Aliphatic Hydrocarbon Market Size & Outlook, 2025-2033

Aliphatic Hydrocarbon Market Size

The aliphatic hydrocarbons market size was valued at USD 3.70 Billion in 2024. It is projected to reach from USD 3.87 Billion by 2025 to USD 5.50 Billion by 2033, growing at a CAGR of 4.5% during the forecast period (2025–2033).The primary factors propelling the market are Increasing use as diluents and thinners in paints and coatings and rising demand due to their diverse applications.

Aliphatic hydrocarbons are an organic chemical made up entirely of carbon and hydrogen atoms linked together by single bonds. Straight or branched carbon chains distinguish them from aromatic hydrocarbons, which include one or more aromatic (ring-like) structures. The chemical stability, low reactivity, and non-aromatic structure of aliphatic hydrocarbons are well recognized.

The market is developing due to increased demand for paints and coatings from the decorative, automotive, industrial, and protective paints and coatings sectors. The need for commercial and residential structures is increasing in developing countries, presenting an opportunity for the Aliphatic Hydrocarbon Market share to rise internationally.

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Aliphatic Hydrocarbon Market Growth Drivers

Industrial Growth and Infrastructure Development

Aliphatic hydrocarbons are used in construction as adhesives, sealants, coatings, and building materials. Residential, commercial, and infrastructural construction projects are in increased demand as economies grow and urbanize. Massive infrastructure construction has accompanied China's fast economic growth and urbanization. Extensive construction projects are part of the country's Belt and Road Initiative, which aims to improve connectivity and trade channels. As a result, demand for construction materials, notably those containing aliphatic hydrocarbons, has soared. According to the United States Census Bureau, September 1, 2023. Construction spending in July 2023 is expected to be USD 1,972.6 billion, a 0.7% increase over the revised June projection of USD 1,958.9 billion.

Furthermore, the Asia-Pacific area has seen a significant increase in infrastructure construction. For example, India's "Smart Cities Mission" and infrastructure initiatives in Southeast Asian countries have increased demand for construction materials, especially aliphatic hydrocarbons. As economies grow and invest in infrastructure, the need for aliphatic hydrocarbon-containing construction materials, automobile lubricants, and packaging materials rises. The Aliphatic Hydrocarbon Market trends are especially visible in areas undergoing significant urbanization and infrastructure projects, making them key markets for Aliphatic hydrocarbon products.

Market Restraints

Environment Concerns and Sustainability

Environmental agencies and governments throughout the world have enacted rigorous laws to minimize greenhouse gas emissions and prohibit the use of certain chemicals. For example, regulations such as the European Union's REACH (Registration, Evaluation, Authorization, and Restriction of Chemicals) and the United States Environmental Protection Agency's (EPA) rules on volatile organic compounds (VOCs) have restricted the use of certain aliphatic hydrocarbon-based solvents and coatings due to their potential environmental and health impacts.

Growing environmental awareness and consumer demand for sustainable products have prompted companies to seek greener alternatives to standard aliphatic hydrocarbon-based materials. For example, in the automotive industry, there is a shift toward electric vehicles and lightweight materials to reduce emissions and enhance fuel efficiency. This transition from traditional engine oils and lubricants containing aliphatic hydrocarbons may influence market demand. The EPA and comparable authorities in other regions have imposed tight limits on VOC emissions from various items, including paints, varnishes, and adhesives containing aliphatic hydrocarbons. Manufacturers have been forced to reformulate their products to fulfill these regulations or seek VOC-free alternatives. The Aliphatic Hydrocarbon Market growth is projected to be hampered by these laws and concerns. 

Market Opportunity

Bio-Based Aliphatic Hydrocarbon

Aliphatic hydrocarbons generated from renewable sources such as plant oils, biomass, and microorganisms are known as bio-based aliphatic hydrocarbons. Compared to standard petroleum-based aliphatic hydrocarbons, these alternatives have various advantages, including lower carbon footprint, biodegradability, and environmental effects. Companies such as AkzoNobel, for example, have introduced low-VOC and environmentally friendly coatings based on aliphatic hydrocarbons. Their products are intended to exceed environmental regulations while also providing high-performance coatings for various architectural, automotive, and industrial applications. 

Furthermore, governments and regulatory agencies worldwide are enacting rules and providing incentives to encourage the use of green and sustainable materials. This covers carbon emission reduction tax breaks, grants, and regulations. Government programs and initiatives frequently encourage using renewable chemicals and sustainable materials. For example, the European Union's Green Deal and Circular Economy Action Plan encourage using sustainable materials and recycling, allowing firms to invest in greener solutions. Recognition and procurement preferences for bio-based products, particularly bio-based aliphatic hydrocarbons, are provided via incentives such as the U.S. BioPreferred Program.

Regional Analysis

Asia-Pacific Dominates the Global Market

The global aliphatic hydrocarbon market analysis is conducted in North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.Asia-Pacific is the most significant global aliphatic hydrocarbon market shareholder and is estimated to grow at a CAGR of 4% over the forecast period. The Asia-Pacific region is expected to lead the market for aliphatic hydrocarbon solvents and thinners during the projected period. The aliphatic hydrocarbon solvents and thinners market has been growing due to increased demand from nations such as China, India, and Japan. Asia-Pacific is home to the world's largest producers of aliphatic hydrocarbon solvents and thinners. Royal Dutch Shell, Recochem Inc, Phillips 66, and Mg Organics Pvt. Ltd. are some of the top aliphatic hydrocarbon solvents and thinners manufacturers. Under the smart cities plan, the Indian government announced an investment of USD 31,650 billion in 2018 to build 100 cities. Over the next five years, 100 smart cities and 500 cities will attract investments worth INR 2 trillion (USD 28.18 billion), creating opportunities to use aliphatic hydrocarbon solvents and thinners in paints and coatings. According to the IBEF (India Brand Equity Foundation), private equity investments in the real estate sector totaled USD 3,241 million in Q4 FY21. The regulatory and government assistance in the region has greatly increased as the number of commercial and residential structures has increased.

In addition, rising family incomes, more product application in the rubber industry, and the growing rate of industrialization will all contribute to a good outlook for the market in the next years. The Chinese government has announced massive construction plans to relocate 250 million people to new megacities over the next ten years, creating significant scope for construction activity and thus increasing the market for aliphatic hydrocarbon solvents and thinners in the coming years.

North America is anticipated to exhibit a CAGR of 4.3% over the forecast period.The aliphatic hydrocarbon market insights suggest North America will rise significantly due to increased demand from the paints and coatings sectors. The North American paint and coatings industry relies on aliphatic hydrocarbons as solvents and binders in paint compositions. These hydrocarbons contribute to the desirable coating characteristics and performance. The market value of the paint and coatings industry in the United States was predicted to be roughly 31 billion US dollars in 2022. 

Furthermore, strict environmental restrictions in North America have resulted in a trend toward low-VOC and environmentally friendly products. Aliphatic hydrocarbons are used in the formulation of compliant coatings and adhesives. The United States Environmental Protection Agency (EPA) and state-level agencies enforce VOC emission standards, promoting the use of low-VOC goods in the region. Similarly, aliphatic hydrocarbons are utilized in the construction industry to make building materials, adhesives, and sealants. These materials are critical to infrastructure projects across North America. Construction is a significant contributor to the American economy. In the first quarter of 2023, the United States had about 919,000 construction establishments. As a result, it offers regional market expansion.

Europe is expected to witness moderate growth in the market. Varnishes and solvents are in high demand in European countries. Furthermore, the rising industrialization of Europe is likely to increase demand for aliphatic solvents from various end-use sectors. Aliphatic hydrocarbons are used as raw materials in the European chemical industry, where they help to produce polymers, plastics, and specialty chemicals. The chemical industry is one of Europe's main manufacturing industries. As an 'enabling industry,' it is critical to supply novel materials and technology solutions to boost Europe's industrial competitiveness.

Additionally, European environmental rules promote the demand for low-VOC and ecologically friendly products, impacting the formulation of paints and adhesives containing aliphatic hydrocarbons. EU rules, such as the REACH (Registration, Evaluation, Authorization, and Restriction of Chemicals) and VOC directives, shape product compositions and promote compliance. In Europe, ongoing research and development efforts are aimed at improving the properties and applications of aliphatic hydrocarbons, which will contribute to chemical industry innovation.

Latin America, the Middle East and Africa are expected to see significant growth by the conclusion of the projected period. Latin America is expected to highlight and tender several profitable chances due to higher disposable incomes, increasing population, growing automotive and construction industries, increasing consumer purchasing capacities, and substituting turpentine for mineral spirits, among other factors.

Segmental Analysis

By Type

The type is further segmented into Saturated and unsaturated.Saturated occupied the major share of the market, and it is expected to grow significantly during the forecast period. Saturated hydrocarbons, often known as alkanes, are hydrocarbons in which single covalent bonds join all carbon atoms. In a saturated hydrocarbon, each carbon atom creates four single bonds, two with nearby carbon atoms and two with hydrogen atoms. Petroleum and natural gas include a lot of saturated hydrocarbons.

Unsaturated hydrocarbons have one or more multiple bonds (double or triple) between neighboring carbon atoms. Compared to saturated hydrocarbons, these numerous bonds result in fewer hydrogen atoms bound to the carbon atoms.

By Application

The segment can be bifurcated by application into Paints, adhesives, polymers, rubber, surfactants, solvents, and dyes.Paints are the most used application in the market and are expected to grow considerably during the forecast period. Paints are pigmented liquids or coatings applied to surfaces for protection, decoration, or other purposes. Aliphatic hydrocarbons are used in paint formulation as solvents, thinners, and components. Aliphatic hydrocarbons act as solvents, dissolving and dispersing paint ingredients to ensure a smooth application. In some paint compositions, they can also be utilized as resins or binders. As a result, aliphatic hydrocarbons are often employed in paints. As a result, the market is expanding.

Adhesives are predicted to grow at the quickest rate during the projection period. Adhesives are chemicals that are used to adhere items together. Aliphatic hydrocarbons can be employed to give bonding qualities in adhesive compositions.

List of key players in Aliphatic Hydrocarbon Market

1. Exxon Mobil Corporation
2. SK Global Chemical Co. Ltd
3. Royal Dutch Shell PLC
4. SABIC (Saudi Arabia)
5. LyondellBasell Industries Holdings B.V
6. Reliance Industries Limited

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Recent Developments

• September 2023- ExxonMobil builds chemical manufacturing in Baytown.
• August 2023- Sarawak Shell Berhad (SSB), a Shell plc subsidiary, has reported that gas production has begun on its Timi platform in Malaysia under the SK318 production sharing contract (PSC).
• August 2023- LyondellBasell introduces new CirculenRecover product grades in North America.