Oxygenated Solvents Market Size, Share, Industry, Forecast and outlook (2024-2031)

Oxygenated Solvents Market is Segmented By Source(Conventional Solvents, Bio and Green Solvents, Recycling, Seaweeds), By Type(Alcohols, Esters, Ketones, Glycol Ethers, Others), By Application(Paints & Coatings, Crop Protection, Pharmaceuticals, Cleaners, Personal Care, Lubricants, Others), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2023-2030

Oxygenated Solvents Market Overview

Report analyses the Global Oxygenated Solvents Market size, shares, recent trends, competitive intelligence, and future market outlook. Demand from Paints & Coatings, Personal Care, Pharmaceuticals in Asia Pacific is rising. Competitive rivalry intensifies with Royal Dutch Shell, OQ Chemicals, BASF SE and others operating in the market.

Chemical substances known as solvents are employed to dissolve, suspend, or extract other materials. Organic solvents with oxygen molecules are known as oxygenated solvents and are produced chemically from olefins. They include a variety of alcohols, carboxylic acids, esters, glycols, glycol ethers and ketones utilized in many applications. They also offer excellent solvency with moderate toxicity. They are also utilized as intermediates in functional products and a vast array of end-use products.

Oxygenated solvents are solvents with carbon, hydrogen and oxygen atoms in their chemical makeup. Industrially utilized oxygenated solvents typically have excellent purity and good solvency power and are completely or partially miscible with water. Oxygenated solvents are made by distilling chemical components, which aid in creating balance and consistency between elements in the final product. Oxygenated solvents are organic solvents containing oxygen in their molecules. Because of the crucial solvent refining processes that reduce surplus water and particle matter in various phases of manufacture, oxygenated solvents are noted for their significantly high purity rate.

There are several different types of oxygenated solvents on the market. Alcohols, glycols, ketones, esters, glycol ethers and other organic compounds are included. Paints & coatings, personal care items, pharmaceuticals and other applications use oxygenated solvents extensively. They're also used in various formulations as diluents and for chemical synthesis.

Oxygenated Solvents Market Scope and Summary

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Oxygenated Solvents Market Dynamics and Trends

The global oxygenated solvents market is rapidly expanding due to factors such as the increasing applicability of high-performance films for their high advantageous qualities such as low toxicity, high solvency power and so on. However, the market for oxygenated solvents is expected to be hampered by high costs and stringent regulations. Similarly, shortly, the development and commercialization of bio & green solvents may create a lucrative potential for market players.

Rising demand from the construction industry

The expanding construction sector in developing regions such as Asia-Pacific and Middle East is driving demand for paints & coatings, which will drive demand for oxygenated solvents soon. The expansion of the construction sector is mostly due to rapid urbanization, smart city projects and the renovation of existing structures.

U.S. Environmental Protection Agency (EPA), the California Air Resources Board (CARB) and the Ozone Transport Commission (OTC), among others, are attempting to set strict limitations on the concentration of volatile organic compounds (VOCs) in industrial and architectural maintenance coatings. Manufacturers in the region will likely face significant hurdles due to these environmental laws.

Development of eco-friendly oxygenated solvents

Manufacturers of oxygenated solvents are attempting to develop environmentally friendly, cost-effective solvents. The oxygenated solvents are non-flammable, non-volatile organic compounds (VOC) and have low toxicity. Traditional solvents, such as N-Methylpyrrolidone, can be replaced with environmentally friendly oxygenated solvents.

Paint stripping, cleaning, degreasing and other applications can benefit from the green alternative solvents. The rising demand for oxygenated solvents is due to improved qualities of eco-friendly oxygenated solvents, such as low toxicity and high solvency power.

Stringent government regulations

Due to strict regulatory rules in U.S. governing synthetic chemicals, the Montreal Protocol on substances that deplete the ozone layer was implemented under the principles of the Clean Air Act. Its changes set forth the criteria under which fluorocarbons and other ozone-depleting compounds may be used, affecting the price trend of oxygenated solvents and jeopardizing their market profitability.

COVID-19 Impact Analysis on Oxygenated Solvents Market

The worldwide supply chain disruption is projected to negatively impact the oxygenated solvents industry. Because oxygenated solvents are utilized in paints & coatings applications, the market strongly relies on growth in construction, automobile, shipbuilding and aviation manufacturing. A strict lockdown has hampered China's construction efforts in the country's major provinces.

Paint and coatings demand fell in the first quarter of 2020, owing to the outbreak of COVID-19, which impacted demand for oxygenated solvents. A lack of raw materials has hampered the world's oxygenated solvent production. COVID-19 has also wreaked havoc on North America and Europe, resulting in an economic downturn in the region over the following two to three years. 

Oxygenated Solvents Market Segmentation Analysis:

By application, the oxygenated solvents market is segmented into paints & coatings, crop protection, pharmaceuticals, cleaners, personal care, lubricants and others.

Rising construction activities to propel the growth of the paints & coatings segment

In the paint & coatings industry, oxygenated solvents have many applications. The solvents used in paints and coatings disperse the ingredients in formulations to maintain the desired consistency and avoid clumps and globs. Glycol ether esters are also added to some spray paints to keep them from drying in mid-air.

Solvents are non-curing, volatile components used to change the viscosity and cure the qualities of paints. While in the liquid form, it simply regulates flow and application properties. They momentarily transfer their qualities to paints; once the solvents evaporate, the properties vanish.

Global Oxygenated Solvents Market Geographical Analysis:

Rising demand from the construction sector in Asia-Pacific

Asia-Pacific is predicted to lead the oxygenated solvents market globally. The need for oxygenated solvents is predicted to rise in these industries due to increased construction, automotive and pharmaceutical investments. China and India are expected to have the greatest market share in the global construction sector by 2025.

China now holds the largest proportion of Asia-Pacific construction market. Japan is expected to generate a significant income from pharmaceutical sales, which is the most in Asia-Pacific, fueling the market's expansion. Furthermore, rising government investment in the agricultural, medicinal, building and construction industries is predicted to propel the industry.

Oxygenated Solvents Market Companies and Competitive Landscape:

Companies in the oxygenated solvent market have used strategies like new product launches, expansions, mergers & acquisitions to grow their market shares and distribution networks worldwide. These businesses engage in research and development to create goods that lead to new uses.

In July 2017, LyondellBasell announced plans to construct a tertiary butyl alcohol factory in Houston, Texas. By 2021, the plant should be operational. The development is likely to aid the company's solvents business expansion.

Major global oxygenated solvents market companies include BASF SE, The Dow Chemical Company, OQ Chemicals, Eastman Chemical Company, Lyondellbasell Industries N.V., Royal Dutch Shell, ExxonMobil, Ineos, China Petroleum & Chemical Corporation (Sinopec) and Petroliam Nasional Berhad (Petronas).

OQ Chemicals

Overview: Alcohols, polyols, carboxylic acids, specialty esters and amines are among the oxo intermediates and oxo derivatives produced by OQ Chemicals (previously Oxea). High-quality coatings, lubricants, cosmetics & pharmaceutical items, tastes & fragrances, printing inks and plastics are all made with the products. OQ Chemicals is part of OQ, an integrated energy firm with roots in Oman and employs over 1,400 people worldwide. The successful combination of nine heritage enterprises resulted in the formation of OQ in 2019. OQ encompasses the whole value chain in the hydrocarbon sector, from exploration & production to marketing & distribution of its products, with operations in 13 countries. OQ sells fuels and chemicals in more than 60 countries throughout the world.

Product Portfolio: Alcohols are utilized in downstream manufacturing processes such as surface coatings in the construction and automotive industries and creating inks, gasoline additives and detergents. Lacquers and paints, polymer additives, lubricants, solvents and disinfectants are examples of alcohol applications. The corporation sells acetate esters in downstream production processes such as coatings, pharmaceuticals, solvents and ink products.

Key Development: OQ Chemicals increased prices for several oxo intermediates in the Americas on September 1, 2021. The price of n-butanol and isobutanol climbed by US$0.15 per pound in North America and Mexico. The price of n-butanol and isobutanol increased by US$330 per metric ton in South America.

In March 2017, OQ Chemicals (Germany) began working on a new propanol plant to expand its production facility in U.S. The expansion aided the corporation in meeting propanol demand in North America.