Coating Solvent Market

Coating Solvent Market Outlook (2024 to 2034)

The global coating solvent market has been valued at US$ 10.02 billion in 2024, as analyzed and revealed in the recently published research report by Fact.MR. Worldwide revenue from the sales of coating solvents is forecasted to rise at a CAGR of 4.4% and reach US$ 15.41 billion by the end of 2034. Use of coating solvents has been rising steadily in automotive, manufacturing, aerospace sectors.

Coating solvents are utilized as prime ingredients in multiple other downstream coatings, offering opportunities for respective suppliers. An expansion of the construction sector and automotive industry is projected to result in the rising consumption of coating solvents. Surging requirements for improved thermal/wear resistance and higher surface finishing in automotive components generate remunerative opportunities for manufacturers of coating solvents in the production of automotive coatings. These coatings are utilized for protecting vehicle surfaces from corrosion and enhancing their appearance.

Solvent-based coatings are utilized to dissolve dispersed coating materials, including varnishes, adhesives, lacquers, paints, etc. They are used as essential elements to help achieve the desired consistency, application properties, and viscosity. Further, growing demand for paints and coatings from various sectors, including furniture, construction, automotive, etc., is projected to create remunerative opportunities for market players going forward.

Coating solvents find applications in several sectors, such as building coating, aerospace coating, furniture coating, etc. These are used for the decoration and protection of buildings. Aerospace coatings are employed on certain aircraft components for protecting against extreme temperatures.

• East Asia is evaluated to account for 24.6% of the global coating solvent market share by the end of 2034.
• Sales of coating solvents in South Korea are approximated to rise at 7.2% CAGR from 2024 to 2034.
• Worldwide demand for coating solvents for use in ethyl acetate is projected to increase at a CAGR of 3.9% and reach a worth of US$ 4.76 billion by 2034-end.

Report Attribute	Detail
Coating Solvent Market Size (2024E)	US$ 10.02 Billion
Forecasted Market Value (2034F)	US$ 15.41 Billion
Global Market Growth Rate (2024 to 2034)	4.4% CAGR
Japan Market Growth Rate (2024 to 2034)	4.6% CAGR
Market Share of Crude-based Coating Solvents (2034F)	77.3 %
North America Market Share (2034F)	17.5%
Key Companies Profiled	Ineos Group Limited; BASF SE; The Dow Chemical Company Arkema S.A.; Celanese Corporation; Solvay SA; Clariant AG; Royal Dutch Shell Plc; Eastman Chemical Co.; LyondellBasell Industries N.V.; Exxon Mobil Corporation.

Which Aspects are Responsible for Steady Increase in Demand for Coating Solvents?

“Rising Popularity of Solvent-Based Coating Solutions”

Solvent-based coating solutions are used extensively in multiple industries, such as aerospace, architectural coatings, automotive, etc. Unlike water-based coatings, these solvent-based coatings are comparatively less vulnerable to adverse conditions, humidity, high temperature, etc., thereby making them more popular among end users.

In recent years, the architectural and industrial coatings market has been expanding due to the extensive consumption of solvent-based coatings. This growth is underpinned by increasing investments provided by companies to match the requirements for coating services in multiple industries, such as defense, aerospace, automotive, etc. Moreover, increasing demand for coating solvents from the automotive industry with increased wear resistance capabilities is forecasted to contribute to the rising demand for coating solvents.

What is Anticipated to Hinder Demand Growth for Coating Solvents?

“Stringent Environmental Regulations Affecting Business of Coating Solvents”

Programs such as the EPCRA (Emergency Planning and Community Right-to-Know) Act and CAAA (Clean Air Act Amendments) are leading to reduced air pollution. In addition to these programs, stringent regulations have also been imposed on the use of coating solvents. These regulations are persuading coating end users and formulators to comply with them, thereby impacting the prospects for market players. Moreover, growing demand for alternative options, including bio-based coating solvents, water-borne coatings, etc., are also limiting opportunities for suppliers of coating solvents.

How are Startups Strengthening Their Market Presence?

“Increased R&D Expenditure on Producing Sustainable and Environment-friendly Solvents”

New market players are investing in R&D activities aiming to manufacture sustainable and environment-friendly coating solvents because of the rising preference for greener products. There has been an increased demand for high-performance coatings, which is contributing to the development of advanced solvent formulations offering superior properties, including fast drying time, high durability, etc.

Country-wise Insights

According to the recently updated analysis by Fact.MR, a market research and competitive intelligence provider, East Asia is forecasted to capture 24.6% share of the global market by 2034. The growth in the region is attributed to constant advancements in solvent formulations and rising demand for coating solvents from multiple industries, such as automotive, construction, etc.

Why are Coating Solvent Suppliers Investing in the United States?

“Well-established Oil & Gas Industry”

Attribute	United States
Market Value (2024E)	US$ 1.55 Billion
Growth Rate (2024 to 2034)	2.5% CAGR
Projected Value (2034F)	US$ 1.98 Billion

The United States is evaluated to occupy 73.5% share of the North American market by the end of 2034. The presence of a well-developed oil & gas industry in the United States is anticipated to contribute to the expanding coating solvent market growth. These coating solvents offer durability, quick drying, temperature and ultraviolet resistance, lasting protection against corrosion, and ease of application.

What is Responsible for Expanding Coating Solvent Market Size in China?

“Presence of Prominent End-use Industries in the Country”

Attribute	China
Market Value (2024E)	US$ 1.27 Billion
Growth Rate (2024 to 2034)	5.5% CAGR
Projected Value (2034F)	US$ 2.17 Billion

China is analyzed to account for 57.3% share of the market in East Asia by 2034-end. The presence of some key end-use industries of coating solvents, including automotive, oil & gas, etc., are set to drive demand for coating solvents in the country over the coming years years. Demand for toluene and xylene is anticipated to remain high due to their increased use in the production of coating solvents.

Why are Coating Solvent Manufacturers Eyeing Japan?

“Presence of Leading Automotive Manufacturers”

Attribute	Japan
Market Value (2024E)	US$ 699.2 Million
Growth Rate (2024 to 2034)	4.6% CAGR
Projected Value (2034F)	US$ 1.09 Billion

Japan is projected to contribute 28.8% share of the East Asian market by the end of 2034. The coating solvent market trends are positively influenced by the presence of some prominent automobile manufacturers, such as Mazda, Nissan, Toyota, etc., in Japan. In addition, constant investment in R&D activities for promoting innovations in construction and infrastructure industries is driving demand for coating solvents.

Category-wise Insights

Currently, crude-based coating solvents are projected to hold a significant share of global market revenue over the next decade. However, increasing awareness among individuals for their footprints is expected to generate demand for environment-friendly coating solutions and bio-based coating solvents going forward. These bio-based solvents are projected to find applications for multiple sectors, including industrial equipment coatings, architectural coatings, etc.

Why is There High Preference for Crude-based Coating Solvents?

“Growing Consumption of Crude-based Coating Solvents for Their Viscosity and Features to Maintain Integrity”

Attribute	Crude-based
Segment Value (2024E)	US$ 7.86 Billion
Growth Rate (2024 to 2034)	4.2% CAGR
Projected Value (2034F)	US$ 11.91 Billion

Crude-based coating solvents are evaluated to account for 77.3% share of global market revenue by 2034. Increasing demand for these solvents is attributed to their growing use as a more effective source for coating. In addition, these coatings offer proper coating viscosity and protect substrates from scratches, grime, dirt, abrasions, etc. Crude-based coating solvents help maintain integrity while leaving no residue. As a cost-effective solution, increased demand for crude-based coating solvents is also encountered.

Which Use of Coating Solvents is More Rewarding?

“Surging Popularity of Coating Solvents for Use in Ethyl Acetate”

Attribute	Ethyl Acetate
Segment Value (2024E)	US$ 3.23 Billion
Growth Rate (2024 to 2034)	3.9% CAGR
Projected Value (2034F)	US$ 4.76 Billion

Xylene & toluene, acetone, ethylene dichloride, alcohols, chloroethane, and ethyl acetate are key applications of coating solvents. Among these, ethyl acetate-sourced is forecasted to hold a share of 30.9% of the global market revenue by the end of 2034. Growing demand for coating solvents for this application is owing to increased efficiency.

Competitive Landscape

Key players in the coating solvent market are focusing on overcoming challenges related to technology, product quality, and cost. Certain market strategies, including expansion, mergers, acquisitions, new product development, etc., are adopted by prominent players to get a competitive edge. They are also working on offering quality products, managing supply chain systems, etc., to generate leads and retain existing ones.

• BASF is one of the prominent companies offering a wide of products, such as coating solvents, etc. The company provides innovative solutions and is well-known for its R&D capabilities. With growing requirements for high-performance coating solvents, the company is estimated to witness steady growth.

Fact.MR provides detailed information about the price points of key manufacturers of coating solvents positioned across the world, sales growth, production capacity, and speculative technological expansion, in the recently updated market report.

Segmentation of Coating Solvent Market Research

• By Reinforced Material :

  • Crude-based
  • Bio-based (Green)

• By End Use :

  • Xylene & Toluene
  • Acetone
  • Ethylene Dichloride
  • Alcohols
  • Chloroethane
  • Ethyl Acetate

• By Region :

  • North America
  • Latin America
  • Western Europe
  • Eastern Europe
  • East Asia
  • South Asia & Pacific
  • MEA