Malaysia Solvents Market - Forecast(2022 - 2027)

Report Code: CMR 1382 Report Format: PDF + Excel

Malaysia Solvents Market Overview

Malaysia Solvents market size is forecast to reach US$185.4 million by 2026, after growing at a CAGR of 6.6% during 2021-2026. Solvents are generally available in a liquid state but they are also available in solid or gaseous forms. Ethylene glycols and ethyl acetate are the organic  compounds finds its usage in paints & coatings, chemical manufactuirng, and other industries.Solvents are used for different applications in domestic, commercial, and research purposes. The growing demand for solvents from various industries such as transportation, pharmaceutical, personal care, and agriculture among others. The growing construction activities in Malaysia are also supporting the market growth during the forecast period. The growing demand for solvents from the paints & coatings sector along with the growing usage of paints & coatings among end-use industries is also driving the market positively. The rising disposable income and consumer spending as well as steady industrial growth in Malaysia are the key factors supporting the market growth during the forecast period.  However, Stringent regulatory policies regarding the usage of solvents are likely to hamper the market growth during the forecast period.

COVID-19 Impact

The COVID-19 pandemic is impacting different industries; one of the few industries that were largely hit to some extent was the chemical industry. The temporary shutdown of chemical manufacturing facilities has negatively impacted the market. The downfall in the production of solvents, disruption of logistical services, and lack of workforce impacted the market negatively during the covid-19 crises. Travel restrictions have reduced the supply of raw materials required for the manufacturing of solvents, which, in turn, has affected negatively the market growth during the pandemic.

Report Coverage

The report: “Malaysia Solvents Market – Forecast (2021-2026)”, by IndustryARC, covers an in-depth analysis of the following segments of the Malaysia Solvents industry.
By Source: Natural (Bio-Based), Petroleum-based, and others
By Type: Organic Solvents [Hydrocarbon solvents {Aliphatic (Hexane, Mineral Spirits, Cyclohexane, Heptane, Pentane, and Others), Aromatic (Benzene, Toluene, Xylene, Pyridine, and Others)}, Oxygenated solvents {Alcohols (Butanol, Isopropyl alcohol, Propanol, Ethanol, Methanol, Others), Ketones (Acetone, Acetophenone, Methyl ethyl ketone (MEK), and Others), Aldehydes (Acetaldehyde, Formaldehyde, and Others), Ethers (Dioxane, Diethyl ether, Tetrahydrofuran, Mono-ethylene glycol (MEG), Di-ethylene glycol (DEG), Propylene Glycol Monomethyl Ether (PGME), and Others), Esters (Ethyl acetate, Propylene carbonate
Methyl acetate, Propylene Glycol Monomethyl Ether Acetate, and Others), Other Oxygenated (Formic acid, Acetic acid, and Others)}, Halogenated solvents {Chlorinated (Chloroform, Dichloromethane (Methylene chloride), Carbon tetrachloride, and Others), Brominated (Ethylene dibromide, and Others), and Others)}, Other Organic Solvents (Dimethylformamide, Acetonitrile, Dimethyl sulfoxide (DMSO), Nitromethane, N-methyl, Pyrrolidone (NMP), and Others)}], and Inorganic Solvents {Liquid Ammonia, Liquid Sulfur Dioxide, Sulfuric Acid, Sulfuryl Chloride Fluoride, and Others}
By End-Use Industry: Paints & Coatings, Inks, Adhesives, Chemical Manufacturing [Polymers, and Agrochemicals, and Others], Metal Manufacturing, Food & Beverage, Personal Care, Pharmaceutical, and Others

Key Takeaways

  • The demand for Organic solvent is growing steadily in the Malaysian market due to its usage in a variety of end-use industries. 
  • The paints & coatings segment is expected to hold a major share in the market due to the growing demand from the construction and automotive industry.
  • The increasing investments in research and developments to enhance the capabilities of solvents are supporting market growth.

Figure: Malaysia Solvents Market Revenue Share, By End-Use Industry 2020 (%)

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Malaysia Solvents Market Segment Analysis - By Source

The petroleum based source segment accounted for 76.8% of the market share in 2020 by revenue and is estimated to grow at a significant CAGR during the forecast period. The majority of Solvents are derived from petroleum and synthetic chemicals. Petroleum solvents are generally made up of liquid hydrocarbon derived from petroleum and petroleum by-products. These products are widely preferred in various industrial applications because of their effectiveness, low cost, and ready availability. The natural source segment is expected to grow at a high CAGR during the forecast period. Manufacturers of solvents are adopting natural sources for developing solvents. Naturally, derived solvents are environmentally friendly and show less impact on human health.

Malaysia Solvents Market Segment Analysis - By Type

The organic solvents segment accounted for the largest share of 90.3% in 2020 by revenue eand is estimated to grow at a significant CAGR during the forecast period. Organic solvents are widely preferred in traditional applications, such as dry cleaning, paints & coatings, adhesives, and chemical processing among others. Organic solvents contain a carbon-based molecular structure. Organic solvents offer various properties such as are volatile, exhibit a low boiling point, and they have lower molecular weights among others. The oxygenated solvents type of organic solvents segment is expected to hold a major share in the Malaysia Solvents market during the forecast period. Oxygenated solvents contain carbon atoms, hydrogen atoms, and oxygen atoms. Oxygenated solvents have high purity, good solvency power, and are they can easily mix with water. These are some of the major properties driving the market for oxygenated solvents during the forecast period.

Malaysia Solvents Market Segment Analysis - By End-Use industry

The paints & coatings segment accounted for 37.7% of the market share in 2020 by revenue and is estimated to grow at a significant CAGR during the forecast period. The growing construction industry is positively driving the market for paints & coatings industry which is further driving the market for solvents during the forecast period. The growing demand for protective coatings from transportation sectors is also driving the market for Malaysian solvents market.  According to the Malaysian Automotive Association, the Malaysian total vehicle production reached 529,434 units in 2020.

Malaysia Solvents Market Drivers:

Growing demand from building & construction industry

Rapid growth in the build & construction along with the growing transportation sector in Malaysia is driving the market growth for solvents. The growth in the construction industry is driving the market for paints & coatings which is further driving the market for solvents in Malaysia. According to trading economics, the Malaysian construction industry is expected to register a 4.5% growth rate between 2019-2024. The Malaysian government has made considerable progress to expand and modernized its infrastructures throughout the country. In March 2020, the Malaysian government allocated USD 472.8 million to infrastructure development projects.

The growing transportation sector in Malaysia

The transportation sector plays an important role in the Malaysian economy. The transportation sector in Malaysia includes automotive, aerospace, railways, and marine. The growing demand for protective coatings in transporation sector is driving the market growth. The large population and strong domestic demand are driving positive growth for transportation activities which is further driving the market for solvents. According to the Malaysian Automotive Association, in 2019, approximately 572,000 passenger cars and commercial vehicles were manufactured and assembled in Malaysia. The aerospace industry is one of the rapidly growing industries in Malaysia. The country has several aerospace parks namely, Senai Airport Aviation Park, Subang Aerotech Park, Nusajaya Tech Park, UMW High-Value Manufacturing Park, and Kulim Hi-Tech Park among others. According to the data published by the Malaysian Investment Development Authority (MIDA), the aerospace sub-sector investments reached RM 15.1 billion in 2019, which includes RM 10.7 billion foreign investments and RM4.4 billion domestic investments.

Malaysia Solvents Market Challenges:

Health Effects

Petrochemical-based solvents cause many short-term and long-term health-related problems. Some of the short-term related health problems include severe headaches, hallucinations, prolonged sniffing, blackouts, sickness, and dizziness among others. Long-term effects include damage to the kidneys, brain, heart, and liver among others. Some solvents can cause the lungs to freeze and cause suffocation. Some of the most hazardous solvents include benzene, carbon disulfide, and carbon tetrachloride among others. Benzene solvents may cause irregularities in the heartbeat which leads to hearth related problems. These are some of the major challenges hampering the market growth during the forecast period.

Malaysia Solvents Market Landscape

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the Malaysia Solvents market. Major players in the Malaysia Solvents market are PETRONAS Chemicals Group Berhad, Lotte Chemical Titan, Ancom Berhad, Royal Dutch Shell, BASF SE, Arkema Sdn Bhd, Idemitsu Kosan, ExxonMobil Chemical Malaysia Sdn Bhd, DAIREN CHEMICAL (M) SDN. BHD., British Petroleum, and others.

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1. Malaysia Solvents Market- Market Overview
    1.1 Definitions and Scope 
2. Malaysia Solvents Market - Executive Summary
    2.1 Key Trends by Source
    2.2 Key Trends by Type
    2.3 Key Trends by End-use Industry
3. Malaysia Solvents Market – Comparative analysis 
    3.1 Market Share Analysis- Major Companies
    3.2 Product Benchmarking- Major Companies
    3.3 Top 5 Financials Analysis
    3.4 Patent Analysis- Major Companies
    3.5 Pricing Analysis (ASPs will be provided)
4. Malaysia Solvents Market - Startup Companies Scenario Premium 
    4.1 Major startup company analysis:
        4.1.1 Investment
        4.1.2 Revenue
        4.1.3 Product portfolio
        4.1.4 Venture Capital and Funding Scenario
5. Malaysia Solvents Market – Industry Market Entry Scenario Premium Premium 
    5.1 Regulatory Framework Overview
    5.2 New Business and Ease of Doing Business Index
    5.3 Successful Venture Profiles
    5.4 Customer Analysis – Major companies
6. Malaysia Solvents Market - Market Forces
    6.1 Market Drivers
    6.2 Market Constraints
    6.3 Porters Five Force Model
        6.3.1 Bargaining Power of Suppliers
        6.3.2 Bargaining Powers of Buyers
        6.3.3 Threat of New Entrants
        6.3.4 Competitive Rivalry
        6.3.5 Threat of Substitutes 
7. Malaysia Solvents Market – Strategic Analysis
    7.1 Value/Supply Chain Analysis
    7.2 Opportunity Analysis
    7.3 Product/Market Life Cycle
    7.4 Distributor Analysis – Major Companies 
8. Malaysia Solvents Market – By Source (Market Size -$Million)
    8.1 Natural (Bio-Based)
    8.2 Petroleum-based
    8.3 Others 
9. Malaysia Solvents Market – By Type (Market Size -$Million)
    9.1 Organic Solvents
        9.1.1 Hydrocarbon solvents
            9.1.1.1 Aliphatic
                9.1.1.1.1 Hexane
                9.1.1.1.2 Mineral Spirits
                9.1.1.1.3 Cyclohexane
                9.1.1.1.4 Heptane
                9.1.1.1.5 Pentane
                9.1.1.1.6 Others
            9.1.1.2 Aromatic
                9.1.1.2.1 Benzene
                9.1.1.2.2 Toluene
                9.1.1.2.3 Xylene
                9.1.1.2.4 Pyridine
                9.1.1.2.5 Others
        9.1.2 Oxygenated solvents
            9.1.2.1 Alcohols
                9.1.2.1.1 Butanol
                9.1.2.1.2 Isopropyl alcohol
                9.1.2.1.3 Propanol
                9.1.2.1.4 Ethanol
                9.1.2.1.5 Methanol
                9.1.2.1.6 Others
            9.1.2.2 Ketones
                9.1.2.2.1 Acetone
                9.1.2.2.2 Acetophenone
                9.1.2.2.3 Methyl ethyl ketone (MEK)
                9.1.2.2.4 Others
            9.1.2.3 Aldehydes
                9.1.2.3.1 Acetaldehyde
                9.1.2.3.2 Formaldehyde
                9.1.2.3.3 Others
            9.1.2.4 Ethers
                9.1.2.4.1 Dioxane
                9.1.2.4.2 Diethyl ether
                9.1.2.4.3 Tetrahydrofuran
                9.1.2.4.4 Mono-ethylene glycol (MEG)
                9.1.2.4.5 Di-ethylene glycol (DEG)
                9.1.2.4.6 Propylene Glycol Monomethyl Ether (PGME)
                9.1.2.4.7 Others
            9.1.2.5 Esters
                9.1.2.5.1 Ethyl acetate
                9.1.2.5.2 Propylene carbonate
                9.1.2.5.3 Methyl acetate
                9.1.2.5.4 Propylene Glycol Monomethyl Ether Acetate
                9.1.2.5.5 Others
            9.1.2.6 Other Oxygenated
                9.1.2.6.1 Formic acid
                9.1.2.6.2 Acetic acid
                9.1.2.6.3 Others
            9.1.3 Halogenated solvents
                9.1.3.1 Chlorinated
                    9.1.3.1.1 Chloroform
                    9.1.3.1.2 Dichloromethane (Methylene chloride)
                    9.1.3.1.3 Carbon tetrachloride
                    9.1.3.1.4 Others
                9.1.3.2 Brominated
                    9.1.3.2.1 Ethylene dibromide
                    9.1.3.2.2 Others
                    9.1.3.3 Others
            9.1.4 Other Organic Solvents
                9.1.4.1 Dimethylformamide
                9.1.4.2 Acetonitrile
                9.1.4.3 Dimethyl sulfoxide (DMSO)
                9.1.4.4 Nitromethane
                9.1.4.5 N-methyl Pyrrolidone (NMP)
                9.1.4.6 Others
        9.2 Inorganic Solvents
            9.2.1 Liquid Ammonia
            9.2.2 Liquid Sulfur Dioxide
            9.2.3 Sulfuric Acid
            9.2.4 Sulfuryl Chloride Fluoride
            9.2.5 Others
10. Malaysia Solvents Market – By End-Use Industry (Market Size -$Million)
    10.1 Paints & Coatings
    10.2 Inks
    10.3 Adhesives
    10.4 Chemical Manufacturing
        10.4.1 Polymers
        10.4.2 Agrochemicals
        10.4.3 Others
    10.5 Metal Manufacturing
    10.6 Food & Beverage
    10.7 Personal Care
    10.8 Pharmaceutical
    10.9 Others
11. Malaysia Solvents Market – Entropy
    11.1 New Product Launches
    11.2 M&As, Collaborations, JVs and Partnerships
12. Malaysia Solvents Market – Industry/Segment Competition Landscape Premium 
    12.1 Company Benchmarking Matrix – Major Companies
    12.2 Market Share at Country Level – Major Companies
    12.3 Market Share by Key Product Type/Product category - Major companies
13. Malaysia Solvents Market – Key Company List Premium 
14. Malaysia Solvents Market Company Analysis - Business Overview, Product Portfolio, Financials, and Developments
    14.1 PETRONAS Chemicals Group Berhad 
    14.2 LOTTE CHEMICAL TITAN
    14.3 Ancom Berhad
    14.4 Royal Dutch Shell
    14.5 BASF SE
    14.6 Arkema Sdn Bhd
    14.7 Idemitsu Kosan
    14.8 ExxonMobil Chemical Malaysia Sdn Bhd
    14.9 DAIREN CHEMICAL (M) SDN. BHD.
    14.10 British Petroleum
"*Financials would be provided on a best efforts basis for private companies"