The global solvent market size reached US$ 46.1 Billion in 2022. Looking forward, IMARC Group expects the market to reach US$ 60.4 Billion by 2028, exhibiting a growth rate (CAGR) of 4.3% during 2023-2028. The escalating demand for solvents from numerous industries, the widespread product utilization to produce cosmetics and personal care products, and advancements in manufacturing techniques across the globe are some of the major factors propelling the market.
Solvent Market Size in 2022
|US$ 46.1 Billion
Solvent Market Forecast in 2028
|US$ 60.4 Billion
|Solvent Market Growth Rate (2023-2028)
A solvent is a substance that has the ability to dissolve other substances, forming a homogenous mixture at a molecular level. It is typically liquid, but can also exist in gaseous or solid states. It plays a crucial role in various industries and scientific procedures, including chemical synthesis, drug delivery, and materials processing. The ability of a solvent to dissolve a substance depends on its polarity. Polar solvents, such as water, can dissolve ionic and other polar substances, while nonpolar solvents, such as hexane, are more efficient at dissolving nonpolar substances. Additionally, it is also important in everyday life, widely used in the manufacturing of paints, plastics, cleaning agents, and pharmaceuticals.
The escalating demand from the industrial sector majorly drives the global market. The pharmaceutical industry is a significant driver due to solvents' role in drug formulation and delivery systems. As the global healthcare sector expands, the demand for high-quality, reliable solvents escalates correspondingly. Moreover, the cosmetics and personal care industries are further contributing to the market growth. As urbanization and construction activity increase the demand for these products rises, stimulating the growth of the market. Additionally, continuous innovations in green and bio-based solvents are starting to drive market growth due to growing environmental concerns. Apart from this, economic growth leads to increased production and consumption across various industries that utilize solvents, driving demand. Some of the other factors driving the market include rapid industrialization and continual technological advancements.
Solvent Market Trends/Drivers:
Environmental Concerns and Sustainability
The growing environmental concerns have a significant impact on the industry. The shift towards sustainable and eco-friendly practices drives the demand for solvents with lower volatile organic compound (VOC) content, reduced carbon footprint, and biodegradability. As alternatives to conventional solvents, water-based and bio-based solvents developed from renewable sources are becoming more and more common. In addition, regulations are also imposed by government organizations and regulatory authorities to guarantee environmental protection, worker safety, and air quality management. The use of certain solvents with low volatility, decreased toxicity, and low emissions is frequently necessary to comply with laws. These rules, which apply to both producers and final consumers, increase demand for products that comply with the necessary criteria.
Shifting Consumer Preferences and Lifestyle Changes
Changing consumer preferences and lifestyle patterns influence the demand for specific products, which, in turn, impacts the industry. Consumers are seeking environmentally friendly, non-toxic, and sustainable products. This shift in consumer preferences drives the development and adoption of solvents that align with these requirements. Additionally, economic growth is a significant driver for the industry. As economies expand and consumer spending increases, the demand for end-use products such as pharmaceuticals, paints, and adhesives also grows. These products often require solvents for formulation and manufacturing processes, leading to higher demand for solvents. In addition, industrialization and urbanization lead to increasing construction activities, infrastructure development, and emerging manufacturing sector. This drives the demand for solvents used in paints, coatings, adhesives, and cleaning products. The growth of industries and urban areas enhances the overall consumption of solvents.
Increasing Research and Development Activities
Investments in research and development (R&D) activities contribute to the growth of the industry. Research and development (R&D) efforts focus on developing new solvents with improved performance, safety, and sustainability. Research also aims to find substitutes for volatile and hazardous solvents, leading to the emergence of alternative solvents and technologies. Collaboration between academia, industry, and research institutes accelerates innovation in the industry. In confluence with this, advancements in technology influence the industry. New solvent formulations are developed to meet evolving requirements such as improved performance, reduced toxicity, and increased sustainability. Moreover, innovations in extraction methods, solvent recovery, and recycling technologies contribute to more efficient and cost-effective solvent usage.
Note: Information in the above chart consists of dummy data and is only shown here for representation purpose. Kindly contact us for the actual market size and trends.
Solvent Industry Segmentation:
IMARC Group provides an analysis of the key trends in each segment of the global solvent market report, along with forecasts at the global, regional, and country levels from 2023-2028. Our report has categorized the market based on product, source, and application.
Breakup by Product:
Note: Information in the above chart consists of dummy data and is only shown here for representation purpose. Kindly contact us for the actual market size and trends.
Alcohols dominate the market
The report has provided a detailed breakup and analysis of the market based on the product. This includes alcohols, hydrocarbons, ketones, esters, chlorinated, and others. According to the report, alcohols represented the largest segment.
The market for alcohols in the industry is influenced by the increasing demand for eco-friendly and sustainable solvents. Due to their high biodegradability, low volatile organic compound (VOC) concentration, and low toxicity, alcohols including ethanol and isopropanol are regarded as ecologically benign solvents. Additionally, the pharmaceutical and healthcare sectors are major consumers of alcohols as solvents for drug formulation, disinfectants, and medical device manufacturing. The growth of these sectors, driven by population growth, increasing healthcare expenditure, and advancements in drug development, contributes to the demand for alcohol in the industry.
Additionally, the industrial sector's demand for solvents drives the market for hydrocarbons. Mineral spirits, kerosene, and naphtha are a few instances of hydrocarbon solvents that are frequently used in industrial settings for cleaning, degreasing, and serving as carriers for adhesives and coatings. The expansion of numerous sectors including the automotive, industrial, and construction industries is a factor in the rise in demand for hydrocarbon solvents.
In addition, the growing demand for high-performance solvents drives the market for ketones. Ketones, such as acetone, methyl ethyl ketone (MEK), and methyl isobutyl ketone (MIBK), are known for their excellent solvent properties, including high solvency power, fast drying time, and compatibility with a wide range of materials. These characteristics make ketones popular choices in industries such as paints, coatings, adhesives, and specialty chemicals.
Breakup by Source:
- Bio and Green
Petrochemical-based dominate the market
A detailed breakup and analysis of the market based on the source has also been provided in the report. This includes petrochemical-based, and bio and green. According to the report, petrochemical-based accounted for the largest market share.
The market drivers for petrochemical-based sources in the industry are influenced by the availability and cost-effectiveness of petrochemical-based solvents. Petrochemical-based solvents, derived from petroleum and natural gas, benefit from the extensive infrastructure and established supply chains associated with the petrochemical industry. This allows for reliable and abundant availability of solvents at competitive prices. Additionally, the versatility and compatibility of petrochemical-based solvents with a wide range of applications contribute to their market drivers. In addition, the established knowledge and expertise in working with petrochemical-based solvents make them the preferred choices for manufacturers and end-users in terms of process efficiency and product performance.
In addition, the increasing focus on sustainability and environmental responsibility is leading to the growing demand for solvents derived from bio and green sources. These solvents, often derived from renewable feedstocks, such as biomass or plant-based materials, offer lower environmental impacts compared to petrochemical-based solvents. Apart from this, stringent regulations and standards promoting the use of environmentally friendly solvents have accelerated the adoption of bio and green solvents. These solvents, such as bio-based alcohols, esters, and glycols, offer reduced toxicity, lower volatile organic compound (VOC) emissions, and improved biodegradability. Furthermore, the development of innovative and efficient production processes for bio and green solvents is creating a positive market outlook.
Breakup by Application:
- Paints and Coatings
- Printing Inks
- Cosmetics and Adhesives
Paints and Coatings dominate the market
The report has provided a detailed breakup and analysis of the market based on the application. This includes paints and coatings, printing inks, pharmaceuticals, cosmetics and adhesives, and others. According to the report, paints and coatings represented the largest segment.
The market drivers for paints and coatings applications in the industry are influenced by the construction industry's growth and infrastructure development. As new residential, commercial, and industrial projects emerge, there is a need for quality finishes, protection against weathering, and aesthetic enhancements provided by paints and coatings. Additionally, the increasing focus on sustainability and environmental regulations has led to the development of low-VOC and eco-friendly paint formulations. Solvents used in these formulations need to comply with environmental standards, driving the market for solvents with low VOC content and reduced environmental impact.
In addition, the growth of the packaging industry plays a significant role in driving the market for printing inks. With the increasing demand for packaged goods, including food and beverages, pharmaceuticals, and consumer products, there is a need for high-quality and visually appealing packaging. Printing inks are essential in creating vibrant and durable prints on various packaging materials. Besides this, the publishing and advertising sectors contribute to the demand for printing ink.
The market drivers for pharmaceutical applications in the industry are influenced by the growing population, advancements in healthcare, and the increased prevalence of chronic diseases. Solvents play a crucial role in drug formulation, extraction, purification, and synthesis processes, contributing to the overall growth of the pharmaceutical industry. In confluence with this, the continuous development of new drugs and therapeutic solutions fuels the demand for solvents in the pharmaceutical sector.
Breakup by Region:
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- North America
- South Korea
- United Kingdom
- Latin America
- Middle East and Africa
Asia Pacific exhibits a clear dominance, accounting for the largest the solvent market share
The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa.
The industry in the Asia Pacific region is driven by rapid industrialization and urbanization in countries, including China, India, and Southeast Asian nations. These countries are witnessing significant growth in the construction, manufacturing, automotive, and electronics sectors, all of which require solvents for various applications. Additionally, the rising population and increasing disposable income in the region contribute to the demand for consumer goods and packaged products, which in turn drives the demand for solvents used in paints, coatings, adhesives, and packaging applications.
Additionally, the Asia Pacific region is known for its robust pharmaceutical and healthcare sectors, which further drive the demand for solvents in drug formulation and manufacturing processes. The growing awareness and implementation of environmental regulations and sustainability practices in the region also push the demand for eco-friendly solvents.
On the contrary, Europe is estimated to expand further in this domain due to the stringent environmental regulations and sustainability initiatives in the region. European countries have implemented strict regulations regarding the use of solvents with high VOC content and have promoted the adoption of low-VOC or VOC-free solvents. This drives the demand for eco-friendly solvents, such as water-based or bio-based solvents, which align with the sustainability goals of the region. In addition, the strong presence of industries such as automotive, pharmaceuticals, paints and coatings, and chemicals in Europe fuels the demand for solvents.
The market is experiencing significant growth due to the growing demand for environmentally friendly solvents. As sustainability and environmental concerns continue to gain prominence, there is an increasing preference for solvents with low toxicity, reduced VOC emissions, and biodegradability. Therefore, companies are developing and offering eco-friendly solvent solutions to meet the evolving needs of environmentally conscious industries and consumers. Along with this, the rising need for innovative and high-performance solvents. Industries such as pharmaceuticals, paints and coatings, adhesives, and electronics constantly seek solvents that can enhance product performance, improve efficiency, and meet specific application requirements. In addition, the development of solvents with unique properties, such as fast drying time, high solvency power, and compatibility with a wide range of materials, is significantly supporting the market. Moreover, the emergence of new applications and technologies opens doors for companies in the industry. For instance, the growing demand for renewable energy technologies and energy storage systems requires solvents for the manufacturing of batteries and solar panels.
The report has provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:
- Archer-Daniels-Midland Company
- Ashland Inc.
- BASF SE
- Bharat Petroleum Corporation Limited
- bp p.l.c.
- Celanese Corporation
- Dow Inc.
- Eastman Chemical Company
- Exxon Mobil Corporation
- Honeywell International Inc.
- Huntsman Corporation
- LyondellBasell Industries N.V.
- Royal Dutch Shell plc
- Sasol Limited
- Solvay S.A.
- In February 2023, BASF SE announced entered into a long-term collaboration agreement with Tenova Advanced Technologies (TAT) of Yokneam, Israel, for its battery recycling prototype plant in Schwarzheide, Germany.
- In October 2022, Archer-Daniels-Midland Company announced the launch of 'Knwble Grwn' food brand at Natural Products Expo. The Knwble Grwn brand is a message that the firm wishes to support farmers that currently go far beyond for soil health and other environmental practices.
- In October 2021, Ashland Inc. launched Sensidin Pure Skin Multifunctional. It preserves the unique microbiome while offering strong and quick performance against odor-causing bacteria at extremely low usage amounts.
Solvent Market Report Scope:
|Base Year of the Analysis
|Scope of the Report
||Exploration of Historical and Forecast Trends, Industry Catalysts and Challenges, Segment-Wise Historical and Predictive Market Assessment:
||Alcohols, Hydrocarbons, Ketones, Esters, Chlorinated, Others
||Petrochemical-Based, Bio and Green
||Paints And Coatings, Printing Inks, Pharmaceuticals, Cosmetics and Adhesives, Others
||Asia Pacific, Europe, North America, Latin America, Middle East and Africa
||United States, Canada, Germany, France, United Kingdom, Italy, Spain, Russia, China, Japan, India, South Korea, Australia, Indonesia, Brazil, Mexico
||Archer-Daniels-Midland Company, Ashland Inc., BASF SE, Bharat Petroleum Corporation Limited, bp p.l.c., Celanese Corporation, Dow Inc., Eastman Chemical Company, Exxon Mobil Corporation, Honeywell International Inc., Huntsman Corporation, LyondellBasell Industries N.V., Royal Dutch Shell plc, Sasol Limited and Solvay S.A.
||10% Free Customization
|Report Price and Purchase Option
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Key Benefits for Stakeholders:
- IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the solvent market from 2017-2028.
- The research study provides the latest information on the market drivers, challenges, and opportunities in the global solvent market.
- The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
- Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the solvent industry and its attractiveness.
- Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.