The aromatic solvents market is projected to grow from USD 7.27 billion in 2018 to USD 8.29 billion by 2023, at a CAGR of 2.66% during the forecast period.

Aromatic solvents are a type of hydrocarbon that has alternating double and single bonds between carbon atoms, which form rings. Aromatic solvents are powerful solvents for organic liquids. Hence, they are widely used in a variety of industries such as paints, trochemicals, nail polish removers, cleaners, adhesives, dyes, and varnishes.

The aromatic solvents market has been segmented on the basis of product type, application, and region. Based on type, the market has been segmented into toluene, xylene, and ethylbenzene. The toluene segment accounted for the largest market share, in terms of value, in 2017. The high solvency power and low-toxicity of toluene and xylene are expected to increase their usage in various applications such as paints & coatings, printing inks, adhesives, and metal cleaning.

Based on application, the aromatic solvents market has been segmented into paints & coatings, adhesives, printing inks, metal cleaning, and others. The paints & coatings segment accounted for the largest market share, in terms of value, in 2017. The growth of the automotive OEM, machinery, and appliances markets, globally accompanied by the rise in building and construction activities are expected to drive the demand in this application during the forecast period.

Asia Pacific is estimated to be the largest market for aromatic solvents in 2018, and the region is also expected to continue to lead the market till 2023, owing to the growing industries in the region's emerging economies such China, South Korea, and India. The rising per capita disposable incomes, rapid urbanization, and growing demand for automobiles are projected to fuel the aromatic solvents market.

The aromatic solvents market is a consolidated market with exceedingly large players possessing large production capacities. A few players in the aromatic solvents market have integrated both backward and forward to obtain cost advantages. Due to low product differentiation, the product quality does not have an impact on the market. Thus, the intensity of competition in the aromatic solvents market is low. The fluctuating prices of raw materials adversely impact the overall cost of production incurred by the manufacturers of solvents. High capital costs coupled with the licensing of proprietary technology restrict the entry of new players into the market.

Expansion was the major developmental strategy adopted between 2013 and 2018 by the key players in the aromatic solvents market. Companies such as Royal Dutch Shell Plc. (Netherlands), SK Global Chemical Co., Ltd. (South Korea), and ExxonMobil Corporation (US) have adopted these strategies to strengthen their market presence and customer base as well as gain a competitive edge in the market.