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Global Solvents Market to Reach 32.7 Million Metric Tons by the Year 2026

A solvent is a liquid formulation that is capable of suspending, dissolving or extracting various substances, without influencing any chemical change to the subject material and the end-product. Dynamics of the solvents market are linked to prevailing macro-economic factors such as economic environment, GDP growth, industrial and commercial activity, and growth in core and heavy industries such as mining, oil & gas, metal, and infrastructure across major regional markets. Similarly, solvents market is also impacted by socio-economic trends such as rapid pace of urbanization, rising disposable incomes, growing middle class population, and changing lifestyle patterns, all of which are fueling the demand for manufactured and processed goods and products for use in a range of consumer applications. The stable upward momentum in several end-use markets including paints and coatings, pharmaceuticals, personal care and cosmetics, adhesives, household care, printing inks, and packaging has positively impacted the demand for solvents globally. On account of the stringent regulatory landscape, the adoption of `Green Solvents` and Bio-based solvents, which integrate environmental friendly attributes with low- to zero-toxicity, and biodegradable, recyclable, and non-corrosive features, is on the rise. Other factors steering growth in the usage of bio and green solvents include their outstanding degradable properties, rising prices of crude oil, and efforts to reduce reliance on petrochemical solvents.

Amid the COVID-19 crisis, the global market for Solvents estimated at 28.1 Million Metric Tons in the year 2021, is projected to reach a revised size of 32.7 Million Metric Tons by 2026, growing at a CAGR of 3.4% over the analysis period. Alcohols, one of the segments analyzed in the report, is projected to grow at a 4.9% CAGR to reach 11.8 Million Metric Tons by the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the Hydrocarbon Solvents segment is readjusted to a revised 0.5% CAGR for the next 7-year period. This segment currently accounts for a 22.9% share of the global Solvents market. Alcohols segment represents the leading segment in the solvents market. Alcohol-based solvents such as methanol, ethanol, isopropanol, and n-butanol are used in personal care products, pharma manufacturing, and industrial applications. These solvents are not as toxic as other groups and can easily dissolve polar and non-polar substances. Hydrocarbon solvents are derived as a by-product of refining crude oil. The demand for coatings and paints is increasing, driven by increase in construction activity. This in turn is boosting the demand of aliphatic hydrocarbon thinners and solvents.

The U.S. Market is Estimated at 4.2 Million Metric Tons in 2022, While China is Forecast to Reach 12.1 Million Metric Tons by 2026

The Solvents market in the U.S. is estimated at 4.2 Million Metric Tons in the year 2022. The country currently accounts for a 15.1% share in the global market. China, the world`s second largest economy, is forecast to reach an estimated market size of 12.1 Million Metric Tons in the year 2026 trailing a CAGR of 5.1% through the analysis period. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 1.5% over the analysis period. Within Europe, Germany is forecast to grow at approximately 1.5% CAGR while Rest of European market (as defined in the study) will reach 2 Million Metric Tons by the end of the analysis period. Asia-Pacific represents a major regional market for solvents in the world. Economic growth and sustained rise in manufacturing sector investments have been driving demand for solvents over the years.

Solvents are extensively used by the ground transportation industry for maintenance and refurbishment purposes. In rail transport for instance, solvents are used for painting and stripping. Solvents are being more frequently used for removing paint on rail cars, though on most occasions it is removed mechanically. Solvents are also used for truck maintenance as solvent sprays. Generally, the washer for cleaning parts comprises an ambient temperature or heated solvent. Solvents that are typically used include naphtha, petroleum distillates and mineral spirits among others. These solvents recirculate in the tank washer for cleaning purpose. Used-up solvents are replaced frequently. Solvents are also used for cleaning carburetors. Compounds used for this purpose contain dichloromethane. Solvents are also used in the production of paints.

Esters Segment to Reach 6 Million Metric Tons by 2026

Esters are increasingly being deployed to remove organic solutes from aqueous solutions and used as solvents in lacquers, paints, and coatings. In the global Esters segment, USA, Canada, Japan, China and Europe will drive the 4.1% CAGR estimated for this segment. These regional markets accounting for a combined market size of 3.5 Million Metric Tons will reach a projected size of 4.8 Million Metric Tons by the close of the analysis period. China will remain among the fastest growing in this cluster of regional markets. Led by countries such as Australia, India, and South Korea, the market in Asia-Pacific is forecast to reach 987.7 Thousand Metric Tons by the year 2026.