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Solvents Market Size, Share & Industry Analysis, By Product Type (Alcohols, Ketones, Esters, and Others), By Application (Paints & Coatings, Printing Inks, Industrial Cleaning, Adhesives, and Others), and Regional Forecast, 2024-2032

Last Updated: May 05, 2025 | Format: PDF | Report ID: FBI102135

 

KEY MARKET INSIGHTS

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The global solvents market size was valued at USD 36.88 billion in 2023. The market is projected to grow from USD 38.60 billion in 2024 to USD 61.95 billion by 2032, exhibiting a CAGR of 6.1% during the forecast period. Asia Pacific dominated the Solvents Market with a market share of 42.57% in 2023.


Exxon Mobil Corporation, Shell plc, BASF, LyondellBasell Industries Holdings B.V., and Honeywell International Inc. are the key players operating in the market.  


A solvent is a substance that dissolves a solute and converts it into a solution. Generally, these are available in liquid form but can also be solid or gaseous. They are categorized into methanol, ethanol, butanol, propylene glycols, glycol ethers, butyl glycol ethers, acetone, esters, toluene, and hydrocarbons.  These products can dissolve, absorb, and dilute other substances in a very fine distribution without changing them chemically. The rising innovation and advancement in chemicals, coupled with the rising demand for bio-based products owing to the increasing stringency of environmental regulations, will drive the product demand. Furthermore, the rapid growth in the paints & coatings industry will also play a major role in boosting the global market growth during the forecast timeline.


Market Dynamics


Market Drivers


Increasing Demand from Paints & Coatings Industry to Boost Market Growth


The market is witnessing substantial growth, significantly driven by the increased demand from the paints and coatings industry. Solvents are vital components in the formulation of paints and coatings, acting as carriers for pigments, resins, and other additives.


As the construction and automotive sectors expand, along with rising consumer interest in home improvement, the demand for paints and coatings is surging. This delves into the dynamics of the market, the factors fueling the growth of the paints and coatings industry, and the implications for the market.


Solvents serve several critical functions in the formulation of paints and coatings, including dissolution, application properties, drying, and cleaning. Given these functions, the choice of solvent significantly impacts the performance and environmental footprint of paints and coatings.


Growing Demand for Eco-friendly Solvents Due to Environmental Consciousness and Regulations to Bolster Market Growth


In recent years, there has been a notable shift in consumer and industrial preferences toward bio-based products over chemical products, driven by increasing environmental consciousness. This transition is reshaping the global market, encouraging manufacturers to innovate and adapt their product lines to meet the demands for more sustainable and less harmful alternatives.


Eco-friendly solvents, often referred to as "green solvents," are derived from renewable resources or have a low environmental impact compared to conventional organic solvents. These solvents include water-based solvents, bio-based solvents, and those with low volatile organic compound (VOC) emissions. Examples of eco-friendly solvents include ethanol, isopropanol, and plant-derived alternatives, such as terpenes and glycerol.


The rise of environmental consciousness among consumers is a significant driving force behind the demand for biobased solvents. Individuals are becoming more aware of the harmful effects of traditional solvents, which can contribute to air and water pollution, respiratory issues, and other health problems. As a result, consumers are increasingly seeking products that are safer for themselves and the planet.


Market Restraints


Hazardous Impacts Caused by Chemical Solvents to Hamper Market Growth


Chemical solvents play a vital role in numerous industries, including paints and coatings, pharmaceuticals, and cleaning products. However, the hazardous impacts associated with many chemical solvents are increasingly coming under scrutiny, which poses significant challenges to market growth.


One of the primary concerns regarding chemical solvents is their potential health hazards. Many organic solvents, such as benzene, toluene, and xylene, are known to be toxic. Prolonged exposure can lead to various types of health issues, such as skin irritation, respiratory problems, neurological conditions, and even cancer. For instance, benzene is a recognized carcinogen that can cause leukemia and other blood-related diseases. Workers in industries that frequently use these solvents, such as paint manufacturing and cleaning services, are particularly at risk, leading to increased occupational health concerns and associated costs for companies.


Chemical solvents can also pose significant threats to the environment. When solvents are improperly disposed of or released into the atmosphere, they can contribute to air and water pollution. Many solvents are volatile organic compounds (VOCs) that can react with other chemicals in the atmosphere to form ground-level ozone, a major component of smog.


Market Opportunities


Solvent Recovery and Recycling to Create Lucrative Growth Opportunities


Solvent recovery, often termed solvent reclamation or solvent recycling, is a vital economic factor in defining the possibility of a new project or capacity expansion. Environmental guidelines, new solvent expenditures, and waste disposal costs can outdo the cost of solvent recovery apparatus and operations. In–process solvent retrieval is extensively used as a substitute for solvent replacement to decrease waste generation. There is extensive commercial accessibility of solvent recovery equipment. The availability of such equipment, which is suitable for small processes, particularly batch operations, makes in–process recovery of solvents economically desirable to raw-material substitution.


Market Challenges


Shifting Regulatory Frameworks to Hinder Market Expansion


The market is facing several challenges due to shifting regulatory frameworks, environmental concerns, and changing consumer preferences. Regulatory pressure on the market is one of the key drivers of change, shaping both product development and industry operations. Governments globally have introduced stricter regulations aimed at reducing the environmental and health impacts of solvents, particularly those that are volatile organic compounds (VOCs). These regulations are primarily focused on minimizing air pollution, promoting public health, and addressing climate change concerns.


In addition, regulations surrounding waste disposal, chemical handling, and worker safety add additional layers of compliance for solvent manufacturers. For instance, compliance with OSHA (Occupational Safety and Health Administration) guidelines requires companies to adopt stringent safety measures, which can lead to increased operational costs.


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Solvents Market Trends


Shift Toward Bio-Based and Environmentally Friendly Solvents is the Latest Trend 


The solvents industry plays a crucial role in various industries, including pharmaceuticals, coatings, adhesives, and cleaning products. However, traditional hydrocarbon solvents have significant environmental and health impacts due to the presence of volatile organic compounds (VOCs), toxic chemicals, and the energy-intensive processes associated with their production and disposal. As global awareness of environmental issues increases, the need for sustainability in the market has become paramount. The shift toward bio-based solvents involves replacing traditional volatile organic compounds (VOCs) with safer, bio-based, or less toxic alternatives. The drive for sustainability in the market is influenced by several factors, including regulatory pressures, consumer demand for eco-friendly products, and the growing recognition of corporate social responsibility. This shift encompasses the development of green solvents, the implementation of sustainable manufacturing practices, and the establishment of recycling and recovery systems.


Impact of COVID-19


The COVID-19 pandemic significantly disrupted global economies and industries, including the solvents market. Solvents, essential in various applications such as pharmaceuticals, coatings, adhesives, and cleaning products, experienced both challenges and opportunities during this unprecedented period.


One of the most immediate effects of the pandemic was the disruption of supply chains. Lockdowns, transportation restrictions, and workforce shortages led to delays in the production and delivery of solvents. Key raw materials became scarce, impacting manufacturers’ ability to produce solvents in adequate quantities. This disruption was particularly pronounced in regions heavily reliant on imported materials.


The pandemic acted as a catalyst for innovation within the market. Companies have invested in technology to streamline production processes and improve efficiency. The adoption of digital tools for inventory management, order processing, and customer engagement has increased as businesses seek to adapt to new operational challenges. Additionally, the need for rapid responses to market changes has spurred innovation in solvent formulations and applications.


Segmentation Analysis


By Product Type


Alcohols Segment Held the Largest Share in the Market Due to Increased Demand for Ethanol and Methanol in Various Applications


On the basis of product type, the market is segmented into alcohols, ketones, esters, and others.


The alcohols segment accounted for the largest solvents market share in 2023. The growth is due to the increasing demand for ethanol, methanol, n-butanol, and isopropanol for various applications. Ethanol finds its consumption in perfumes, vegetable essences, and medical drugs, whereas methanol is highly utilized in inks and adhesive applications. Hence, the increasing adoption of these products will boost the segment’s growth.


Ketones are extensively utilized as a solvent owing to their low molecular weight. They find their application in adhesives, surface coatings, chemical intermediates, and printing inks.


Moreover, increasing demand for esters to remove organic solutes from aqueous solutions will provide significant growth to the esters segment from 2024 to 2032.


By Application


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Paints & Coatings Segment Dominated the Global Market Due to Rapid Growth of the Construction Industry


Based on application, this market is segmented into paints & coatings, printing inks, industrial cleaning, adhesives, and others.


Amongst these, the paints & coatings segment accounted for the dominant market share in 2023 and is expected to grow at the highest CAGR owing to its high usage in the construction industry. The rapid growth of the construction industry, coupled with advancements in paints to make them more sustainable, is contributing to the growth of this application segment.


Printing inks is the second-leading segment in the market. Solvents, such as methanol, ethyl acetate, and aromatic hydrocarbons, are used in printing applications. The rising product demand to remove dirt, flux, greases, containments, and baked-on oils in various industries will fuel the industrial cleaning segment. The growth of the adhesive segment is attributed to the increasing product demand from composites, metals, glass, and plastic applications.   


Solvents Market Regional Outlook


The global market segmentation includes regions, namely North America, Europe, Asia Pacific, the Middle East & Africa, and South America.


Asia Pacific


Asia Pacific Solvents Market Size, 2024 (USD Billion)

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The market size in Asia Pacific stood at USD 15.70 billion in 2023. In this region, China holds the highest market share owing to the large paints & coatings production in the country. The growth is due to the increasing demand in the paints & coatings industry. Further, rising infrastructure development coupled with innovation in bio-based products will fuel market growth in the Asia Pacific region.



  • According to the Coatings World, China is the largest architectural paint and coatings market globally. A huge construction sector and existing housing stock are boosting the demand for architectural coating products, which in turn is driving the solvents market growth.


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North America


North America is the second-leading region in the market. The rapid growth in the automotive industry and the increasing demand for industrial cleaners to remove oil and grease from vehicles will drive market growth in this region. The U.S. is the largest solvent market in North America, accounting for USD 10.07 billion. The growth of the market is driven by the robust manufacturing sector, which includes automotive, aerospace, and consumer goods.


The U.S. Environmental Protection Agency (EPA) regulates solvent use under the Clean Air Act, focusing on reducing VOC emissions. States, such as California, have stricter regulations, which affect formulation and production practices. Compliance with these regulations is essential for manufacturers and can drive innovation toward sustainable alternatives.


Europe


The rising use of alcohol in the cosmetic and food & beverage industries is anticipated to boost product demand in Europe. Moreover, the increasing use of bio-based products as an alternative to chemical-based products will propel market growth in the region.



  • According to the European Commission, measured through sales data across EU countries, overall alcohol consumption was 9.8 liters of pure alcohol per adult on average in 2020.


South America


The market in South America is characterized by robust growth potential driven by key industries, such as automotive, pharmaceuticals, mining, and agriculture. While challenges related to regulatory compliance and economic volatility persist, the trend toward sustainability and technological innovation presents lucrative opportunities.


As South American countries adapt to changing market dynamics and consumer preferences, the market is poised for significant evolution, with a strong emphasis on eco-friendly solutions and advanced production technologies. The expanding industrial base in countries, such as Brazil and Colombia presents significant growth opportunities for solvent manufacturers.


Middle East & Africa


Saudi Arabia is the largest market for solvents in the Middle East & Africa region. The market is expected to grow significantly, driven by the country’s strong petrochemical industry and ambitious economic diversification plans under Vision 2030. Saudi Arabia has stringent regulations concerning chemical safety and environmental protection. The Saudi Standards, Metrology, and Quality Organization (SASO) oversees compliance, pushing manufacturers to adopt safer and more environmentally friendly practices.


Competitive Landscape


Key Industry Players


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Exxon Mobil Corporation, Shell plc, BASF, LyondellBasell Industries Holdings B.V., and Honeywell International Inc. are the largest players in the market. The global solvents market is highly fragmented, with the top 5 players accounting for around 23% of the market share.


Key Players Adopted Several Strategic Initiatives to Increase Their Market Presence


Major market players operating in this industry are Exxon Mobil Corporation, Shell plc, BASF, LyondellBasell Industries Holdings B.V., and Honeywell International Inc., who are involved in green product innovations, acquisitions, mergers, and collaborations in the global market.


For example, in December 2023 INEOS announced the acquisition of the LyondellBasell Ethylene Oxide and Derivatives business and production facility at Bayport, Texas. Ethylene Oxide is necessary for the production of pharmaceuticals, cosmetics, semiconductors, polyester, food packaging, construction materials, antifreeze, brake fluids, solvents, paints, soap, and detergents.


List of Key Solvents Companies Profiled



Key Industry Developments



  • October 2024: LyondellBasell (LYB) announced it became the full owner of APK AG in Merseburg, Germany. APK will be fully integrated and continue as part of LYB, a sustainability leader in the chemical industry. It is LYB’s ambition to develop further the company’s unique solvent-based technology for low-density polyethylene (LDPE) and build commercial plants in the future. This will enable LYB to produce new high-purity materials that can be used in applications, such as flexible packaging for personal care products, meeting the demands of customers and brand owners.

  • August 2024: Eastman launched a new electronic-grade solvent to deliver superior quality. Eastman electronic grade isopropyl alcohol (IPA) is the latest addition to the EastaPure electronic grade isopropyl alcohol (IPA) is the latest addition to the EastaPure electronic chemicals line that offers U.S. semiconductor manufacturers a domestically made solvent as reliable in quality as it is in supply.

  • May 2024: INEOS announced the acquisition of the LyondellBasell Ethylene Oxide and Derivatives business and production facility at Bayport, Texas. Ethylene Oxide plays an essential role in the day-to-day life of millions of people. It is a key raw material used in large-scale chemical production around the world. It is necessary for the production of pharmaceuticals, cosmetics, semiconductors, polyester, food packaging, construction materials, antifreeze, brake fluids, solvents, paints, soap, and detergents.

  • April 2024: BASF launched Efka PX 4360, a solvent-based dispersing agent for industrial coatings. This new solution is specifically developed for solvent-based industrial coatings. It has been designed using BASF's Controlled Free Radical Polymerisation (CFRP) technology to achieve a polymer architecture capable of offering optimal color characteristics, excellent pigment and paint compatibility.

  • September 2023: ExxonMobil Marketing (Thailand) Limited (EMMTL) announced its commitment to serve Thai consumers and business sectors with innovative product solutions. The company markets Mobil-branded lubricants and chemical products in Thailand under the theme, “Mobil Gives You Confidence on Every Journey


Report Coverage


The global solvents market research report offers a detailed study of the market and emphasizes crucial factors such as sources, applications, products, and leading companies. Also, the report gives quantitative data in terms of volume and value, research methodology of qualitative data, and insights into the market trends, and highlights vital industry developments. In addition, the report covers various factors that contributed to the progress of the market over the past years.


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Report Scope & Segmentation
















































ATTRIBUTE



DETAILS



Study Period



2019-2032



Base Year



2023



Estimated Year 



2024



Forecast Period



2024-2032



Historical Period



2019-2022



Growth Rate



CAGR of 6.1% from 2024 to 2032



Unit



Value (USD Billion), Volume (Kiloton)



Segmentation



By Product



  • Alcohols

  • Ketones

  • Esters

  • Others



By Application



  • Paints & Coatings

  • Printing Inks

  • Industrial Cleaning

  • Adhesives

  • Others



By Region



  • North America (By Application, By Country)

    • U.S. (By Application)

    • Canada (By Application)

    • Mexico (By Application)



  • Europe (By Application, By Country)

    • Germany (By Application)

    • France (By Application)

    • U.K. (By Application)

    • Italy (By Application)

    • Spain (By Application)

    • Rest of Europe (By Application)



  • Asia Pacific (By Application, By Country)

    • China (By Application)

    • India (By Application)

    • Japan (By Application)

    • Southeast Asia (By Application)

    • Rest of Asia Pacific (By Application)



  • South America (By Application, By Country)

    • Brazil (By Application)

    • Argentina (By Application)

    • Rest of South America (By Application)



  • Middle East & Africa (By Application, By Country)

    • South Arabia (By Application)

    • UAE (By Application)

    • Rest of the Middle East & Africa (By Application)




Industrial Solvents Market

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Frequently Asked Questions

Fortune Business Insights says that the global market size was USD 36.88 billion in 2023 and is projected to reach USD 61.95 billion by 2032.

Growing at a significant CAGR of 6.1%, the market will exhibit considerable growth over the forecast period.

The alcohols segment is the dominant product type in the market.

The increasing product demand from the paints & coatings industry is expected to be the key factor driving the market.

Exxon Mobil Corporation, Shell plc, BASF SE, and LyondellBasell Industries Holdings B.V. are the leading players in this market.

China held the largest share of the global market in 2023.

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  • 2024
  • 2019-2023
  • 294
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