Solvent Market Size, Share, Growth Analysis, By Source (Natural sources, Derived sources), By Type (Oxygenated solvents, Hydrocarbon Solvents), By Application (Paints & Coatings, Printing Inks), By Region - Industry Forecast 2024-2031

Asia Pacific emerges as the leading region in the solvent market, capturing a substantial revenue share of 41.8%. Furthermore, the region is anticipated to experience the highest growth rate, with a projected compound annual growth rate (CAGR) of 6.8% during the forecast period. This growth can be attributed to the increased investments by the automobile manufacturing and construction industries in countries like India and China, coupled with the rapid pace of industrialization. Consequently, these factors contribute to the expansion of the paints and coatings industry within the region. For example, Asian Paints announced a significant investment of USD 128 million to expand its manufacturing capacity in India from 130,000 KL to 250,000 KL. Similarly, Berger Paints plans to invest USD 39 million in establishing a new plant in India. As a result, the growing paints and coatings sector in Asia Pacific is expected to drive the demand for solvents over the forecasted period.

Europe is another region witnessing growth in the solvent market, driven by the implementation of green initiatives by regulatory authorities. This shift towards sustainability has led to an increasing preference for bio-based products over chemical-based alternatives, thereby driving the demand for solvents in the region. Moreover, Germany, being the fifth largest e-commerce market globally, is experiencing significant growth, supported by the rising consumer inclination towards online shopping. This growth in the e-commerce sector has resulted in a substantial demand surge for corrugated cardboard, product packaging, and printed labels to ensure safe and appealing packaging of goods. Consequently, this increased demand for printing inks in the region is expected to fuel the need for solvents over the forecast period.