According to MarketsandMarkets’ report, “Solvents Market, by Type (Alcohols, Ketones, Esters, Glycol Ethers, Aromatic, Aliphatic), Application (Paints & Coatings, Polymer Manufacturing, Printing Inks), Source (Petrochemical-Based, Bio & Green), and Region - Global Forecast to 2023,” the solvents market is projected to reach $57.34 billion by 2023, at a CAGR of 3.9% from an estimated value of $47.37 billion in 2018.
Growing demand for automobiles and increasing construction activities are projected to drive the demand for solvents across regions. Automobile and construction industries are major markets for paints and coatings, which in turn, are expected to drive the demand for solvents, globally. Volatile organic compounds (VOCs) are compounds which form ground-level ozone and particulate matter and are main constituents of smog. Stringent regulations in Europe and North America for the reduction of VOCs are projected to drive the demand for bio and green solvents.
Based on type, the oxygenated solvents segment of the petrochemical-based solvents market is projected to grow at the highest CAGR from 2018 to 2023, in terms of value and volume. This is due to their high solvency power and low-toxicity. In addition, their usage in various applications, such as paints & coatings, adhesives, pharmaceuticals, and printing inks, among others are expected to result in increasing demand during the forecast period.
Based on application, the printing inks application segment is projected to grow at the highest CAGR between 2018 and 2023, in terms of value. Rapid expansion of printing markets in countries, including India accompanied by strong demand from key end-user segments, such as package printing, newsprint, publishing, and other commercial printing are driving the demand for printing inks, which in turn is expected to drive the demand for petrochemical-based solvents. In addition, increasing investments by major printing ink manufacturers in the Middle East region are projected to drive the market during the forecast period.
Based on type, the lactate esters segment of bio and green solvents market is projected to grow at the highest CAGR during the forecast period. This is because these are non-corrosive, non-carcinogenic, and non-ozone depleting. Also, lactate esters do not contain any environmentally hazardous ingredients and global warming compounds due to which their usage is increasing in various applications, such as paints & coatings, industrial & domestic cleaners, and inks.
The Middle East and Africa region is estimated to account for the largest share of the solvents market and is also projected to grow at the highest CAGR during the forecast period, in terms of value. The growth of the solvents market in the region is attributed to increasing industrialization and rising demand for petrochemical-based solvents from end-use industries. Also, the existence of vast reserves of crude oil in the region continue to drive the demand for petrochemical-based solvents. In addition, the availability of cheaper raw materials in the region is expected to drive the growth of the solvents market.