Market Drivers

The primary driver augmenting the sales of de-aromatic solvents in India is the rising construction activities across both commercial and residential sectors. Government initiatives such as Smart Cities Mission and Housing for All by 2022 have ramped up infrastructure development in the country. This has significantly driven the demand for paints, coatings, sealants and other building materials that use de-aromatic solvents as key ingredients. The growing disposable income of Indian population has also pushed the residential housing starts which have contributed to the product market growth. In addition, low VOC compliance and eco-friendly nature of de-aromatic solvents compared to conventional aromatics have increased their preference across various end-use industries.

Geopolitical Impact on Market Growth

The current geopolitical situations across various regions are significantly impacting the growth of India De Aromatic Solvents Market Growth . The ongoing conflicts between Russia-Ukraine are disrupting the global supply chains and creating volatility in crude oil prices. Since aromatic solvents are petroleum-based products, instability in crude oil prices directly impacts the production and distribution of DE aromatic solvents. Manufacturers are facing challenges in procuring raw materials at stable costs.

Furthermore, rising geo-political tensions between India and its neighboring countries are influencing trade relations and investment flows. Restrictions on business activities with certain nations are hindering expansion opportunities for market players. They need to diversify supply sources and reconsider production facility locations to mitigate political risks. Industry participants must focus on strengthening domestic supply networks and identifying new local partners. Collaborating with governments to ensure policy support will also help stabilize operations.

Geographical Regions of High Market Concentration

The India DE Aromatic Solvents Market is highly concentrated in the western and southern regions of the country in terms of value. States like Maharashtra, Gujarat, Tamil Nadu and Kerala collectively account for over 60% of the total market revenue. This can be attributed to the large petrochemical industrial bases located in these regions contributing to higher production and consumption of DE aromatic solvents. Strong manufacturing sectors like automotive, construction and paints & coatings driving heavy demand. Favorable business environments and availability of transportation infrastructure and logistics support have made these regions preferable manufacturing hubs.

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