Aromatic Solvents Market - By Product (Benzene, Toluene, Xylene), By Application (Pharmaceuticals, Oilfield Chemicals, Automotive, Paints & Coatings) & Forecast, 2021-2027

Aromatic Solvents Market Size

Aromatic solvents market size was valued at USD 5.7 billion in 2020 and is estimated to exhibit over 4.4% CAGR from 2021 to 2027. Growing demand for aromatic solvents from the paints & coatings industry will drive market demand over the forecast period.
 

Aromatic solvents are a class of solvents that possess an aromatic hydrocarbon including naphtha, toluene, or xylene. These solvents are primarily used as diluents in various industrial verticals. Aromatic solvents, mainly toluene, are widely used in paints, adhesives, varnishes, and as chemical intermediates. These classes of solvents disperse different binders, pigments, additives, and extenders used in the formulation of coatings & paints.
 

Aromatic solvents, such as benzene, ethylbenzene, toluene, and mixed xylenes (BTEX), have high rates of solvency that aid in the formation of an efficient homogenous solution. Moreover, these solvents are known for their high evaporation rates, which help in speeding up the curing and drying processes.
 

Aromatic solvents are used in various industrial applications. Paints & coatings are one the major industries where these solvents are largely used as thinners. Other applications of aromatic solvents include industrial cleaners, pesticides, foundry resins, oilfield chemicals, etc. The growing demand for paints & coatings across the globe coupled with their increasing application in the automotive industry is anticipated to substantially contribute to the overall aromatic solvents market share throughout the assessment period.
 

The importance of aromatic solvents is immense owing to their high solubility in various chemicals. All types of aromatic solvents are used in the production of various grades of paints & coatings. The applications of these paints & coatings range from lacquers for woods to primer for inner & outer construction and other structures. These solvents are also used as industrial intermediates or as feedstock in the production of several other chemicals.
 

The ongoing COVID-19 pandemic has a significant impact on the demand for aromatic solvents across the globe. Aromatic solvents are produced in refinery complexes; hence, are widely affected with the overall oil and gas industry declining owing to the ongoing pandemic. Exploration & production activities are at a halt in recent times; hence, negatively affecting the overall market demand.
 

Moreover, various governments have adopted various measures, such as limited workforce, temporary shutdown manufacturing facilities, lockdowns, etc., to restrict the spread of the pandemic. These preventive measures have consequently brought in a temporary stop in the industrial sector, in turn, reducing product consumption among end-user industries. These factors will disrupt the value chain of the paints & coatings industry, in turn, acting as a restraint in the overall aromatic solvents market. The overall market showcased a decline of over 10% in terms of revenue in 2020.
 

 Aromatic Solvents Market Analysis

In 2020, the toluene segment accounted for over 50% share and will witness a growth rate of over 4.6% through 2027. Toluene-based aromatic solvents increase the viscosity in an adhesive film and are widely used in adhesive applications owing to their high evaporation rates. Moreover, the growing use of toluene in the production of paint thinners for cosmetics, correction fluids, inks, etc., will further augment the aromatic solvents market revenue in the coming years. The toluene segment is anticipated to gain a value of over USD 3.9 billion by 2027.
 

The others segment includes ethylbenzene, mixed xylenes, and others. The others segment held a market share of over 6% in 2020 and is projected to grow at a CAGR of over 3.6%. These products are widely used as solvents in the production of other industrial chemicals.
 

The paints & coatings segment dominated the market in 2020 and is anticipated to exhibit similar trends throughout the assessment period. The segment held a market share of over 50% in terms of revenue and is anticipated to reach a value of USD 4.2 billion by 2027. Aromatic solvents are mostly used as diluents and thinners in several end-user industries including paints & coatings. The growing global construction sector is anticipated to create a huge demand for paints & coatings in the near future.
 

Other applications mainly include printing inks, adhesive & sealants, and agrochemicals such as pesticides, textile & industrial cleaners. The aromatic solvents market from other applications generated a revenue of over 1.4 billion in 2020 and is projected to grow at a CAGR of over 4.5%.
 

North America is another important market with a market share of 14% in 2020. The revival of the U.S. construction industry is likely to generate huge revenue gains to the overall market. Moreover, the presence of major automobile manufacturers in the region is also anticipated to propel the demand for aromatic solvents in the region. Stringent government regulations on the use of harmful chemicals in the paints & coatings industry are projected to be a major downside to the market growth.Asia Pacific held a share of over 53% in 2020 and is anticipated to generate a revenue of over USD 4 billion by 2027. The APAC construction industry is on the rise owing to the growing population followed by rapid urbanization and industrialization. The growing demand for construction in the region has resulted in a surge in the paints & coatings industry, in turn, adding to the overall aromatic solvents market growth. Moreover, the rising development in the industrial sector, mainly in China, India, and Japan, will further propel the market growth throughout the assessment period.
 

The major players in this industry adopt various market strategies to increase their share in the overall market. For instance, in 2017, Exxon Mobil Corporation acquired Singapore-based Jurong Aromatics Corporation, one of the largest aromatic producers in the Asia Pacific region. The acquisition was in line with its strategy to attain a larger market share in the Asia Pacific region.
 

Aromatic Solvents Market Share

Key participants in the aromatic solvents industry are:

• Exxon Mobil Corporation
• Royal Dutch Shell plc
• UOP LLC
• Eastman Chemical Company
• Lyondellbasell Industries N.V
•  BASF SE
•  Chevron Phillips Chemical Company LLC.
   

The aromatic solvents market report includes in-depth coverage of the industry with estimates & forecast in terms of volume in Kilo Tons and revenue in USD Million from 2017 to 2027 for the following segments:

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By Type

• Benzene
• Toluene
• Xylene
• Others

By Application

• Pharmaceuticals
• Oilfield Chemicals
• Automotive
• Paints & Coatings
• Others

The above information is provided on a regional and country basis for the following:

By Region

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • Indonesia
  • Malaysia
• Latin America
  • Brazil
  • Mexico
• Middle East & Africa
  • South Africa
  • GCC