Aliphatic Hydrocarbon Solvents & Thinners Market by Type (Varnish Makers’& Painters’ Naphtha, Mineral Spirits, Hexane, Heptane, Paraffinic Solvent, Pentane, and Solvent 140), Application, Region – Global Forecast to 2025
The aliphatic hydrocarbon solvents & thinners market is projected to grow from 3.4 billion in 2020 to USD 4.3 billion by 2025, at a CAGR of 4.5% from 2020 to 2025. Surging demand for paints & coatings from decorative, automotive, industrial, and protective paints & coatings industries is fueling the growth of the market across the globe. Increasing demand for residential and commercial buildings from emerging economies acts as an opportunity for the growth of the aliphatic hydrocarbon solvents & thinners market worldwide.
COVID-19 Impact on the Global Aliphatic Solvent & Thinner Market
The pandemic is estimated to have huge impact on the end-use industries of aliphatic solvents which is expected to reflect during the forecast period, especially in the year 2020-2021. The various impact of COVID-19 are as follows:
Impact on the automotive industry: The demand for cars and commercial vehicles is expected to see decline throughout 2020 and 2021. More than 80% of automobile production in North America has come to a halt due to the COVID-19 pandemic. Europe and Asia Pacific are witnessing a similar situation. Companies such as Ford, General Motors, Fiat Chrysler Automobiles, Honda, and Tesla have stopped production temporarily. Even if these companies resume production after the pandemic subsides, economic instability and reduction in the purchasing power of consumers will have an adverse effect on the automotive industry.
Impact on construction & infrastructure industries: The impact of COVID-19 on the construction industry is projected to vary in different regions across the world. The IMF has predicted that there will be heavy layoffs in the construction sector and other industries in the US. In Europe, the building & construction industry is anticipated to contract by 60%–70% in 2020.
Market Dynamics
Driver: Replacement of turpentine with mineral spirits
Turpentine is extensively used in the painting and art industries but is known to release noxious vapors and has a strong odor. Mineral spirits are common aliphatic solvents that perform the same function as turpentine without releasing any vapors or odors. Turpentine is a skin, eye, mucous membrane, and upper respiratory tract irritant in humans. It can also cause skin sensitization and affect the central nervous system, gastrointestinal, and urinary tract. These factors lead to the replacement of turpentine with mineral spirits or odorless mineral spirits, driving the aliphatic hydrocarbon solvent & thinners market
Restraint: Manufacturers switching to green solvents
Personnel working in aliphatic solvents & thinners manufacturing units are in constant contact with solvents, which may cause damage to their nervous, reproductive, and respiratory systems. Restrictive regulations on the use of solvents have made organic solvents an attractive option for manufacturers of aliphatic solvents & thinners. The green solvents segment is expected to witness growth in the coming years such as ethanol, glycerol, ethyl acetate, and d-Limonene are used in cosmetics, lotions, soaps, paints, coatings, pharmaceuticals, adhesives, and others.
Opportunity: Growth opportunities from emerging economies in the Middle East
There has been significant growth in real estate activities along with rapid industrialization in the Middle East. Countries such as Saudi Arabia and the UAE want to reduce their dependence on the oil industry for economic growth and focus on other industries. Thus, the construction industry has witnessed major growth in the Middle East. The construction industry requires paints & coatings, cleaning & degreasing agents, and adhesives, which, in turn, is leading to the demand for aliphatic solvents & thinners.
Challenge: Environmental Regulations
The European Union (Paints, Varnishes, Vehicle Refinishing Products, and Activities) Regulations 2012 specify various rules concerning the use of paints, varnishes, and vehicle refinishing products. A certificate of compliance is required for the use of these products. Similarly, the US Environment Protection Agency (EPA), with the help of local authorities, inspects activities at facilities where aliphatic solvents & thinners are manufactured as they contain volatile organic compounds (VOCs) that are hazardous to health and the environment. In the presence of nitrous oxide, VOCs react to form ozone, which is a greenhouse gas and a risk to human and crop health.
Based on application, the paints & coatings segment of the aliphatic hydrocarbon solvents & thinners market is projected to grow at the highest CAGR in terms of both value and volume from 2020 to 2025
Based on application, the paints & coatings segment of the market is projected to grow at the highest CAGR during the forecast period in terms of value and volume.
Aliphatic hydrocarbon solvents & thinners are primarily used as thinners in paints & coatings as the mix of solvents used in this industry are continually changing, and these satisfy increasing demands for enhanced performance. Increased demand for paints & coatings from various end-use industries, such as decorative, automotive, industrial, and protective paints & coatings industries is driving the growth of the paints & coatings segment of the aliphatic hydrocarbon solvents & thinners market across the globe.
The Asia Pacific region is projected to lead the aliphatic hydrocarbon solvents & thinners market during the forecast period in terms of both value and volume
The Asia Pacific region is estimated to be the largest market for aliphatic hydrocarbon solvents & thinners in 2020. China, India, Japan, and South Korea are the primary consumers of aliphatic hydrocarbon solvents & thinners in this region. Rise in urbanization, population, and increase in the income of the middle-class population of the region have resulted in increased demand for residential and commercial buildings in the Asia Pacific, thereby contributing to the growth of the aliphatic hydrocarbon solvents & thinners market in this region.
