Market Trends of Aprotic Solvents Industry
This section covers the major market trends shaping the Aprotic Solvents Market according to our research experts:
Application in the Oil and Gas Sector to Dominate the Market
- The oil and gas segment stands to be the dominating segment, and its requirement is widely driven due to the growing demand for petroleum products throughout the world.
- Various attributes of aprotic solvents such as high relative permeability, low reactivity, and thermal stability, along with the use of aprotic solvents in gas production and oil refining, are expected to boost the demand for aprotic solvents.
- According to the BP Statistical Review of World Energy 2020, in 2019, the total production of oil was 95.2 million barrels daily worldwide. This level of oil production is at an all-time high, containing crude oil, shale oil, oil sands, and natural gas liquids. The refinery throughput in 2019 was 82,989 thousand barrels per day worldwide, which is also an all-time high in the past 10 years.
- Among types, N-Methyl-2-Pyrrolidone (NMP) is one of the key products due to its property to dissolve a wide range of metals is anticipated to register large-scale adoption, especially across plastic and oil and gas industries.
- Growing demand from emerging economies such as Indonesia, China, South Korea, and India has resulted in increased consumption of aprotic solvents, further boosting the market.
- Therefore, the demand for the market studied is expected to increase from the oil and gas sector during the forecast period.
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Asia-Pacific to Dominate the Market
- The Asia-Pacific region is expected to be the largest and fastest-growing market for the aprotic solvents market during the forecast period. Factors such as the increasing utilization in the pharmaceutical, paints, and oil and gas segments are likely to drive the market growth.
- As per the BP Statistical Review of World Energy 2020, the oil production in the Asia-Pacific region in 2019 was 7,650 thousand barrels daily. In the region, China is a major oil producer, accounting for around 50% of the production. In 2019, the total production of oil in China was 3,836 thousand barrels daily, an increase of 1% from 2018.
- Furthermore, the refinery throughput in the region was 30,301 thousand barrels per day in 2019, an increase of 2.2% compared to 2018. China accounts for around 44% of the overall refinery throughput in the region. The country's refinery throughput increased by 7.6% in 2019, reaching 13,432 thousand barrels per day, compared to 2018. In 2020, the oil and gas industry was adversely impacted due to COVID-19, which also negatively influenced the aprotic solvents market.
- Moreover, the Asia-Pacific paints and coatings market was valued at USD 62 billion in 2019, and it is expected to register a CAGR of around 5% during the forecast timeline. The construction sector in Asia-Pacific is the fastest-growing industry in the global market, driven primarily by China, India, and ASEAN countries.
- China has the largest buildings market in the world, making up 20% of all construction investments globally. The country alone is expected to spend nearly USD 13 trillion on buildings by 2030.
- Furthermore, the Indian government has been actively boosting housing construction, as it aims to provide homes to about 1.3 billion people. The country is likely to witness around ~USD 1.3 trillion investment in housing over the next seven years and is likely to witness the construction of 60 million new homes. The availability of affordable housing in the country is expected to rise around 70% by 2024.
- Aprotic solvents are utilized as a solvent for agricultural formulations and synthesis applications such as insecticides, fungicides, and herbicides. Expanding the agriculture industry in China and India, among others, is anticipated to propel the demand for aprotic solvents.
- China accounts for approximately 7% of the overall agricultural acreage globally, thus feeding 22% of the world population. The country is the largest producer of various crops, including rice, cotton, and potatoes, among other vegetables.
- Moreover, the growth in the agriculture sector in the ASEAN countries like Indonesia, Vietnam, and Thailand is also expected to boost the demand for these solvents.
- Toluene is used as a raw material in the manufacturing of benzene, trinitrotoluene (TNT), and xylene, which further finds application in cosmetics, disinfectants, and the production of pharmaceuticals. Thus, the sharp rise in demand for toluene is expected to surge the market growth for aprotic solvents.
- In the pharmaceutical industry, the aprotic solvent is primarily used for topical and parental drug delivery-controlled release systems. The Asia-Pacific region is witnessing a continuous growth of the pharmaceutical industry, which is expected to propel the demand for aprotic solvents.
- According to the Department for Promotion of Industry and Internal Trade (DPIIT), the Indian pharmaceuticals generated an FDI cash inflow of USD 16.86 billion between April 2000 and August 2020.
- Hence, all such market trends are expected to drive the demand for aprotic solvents market in the region during the forecast period.
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