Aromatic Solvents Market Analysis

 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.