The global green solvents market is poised to grow from 2019 to 2027 approximately at a CAGR of 7.51% during 2019-2027. Some of the reasons for the growth of the green solvents market are their eco-friendly nature, low volatile organic compound emission rate and high adoption rate and demand from end-use industries and strict environmental regulations.
Green solvents are solvents made from naturally occurring resources like plants, fruits, seeds and other. These are non-emitting VOCs (Volatile Organic Compounds), and their characteristics are no or low toxicity, low miscibility, easily biodegradable under environmental conditions. They are being used more than conventional solvents, as they are less toxic, easy to recycle and have a high boiling point. Environmental concerns have led to industrial participants investing to developer cheaper and superior green solvents.
Stringent environmental regulations, low volatile organic compound emission, eco-friendliness, improving the global economy that will lead to higher demand and favorable government regulations are some of the drivers for green solvents market growth. Ester solvents have highest market share due to the low price, good quality and easy availability. An increase in demand and more availability will lead to the good growth of methyl solvents in the forecast period. Lactate esters and D-limonene are also expected to report good CAGR during the forecast period. Paint and coatings application segment has the highest market share for green solvents and it is expected to be the fastest growing segment in the forecast period as well. Factors that will restrain market growth are: huge investment cost to start production, decreasing the price of oil and gas and slow reaction rate compared to chemical solvents.
Market regions that are covered in the report are North America, Europe, Asia-Pacific and Rest of World. North America has the largest market share of green solvents market followed by Europe. A very high level of awareness about the environment, stringent environmental regulations and improving the economic situation and construction industry in US and Mexico will lead to higher market share in the forecast period. The Asia-Pacific market is expected to report the highest growth in the years 2019-2027. Emerging economies like China, India, Malaysia, and Thailand are expected to report brisk growth in this market. The reason for this is increasing disposable income, more consumer goods consumption, government initiatives and growing construction activities.
The major market players for green solvents are BASF SE, DowDuPont, Koninklijke DSM N.V., AkzoNobel, Huntsman Corporation, Merck & Co., Inc., Sasol Limited, Ashland Inc., Cargill Incorporated, PPG Industries Inc., Solvay S.A. and Bayer AG