The global green solvents market is estimated to garner a revenue of ~USD 7 billion by the end of 2031 by growing at a CAGR of ~5% over the forecast period, i.e., 2022 – 2031. Further, the market generated a revenue of ~USD 4 billion in the year 2021. Green solvents are less in toxicity, biodegradable in nature and omit less volatile organic compounds (VOC). Such advantages are estimated to be the primary growth factor for the green solvents market in the forecast period. A recent estimate showed that emissions of VOCs in the year decreased from 12,930 in 2018 to 11,880 tons in 2021 in the United States.
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Green solvents are usually manufactured from vegetable oils, lactic acid, bio-succinic acid, beat, sugarcane, corn, and refined glycerin. Produced in bio-refineries, green solvents have the properties of eco-friendly, recyclable, non-carcinogenic, non-corrosive and biodegradable. Furthermore, due to the highly flammable and toxic nature of traditional solvents, the population has raised its focus in shifting towards green solvents. Also, the traditional solvents highly impact the environment by creating air pollution and diseases such as lung infection, nausea, headache and skin irritation. The World Health Organization stated that in 2019, 99% of the world population was living in places where the WHO air quality guidelines levels were not met. The high level of air pollution and rising concern for environment protection is anticipated to foster the demand of green solvents.
Quick Urbanization and Industrialization – The rapid urbanization has resulted in high demand of construction, food & beverages, automobiles, and other things. This increased demand is further expected to rise the adoption rate of green solvents for its varied use. As per data by the United Nations Organization, the population living in urban settlements accounted to be around 55% in 2018. This number is further anticipated to increase to 68% by 2050.
Increased Demand of Green Solvents in Automobiles - As per the data by the International Organization of Motor Vehicle Manufacturers (OICA), the global sales of all vehicles rose from 78,774,320 units in 2020 to 82,684,788 units in 2021.
The green solvents market is segmented and analyzed for demand and supply by application into industrial & domestic cleaners, paints & coatings, adhesives & sealants, pharmaceuticals, cosmetics, and others. Out of these, the paints & coatings segment is anticipated to garner the highest revenue by 2031. The growth of the segment can be attributed to the growing demand for renewable solvent solutions for the construction industry. The revenue collected by the construction industry was almost USD 2 trillion in 2019. Further, the increased housing construction, backed by growing population, and income levels are other growth factors propelling the market growth.
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 Program), 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 favorable government policies have boosted investment in China’s chemical industry. Easy availability of low-cost raw material & labor 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.
Global Green Solvents Market Regional Synopsis
Regionally, the global green solvents market is studied into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region. Amongst these, the market in Asia Pacific is projected to hold the largest market share by the end of 2031. This is attributed to the recent increase in construction processes in the region, which is further expected to drive the rise in demand for green solvents for its advantages. By 2030, Asia-Pacific is expected to account for USD 8 trillion of global construction output. Furthermore, the rise in pharmaceutical spending in Asia-Pacific countries such as Japan and Korea is anticipated to drive the expansion of the renewable solvent market size. According to the Organization for Economic Cooperation and Development, pharmaceutical spending in Japan was 2.27% of GDP in 2019, while it was 1.63% of GDP in Korea in 2021.
The global green solvents market is further classified on the basis of region as follows:
Our in-depth analysis of the global green solvents market includes the following segments:
Top Featured Companies Dominating the Global Green Solvents Market
FREQUENTLY ASKED QUESTIONS
The increased awareness about environmental hazards along with the expansion of automotive industry and rapid industrialization and urbanization is expected to drive the market growth.
The market is anticipated to attain a CAGR of ~5% over the forecast period, i.e., 2022 – 2031.
Fluctuation in raw material prices and complex production process are expected to hamper the market growth.
The market in Asia Pacific is projected to hold the largest market share by the end of 2031 and provide more business opportunities in the future.
The major players in the market are Archer Daniels Midland Company, Braskem S.A., BASF, Huntsman International LLC, Myriant Corporation, The Dow Chemical Company, Cargill, Incorporated, Gevo, Inc., Vertec BioSolvents Inc., LyondellBasell Industries N.V. 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, and by region.
The paints & coatings is anticipated to garner the largest market size by the end of 2031 and display significant growth opportunities.
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