- 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
- 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
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