De-aromatic Solvent Industry Analysis in APAC

De-aromatic Solvent Sales Outlook for APAC (2024 to 2034)

The APAC de-aromatic solvent industry is estimated to attain an industry size of US$ 589.5 million in 2024. During the forecast period, 2024 to 2034, the industry is expected to expand with a 7.4% CAGR. By 2034, the industry is expected to have grown to a remarkable US$ 1,185.4 million in size.

Key Industry Growth Drivers

• The demand for de-aromatic solvents is fueled by the expansion of the automotive sector in Asia Pacific, which is being driven by growing consumer demand and more industrial activity. These solvents are used in paints, varnishes, and cleaning procedures for automobiles, which helps the regional expanding car industry.
• The growing demand for eco-friendly de-aromatic solvents in APAC is also driven by the increased awareness and acceptance of sustainable and green technology across various sectors. Companies look for alternatives that support environmentally friendly methods, encouraging the use of de-aromatic solvents as a sustainable option and contributing to the industry's growth in the area.
• The need for de-aromatic solvents, which are utilized in the formulation of herbicides and pesticides, is being fueled by the growing agrochemical industry in the APAC region in response to the growing requirement for food production.

Report Attributes	Details
Estimated industry Value (2024E)	US$ 589.5 million
Forecast industry Value (2034F)	US$ 1,185.4 million
Global industry Growth Rate (2024 to 2034)	7.4% CAGR
Low Flash Point Growth Rate (2024 to 2034)	8% CAGR
India Industry Share (2024)	13.90%
China Industry Share (2024)	7.2%
Key Companies Profiled	ExxonMobil Corporation; Shell PLC; Total S.A.; Idemitsu Kosan Co. Ltd.; Arham Petrochem Private Limited; Neste Oyj; Avani Petrochem Private Limited; Raj Petro Specialities P. Ltd.; Calumet Specialty Products Partners L.P; DHC Solvent Chemie GmbH

What Factors are Responsible for the Growth of the APAC De-aromatic Solvent Industry?

“Large scale infrastructure developments and urbanization to boost the growth of this industry”

The demand for de-aromatic solvents is being driven by the rapid rate of infrastructure development and urbanization in APAC countries, particularly in India and China. Due to the increasing need for building materials in developing urban areas, de-aromatic solvents are becoming essential ingredients for coatings, sealing compounds, and adhesives.

The de-aromatic solvent business has grown in response to the changing urban scene. Companies are using these solvents as essential elements for protective coatings and sealants that are applied to infrastructure, extending its useful life and improving performance.

“Thriving electronics manufacturing sector to accelerate the demand of de-aromatic solvent in APAC.”

APAC has emerged as a global center for the manufacturing of electronics, with China and South Korea in particular. De-aromatic solvent demand is rising dramatically due to this industry's expansion, which is being fueled by developing technology, telecommunications, and consumer electronics. In the course of manufacturing operations, these solvents are essential for cleaning as well as degreasing various electronic components.

The de-aromatic solvent industry grows concurrently with the electronics industry, meeting the unique requirements of this dynamic industry and becoming an indispensable part of electronics manufacturing applications.

What are the Major Restraints to the Growth of the APAC De-aromatic Solvent Industry?

“Environmental regulation laws and quality of the products to pose serious threat to this industry”

Strict environmental laws pose a challenge, necessitating ongoing innovation in the development of solvents with reduced volatile organic compound emissions. Production costs are impacted by changes in raw material prices and economic uncertainty, which undermines industry stability.

Differentiation tactics are necessary to stand out in the face of fierce industry rivalry. Complying with various regulatory frameworks in APAC nations can also be difficult. Due to its reliance on end-user industries such as paints, coatings, and automobiles, the industry is vulnerable to changes in these industries.

Addressing these problems demands a dynamic approach that balances innovation, regulatory compliance, as well as industry adaptability for continued success in the APAC de-aromatic solvent business.

How can Startups Place Themselves Differently in the APAC De-aromatic Solvent Industry?

“Innovation along with sustainability labels lies at the forefront of the startups”

Startups in the APAC de-aromatic solvent industry are proactively establishing themselves by stressing on innovation and sustainability. To meet the growing need for sustainable solutions in the region, many concentrate on creating environmentally friendly solvents that adhere to strict environmental standards.

Startups that utilize Industry 4.0 and digitalization to streamline industrial processes aim to improve supply chain management and save costs. Startups are able to meet certain industry demands and become recognized for their innovative and customized solutions through partnerships with important industry players and focused research and development initiatives.

Country-wise Insights

The developing paint and coatings industry, the expanding pharmaceutical and agrochemical industries, and the growing focus on sustainable solutions present opportunities for companies in the Indian de-aromatic solvent industry.

In addition to the chance for innovation and cooperation to address a range of industrial demands, the need for low-VOC and environmentally friendly solvents is a significant opportunity.

The growing automotive and construction industries offer prospects in the China de-aromatic solvent industry due to the growing need for high-performance solvents. Opportunities for environmentally acceptable de-aromatic solvents are created by the nation's emphasis on green manufacturing along with environmental compliance. Opportunities for development and industry expansion are provided by partnerships and technical breakthroughs.

What makes India a Significant Industry for de-aromatic solvent?

“Robust paintings and coatings sector in India to accelerate the demand.”

Report Attributes	India
industry Value in 2024	US$ 81.9 million
CAGR from 2024 to 2034	7%
Projected Value in 2034	US$ 161.2 million

The industry in India is expected to be valued at US$ 161.2 million in 2024, anticipated to gain an industry share of 13.90% in 2024. India's de-aromatic solvent industry is propelled by distinct reasons, such as the fast expansion of the paint and coatings sector.

High-performance solvents are in greater demand due to rising infrastructure development and building activities. The need for solvents is further increased by the growing agrochemical and pharmaceutical industries in India; de-aromatic solvents are favored due to their low toxicity as well as environmental compliance.

The demand is also fueled by the growth of specialized chemicals and an increasing emphasis on environmentally friendly practices. De-aromatic solvents are in demand as Indian companies prioritize environmentally friendly solutions; this suggests a dynamic industry with a focus on environmental responsibility and a wide range of applications.

What is the Industry Scope for De-aromatic Solvent in China?

“Stringent environmental regulations to drive the demand for de-aromatic solvent in China”

Report Attributes	China
Industry Value in 2024	US$ 42.4 million
CAGR from 2024 to 2034	7.4%
Projected Value in 2034	US$ 86.5 million

The industry for de-armatic solvent in China is anticipated to garner a 7.4% CAGR during the forecast period. De-aromatic solvents satisfy the sustainability criteria of low-VOC solvents, which are driven by strict environmental standards. There is a strong demand for efficient solvents due to the expanding construction and automotive sectors as well as the growing emphasis on electronics manufacture.

Furthermore, as China pushes for technical breakthroughs and green manufacturing practices, de-aromatic solvents become vital for a variety of applications, leading to the overall expansion of the industry in the region.

Category-wise Insights

By Flash Point, which Category is likely to Gain the Maximum Significance in the APAC Region?

“The low flash point solvents are anticipated to soar high in demand from 2024 to 2034.”

Attributes	Details
Flash Point Type	Value Share in 2024
Low Flash Point	36.3%

The low flash point segment is estimated to hold 36.3% of the industry share in 2024. During the forecast period, the segment is anticipated to garner an 8% CAGR.

APAC is seeing a rise in the use of low flash point de-aromatic solvents due to their usefulness in specific fields. Solvents with lower flash points are needed in industries including automotive, electronics, and coatings to enable regulated rapid evaporation and increase production efficiency. Furthermore, the need for solvents with lower VOC emissions is being driven by strict environmental restrictions in Asia-Pacific, which is in line with sustainability objectives.

Low flash point de-aromatic solvents that satisfy these requirements turn into the go-to options, guaranteeing adherence while providing efficient results. The APAC industry is predicted to witness a growth in the use of low flash point de-aromatic solvents due to the increasing emphasis placed by companies on safety, sustainability, and operational efficiency.

Competitive Landscape

Companies operating in the Asia-Pacific de-aromatic solvent industry are implementing tactical approaches to augment their earnings. Many are spending money on research and development to create high-performing, ecologically friendly solvents that follow sustainability trends.

Furthermore, industry development and higher sales are facilitated by strategic alliances and partnerships with important companies in end-user sectors including coatings, paints, and adhesives.

Certain companies are using Industry 4.0 and digitalization to improve supply chain management, reduce costs, and streamline production processes. Companies want to establish a competitive edge in the APAC de-aromatic solvent industry and satisfy changing industry needs by concentrating on these methods. Some of the key developments in this industry are:

• Shell Chemical Appalachia LLC, a subsidiary of Shell plc, began operations at its Shell Polymers Monaca (SPM) plant, formerly known as the Pennsylvania Chemical project, in November 2022. This world-class factory produces polyethylene from low-cost ethane derived from shale gas.
• In 2023, with the announcement that it has acquired all of Total Eren's outstanding shares, TotalEnergies has increased its shareholding from about 30% to 100%. The merger of Total Eren teams into the Renewables business unit strengthens the industry position of TotalEnergies. This action comes following a strategic agreement that was carried out in 2017 and gave TotalEnergies the right to acquire all of Total Eren (formerly EREN RE) at the end of a five-year term.

Segmentation of APAC De-aromatic Solvent Industry Research

• By Flash Point:

  • Low Flash Point
  • Medium Flash Point
  • High Flash Point

• By Region:

  • India
  • China
  • Japan
  • South Korea
  • Indonesia
  • Malaysia
  • Rest of the APAC