Aromatic Solvents Market Size

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.