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Green solvents market expected to reach $13 billion, globally, by 2020
A new report by Allied Market Research titled, 'World Green Solvents - Market Opportunities and Forecast, 2014-2020', predicts that the green solvents market volume will reach 3,321.4 kilo tons by 2020, registering a Compound Annual Growth Rate of 4.3% during the period 2015-2020.
Interestingly, the industrial and domestic cleaner application segment is projected to register highest CAGR of 7.3%, in terms of volume, during the forecast period.
Green solvents are bio-based solvents that are derived from various agricultural sources such as corn, sugar cane, lactic acid, refined glycerine, bio succinic acid and vegetable oils, amongst others. Volatility in crude oil prices, the lower content of volatile organic compounds and the environmentally-friendly attributes of green solvents are the major factors fostering the growth of this market across the globe.
Furthermore, increasing adoption of green solvents amongst end users, including manufacturers of paints and coatings, printing inks and others; spiralling construction activities, automobile and consumer goods industries across the globe will supplement market growth. However, high production costs due to capital-intensive production techniques, coupled with heavy R&D investments, are major factors that could hamper the market growth.
The ester solvents segment accounted for the highest consumption in 2014 and it is predicted that this trend will continue during the forecast period. This segment's popularity is primarily due to such properties as its high solvency rate, easy availability and comparatively lower pricing than the other 'green' solvents.
Key findings of the study:
* Industrial and domestic cleaner application segment is projected to register highest CAGR of 7.3%, in terms of volume, during the forecast period.
* Paints and coatings is forecast to be the largest revenue-generating segment of the North American green solvents industry throughout the analysis period, with this segment contributing a 43.6% share of the overall green solvents market. It is expected to maintain this trend during the forecast period.
* Solketal is projected to be the fastest growing segment in the alcohols, glycols and diols market during the forecast period.
* Lactate esters segment accounted for around one-fourth of the total consumption in the overall green solvents market in 2014.
* North America was the largest consumer of D-limonene across the globe in 2014.
North America and Europe collectively accounted for about 70.3% share of the market in 2014 and are expected to maintain their lead over the forecast period. Favourable government regulations and rapid adoption of innovative technologies are the key factors responsible for market growth in these regions.
Rising environmental awareness and stringent environmental regulations on VOC emission of synthetic solvents have fostered the demand of green solvents in the North American region. However, Asia Pacific is projected to be the fastest growing region during the forecast period. This is due to increasing industrial activities coupled with rising environmental awareness. China and Japan are the prime markets supplementing the growth of the Asia-Pacific green solvents market owing to booming manufacturing sectors and favourable government initiatives.
5th November 2015