De-aromatic Solvent Market

De-aromatic Solvent Market Outlook (2024 to 2034)

The global De-aromatic Solvent market was valued at US$ 2,255.5 Mn in 2024 and has been forecast to expand at a noteworthy CAGR of 6.2% to end up at US$ 4,116.1 Mn by 2034.

A de-aromatic solvent is a substitute for ultra-low aromatic, or de-aromatised hydrocarbon solvent and a subclass of a hydrocarbon solvent with very negligible aromatic content, below 1%, and highly concentrated naphthenic, paraffinic, cycloparaffinic, isoparaffinic components among others.

The global paint and coating industry reached US$ 185.5 billion in 2023, growing by 3.2%, and the industry is expected to reach US$ 262.3 billion by 2033. In the global paint and coatings industry, 9.2 million metric tonnes of solvent are being utilized. Of that total volume, 2.3 million metric tonnes of solvents are utilized in Europe alone on an annual basis.

The De-aromatic Solvent technology is applied in a wide range of industrial applications due to its versatility and favorable properties. For instance, in the paints and coating industry, these solvents improve flow characteristics and drying times by acting as diluents and thinners. They also clean and degrease industrial equipment removing oils and dirt from machines and metal parts. De-aromatic solvents play a role in the adhesives and sealants business to tweak thickness and sticking power.

In printing, they feature as the backbone of the formulations of inks, providing both print quality and durability. Due to their low odor, low levels of toxicity, broad evaporation range, narrow boiling range, and a typical distillation range of 150-200ºC, along with the current consumer demand being focused on sustainability and eco-friendly products. The market is out for poised growth in the future.

• In 2024, the Medium Flash Point Solvent type segment accounted for 41.7% of the total market which is US$ 940.5 million of the total De-aromatic Solvent market.
• The Type 1 (150-200°C) application segment accounts for the total market share of 39.8%, valued at US$ 703.7 million globally.

Report Attributes	Details
De-aromatic Solvent Market Size (2023A)	US$ 2,231.7.5 Million
Estimated Market Value (2024E)	US$ 2,255.5 Million
Forecasted Market Value (2034F)	US$ 4,116.1 Million
Global Market Growth Rate (2024-2034)	6.2% CAGR
East Asia Market Share (2024)	4.9%
China Market Growth Rate (2024-2034)	5.0% CAGR
Key Companies Profiled	Exxon Mobil Corporation; Shell plc; Idemitsu Kosan Co., Ltd.; Neste; Raj Petro Specialities Pvt. Ltd.; DHC Solvent Chemie GmbH; Avani Petrochem Pvt. Ltd.; Calumet Specialty Products Partners, L.P.; Chevron Phillips Chemical; Total SA; Cepsa Chemicals; Gandhar Oil Refinery; Other Prominent Players.

Sales Analysis of De-aromatic Solvent (2019 to 2023) vs. Market Forecasts (2024 to 2034)

The size of the De-aromatic Solvent market was about US$ 1,669.6 million in 2019 and reached US$ 2,231.7 million in 2023, growing at a Compound Annual Growth Rate of approximately 5.9%. This can be attributed to growing demand from the end-use industries.

Historical Report Attributes	Details
Market Size (2019A)	US$ 1,669.6 Million
Market Size (2023A)	US$ 2,231.7 Million
Historical CAGR (2019-2023)	5.9%

• Short Term (2024 to 2028): The market is expected to grow at a slow stage in the short term. Since the hydrocarbon solvents market is primarily dominated by aliphatic and aromatic solvents, which are being manufactured by some of the top players such as ExxonMobil Corporation, China Petroleum & Chemical Corporation, BASF SE, and Royal Dutch Shell PLC, having their primary focus on manufacturing these products while producing dearomatic solvent on a small scale.
• Medium Term (2028 to 2030): De-aromatic solvent markets are expected to continue the trend achieved in the medium run and are projected to reach an estimated market size of about $3,235.9 million in 2030. Such growth has been attributed to surging demand for de-aromatic solvents from the end industries of printing inks and drilling fluids, among others. The development of end-use industries in the Asia Pacific and North America is likely to continue with growing demand for more environmentally friendly and efficient solvents in these regions. During this period, the market will continue to be pushed ahead by regulatory pressures in favor of low-VOC products.
• Long Term (2030 to 2034): Looking ahead to the long term, the de-aromatic solvent market is projected to continue growth, sustained by the rise in the usage of the solvent in industrial cleaning and degreasing applications. Advancing technologies in solvents will further improve performance while continuing to ensure low environmental impact. It is thus expected that, by 2034, the market will reach new highs, supported by the global trend for sustainability and demand for safer chemical alternatives in various industries. Further attention to VOC emissions will continue to strengthen the position of de-aromatic solvents as a preferred choice in multiple applications.

On the back of the aforementioned facts, the De-aromatic Solvent market is anticipated to grow at a CAGR of 6.2% during the forecast period from 2024-2034, According to the Fact.MR, a market research and competitive intelligence provider.

Market Dynamics

What Factors Are Driving Global De-aromatic Solvent Sales?

“Rising demand for eco-friendly solvents in coating applications”

The de-aromatic solvent has been considered a crucial component of the coatings industry, where part of the US$ 150 billion global coatings market owes its success to dearomatic solvent in 2023. During this period, the architectural segment accounted for a share of 54% in volume and 42% in value in the global coatings market, with the dearomatic solvent showing a noteworthy contribution to this segment. The global coatings market will grow to over US$ 180 billion by 2025.

The key properties of this dearomatic solvent are the rheology profile, improvement in flow and leveling, and prevention of defects. After all, as the industry continues to evolve, the dearomatic solvent will continue to adapt and innovate, securing its ongoing importance within the context of the global coatings market. In essence, dearomatic solvent is an important ingredient in the growth and development of the worldwide coatings market. It is an essential element in the making of high-quality coatings since it enhances coating performance and reduces defects.

“Sustainable Shift in the De-Aromatic Solvent Market”

The market for dearomatic solvents will see rapid growth due to increasing trends of sustainability across industries. There is greater emphasis on green alternatives by end-users, driving green chemistry. In this respect, manufacturers of de-aromatic solvents are also becoming exploratory with R&D to formulate product variants that are bio-attributed and from recycled sources-manufactured through renewable feedstock and state-of-the-art processes. This has driven the commercialization of bio-based solvent performance, similar to but better in terms of sustainability credentials than the petroleum-based counterparts.

Environmental and clean tech companies in India have been linked in with a tighter grip, hence escalating the demand for bio-dearomatics and recycled hydrocarbon solvents. This replacement by sustainable alternatives is likely to replace the conventional, petrochemical-derived types with a healthy stride, which fairly applies to the paint, coating, and personal care sectors.

Demand for eco-friendly products acts as a driving factor to the otherwise latent dearomatic solvent market, where manufacturers are compelled to produce unique products to fit the needs of such changing demand from end-users. The continuous evolution of bio-dearomatics and recycled hydrocarbon solvents will characterize the market due to the increased focus on sustainability.

What Are The Challenges That Manufacturers Of De-aromatic Solvents Face?

“De-Aromatic Solvents Market: Volatility in Raw Material Prices”

The de-aromatic solvent market is likely to experience volatility in prices of key raw materials such as naphtha derived from crude oil. The finalization and the profit margins of the market players are affected in times of the Russia-Ukraine conflict and further sanctions which led to sky-rocketing prices of crude oil. In addition, crude oil has to go through the refining process for the production of clear products, which significantly increases the costs of production.

This is likely to act as a limitation for the growth in the de-aromatic solvent market over the forecast period. The company will face a cost-push effect due to a rise in raw material prices, thereby making it harder to maintain the profit margins. Also, the growing need for environmentally friendly options will not be largely able to offset the adverse impact of these drivers on the market. Therefore, the market for de-aromatizing solvents will grow sluggishly, since the challenges will come from fluctuating raw material costs and influences from what takes place across the globe, which affects the cost of crude oil.

Country-wise Insights

Country	CAGR
The U.S.	5.4%
China	5.5%
Japan	5.2%
South Korea	5.0%

Why is the Adoption of De-aromatic Solvent High in the United States?

“Strong demand for eco-friendly packaging drives De-aromatic Solvent adoption in the US."

The United States de-aromatic solvent market is expected to grow significantly during the forecast period, growing at a projected CAGR of 5.5% by 2033. The raw material demand for the de-aromatic solvent market will be catered by the vast reserve of crude oils in the country standing at 14.0% of the world's total. The huge supply will enable manufacturers to handle the hurry of this solvent in meeting the rocketing demand.

These non-corrosive and non-odorized properties are the reasons such solvents have been recommended for mass production in adhesives and sealants. The trend is projected toward the increased demand for adhesives and sealants in line with the proliferation of building activity and a gradual but consistent replacement of conventional adhesives with sustainable and eco-friendly materials. In 2021, U.S. adhesives and sealants demand is estimated at US$13.0 billion, this again presents significant growth opportunities to de-aromatic solvents.

Thus, the U.S. is expected to exhibit promising growth in the global de-aromatic solvent market owing to the abundance of crude reserves and increasing demand for adhesives and sealants in the country. This increase is found in growing momentum among industries such as construction, automobile, aviation, and others. Moreover, the extension of manufacturing facilities and increasing penetration of digital technologies in manufacturing will contribute to the market's growth. This will also continue driving the market for the product, as it is considered 'greener' compared to conventional aromatic solvents.

Why Is China an Attractive Marketplace for De-aromatic Solvents?

“China's Dominant Market Share for De-Aromatic Solvents in Industrial Applications”

China has emerged as one of the most attractive markets for de-aromatic solvents based on the market potential of the country as a whole. The World's most significant country in the field of the chemical industry, households to 44.6% of chemical consumption around the globe with figures of US$ 1.9 trillion in sales in 2020. The expanding building and construction industry and rapid urbanization and industrialization being witnessed in the country are the principal factors sending demand for de-aromatic solvents.

With a strong base in paints, coatings, and ink use, along with wide usage in metalworking applications, immense de-aromatic solvent opportunities exist. In 2024, it held 56.9% of the East Asia de-aromatic solvents market share, a position that will put it as a dominant supplier to this region and the other end markets constituting the global market.

The preference for the lower and medium flash point grades, which together account for three-fourths of the market share, adds more to the attraction of China. These grades are especially favoured for metalworking and industrial cleaning applications. The largest chemical producer status of China along with its robust industrial base and growing construction sector will ensure a potent mix that propels demand for de-aromatic solvents. This convergence of market conditions and industrial needs makes China a very attractive and potentially lucrative marketplace for manufacturers and suppliers of de-aromatic solvents.

Category-wise Insights

Which Material Is Frequently Chosen for The Manufacturing of De-aromatic Solvents?

“Medium Flash Point Solvent dominates the market for De-aromatic Solvent material production”

Medium Flash Point Solvent is estimated to account for a 41.7% share of the market in 2024, and the segment is projected to reach a market valuation of US$ 436.9 million by 2034-end.

The medium flash point segment is expected to hold a market-dominating value share and is projected to hold near to half of the market share in the de-aromatic solvents market in terms of value. During the forecast period, medium flash point de-aromatic solvents are likely to rise dramatically, led by increased demand for eco-friendly products such as solvent-free formulations and powder coatings.

The already existing infrastructure and production techniques support the usage of medium flash point de-aromatic solvents and, therefore, drive growth in the de-aromatic solvent market. Furthermore, the global economy is pegged to recover, hence expanding the medium flash point de-aromatic solvent sub-segment by 2033. Respective drivers are increasing demand for bio-based and eco-friendly products and further industrial applications of medium flash point de-aromatic solvents.

What Are the Future Opportunities for the De-aromatic Solvent Market?

“Type 1 (150-200°C) for De-aromatic Solvent provides the scope for the market.”

The Type 1 (150-200°C) segment currently holds 39.8% of the market among the Boiling Point segment and it reflects a worth of US$ 703.7 million in 2024 and is expected to grow at a CAGR of 7.1%. This market is projected to generate a US$ 687.5 million absolute opportunity from 2024 to 2034.

The de-aromatic solvents type 1 are likely to have the major share in the overall market, which extends from the relatively low boiling point of 150 to 200° C and accounts for nearly one-third of the total market share. As such, it is expected that the segment will continue to have a dominant place in the market over the next several years, driven by the wide application in different industrial uses, including water treatments, inks, and metalworking.

Type 1 de-aromatic solvents possess the largest share in the market owing to the rising demand of such solvents by the industries. This demand for type 1 de-aromatic solvents is expected to rise with a CAGR of 7.1% during the forecast period, driven by the versatility, effectiveness, and eco-friendliness of the solvent that makes it suitable for industrial applications.

Competitive Landscape

Key players in the De-aromatic Solvent market are Exxon Mobil Corporation, Shell plc, Idemitsu Kosan Co., Ltd., Neste, Raj Petro Specialities Pvt. Ltd., DHC Solvent Chemie GmbH, Avani Petrochem Pvt. Ltd., Calumet Specialty Products Partners, L.P., Chevron Phillips Chemical, Total SA, Cepsa Chemicals, Gandhar Oil Refinery.

Companies devote a significant portion of their revenue to R&D to resolve problems and offer creative solutions to draw in new customers and stay competitive. Companies are developing customized offerings for issues that meet industry-specific needs to compete with other players.

• In January 2023, Clariter, which as cleantech company, and TotalEnergies Fluids, a division of TotalEnergies, announced the world's first sustainable ultra-pure solvent made from plastic waste. This solvent is the result of a partnership between Clariter's unique upcycling method and TotalEnergies Fluids' Hydro-De-Aromatization (HDA) technique. The product meets the strictest purity standards and might lower the environmental impact of industries that need high-quality solvents.

Fact.MR has provided detailed information about the price points of key manufacturers of De-aromatic Solvents positioned across regions, sales growth, production capacity, and speculative technological expansion, in the recently published report.

Segmentation of De-aromatic Solvent Industry Research

• By Flash Point :

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

• By Boiling Point :

  • Type 1 (150-200°C)
  • Type 2 (200-240°C)
  • Type 3 (> 240°C)

• By Application :

  • Paint & Coatings Formulation
  • Printing Inks Formulation
  • Varnishes Formulation
  • Wood Preservatives Formulation
  • Adhesives and sealants Formulation
  • Cleaning Solvent Formulation
  • Drilling Fluid
  • Others

• By Region :

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