Demand for solvents is estimated to grow by 5.9% year over year during 2022 resulting in revenue generation of US$ 14,590.7 million in the same year in the Asia Pacific region. Strong growth in the chemical and pharmaceutical industrial sector in the past decade in the region has fostered market growth.
| Attributes | Details |
|---|---|
| Market Size (2022) | US$ 14,590.7 million |
| Market Size 2023 | US$ 15,451.6 million |
| Market Size 2033 | US$ 25,409.8 million |
| Value CAGR (2023 to 2033) | 5.1% |
Industrial solvents are typically used as ingredients in the formulation of products or processing auxiliaries in manufacturing. The importance of solvent is brought about by the most important fact that many substances exhibit their greater usefulness when dispersed in a solution.
High growing end use industries including electronics and pharmaceuticals are anticipated to remain a key growth driver for the market which will also be propelled by an increase in investment for the industry expansion. Further, expansion in the production of bulk chemicals, paints and coatings, oil, and gas requires a predominant amount of solvents, which is augmenting the market demand.
A significant portion of the global consumption of solvents is being utilized as dissolution agents in key end use industries whose application also accounts for more than half of the total consumption. Cleansing, degreasing, purification, and others are other key applications of solvents.
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The solvent demand witnessed a growth outlook of more than 5.4% over the historical period of 2018 and 2022. The market has been estimated to witness a growth rate of 5.1% over the coming assessment period of 2023 and 2033.
A certain decline in the projection growth prospects is attributed to certain macroeconomic and industrial factors including a slowdown in the economic and manufacturing industry sector in the prominent market, China and Japan. A certain decline in the growth prospects in the agrochemical sector, paints and coatings sector, and commodity chemicals throughout 2023 and 2033 all over the Asia Pacific region to impact the demand generation.
Solvents such as butane, propane, hexane, isopropyl alcohol, and ethanol are extracted through the extraction and distillation process, the solvents are separated from the waste solvents. This recycling of commodity solvents is benefiting the market with low operating expenditure, generation of less hazards, and finally reducing pollution.
Adoption of green chemistry by manufacturing companies are going to change certain market dynamics
Manufacturing companies are increasing their involvement in green chemistry to reduce environmental hazards and are focusing on solvent manufacturing through waste solvents. Companies are redesigning their production processes and have managed to reduce waste by 50 kg in a specific vertical.
Pfizer manufactures Lipitor (Atorvastatin), which the company reduced the total organic waste by 65% by changing the manufacturing process of solvents. Manufacturers are further focusing on testing residual solvent levels during the production of their ingredients. This test is done to reduce the toxicity in solvents.
Growing demand for bio-based solvent as a replacement for conventional solvents are further being adopted by key players. Companies including ZCL Chemicals Limited has over 1500 chemical plants in Ankleshwar, Gujarat for the production of pharmaceutical products, advanced intermediates, fine chemicals, etc.
Amines and Plasticizers Ltd. is involved in the production of amines and is a global supplier of organic chemicals used in the production of an ammonia plant, pharmaceutical products, agrochemicals, etc. These market players are shifting their used solvents to bio-based solvents from conventional solvents.
Growth in the electronics sector and demand for consumer electronics are creating ample opportunities for the market
Over the recent past, China and South Korea have established prominent electronics-producing countries. The electronic industry has registered a robust growth over the recent years, despite subdued growth experienced and shortages of semiconductor chips. The increasing inflow of foreign direct investments in the electronic industry in Mexico is augmenting the sector.
The incumbents have channelized efforts towards strengthening their manufacturing capabilities to cater to the increasing demand in domestic as well as international markets. Solvents are generally used for cleaning electronic parts, and increases in production and sales are fostering the consumption volume of solvents.
Production of products associated with information technology including computers, circuit boards, smartphones, and networking devices, among others coupled with that of consumer electronics and appliances, etc., accounts for a significant share of the overall electronics output of the region.
Principal Consultant
Alcohol segment to remain a prominent segment as a product type
Significant demand from key end use industries including the pharmaceutical industry, industrial cleaners, textile, paints, coatings, etc. along with key players’ several expansion plans is augmenting the demand for alcohol. The alcohol segment is estimated to witness a growth rate of around 5.4% between 2023 and 2033.
Industrialization in Asian countries, and an increase in chemical sales, are anticipated to foster the demand for industrial solvents at a higher pace in India, Vietnam, Indonesia, and other countries.
Application in the pharmaceutical industry to benefit the market growth outlook with a rise in medicine production
Rising demand from the pharmaceutical and healthcare sector in Asian countries is expected to poise the consumption of solvents in the pharmaceutical sector. Companies such as Dow Chemical started new production units in India to cater to the growing demand for solvents in the pharmaceutical industry.
Growing concerns related to health have marked a positive impact on the growth of the pharmaceutical market. A growing concern increases the rate of consumption of pharmaceutical-based solvents in medicines.
An increasing rate of aging population in China, Japan, and South Korea with the growth of medicine sales lead to the growth of industrial solvents for the production of medicines. Rising demand for medical encapsulation and packaging is also expected to create incremental dollar opportunities for the market.
China to remain the prominent market for industrial solvents in Asia Pacific region
Substantial development in the chemical industry in China had augmented the market demand. China is estimated to account for more than two-fifths of the global demand for chemicals, further accounting for 48% consumption of Asia Pacific demand.
The higher market share of the country is attributed to the demand for key end users diversified application segments such as paints and coatings, electronics, pharmaceuticals, adhesives, printing inks, toiletries and cosmetics, detergents, water treatment, household and car care, rubber and polymer manufacturing, metal and industrial cleaning, agrochemicals, and others.
India to remain one of the fastest growing markets in the Asia Pacific region
Growth in the construction sector and rising production and sales of automobiles are fuelling the demand for industrial solvents in India. The significant availability of raw material resources and abundant labor generated a platform for the growth of the manufacturing sector in the country. India is estimated to witness a growth rate of 5.8% in demand for industrial solvents over the forecast period.
Substantial growth in the market of industrial solvents in India is attributed to growth in the end use industries, manufacturing sector growth, increase in foreign direct investment in the country, improving logistics, and increase in trade with the global market.
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Recycling of the used solvents through extraction and distillation processes to reduce the operating cost is generally being practiced by key market players to enhance profitability and reduce hazard generation which will bolster their ESG performance.
Solvent manufacturers are focusing on effective sales and distribution strategies to augment their market penetration and strengthen their indirect sales channels. This provides a competitive advantage by gaining market share. Effective product positioning and branding strategies to effectively communicate the relevant product USPs would be a strong support for the growth in the market.
Manufacturers have the opportunity to form long-term business contracts with the formulators as fluorinated solvent blends are more popular among all the product types.
A few of the recent developments in the industry are:
| Attribute | Details |
|---|---|
| Growth Rate | CAGR of 5.1% from 2023 to 2033 |
| Base Year for Estimation | 2022 |
| Historical Data | 2018 to 2022 |
| Forecast Period | 2023 to 2033 |
| Quantitative Units | Revenue in USD Million, Volume in Tons, and CAGR from 2023 to 2033 |
| Report Coverage | Revenue Forecast, Volume Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends, and Pricing Analysis |
| Segments Covered | Product Type, End-use Industries, Country |
| Country Covered | China, Japan, South Korea, India, Vietnam, Indonesia, Philippines, Malaysia, Australia and New Zealand, Rest of Asia Pacific |
| Key Companies Profiled | BASF SE; BP plc; ExxonMobil; LyondellBasell; Royal Dutch Shell; Petroleo Brasileiro S.A; DuPont; Total S.A.; SABIC; Diacel Chemical Industries Ltd; Harmony Organics Pvt Ltd; Eternis Fine Chemicals; IGPL; Eastman Chemical Company; Ashland Global Holdings Inc.; Celanese Corporation; Honeywell International; Gandhar Oil; INEOS |
| Customization and Pricing | Available upon Request |
In 2022, the value of the Asia Pacific industrial solvents market reached over US$ 14,590.7 million.
During the forecast period, the Industrial solvents market is estimated to expand at a CAGR of 5.1% during 2023 and 2033 in the Asia Pacific region.
The Asia Pacific industrial solvents market is projected to reach US$ 25,409.8 million by the end of 2033.
China is projected to lead the Asia Pacific industrial solvents market.
The market for industrial solvents is estimated to grow by nearly with CAGR of 5.5% by 2033.
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Asia Pacific Industrial Solvents Market
