Solvent Recovery and Recycling Market by Solvent Type (NMP, DMSO, Cresol, DMF, DMAC, Acetone, Butanol, Propanol, 2-Aminoethanol, 1, 4 Dioxane, E-Caprolactam, Terephthalic Acid), End-Use Industry, and Region - Global Forecast to 2028
Updated on : March 19, 2024
Solvent Recovery and Recycling Market
The global solvent recovery and recycling market size was valued at USD 1,085 million in 2023 and is projected to reach USD 1,384 million in 2028, growing at 5.0% cagr from 2023 to 2028. Solvent recovery and recycling involve the process of extracting and reusing useful materials from waste or by-product solvents generated during manufacturing. This process is a form of waste reduction and is widely used to reduce waste generation and minimize the need to produce new solvents. Solvent recovery typically uses a multi-stage distillation process to separate solvents into their components at lower-than-boiling point temperatures, resulting in recovered solvents that are virtually indistinguishable from virgin solvent products. The recovered solvents can then be repurposed, reducing the need to produce new solvents and eliminating a large amount of waste, while also removing potentially hazardous substances from the environment.
Opportunities in the Solvent Recovery and Recycling Market
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Recession impact
During a recession, the solvent recovery and recycling market may face both challenges and opportunities. On the downside, economic downturns can lead to reduced industrial activity and capital constraints, impacting investment in sustainable practices. Companies may prioritize cost-cutting measures, potentially deferring investments in solvent recovery technologies. However, the market can also experience a positive shift as businesses seek cost-effective solutions to weather economic challenges. Solvent recovery, offering both environmental benefits and cost savings, may gain traction as companies strive for operational efficiency. Additionally, governments may incentivize green initiatives during economic downturns, potentially providing support for solvent recovery projects. The overall impact depends on the severity of the recession and the extent to which businesses prioritize sustainability amid economic uncertainties.
Solvent Recovery and Recycling Market Dynamics
Driver: Stringent regulations promoting the reduction of emissions and hazardous waste
Stringent regulations mandating the reduction of emissions and hazardous waste have emerged as a driving force in the solvent recovery and recycling market. As governments worldwide intensify their commitment to sustainability, the comparative assessment of disposal methods has become crucial, with quantitative analysis playing a key role in evaluating the environmental impact of various techniques. The conventional method of waste solvent disposal, such as incineration, has come under scrutiny due to its contribution to increased greenhouse gas emissions and the overall carbon footprint. This has prompted governmental bodies to enact legislation aimed at addressing sustainability concerns and promoting eco-friendly alternatives. Solvent recovery processes offer a significant advantage in this landscape, not only aligning with environmental regulations but also providing substantial benefits to both industries and the environment. These advantages include enhanced compliance with environmental standards, reduced reliance on fresh solvent purchases, minimized transportation requirements, and decreased human exposure to hazardous substances. The rising awareness among businesses about their corporate social responsibility (CSR) has amplified the adoption of solvent recovery and recycling technologies. Companies are proactively seeking ways to minimize their carbon footprint and enhance their sustainability profiles, making solvent recovery an integral component of their environmental stewardship.
Innovations in solvent recovery technologies further propel market expansion. Advanced systems and methodologies are continually being developed to enhance the efficiency and effectiveness of solvent recovery processes, ensuring the optimal utilization of resources while adhering to stringent environmental standards. The adoption of solvent recovery technologies has led to a notable reduction in carbon footprints across various industries. Studies on isopropanol (IPA) recovery processes, utilizing SimaPro, reported emissions reductions of up to 61% compared to conventional methods. Similarly, tetrahydrofuran (THF) recovery processes showed that over 93.8% of total emissions could be prevented through optimized combinations of recovery technologies. Temperature-swing molecular imprinting technology resulted in a remarkable 61% reduction in the E factor of the process and a 49% reduction in carbon footprints. This emphasizes the tangible environmental benefits achievable through innovative solvent recovery approaches. The incorporation of ecological footprint assessments, such as the Sustainable Process Index (SPI), further enhances the evaluation of solvent recovery processes. SPI considers land area usage, providing a comprehensive approach to measuring the environmental burden and pressure associated with the process. In conclusion, stringent regulations promoting emissions reduction and waste management are propelling the solvent recovery and recycling market forward. The industry's response involves adopting advanced technologies, conducting comprehensive life cycle assessments, and embracing a holistic approach to sustainability, thereby contributing to a more environmentally conscious and economically viable future.
Restrain: High initial capital investments of solvent recovery and recycling systems
The main challenge for businesses looking to adopt solvent recovery and recycling systems is the significant upfront cost involved. Setting up the necessary equipment and technology, along with creating the infrastructure and training personnel, requires a substantial investment. This can be a barrier, especially for smaller businesses with limited financial resources. The advanced technologies involved in solvent recovery, such as distillation and membrane separation, come with their own set of expenses. For many companies, particularly smaller ones, it can be difficult to allocate the funds needed for these capital-intensive projects. The high initial investment can also mean a longer wait to see financial returns, as the payback period may be extended. In the short term, businesses often have competing priorities for their finances, and the substantial upfront cost of solvent recovery systems might not align with these immediate needs. This can lead to a hesitancy to invest in such projects, even if they offer long-term benefits and sustainability advantages. The uncertainties surrounding the return on investment and the evolving landscape of solvent recovery technologies may lead businesses to adopt a cautious approach. The perceived risk associated with high upfront costs can overshadow the potential long-term benefits, slowing down the pace of adoption within the market.
Opportunity: Growing awareness on environmental issues
The growing awareness of environmental issues presents a significant opportunity for the solvent recovery and recycling market. As individuals, businesses, and governments become increasingly conscious of the impact of industrial activities on the environment, there is a rising demand for sustainable and eco-friendly practices. This heightened environmental awareness creates a favorable environment for the adoption and growth of solvent recovery and recycling solutions. Businesses are under increasing pressure to align their operations with environmentally responsible practices. Solvent recovery and recycling offer a clear pathway for industries to demonstrate their commitment to sustainability. Companies that integrate solvent recovery into their processes can showcase their dedication to reducing carbon footprints, minimizing waste, and responsibly managing resources. The regulatory bodies are emphasizing environmental compliance, imposing stringent standards on waste disposal and emissions. Solvent recovery not only helps businesses meet these regulatory requirements but also positions them as responsible stewards of the environment. This alignment with environmental regulations can lead to favorable relationships with regulatory authorities, reducing the risk of penalties and legal complications.
The opportunity is not limited to regulatory compliance, it extends to market positioning and customer perception. Consumers are increasingly making choices based on a company's environmental practices and values. Businesses that implement solvent recovery and recycling initiatives can differentiate themselves as environmentally conscious, attracting environmentally minded customers and enhancing their brand reputation. The push for sustainability is driving innovation in solvent recovery technologies. The market is witnessing the development of more efficient and cost-effective solutions, making solvent recovery a viable and attractive option for businesses looking to balance economic considerations with environmental responsibility.
Challenge: Availability of low-cost virgin solvents
The availability of low-cost virgin solvents poses a challenge for the solvent recovery and recycling market. While the benefits of solvent recovery are clear in terms of cost savings and environmental sustainability, the presence of inexpensive new solvents creates a competitive hurdle. Businesses often face the choice between investing in solvent recovery systems, which may involve a significant upfront cost, and opting for readily available low-cost virgin solvents. In cases where the price difference is substantial, the economic incentive to adopt solvent recovery practices may be diminished, especially for companies with tight budgets or those focused on short-term financial gains. The perception that new solvents are more convenient and readily accessible may discourage businesses from making the switch to solvent recovery. The upfront investment in recovery systems, coupled with the potential operational adjustments required, may be seen as a barrier compared to the simplicity of continuing with traditional solvent usage. Some industries may prioritize immediate cost considerations over long-term sustainability goals. The allure of low-cost virgin solvents can be a tempting short-term solution, especially if the environmental impact is not a primary concern or if regulatory pressure is perceived as lenient.
Solvent Recovery and Recycling Market Ecosystem
The paints & coating industry is the second-fastest growing end-use industry in the solvent recovery and recycling market during the forecast period.
The paints & coating industry is the second fastest-growing end-use industry in the solvent recovery and recycling market due to expanding construction and automotive activities. Solvents play a crucial role in formulations, making their recovery essential. Heightened environmental consciousness and stringent regulations drive the adoption of recycling practices within the industry, promoting sustainability. The growing demand for eco-friendly solutions in paints and coatings, coupled with regulatory pressures, positions this sector as a key contributor to the market's rapid expansion.
Top of Form
Asia Pacific is the fastest growing in the solvent recovery and recycling market, in terms of value.
Asia Pacific stands as the fastest-growing region in the solvent recovery and recycling market due to its dynamic industrial landscape and robust economic growth. Rapid industrialization in countries like China and India increases solvent usage, necessitating efficient recovery measures. With a heightened focus on environmental sustainability and stringent regulations, there's a surge in demand for solvent recovery technologies. The region's strategic initiatives towards eco-friendly practices and the expanding industrial activities solidify Asia Pacific's position as the primary driver of rapid growth in this market.
Source: Secondary Research, Primary Interviews, and MarketsandMarkets Analysis
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Key Market Players
Veolia (France), CycleSolv LLC (US), Tradebe Environmental Services (US), Clean Harbors (US), and Indaver (Belgium). These players have established a strong foothold in the market by adopting strategies, such expansions, joint ventures, and mergers & acquisitions.
Solvent Recovery and Recycling Market Report Scope
|
Report Metric |
Details |
|
Market Size Value in 2022 |
USD 1,046 Million |
|
Revenue Forecast in 2028 |
USD 1,384 Million |
|
CAGR |
5.0% |
|
Years considered for the study |
2020–2028 |
|
Base year considered |
2022 |
|
Forecast period |
2023–2028 |
|
Units considered |
Volume (KT) and Value (USD Million/Billion) |
|
Segments |
By Solvent Type, End-use Industry, and Region |
|
Regions |
North America, Asia Pacific, Europe, Middle East & Africa, and South America |
|
Companies |
Veolia (France), CycleSolv LLC (US), Tradebe Environmental Services (US), Clean Harbors (US), and Indaver (Belgium). |
This research report categorizes the solvent recovery and recycling market based on solvent type, type, end-use industry, and region.
By solvent type:
- NMP (N-Methyl-2-pyrrolidone)
- DMSO (Dimethyl sulfoxide)
- Cresol
- DMF (N, N-dimethylformamide)
- DMAC (N, N-Dimethylacetamide)
- Acetone
- Butanol
- Propanol
- 2-aminoethanol
- 1, 4-dioxane
- E-Caprolactam
- Terephthalic acid
- Others
By end-use industry:
- Paints & Coatings
- Printing
- Chemicals
- Electronics
- Pharmaceuticals
- Others
By region:
- Asia Pacific
- Europe
- North America
- Middle East & Africa
- South America
Recent Developments
- In January 2020, Veolia signed an agreement to take over Alcoa USA Corporation’s Hazardous Waste Treatment Site located in Gum Springs, Arkansas (US). With this operation, Veolia continues the global expansion of its hazardous waste treatment and recycling activity, with a step further in North America.
- In September 2020, CycleSolv LLC expanded its capabilities with the acquisition of Engov Ltd, gaining two decades of invaluable recycling industry expertise.
Frequently Asked Questions (FAQ):
What is the current size of the global solvent recovery and recycling market?
Global solvent recovery and recycling market size is estimated to reach USD 1,384 million by 2028 from USD 1,085 million in 2023, at a CAGR of 5.0% during the forecast period.
Who are the winners in the global solvent recovery and recycling market?
Veolia, CycleSolv LLC, Tradebe Environmental Services, Clean Harbors, and Indaver fall under the winner’s category. They have the potential to broaden their product portfolio and compete with other key market players. Such advantages give these companies an edge over other companies.
What are some of the strategies adopted by the top market players to penetrate emerging regions?
The major players in the market use expansions, joint ventures, and mergers & acquisitions as important growth tactics.
What is the recession on solvent recovery and recycling manufacturers?
During a recession, companies may face challenges in the solvent recovery market due to reduced industrial activity. However, the emphasis on cost-effective and sustainable solutions may drive interest in solvent recovery, offering both environmental benefits and operational savings.
What are some of the drivers in the market?
Stringent regulations promoting the reduction of emissions and hazardous waste .
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The study involved four major activities in estimating the current market size for solvent recovery and recycling. Exhaustive secondary research was done to collect information on the market, peer market, and parent market. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain through primary research. Both top-down and bottom-up approaches were employed to estimate the complete market size. After that, the market breakdown and data triangulation methodologies were used to estimate the market size of segments and sub-segments.
Secondary Research
In the secondary research process, various sources have been referred to for identifying and collecting information for this study. The secondary sources include annual reports, press releases, and investor presentations of companies; white papers, journals, and certified publications; and articles from recognized authors, directories, and databases. Secondary data has been collected and analyzed to arrive at the overall market size, which is further validated by primary research. Secondary research has been used to obtain key information about the value chain of the industry, monetary chain of the market, the total pool of key players, market classification and segmentation according to industry trends to the bottom-most level, and regional markets. It was also used to obtain information about the key developments from a market-oriented perspective.
Primary Research
The solvent recovery and recycling market involves a variety of stakeholders across the value chain, including raw material suppliers, manufacturers, and end-users. For this study, both the supply and demand sides of the market were interviewed to gather qualitative and quantitative information. Key opinion leaders from various end-use sectors were interviewed from the demand side, while manufacturers and associations were interviewed from the supply side.
Primary interviews helped to gather insights on market statistics, revenue data, market breakdowns, market size estimations, market forecasting, and data triangulation. Primary research also helped to identify trends related to material type, component, end-use industries, and region. C-level executives from the demand side, such as CIOs, CTOs, and CSOs, were interviewed to understand their perspective on suppliers, products, and component providers, which will affect the overall market.
Breakdown of Primaries
Note: Tier 1, Tier 2, and Tier 3 companies are classified based on their market revenue in 2022 available in the public domain, product portfolios, and geographical presence.
Other designations include sales representatives, production heads, and technicians.
To know about the assumptions considered for the study, download the pdf brochure
Market Size Estimation
- The top-down approach was used to estimate and validate the size of various submarkets for solvent recovery and recycling for each region. The research methodology used to estimate the market size included the following steps:
- The key players in the industry have been identified through extensive secondary research.
- The supply chain of the industry has been determined through primary and secondary research.
- The global market was then segmented into five major regions and validated by industry experts.
- All percentage shares, splits, and breakdowns based on type, end-use industry, and country were determined using secondary sources and verified through primary sources.
All possible parameters that affect the markets covered in this research study were accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data. This data was consolidated and added with detailed inputs and analysis and presented in this report.
Solvent Recovery And Recycling Market: Bottum-Up Approach
Source: Secondary Research, Interviews with Experts, and MarketsandMarkets Analysis
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Solvent Recovery And Recycling Market: Top-Down Approach
Source: Secondary Research, Interviews with Experts, and MarketsandMarkets Analysis
Data Triangulation
After arriving at the overall market size—using the market size estimation process explained above—the market was split into several segments and sub-segments. To complete the overall market engineering process and arrive at the exact statistics of each market segment and sub-segment, the data triangulation, and market breakdown procedures were employed, wherever applicable. The data was triangulated by studying various factors and trends from both the demand and supply of solvent recovery and recycling and their applications.
MARKET DEFINITION
Solvent recovery and recycling involve the process of extracting and reusing useful materials from waste or by-product solvents generated during manufacturing. This process is a form of waste reduction and is widely used to reduce waste generation and minimize the need to produce new solvents. Solvent recovery typically uses a multi-stage distillation process to separate solvents into their components at lower-than-boiling point temperatures, resulting in recovered solvents that are virtually indistinguishable from virgin solvent products. The recovered solvents can then be repurposed, reducing the need to produce new solvents and eliminating a large amount of waste, while also removing potentially hazardous substances from the environment. The solvent recycling process can be performed using a variety of technologies, including distillation, and the requalified recovered solvents can be used for manufacturing different products or solutions, making the process both cost-effective and environmentally friendly.
STAKEHOLDERS
- Manufacturers of solvent recovery and recycling systems
- Manufacturers In End-use Industries
- Traders, Distributors, and Suppliers
- Regional Manufacturers’ Associations
- Government & Regional Agencies and Research Organizations
The main objectives of this study are as follows:
- To analyze and forecast the size of the solvent recovery and recycling market in terms of value and volume.
- To provide detailed information about the key factors (drivers, restraints, opportunities, and challenges) influencing the market
- To analyze and forecast the market by solvent type, end-use industry, and region.
- To forecast the size of the market with respect to five regions: Asia Pacific, Europe, North America, South America, and the Middle East & Africa, along with their key countries
- To strategically analyze micromarkets1 with respect to individual trends, growth prospects, and their contribution to the overall market
- To analyze opportunities in the market for stakeholders and provide a competitive landscape for the market leaders.
- To analyze competitive developments in the market, such as investment & expansion, joint venture, partnership, and merger & acquisition
- To strategically profile key players and comprehensively analyze their market shares and core competencies2.
- Notes: Micromarkets1 are the sub-segments of the solvent recovery and recycling market included in the report.
- Core competencies2 of companies are determined in terms of their key developments, SWOT analysis, and key strategies adopted by them to sustain in the market.
Available Customizations:
MarketsandMarkets offers the following customizations for this market report.
- Additional country-level analysis of solvent recovery and recycling market
- Profiling of additional market players (up to 3)
Growth opportunities and latent adjacency in Solvent Recovery and Recycling Market