The biobased solvents market is expected to reach $13 billion globally by 2020, according to a new report from Allied Market Research. Market volume is expected to reach 3.3 million tons by 2020, registering a compound annual growth rate (CAGR) of 4.3 percent during 2015–2020 forecast period.
The paints and coatings application segment contributed 43.6 percent share of the overall market, a trend that is expected to continue through 2020.
The primary drivers of market growth are volatility in crude oil prices, lower volatile organic compound (VOC) content and environmental friendliness. However, high production cost due to capital-intensive production techniques coupled with heavy research and development investments is the major barrier to market growth.
The ester solvents segment accounted for the highest consumption in 2014 due to its high solvency rate, easy availability and lower price compared to other solvents.
Other key findings from the report:
Asia Pacific is projected to be the fastest growing region during the forecast period due to increasing industrial activities and rising environmental awareness among consumers.