The global bio-solvents market is estimated to grow at a CAGR of ~4.5% over the forecast period, i.e., 2022 – 2030. The growth of the market can be attributed to the increasing adoption of bio-fuels as alternative to petrochemicals amongst the various end-users, backed by rising environment awareness, depleting fossil fuels, and fluctuating costs of crude oil. Bio-solvents have various applications, including bio-plastics and bio-diesel, which is estimated to boost the market growth. The growing environmental concerns amongst the government as well as the public, is one of the primary growth drivers for the market, as petroleum-based solvents release Volatile organic compounds, which cause air pollution and ozone depletion. Use of bio-solvents is not just climate-friendly, but also economically feasible, which is also estimated to boost the market growth. According to recent study by the U.S. Environmental Protection Agency (EPA), the use of biodiesel reduces greenhouse gas emissions by 57% to 86%, as of 2019. Moreover, in 2019, the global consumption of bio-fuels was 2.8 billion gallons.
The bio-solvents market is segmented by type into bio-alcohols, glycols, esters, and others, out of which, the bio-alcohols segment is anticipated to hold the notable share in the market as it is replacing industrial solvent for many end-uses. Bio-alcohols are also prominently used as cleaners and disinfectants, which is estimated to boost the segment growth. On the basis of application, the market is segmented into paints & coatings, adhesive & sealants, printing ink, and others. Out of these, the paints & coatings segment is projected to gain notable market share over the forecast period, owing to the increasing demand for paints in the construction and automotive industry. CLICK TO DOWNLOAD SAMPLE REPORT
The chemical industry is a major component of the economy. According to the U.S. Bureau of Economic Analysis, in 2020, for the U.S., the value added by chemical products as a percentage of GDP was around 1.9%. Additionally, according to the World Bank, Chemical industry in the U.S. accounted for 16.43% to manufacturing value-added in 2018. With the growing demand from end-users, the market for chemical products is expected to grow in future. According to UNEP (United Nations Environment Programme), the sales of chemicals are projected to almost double from 2017 to 2030. In the current scenario, Asia Pacific is the largest chemical producing and consuming region. China has the world’s largest chemical industry, that accounted for annual sales of approximately more than USD 1.5 trillion, or about more than one-third of global sales, in recent years. Additionally, a vast consumer base and favourable government policies have boosted investment in China’s chemical industry. Easy availability of low-cost raw material & labour as well as government subsidies and relaxed environmental norms have served as a production base for key vendors globally. On the other hand, according to the FICCI (Federation of Indian Chambers of Commerce & Industry), the chemical industry in India was valued at 163 billion in 2019 and it contributed 3.4% to the global chemical industry. It ranks 6th in global chemical production. This statistic shows the lucrative opportunity for the investment in businesses in Asia Pacific countries in the upcoming years.
On the basis of geographical analysis, the global bio-solvents market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region. The market in North America region is estimated to witness noteworthy growth over the forecast period on the back of increasing environment awareness amongst the masses, along with adoption of bio-fuels and bio-solvents amongst the manufacturers of chemical, paints, inks, and others. According to the data by the U.S. EIA, the United States consumed 44.38 million barrels of biodiesel in 2020. Moreover, rising adoption of bio-solvents in the pharmaceutical industry, is also estimated to boost the market growth in the region.
The market in the Asia Pacific region is projected to grow at the highest CAGR over the forecast period, on the back of growing chemical industry and high acceptance for lighter bio-fuels over petroleum-based naphtha, along with fluctuating process of crude oil.
The global bio-solvents market is further classified on the basis of region as follows:
Our in-depth analysis of the global bio-solvents market includes the following segments:
FREQUENTLY ASKED QUESTIONS
Growing adoption of bio-fuels over petrochemicals, and increasing environmental awareness amongst people are the major growth drivers for the market.
The market is anticipated to attain a CAGR of ~4.5% over the forecast period, i.e., 2022 – 2030.
High production costs and lower performance are estimated to hamper the market growth.
The market in the North America region is estimated to gain the largest share over the forecast period owing to increasing awareness among the major companies and the masses in the region.
The major players in the market are Archer Daniels Midland Company, Stepan Company, Solvay S.A., GF Biochemicals, The Dow Chemical Company, India Glycols Ltd., Liberty Chemicals srl, DuPont de Nemours, Inc., and others.
The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
The market is segmented by type, application, end-user, and by region.
The paints & coatings segment is anticipated to hold largest market size in value over the forecast period on the back of increasing demand for paints n construction industry.
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