Description
The global aprotic solvents market is expected to value 16.9 billion USD in the year 2016 as compared to 15.23 billion USD in the year 2015. Global solvents market is emerging due to end-user industries demand such as Oil and Gas, Pharmaceuticals, Paints and coatings, Electronics. This demand is driving the increase in compound annual growth rate (CAGR), for example Pharmaceutical sector alone is expected to grow at a CAGR of 5.1% from 2016 to 2024
Key Product Categories, Company Share and Technology Outlook
Products like N-Methyl-2-pyrrolidone (NMP), Toluene, Benzene, Acetone, Hexane, Chloroform have shown increase in demand in various industries as a key manufacturing chemical, for various reaction, as catalyst, as raw material. This demand is driving the increase in compound annual growth rate (CAGR) year by year. The market in Central & South America is projected to grow at a CAGR of 3.7% from 2016 to 2024
Toluene is most widely used solvents, used as an additive in Gasoline to improve octane rating, used as a preservative in foods, cosmetics and drinks, used as a part of the process of making saccharin, antiseptics and paint thinners. It is also employed in making perfumes, dyes, antifreeze. This growing demand of products in different sectors is going to increase the demand and production rate due to the high demand latest and economic processes for production is invented by companies like Universal oil products co, Atlantic Refining Co and many more.
Global Aprotic Market 2015 (USD Million)
NMP is used as extraction solvents in several industrial processes due to its affinity for unsaturated hydrocarbons and aromatics, for example butadiene recovery, BTX extraction, lube oil purification in petrochemical industry. NMP is used as photoresist stripper, for defluxing, degreasing and cleaning in electronic industry. It can be used as solvents during synthesis or as a formulation agent in agrochemical industry and also used for paint stripping, in graffiti removers, oven cleaners, in automotive and industrial cleaner formulations. Application wise NMP is going to contribute significant growth in CAGR.
Global production of aprotic solvents is not restricted to one region of the globe or mono licensed processes. It is shared by key players like BASF SE, Ashland, Eastman Chemical Company, Asahi Kasei and Mitsubishi Chemical. Eastman Chemical Company spent USD 251 million on R&D activities, which accounts for nearly 3% of the overall revenue of the company in the same year. BASF has unveiled plans to increase its investments in research and development (R&D) this year and expects to carry out 50% of its research activities outside Europe by 2020. In 2015, the company invested €2.0bn on research, compared with €1.7bn in 2012.
In the year 2016 Ashland announces strategic collaboration with HP Inc. on adhesives and coatings for labels and flexible packaging, opens pharmaceutical technical center in Shanghai. In the view of Emerging demand in Asia pacific, Ashland opens world-class pharmaceutical excipient production facility in Nanjing, China, Ashland has invested up to $10 million in India in its two centers of excellence, new pharma in Hyderabad and existing personal care in Mumbai.
Technology Outlook
There is a need for new technologies or optimization of existing technology to serve the demand. Johnson Matthey have developed a novel DAVY process which is non catalytic, low cost, optimized heat integrated process for producing n-methyl-2-pyrrolidone (NMP) from methylamine and gamma butyrolactone. To overcome Environmental and health hazards, new processes using biomass is getting bright recommendation. Pacific Northwest National Lab (PNNL) has developed a simple multi-step process involving both catalytic and non-catalytic events which efficiently converts succinic acid into NMP.
Acetone is one of the most widely used industrial solvents. It is used in surface coatings, cleaning fluids, pharmaceutical applications, adhesives and numerous other consumer and commercial products. Several new large styrene investments for Acetone production will come on-stream in both the Middle East and in China. This could back-out styrene exports from the United States, reducing production there. About 98 percent of the world’s phenol production employs the cumene-based co-product acetone technology. For example, Mitsui Petrochemical Industries, Ltd. has been operating a 440 million lb/yr (200,000 t/yr) cumene-based phenol plant at Ichihara, Chiba, in Japan since 1992. With its unique technology, Mitsui generates 264 million lb/yr (120,000 t/yr) of by-product Acetone.
“Optimal Price Point (OPP) for Aprotic Solvents”
Estimated Average cost for Aprotic Solvents – $ xx globally. The pricing and business models in aprotic solvents market are unique in different regions. With growth in environmental concerns, technological advancements, and shifting consumer preferences, and increasing number of startup’s, the OPP and range of acceptable Prices (RAP) are going to change over the forecast period. We at Ameri Research continuously track these prices with our proprietary pricing model.
Growth Drivers, Commercial M&A Insights
Very high demands for aprotic solvents from end-use Industries like Oil and gas, pharmaceutical, specialty chemicals, electronics paints and coatings are driving the growth of the global aprotic solvents market. Moreover, growing demand for aprotic solvents such as NMP, Toluene, Acetone and Benzene leads the growth of the global aprotic solvents market. Other potentials sources of supply such as recycling aids the growth of the global aprotic solvents market.
Increasing prices of aprotic solvents, shortage in supply has caused impediment to the growth of the global aprotic solvents market. These solvents are hazardous to human health on prolonged exposure. Strong environmental norms and rules are also contributing to the hinderance of the existing technologies. Transportation of these hazardous, flammable solvents is also a challenge to this emerging demand and supply.
Merger and Acquisition Insight
To overcome the restraints in the market companies are opting M&A to deliver growth and greater shareholder value. The constant economic growth in the United States is expected to facilitate more transactions in coming years. Adding to it, low feedstock and energy costs in the United States are likely to attract foreign buyers. Within Europe, the United Kingdom and Germany saw smaller and medium sized transactions in 2015, and that trend will continue in 2016. In Germany, some of the more significant market players have implemented new organizational structures which are expected to drive M&A activity. The Valence Group advises Arsenal Capital (leading manufacturer) on the sale of Novolyte to BASF.
Conclusion
Aprotic solvents market is projected to grow 20.97 billion USD by 2024. Asia pacific region is estimated to grow with a fastest CAGR of 4.2% in 2016 from 2015 due to fastest growing economies like India and China. North America was the second largest growing economy in the year 2015 and US in the top position contributing 70% of the economy. Latin America and Middle East & Africa are also expected to grow at a moderate pace.
This report provides factors about current markets trends, technologies, and market drivers. Provides market and technology projections for the upcoming years including the present technology and trends.
This report provides comprehensive analysis of,
- Market growth drivers
- Product categories
- Global regional insights
- Technology outlook
Regional outlook
- North America
- Europe
- Asia Pacific
- Middle East and Africa
Application Outlook
- Oil and Gas, Petrochemicals
- Pharmaceutical
- Electronics
