The global solvent market size was valued at USD 32.3 billion in 2022 and is anticipated to expand at a compound annual growth rate (CAGR) of 6.0% from 2023 to 2030. The demand for the product is anticipated to be driven by its rising demand of ketones, hydrocarbons, and alcohols in end-use industries such as pharmaceuticals, paint and coatings, printing inks, cosmetics, and others. Increasing construction activities and positive industrial outlook in Asia Pacific and Europe are further expected to drive the demand for solvents over the estimated time period. It is a chemical that liquefies in the chemically diverse solute so as to make a solution. It comes in liquid, solid, and gaseous forms and in two variants namely organic and conventional. Organic solvents are majorly used in traditional applications such as dry cleaning and in manufacturing industries. They are inflammable in nature except chlorinated ones thus, can cause health hazards including damage to kidney and lungs.
The Covid-19 pandemic had a negative impact on the product market due to global supply chain disturbance. Solvents are majorly used in paint and coating applications such as in varnishes, water-repellent coatings, and paints which remained closed due to lack of raw material and skilled labor thus, impacting the demand for the product. However, on the positive aspect government in countries such as China, U.S., Germany, and India have taken initiatives with supportive regulations to bring the working of industrial sector on track.
The U.S. is the largest consumer of solvent in North America with a revenue share of 65.8% in 2022. This is attributed to the increasing usage of alcohols, hydrocarbon, and ketones as solvents in construction, pharmaceuticals, and cosmetics industry in the country. Construction being the major application industry of paint and coatings in the country is a crucial factor in driving the demand for solvent market. For instance, in February 2018, the government of U.S. has released USD 200 billion for rebuilding its infrastructure and to raise USD 1.5 trillion in private sector investments, states, and local governments. Additionally, in March 2020, the government of U.S. has announced an investment amounting to USD 2 trillion as a part of coronavirus response for the development of infrastructure of the country including building roads and hospitals. All these steps taken by the U.S. government to boost construction industry in the county are expected to drive the demand for the product.
The alcohol segment is expected to dominate the global market with a revenue share of 30.4% in 2022. The growth is attributed to the fact that they are strongly polar compared to hydrocarbons or ketones. Ethanol is majorly used as a solvent as it is safe to use and can dissolve many organic compounds which are not soluble in water thus, is used in many cosmetics and perfumes.
Ketones is another segment witnessing the fastest growth over the forecast period. This growth is attributed to the application of methyl isobutyl ketone, acetone, and methyl ethyl ketone in wide range of applications such as adhesives, paint and coatings, cleaning products, chemical processing, and printing inks. In addition, the gradual shift towards water-borne paints and coatings due to rising scrutiny by several environmental agencies for VOC (volatile organic compounds) emissions from solvent based paints and coatings has also impacted the growth of ketones.
The paints and coatings segment is anticipated to dominate the global market with a revenue share of 56.5% in 2022. The growth is attributed to the increasing construction activities in economies such as U.S., India, China, and Brazil. According to the Associated General Contractors of America, around USD 1.4 trillion worth structures are created in U.S. each year. In addition, according to the National Investment Promotion & Facilitation Agency, the construction industry in India accounts for around 9% of total GDP of the country. Thus, this increasing construction industry is resulting into driving the demand for paints and coatings which in turn is a major application industry for solvents.
Printing ink is another application segment witnessing growth over the forecast period. This growth is attributed to the increasing demand for printing inks in packaging and advertisement sector. Furthermore, developments in production technologies, use of case-ready packaging, and improved packaging practices are anticipated to positively influence the printing inks market. In addition, advancements in processing technologies in food sector in the U.S. and in the European countries are expected to augment the growth of packaged foods industry thus driving the demand for printing inks which in turn will result into increase in demand for solvents.
Asia Pacific is the dominating region accounting for a revenue share of 41.8% in 2022. The region is also expected to be fastest growing with a CAGR of 6.8% over the forecast period. This growth is attributed to the increasing spending of automobile manufacturing and construction industry in India and China coupled with growing industrialization which in turn are resulting into expansion of paints and coatings industry in the region. For instance, in November 2021, Asian Paints announced investment of USD 128 million for expansion of its manufacturing capacity in India from 1,30,000 KL to 250,000 KL. Additionally, in 2022 Berger Paints, has made an investment of USD 39 million for setting up its new plant in India. Thus, this increasing paint and coatings industry in the region is expected to drive the demand for the product market over the forecasted period.
Europe is another region witnessing a growth in the product market driven by the green initiatives taken by the regulatory authorities. Thus, the increasing use of bio-based products over chemical based is propelling the demand for the product in the region. Additionally, Germany is the 5th largest e-commerce market in the world and it is growing at a significant rate, supported by increasing consumer preference toward online shopping. The growth in the e-commerce sector has resulted in a considerable rise in the demand for corrugated cardboards, product packaging, and printed labels for safe and attractive packaging of products, which, in turn, is expected to fuel the demand for printing inks over the forecast period thus, resulting into growth in demand for solvents in the region.
Solvent market is highly fragmented with the presence of large number of players across the value chain. These market players have well established manufacturing units focusing on in house raw material production in order to reduce the procurement cost and improve profit margins. Some of the prominent players in the solvent industry include:
Exxon Mobil Corporation
Eastman Chemical Company
Honeywell International Inc.
Huntsman International LLC.
LyondellBasell Industries Holdings B.V.
Market size value in 2023
USD 34.1 billion
Revenue forecast in 2030
USD 51.6 billion
CAGR of 6.0% from 2023 to 2030
Base year for estimation
2018 - 2021
2023 - 2030
Volume in kilotons, revenue in USD million, and CAGR from 2023 to 2030
Volume & revenue forecast, company ranking, competitive landscape, growth factors, and trends
Type, application, region
North America; Europe; Asia Pacific; Central & South America; Middle East & Africa
U.S.; Canada; Mexico; Germany; France; U.K.; Italy; Spain; China; India; Japan; South Korea; Brazil; Argentina; Saudi Arabia; South Africa
Key companies profiled
BASF SE; Dow; Shell Chemicals; Exxon Mobil Corporation; Celanese Corporation; Eastman Chemical Company; Honeywell International Inc.; Huntsman International LLC.; INEOS; LyondellBasell Industries Holdings B.V.; Solvay
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This report forecasts revenue growth at global, regional, and country levels and provides an analysis on the latest industry trends in each of the sub-segments from 2018 to 2030. For the purpose of this study, Grand View Research has segmented the global solvent market report on the basis of type, application, and region:
Type Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)
Application Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)
Paints & coatings
Cosmetics & adhesives
Other (deicing, cleaning agent etc.)
Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)
Central & South America
Middle East & Africa
b. The global solvent market size was estimated at USD 32.3 billion in 2022 and is expected to reach USD 34.1 billion in 2023.
b. The global solvent market is expected to witness a compound annual growth rate of 6.0% from 2023 to 2030 to reach USD 51.6 billion by 2030.
b. The Alcohol in type segment dominated the market with a revenue share of 30.4% in 2022. The growth is attributed to the fact that they are strongly polar compared to hydrocarbons or ketones
b. Some of the major players in the market include BASF SE, Dow, Shell Chemicals, Exxon Mobil Corporation, Celanese Corporation, Eastman Chemical Company, Honeywell International Inc., Huntsman International LLC., INEOS
b. The demand for solvent is anticipated to be driven by its rising demand of ketones, hydrocarbons, and alcohols in end-use industries such as pharmaceuticals, paint & coatings, printing inks, cosmetics, and others
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