Hydrocarbon Solvents Market Trends

Global Hydrocarbon Solvents Market Overview

Hydrocarbon Solvents Market Size was valued at USD 5.67 billion in 2023. The hydrocarbon solvents market industry is projected to grow from USD 5.85 Billion in 2024 to USD 7.32 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 2.83% during the forecast period (2024 - 2032). The rising use of aromatic solvents in pesticides, printing inks, insecticides, and agricultural chemicals is the key market driver enhancing market growth. Additionally, the hydrocarbon solvents market is expanding due to paint manufacturers' growing use of these solvents in their cutting-edge product offerings.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Hydrocarbon Solvents Market Trends

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  Rising demand for bio-solvents is driving the market growth

  
  

Market CAGR for hydrocarbon solvents is driven by the growing awareness about bio-solvents. The market is growing due to the rising demand for bio-solvents over chemical-based ones. Due to their organic makeup, alcohols and glycol ethers are commonly used. They are mostly produced using agricultural goods, sugar, oils, fats, and cellulose. They also have non-toxic, carbon-neutral, and environmentally friendly qualities. Additionally, factors including increased pollution, rising VOC emissions, and strict government regulations give bio-based businesses room to flourish. Due to these reasons, many manufacturers are now producing bio-based goods rather than chemical-based ones. For instance, Circa Group introduced Cyrene in 2018 as an alternative to traditional solvents like N-Methyl-2-pyrrolidone (NMP) and Dimethylformamide (DMF), which are sourced from petroleum. Cyrene is a bio-based dipolar aprotic solvent. Thus, the market will rise in the coming years due to consumers' increasing desire for bioproducts.

Turpentine is widely used in the painting and art industries, but it also emits foul odors and creates toxic vapors. Common aliphatic solvents like mineral spirits serve the same purpose as turpentine without emitting vapors or smells. Turpentine can irritate human skin, eyes, mucous membranes, and the upper respiratory tract. It may also impact the gastrointestinal, urinary, and central neurological systems, causing cutaneous sensitization. These reasons cause mineral spirits or odorless mineral spirits to replace turpentine, boosting the hydrocarbon solvent industry.

Along with the Middle East's quick industrialization, real estate activities have grown substantially. Countries like Saudi Arabia and the UAE seek to concentrate on other industries to diversify their economies and lessen their reliance on oil. As a result, the Middle East has seen significant expansion in the building industry. The need for aliphatic solvents & thinners is driven by the construction industry's need for paints & coatings, cleaning & degreasing agents, and adhesives. Technology development offers a chance for the hydrocarbon solvents market to expand. The hydrocarbon solvents market is well-experienced and well-known in Europe and North America. In emerging economies, the market is expanding quickly.  In established and developing nations, the need for better products is driven by the newest equipment and advanced technology applied with new methods. Thus, driving the hydrocarbon solvents market revenue.

Hydrocarbon Solvents Market Segment Insights

Hydrocarbon Solvents Type Insights

The  hydrocarbon solvents market segmentation, based on type, includes aliphatic naphtha, mineral spirit, heptane, hexane, and aromatic. In 2022, the aliphatic naphtha category dominated the market.  sector expansion is being fueled by a surge in demand for paints and coatings from the decorative, automotive, industrial, and protective paints & coatings industries. The need for homes and businesses is rising, which allows aliphatic hydrocarbon solvents to expand. It is also projected that the mineral spirits industry will rise due to the trend toward reduced manufacturing prices and appropriate policies for solvent production. Additionally, it is predicted that rising demand for alternative turpentine products and expanding development in its application field will restrain the expansion of the mineral spirits sector.

July 2022: Adnoc Distribution, the UAE's petroleum and retail distributor, would pay approximately USD 186 million for a 50% investment in TotalEnergies Marketing Egypt. It also agreed to sell white spirit to Adnoc, which will help the company increase its market share over time. Subject to regulatory approvals, the transaction is scheduled to close in the first quarter of 2023.

Figure 1: Hydrocarbon Solvents Market, by Type, 2022 & 2032 (USD billion)                      

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Hydrocarbon Solvents Application Insights

The  hydrocarbon solvents market segmentation, based on application, includes paints & coatings, cleaning & degreasing, adhesives, aerosols, rubber & polymer, printing inks, pharmaceuticals, agriculture chemicals and others. The paints and coating category acquired the major market share. Since the mix of solvents used in this business is always changing, hydrocarbon solvents and thinners are largely utilized as thinners in paints and coatings to meet increasing demands for increased performance. Increased demand for paints and coatings from various end-use sectors such as decorative, automotive, industrial, and protective paints and coatings is driving the  expansion of the market. The second most important use area for hydrocarbon solvents is printing ink. These are mostly employed in printing inks to transport or dissolve particle matter such as pigments, resins, and dyes.

Hydrocarbon Solvents Regional Insights

By Region, the study provides market insights into North America, Europe, Asia-Pacific and Rest of the World. The Asia-Pacific Hydrocarbon Solvents Market area will dominate this market. The rise in urbanization, population, and income of the region's middle-class population has increased demand for residential and commercial buildings in the Asia Pacific, contributing to the growth of the region's market. The Chinese government has announced massive construction plans to relocate 250 million people to new megacities over the next ten years, creating significant scope for construction activity and thus increasing the market for hydrocarbon solvents in the coming years. Moreover, China’s hydrocarbon solvents market held the largest market share, and the Indian hydrocarbon solvents market was the fastest-growing market in the Asia-Pacific region.

Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: HYDROCARBON SOLVENTS MARKET SHARE BY REGION 2022 (%)                           

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

North American hydrocarbon solvents market accounts for the second-largest market share. The market in this region will expand due to the automotive industry's rapid expansion and the rising demand for industrial cleaners to remove grease and oil from cars. A prominent market for hydrocarbon solvents is the United States due to the country's expanding demand from the construction and automobile industries. Further, the U.S.A. hydrocarbon solvents market held the largest market share, and the Canadian hydrocarbon solvents market was the fastest-growing market in the European region.

The Europe hydrocarbon solvents market is expected to grow at the fastest CAGR from 2023 to 2032. To ensure products are packaged safely and attractively, the e-commerce industry's expansion has significantly increased demand for corrugated cardboard, product packaging, and printed labels. Throughout the forecast period, this is expected to fuel demand for printing inks, which will then lead to growth in the demand for solvents in the area. Germany is the world's fifth-largest e-commerce market, expanding quickly because of rising customer preference for online buying.  Further, the German hydrocarbon solvents market held the largest market share, and the UK hydrocarbon solvents market was the fastest-growing market in the European region.

Hydrocarbon Solvents Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development to expand their product lines, which will help the hydrocarbon solvents market, grow even more. Market participants are also undertaking various strategic activities to expand their  footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the hydrocarbon solvent industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the  hydrocarbon solvent industry to benefit clients and increase the market sector. In recent years, the hydrocarbon solvent industry has offered some of the most significant advantages to medicine. Major players in the hydrocarbon solvents market, including DowDuPont Inc., Engen Petroleum Ltd., ExxonMobil Corporation, Total S.A., and others, are investing in research and development operations to improve market demand.

The Abu Dhabi National Oil Firm (ADNOC) is a United Arab Emirates (UAE) state-owned oil firm. It is the world's 12th-largest oil corporation in terms of output. As of 2021, the company's oil production capacity exceeded 4 million barrels per day, with ambitions to rise to 5 million barrels per day by 2030. In February 2021, The Abu Dhabi National Oil Company (ADNOC) announced the addition of White Spirit and Solvents to its inventory of refined goods. This enables ADNOC to extract greater value from Abu Dhabi's natural resources, producing items that the domestic industry may use to encourage in-country production while expanding its international market reach.

Haltermann Carless is a chemical company founded in 1859 on heritage, value, and experience. Haltermann GmbH is a manufacturer of solvents. Printing ink distillates, high-purity hydrocarbons, and hydrocarbon fuels are among the company's hydrocarbon-based specialties and solvents. Haltermann services consumers all around Germany. In July 2021, Haltermann Carless, a subsidiary of HCS Group and a major provider of high-value hydrocarbon solutions, will become the world's largest producer of cyclopentane and cyclopentane blends following the completion of its new hydrogenation plant at the Speyer site in Germany. As of Q1 2022, the business expects to boost its Cyclopentane production capacity by up to 70%.

Key Companies in the hydrocarbon solvents market include

• Total S.A


• Royal Dutch Shell


• DowDuPont Inc.


• Sinopec


• ExxonMobil Corporation


• Ashland Inc.


• BP Plc.


• Engen Petroleum Ltd.


• Reliance Industries Limited

Hydrocarbon Solvents Industry Developments

December 2022: ExxonMobil revealed its five-year business strategy. It includes a large increase in investment for emission reductions and accretive lower-emission ventures, such as its Low Carbon Solutions subsidiary. The business plan anticipates that annual capital expenditures will remain between USD 20 and USD 25 billion by 2027, while lower-emissions investments will increase to roughly USD 17 billion.

September 2020: LyondellBasell Industries Holdings B.V. (Netherlands) has signed an agreement with Liaoning Bora Enterprise Group (China) to develop a new polyolefin complex in the northeastern Chinese province of Liaoning. The facility has a capacity of 1.1 million metric tonnes per year, a flexible naphtha/LPG cracker, an associated polyethylene production capacity of 800,000 metric tonnes per year, and a polypropylene production capacity of 600,000 metric tonnes per year.

Hydrocarbon Solvents Market Segmentation

Hydrocarbon Solvents Type Outlook

• Aliphatic Naphtha


• Mineral Spirit


• Heptane


• Hexane


• Aromatic

Hydrocarbon Solvents Application Outlook

• Paints & Coatings


• Cleaning & Degreasing


• Adhesives


• Aerosols


• Rubber & Polymer


• Printing Inks


• Pharmaceuticals


• Agriculture Chemicals


• Others

Hydrocarbon Solvents Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America