INDUSTRIAL SOLVENT MARKET STATIC AT $2.8 BILLION, CONSTRAINED BY ENVIRONMENTAL RULES.

MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--Constrained by recent amendments to the federal Clean Air Act that limit use of volatile organic compounds (VOCs), the U.S. industrial solvent market will remain stable at $2.8 billion in revenues through the year 2000 with slightly negative growth turning positive around 1997, projects a new study just released by Frost & Sullivan.

Aliphatic hydrocarbon made up 36 percent of this market in 1993, alcohol 16 percent, chlorinated hydrocarbon 14 percent and ketone 13 percent, says the report, U.S. INDUSTRIAL SOLVENT MARKETS.

The market dipped from $2.98 billion in 1990 to $2.84 billion by 1993. The 1990 CAA amendments particularly prevented growth of chlorinated and cyclic hydrocarbons, among other segments. VOCs like these contribute to smog, and formulators are required by law to reduce VOC emissions.

Market improvement later in the decade will result from increasing acceptance of new technologies that reduce dangerous VOC content in major organic solvents.

Esters and alcohols will grow, along with specialty small volume solvents such as glycol ethers used in niche applications, since these have fewer environmental effects. Oil-rich Middle Eastern countries as well as others, like South Korea, have developed petrochemical industries that will compete increasingly with U.S.- made solvents in world markets.

There is a growing shift of reformulation away from solvents toward higher solids and water-based systems in paints and coatings as well as other applications like inks and adhesives, to avoid legal environmental issues and the paperwork required for solvent use. This shift, however, will come only slowly since aqueous solvents are costly to manufacture and not as effective as organic ones. Formulators will attempt to synthesize hybrid solvents with improved performance and fewer negative environmental effects.

The majority of solvents are manufactured by a dozen global oil and chemical companies such as Union Carbide, Shell, Exxon, Eastman and Hoechst Celanese.

Paints and coatings are the largest solvent applications. Solvents are also used in inks, adhesives, cleanings and other applications. Solvents include aliphatic and chlorinated hydrocarbons, esters, ketones, alcohols, gylcols, glycol ethers, cyclic or aromatic hydrocarbons, fluorocarbons and nitroparaffins.

Frost & Sullivan is an international high-technology research firm. All Frost & Sullivan reports are based on extensive interviews with marketing and technical experts from selected companies in each market segment. Primary research is validated by thorough analysis of available secondary research. Frost & Sullivan is the leading publisher worldwide of high-technology research reports.

Report: 5144-48 Publication Date: 1994 Price: $2295

Total Industrial Solvent Market:

Unit Shipment and Revenue Forecasts (U.S.),

1990-20003-1 Total Industrial Solvent Market:

Unit Shipment and Revenue Forecasts (U.S.),

1990-2000gures

Revenue

Units RevenuesGrowth Rate

Year (Billion)($ Billion)(%)

1990 1.58 2.98 ---

1991 1.57 2.93 (1.8)

1992 1.56 2.88 (1.6)

1993 1.55 2.84 (1.4)

1994 1.55 2.80 (1.4)

1995 1.54 2.77 (1.0)

1996 1.54 2.77 (0.3)

1997 1.54 2.78 0.5

1998 1.55 2.80 0.8

1999 1.56 2.83 0.9

2000 1.66 2.85 0.7

Compound Annual Growth Rate (1993-2000): 0.0%

Note: All figures are rounded. Source: Frost & Sullivan

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