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); By Industry (Pharmaceuticals, Paints & Coating, Printing, Chemicals, Electronics, Others); By Geography, Segment revenue estimation, Forecast, 2024-2032.

The solvent recovery and recycling market size in 2023 was worth USD 1113.24 Million, and will be worth USD 1661.25 Million by 2030 growing at a CAGR of 6.2% from 2024 to 2030. Stringent environmental regulations are driving the solvent recovery market. Compliance mandates and financial incentives are boosting industry growth.

 

 

Solvent recovery and recycling involve the process of reclaiming and purifying used solvents to be reused in industrial processes, thereby reducing the demand for virgin solvents and minimizing hazardous waste. Solvent recovery and recycling is an important process in industrial operations, with an emphasis on reclaiming and reusing solvents to reduce waste and environmental effect. Industries may recover up to 95% of spent solvents by using methods including distillation, filtration, and membrane separation, which drastically reduces hazardous waste. This approach offers significant cost benefits for businesses with savings of up to 50% on solvent purchase and disposal costs, in addition to aiding in the conservation of natural resources. Solvent recycling plays a vital part in sustainable industrial practices and regulatory compliance, as evidenced by the millions of gallons of hazardous chemicals that are prevented from being released into the environment each year in the United States alone.

 

Solvent recovery is an important technique for companies that employ solvents in their manufacturing processes. Solvent recovery and reuse can save waste, boost profitability, and lower operating expenses. This is especially crucial for sectors that mostly depend on solvents for operations, such electronics, chemicals, and medicines. Solvent recovery can minimize the amount of dangerous chemicals released into the environment, which can lessen the environmental effect of these companies in addition to saving money.

 

The significance of this market is driven by several key factors, including stringent environmental regulations, the rising cost of raw materials, and the growing awareness of sustainable practices among industries.

 

Market Drivers (Tightening Environmental Standards Boost Solvent Recovery Demand)

The Impact of Environmental Regulations on Solvent Recovery and Recycling

• Governments all over the world are driving the solvent recovery and recycling market by enforcing stringent regulations and encouraging sustainable practices. Stricter environmental restrictions around the world, such as the European Union's REACH (Registration, Evaluation, Authorization, and Restriction of Chemicals) legislation, force industry to be more responsible about chemical use and waste management. Solvent recovery is becoming more popular among businesses as a means of complying with the Environmental Protection Agency's (EPA) strict waste management regulations and avoiding fines. To comply with these rigorous regulations, industries are increasingly using solvent recovery and recycling methods. Solvent recycling can cut VOC emissions in the automobile sector by up to 50%, assisting manufacturers in meeting air quality regulations. Solvent recycling can reduce hazardous waste in the pharmaceutical industry by up to 40%, helping to comply with both domestic and international laws.

 

The Growing Importance of Solvent Recovery Systems in Today's Industrial Landscape

• Many companies have committed to sustainability targets, with some intending to cut their carbon footprint by 30% or more by 2030. Solvent recovery and recycling are essential in accomplishing these goals because they reduce waste and encourage the circular economy. Solvent recovery system implementation also improves cost- and operational-efficiency, balancing environmental and financial goals. Solvent recovery and recycling will become more and more important as businesses prioritize sustainability in order to satisfy eco-friendly standards and promote a greener industrial landscape.

 

Market Restraints (The Green Hurdle: High Costs and Expertise Hinder Solvent Recovery Adoption)

• High Initial Investment: Setting up solvent recovery systems can be expensive, especially for on-site facilities. The upfront costs of equipment, installation, and potential facility modifications can be a barrier for some companies.

• Technical Expertise: Operating and maintaining solvent recovery systems often requires specialized knowledge and expertise. Companies may need to invest in training or hire skilled personnel to manage the process effectively.

• Lack of Awareness:  While awareness of solvent recovery is growing, some companies may still be unaware of its benefits or the available technologies. This can hinder market penetration and adoption

 

Market Opportunity (How Emerging Markets Drive Solvent Recovery with Growth & Regulation)

Increased solvent consumption is being caused by the fast industrialization of Latin America and Asia-Pacific. The mandate in China's 13th Five-Year Plan to reduce volatile organic compound (VOC) emissions by 10% highlights a deliberate attempt to reduce industrial pollution. This regulatory effort requires better environmental compliance as well as promotes solvent recovery and recycling as critical measures for meeting emission reduction targets. Similarly, growing industrial activity in Latin America calls for strict waste management procedures in order to maintain sustainability objectives and environmental requirements. Growing awareness of the financial and environmental advantages of resource efficiency and regulatory compliance is reflected in these regions' increased use of solvent recovery technologies. As emerging markets will prioritize sustainable development, the demand for solvent recovery solutions will expand opening up new market growth opportunity.

 

 

Market Segmentation (Solvent Recovery Market Segmented by Type, Delivery, Application, and Region)

The Solvent Recovery and Recycling Market segmentation is done on the basis of solvent type, delivery type, application, and region.

By Delivery Type

• Off site recovery

• On site recovery

 

By Solvent Type

• N-Methyl-2-pyrrolidone (NMP)

• N,N-Dimethylacetamide (DMAC)

• Acetone

• Butanol

• Propanol

• Others

 

By Application

• Pharmaceuticals

• Paints & Coatings

• Chemicals

• Printing

• Electronics

• Others

 

Regional Breakdown of the Solvent Recovery and Recycling Market

North America

• US

• Mexico

• Canada

• Rest of North America

 

Europe

• Switzerland

• Russia

• France

• Germany

• U.K

• Finland

• Turkey

• Netherlands 

• Belgium

• Spain

• Italy

• Rest of Europe

 

Asia Pacific

• China

• India

• South Korea

• Japan

• Singapore

• Thailand

• Indonesia

• Malaysia

• Philippines

• Australia

• Rest of Asia-Pacific

 

LAMEA

• Brazil

• Saudi Arabia

• Argentina

• Uruguay

• Rest of LAMEA

 

Beyond Convenience: NMP's Role in Responsible Waste Management and Recovery

On the basis of solvent type, the N-Methyl-2-pyrrolidone (NMP) segment dominated the market with largest revenue share due to its use in several industries, primarily electronics. Its stability, low volatility, and strong solvency power make it ideal solvent for a variety of material dissolves. The need for effective recovery and recycling procedures has been fueled by the efficiency of NMP in cleaning and stripping applications as well as regulatory pressure to reduce hazardous waste.

 

Beyond Recycling: Optimizing Solvent Use in the Paint and Coating Industry

On the basis of end-use, the paint and coating segment dominated the market with significant revenue share. Because solvents are widely used in these industries for thinning and cleaning, the paint and coating segment leads the solvent recovery and recycling industry. Solvent recovery and recycling are essential for cost reduction and environmental compliance since the large volume of solvents needed for the formulation and application processes produces a significant amount of waste. In the paint and coating industry, solvents can account for up to 40-60% of the formulation by volume. The industry generates significant solvent waste, with estimates indicating that around 20-30% of the solvent used can be recovered and recycled. As a result, the solvent recovery and recycling market has seen substantial growth, with the paint and coating segment holding a significant revenue share due to these factors.

 

Regional Insights: Understanding the Solvent Recovery Landscape in North America and Asia Pacific

North America is the largest market for solvent recovery and recycling market. North America's solvent recovery and recycling business is thriving because to strict environmental laws and a thriving industrial sector. Solvent recovery systems are encouraged by US Environmental Protection Agency rules, such as the Clean Air Act, which require a reduction in volatile organic compounds (VOCs) and hazardous air pollutants (HAPs). North America accounts for approximately 30-35% of the global solvent recovery market. Highly developed manufacturing sector in the region in the chemical, pharmaceutical, and automotive sector produces a significant amount of solvent waste, fueling the need for recovery and recycling solutions. Advancements in recycling technologies and a growing focus on sustainability contribute to the market's expansion in North America.

 

The Asia Pacific region's solvent recovery and recycling industry is growing quickly due to strict environmental restrictions and rising industrialization. Because of its extensive manufacturing base, particularly in nations like China, India, and Japan, the area accounts for roughly 40–45% of the worldwide solvent recovery industry. Solvent recovery technologies have become more popular as a result of these nations' tougher environmental regulations aimed at reducing pollution. The growing focus on sustainable practices and cost-effective manufacturing processes further boosts the market growth in this region.

 

Competitive Landscape of the Solvent Recovery and Recycling Market

• Clean Harbors

• CBG Technologies

• CycleSolv

• Clean Planet Chemical

• Veolia

• Maratek Environmental

• IST Pure

• Quanzhou Tianlong

• Tradebe

• Shinko Organic Chemical Industry

• Others

 

Solvent Recovery and Recycling Market Report Coverage

Report Attribute	Details
Forecast Period	2024 – 2032
Market Size Value in 2023	USD 1,113.24 Million
Revenue Forecast by 2030	USD 1,661.25 Million
Overall Growth Rate	CAGR of 6.2% (2024 – 2030)
Base Year for Estimation	2023
Historical Data	2017 – 2021
Unit	USD Million, CAGR (2024 – 2030)
Segmentation	By Solvent Type, By Industry, By Geography
By Solvent Type	NMP, DMSO, Cresol, DMF, DMAC, Acetone, Butanol, Propanol, 2-Aminoethanol, 1,4 Dioxane, E-Caprolactam, Terephthalic Acid
By Industry	Pharmaceuticals, Paints & Coatings, Printing, Chemicals, Electronics, Others
By Region	North America, Europe, Asia-Pacific, Latin America, Middle East & Africa
Country Scope	U.S., Germany, China, India, Japan, South Korea, Brazil, UK, etc.
Market Drivers	Rising industrial solvent consumption, stricter environmental regulations, cost-efficiency in operations
Customization Option	Available on request

 

Recent Developments Shaping the Solvent Recovery Market

• In February 2024, Veolia announces a site feasibility study ahead of a pilot project to collect carbon emissions from non-recyclable biogenic waste combustion in UK energy recovery facilities. The project has been designed to capture, extract, and purify CO2 in order to manufacture green fuels. Synthetic green end products including eKerosene, eMethanol, and specialty chemical compounds can be produced by this technique.
  The system, which was designed by Veolia's internal design teams, uses Advanced Amine technology to capture carbon emissions from the burning of biogenic trash that cannot be recycled. This type of waste accounts for roughly 60% of the carbon dioxide emissions produced throughout the incineration process. The carbon intensity of shipping and aviation can be decreased by combining biogenic carbon dioxide with green hydrogen to make fuels like eMethanol and Sustainable Aviation Fuel.

 

• In December 2023, Braskem, the world's largest producer of biopolymers & polyolefins in the Americas, announced that the Reducing Embodied Energy & Decreasing Emissions Institute, a public-private partnership established by the US Department of Energy, has awarded a $600,000 Research, Demonstration, and Development grant to its polymer recycling technology research partnership. The winning research and development project aims to develop a novel recycling process technique that would enable the extraction of pure polypropylene (PP) from waste PCR multilayer packaging, which is presently difficult to recycle.  Braskem America, Michigan Technological University, and the University of Wisconsin-Madison are collaborating on the research and are each contributing additional foundational financing.