De-aromatics: Introduction

  • De-aromatics, also known as dearomatized hydrocarbon solvents or de-aromatic solvents, are a class of hydrocarbon solvents represented by the presence of paraffins, isoparaffins, and naphthenes with a very low aromatic content
  • De-aromatics solvents replace traditional solvents such as mineral or white spirits. De-aromatics possess low to extremely low aromatic content (typically less than 1 wt%), as compared to their replacements such as mineral or white spirits, and possess low odor & levels of toxicity.
  • De-aromatics solvents maintain good solvency characteristics without compromising safety, health, and environmental standards. De-aromatics are extensively utilized in paints & coatings, adhesives & sealants, drilling fluids, insecticides, metal working fluids, industrial & institutional cleaning, and in drilling fluids.

Key Drivers of De-aromatics Market

  • Majority of demand for dearomatized hydrocarbon solvents is generated from paints & coatings industry. It is used as a solvent for the production of paints, varnishes, and plastics. Aromatic solvent-based paints, coatings, and inks generally release higher amount of volatile organic compounds, as compared to dearomatic hydrocarbon solvents. Key market players involved in the production of paints & coatings, such as PPG Industries and The Sherwin-Williams Company, are focused on the development of eco-friendly or green product offerings. Increase in demand for such eco-friendly and non-toxic paint products is projected to boost the sales of de-aromatics during the forecast period.
  • Aromatic hydrocarbon solvents contain benzene, xylene, and toluene. Benzene is considered as a hazardous for use as a consumer product. It has indeed been classified as a human carcinogen by the International Agency for Research on Cancer (IARC). Consequently, de-aromatic solvents are employed in the production of consumer products such as household insecticides, mosquito repellents and aerosols. Mosquito repellents available in various countries, such as India, contain trace amount of aromatic solvent; however, repellents release smoke, while insecticide aerosols or sprays do not produce smoke owing to presence of dearomatic hydrocarbon solvents. Rise in disposable income is driving the demand for consumer products, which in turn is estimated to propel the de-aromatics market in the near future.
  • In drilling fluids, particularly oil-base muds, the amount and types of dearomatic hydrocarbon solvents in mud can be an important parameter in determining the overall performance of the mud. Dearomatic hydrocarbons in oils used to prepare oil-base mud can damage elastomers of the fluid. Global production of oil and natural gas increased substantially from 2005 to 2017. This has resulted in excessive drilling and exploration activities, thereby propelling the demand for de-aromatics across the globe. Global demand for energy has been increasing at a rapid pace. Oil & gas exploration and drilling activities have also been rising at a significant pace. Rise in production of oil & gas has propelled the global de-aromatics market. Asia Pacific is anticipated to dominate the global de-aromatics market during the forecast period, led by a rise in the production of natural gas in the region, primarily in China.

Key Restraint of De-aromatics Market

  • High cost associated with de-aromatics is hampering the market. Furthermore, de-aromatized hydrocarbon solvents are produced from naphtha, which is derived from crude oil. Volatility witnessed in the price of crude oil in the last five years has hampered the de-aromatics market. These factors restrain manufacturers and consequently, hinder the global de-aromatic solvents market.

Covid-19 Impact on De-aromatics Market

  • The COVID-19 pandemic has a mixed impact on end-use industry of de-aromatics. Considerable amount of consumption of de-aromatics is generated from oil & natural gas drilling. In April 2020, global crude oil prices declined steeply due to sudden stoppage in global demand for oil & natural gas and restricted travel across the world. Demand for oil & natural gas has started to revive, as some countries have eased lockdowns and stay-at-home orders. According to the EIA, global consumption of oil is estimated to decline by 8.15 million bpd to 92.89 million bpd by the end of 2020. According to the agency, decrease in liquid fuel consumption has already occurred and is anticipated to rise in the second half of 2020 and in 2021.
  • Decline in prices of crude oil is beneficial for the paint industry, as decrease in prices of crude oil, a key raw material in paint production, is likely to lower the overall manufacturing expenses and boost revenues of paint manufacturers.

Key Players Operating in Global Market

Key players operating in the global de-aromatics market include:

  • Exxon Mobil Corporation
  • Royal Dutch Shell
  • Mehta Petro Refineries Ltd.
  • Sasol Limited
  • Cepsa
  • Gandhar Oil Refinery Ltd.
  • Neste Oyj
  • China Petrochemical Corporation
  • China National Petroleum Corporation
  • LuoYang JinDa Petrochemistry Industry

Global De-aromatics Market: Research Scope

Global De-aromatics Market, by Application

  • Paints and Coatings
  • Metal Processing
  • Industrial Cleaning
  • Consumer Products
  • Drilling Fluid
  • Adhesives and Sealants
  • Others

This study by TMR is all-encompassing framework of the dynamics of the market. It mainly comprises critical assessment of consumers' or customers' journeys, current and emerging avenues, and strategic framework to enable CXOs take effective decisions.

Our key underpinning is the 4-Quadrant Framework EIRS that offers detailed visualization of four elements:

  • Customer Experience Maps
  • Insights and Tools based on data-driven research
  • Actionable Results to meet all the business priorities
  • Strategic Frameworks to boost the growth journey

The study strives to evaluate the current and future growth prospects, untapped avenues, factors shaping their revenue potential, and demand and consumption patterns in the global market by breaking it into region-wise assessment.

The following regional segments are covered comprehensively:

  • North America
  • Asia Pacific
  • Europe
  • Latin America
  • The Middle East and Africa

The EIRS quadrant framework in the report sums up our wide spectrum of data-driven research and advisory for CXOs to help them make better decisions for their businesses and stay as leaders.

Below is a snapshot of these quadrants.

1. Customer Experience Map

The study offers an in-depth assessment of various customers’ journeys pertinent to the market and its segments. It offers various customer impressions about the products and service use. The analysis takes a closer look at their pain points and fears across various customer touchpoints. The consultation and business intelligence solutions will help interested stakeholders, including CXOs, define customer experience maps tailored to their needs. This will help them aim at boosting customer engagement with their brands.

2. Insights and Tools

The various insights in the study are based on elaborate cycles of primary and secondary research the analysts engage with during the course of research. The analysts and expert advisors at TMR adopt industry-wide, quantitative customer insights tools and market projection methodologies to arrive at results, which makes them reliable. The study not just offers estimations and projections, but also an uncluttered evaluation of these figures on the market dynamics. These insights merge data-driven research framework with qualitative consultations for business owners, CXOs, policy makers, and investors. The insights will also help their customers overcome their fears.

3. Actionable Results

The findings presented in this study by TMR are an indispensable guide for meeting all business priorities, including mission-critical ones. The results when implemented have shown tangible benefits to business stakeholders and industry entities to boost their performance. The results are tailored to fit the individual strategic framework. The study also illustrates some of the recent case studies on solving various problems by companies they faced in their consolidation journey.

4. Strategic Frameworks

The study equips businesses and anyone interested in the market to frame broad strategic frameworks. This has become more important than ever, given the current uncertainty due to COVID-19. The study deliberates on consultations to overcome various such past disruptions and foresees new ones to boost the preparedness. The frameworks help businesses plan their strategic alignments for recovery from such disruptive trends. Further, analysts at TMR helps you break down the complex scenario and bring resiliency in uncertain times.

The report sheds light on various aspects and answers pertinent questions on the market. Some of the important ones are:

1. What can be the best investment choices for venturing into new product and service lines?

2. What value propositions should businesses aim at while making new research and development funding?

3. Which regulations will be most helpful for stakeholders to boost their supply chain network?

4. Which regions might see the demand maturing in certain segments in near future?

5. What are the some of the best cost optimization strategies with vendors that some well-entrenched players have gained success with?

6. Which are the key perspectives that the C-suite are leveraging to move businesses to new growth trajectory?

7. Which government regulations might challenge the status of key regional markets?

8. How will the emerging political and economic scenario affect opportunities in key growth areas?

9. What are some of the value-grab opportunities in various segments?

10. What will be the barrier to entry for new players in the market?

Note: Although care has been taken to maintain the highest levels of accuracy in TMR’s reports, recent market/vendor-specific changes may take time to reflect in the analysis.

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