Reliance Industries Ltd., Resolute Oil LLC, Saudi Arabian Oil Co., Shell plc, Shri Parth Petrochem, SK Innovation Co. Ltd., and Vinati Organics Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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