Global Reactive Diluents Market Size, Share, and COVID-19 Impact Analysis, By Type (Aliphatic, Aromatic, and Cycloaliphatic), By Function (Mono Functional and Multi-functional), By End Use (Paints & Coatings, Adhesives & Sealants, Composite, Flooring, and Others), and By Region (North America, Europe, Asia-Pacific, Latin America, Middle East, and Africa), Analysis and Forecast 2025 - 2035

Global Reactive Diluents Market Insights Forecasts to 2035

• The Global Reactive Diluents Market Size Was Estimated at USD 1.09 Billion in 2024
• The Market Size is Expected to Grow at a CAGR of around 6.1% from 2025 to 2035
• The Worldwide Reactive Diluents Market Size is Expected to Reach USD 2.09 Billion by 2035
• North America is expected to grow the fastest during the forecast period.

According to a research report published by Spherical Insights and Consulting, the global reactive diluents market size was worth around USD 1.09 billion in 2024 and is predicted to grow to around USD 2.09 billion by 2035 with a compound annual growth rate (CAGR) of 6.1% from 2025 to 2035. The reactive diluent market is growing due to the requirement for high-performance coatings and adhesives with less VOC in the construction sector, the automobile industry, and the electronics sector.

Market Overview

The international reactive diluent market is defined as the industry that specializes in low-viscosity compounds, which react chemically with resins, including epoxy, polyurethane, and acrylic resins, to improve processability, decrease viscosity, and improve the qualities of coatings, adhesives, and other compositions. These reactive diluents are in increasing demand in the sectors of industrial coatings, construction, autos, electronics, and the marine industry, where they find utility in providing superior mechanical strength, chemical resistance, and low volatile organic compounds emissions, respectively.

Industry expansion is largely fueled by the increasing need for green and superior-performing coatings, the development of the infrastructure and renewable energy sectors, and rising climatic regulations that support the development of solvent-free products, respectively. The major players that contribute to the development of the industry include BASF, Huntsman Corporation, Allnex, Kukdo Chemical, and Evonik Industries, by virtue of product development and distribution chains to further increase market presence in response to escalating demand on the Industrial side. In June of 2025, the U.S. EPA extended the compliance date of National VOC Emission Standards for Aerosol Coatings to January 17, 2027. It applies to 46 sources, of which only two entities had a total of 70% market share, and the others comprised smaller aerosol product marketers and larger coating suppliers.

Report Coverage

This research report categorizes the reactive diluents market based on various segments and regions, forecasts revenue growth, and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the reactive diluents market. Recent market developments and competitive strategies, such as expansion, type launch, development, partnership, merger, and acquisition, have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the reactive diluents market. 

Driving Factors

The reactive diluents market growth is supported by the emergence of demand for less viscous high-performance coatings, adhesives, and composite materials. However, legislation increasing the use of environmentally friendly low-VOC and solvent-free coatings has propelled the demand for reactive diluents as green solutions. Infrastructure and wind energy developments at a faster pace boost the demand for epoxy/polyurethane-based reactive diluents. Advances in resin technology, the increase in the use of lightweight materials, and the growing use in the electronics and marine markets further drive the market. Furthermore, the processing ease and the enhanced mechanics of reactive diluents continue to offer impetus to their use.

Restraining Factors

Factors restraining the reactive diluents market in the global market include the instability in the prices of the raw materials, the high cost of formulation, and the unavailability of biologically derived alternatives. Biological concerns with respect to toxicity and sensitization, as well as regulatory approval requirements, also limit the adoption.

Market Segmentation

The reactive diluents market share is classified into type, function, and end use.  

• The aliphatic segment dominated the market in 2024, approximately 42% and is projected to grow at a substantial CAGR during the forecast period.

Based on the type, the reactive diluents market is divided into aliphatic, aromatic, and cycloaliphatic. Among these, the aliphatic segment dominated the market in 2024 and is projected to grow at a substantial CAGR during the forecast period. Aliphatic dominated the growth of the marketplace, owing to its greater flexibility, resistance to weathering, non-toxicity, and economical nature. Its extensive applications in coatings, adhesives, sealants, and elastomeric overlays, coupled with the rise in demand from the construction and automobile sectors, are primarily driving the increased acceptance and subsequent growth of the marketplace.

• The multi-functional segment accounted for the largest share in 2024, approximately 58% and is anticipated to grow at a significant CAGR during the forecast period.

Based on the function, the reactive diluents market is divided into mono functional and multi-functional. Among these, the multi-functional segment accounted for the largest share in 2024 and is anticipated to grow at a significant CAGR during the forecast period. Multi-functional remained the leading contributor to market growth due to its improved performance properties, superior crosslinking capabilities, and versatility. Being able to extend the durability and chemical resistance, along with the strength-of-material properties, enhanced the preference level of multi-functional to stay ahead in the advanced coatings, adhesive, and composite materials markets.

• The paints & coatings segment accounted for the highest market revenue in 2024, approximately 48% and is anticipated to grow at a significant CAGR during the forecast period.

Based on the end use, the reactive diluents market is divided into paints & coatings, adhesives & sealants, composite, flooring, and others. Among these, the paints & coatings segment accounted for the highest market revenue in 2024 and is anticipated to grow at a significant CAGR during the forecast period. The paints and coatings market is growing due to the increase in construction activities, growing usage of protective and decorative coatings, and the rapid industrialization of Emerging Economies. Increasing emphasis on durability, corrosion, and environmentally friendly offerings has further accelerated the usage of smart coating solutions in the automotive, marine, and industrial sectors.

Regional Segment Analysis of the Reactive Diluents Market

• North America (U.S., Canada, Mexico) 
• Europe (Germany, France, U.K., Italy, Spain, Rest of Europe)
• Asia-Pacific (China, Japan, India, Rest of APAC)
• South America (Brazil and the Rest of South America) 
• The Middle East and Africa (UAE, South Africa, Rest of MEA)

Asia Pacific is anticipated to hold the largest share of the reactive diluents market over the predicted timeframe.

Asia Pacific is anticipated to hold the largest share of the reactive diluents market over the predicted timeframe. Asia Pacific is forecasted to represent the 43% market share in the growth of the reactive diluents market. This is attributed to the increasing industrialization rate, growing construction activities, and the increasing demand in the automotive industry, electronics industry, and coatings industry. This growth is experienced by countries such as China, which has high manufacturing activities and construction activities; the country of India through urbanization; and also, by Japan and South Korea because of the increasing demand experienced in the electronics industry.

North America is expected to grow at a rapid CAGR in the reactive diluents market during the forecast period. North America’s reactive diluents market is projected to have a 21% market share, owing to the increased use in high-tech sectors such as the auto industry, aerospace segments, the construction sector, and the electronics arena. In North America, the U.S. is the leading market due to its investments in lightweight materials technology, protective coatings technology, and eco-compatible formulations. Technological innovations and heavy regulations are escalating the growth. In May 2025, the U.S. imposed antidumping duties on epoxy resin originating from South Korea, Taiwan, Thailand, China, and India. These involve the import species required in the diluent formulation.

Europe's market for reactive diluents is increasing steadily due to strict regulations regarding pollution, such as REACH legislation and the EU Green Deal, which favor sustainable reactive diluents. Europe's strong automobile manufacturing base, coupled with high demand for coating and adhesive formulation in France, along with developments in aerospace materials in the UK, is also propelling its demand.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the reactive diluents market, along with a comparative evaluation primarily based on their type of offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes type development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Evonik Industries AG
• Kukdo Chemical
• Hexion Inc.
• BASF
• Allnex
• Cargill, Inc.
• Olin Corporation
• Arkema SA
• Huntsman Corporation
• DIC Corporation
• Cardolite Corporation
• Sachem
• Aditya Birla Chemicals
• Grasim Industries Limited
• Others

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Recent Development

• In April 2025, Arkema launched a new line of biobased specialty additives for sustainable coatings and adhesives. These acrylic thickeners, suitable for paints, industrial coatings, plasters, adhesives, and sealants, deliver comparable performance and cost benefits while helping customers reduce carbon footprints and advance sustainability across the value chain.

• In February 2025, allnex announced the expansion of its Global Business Services network with a new center in Guadalajara, Mexico, complementing existing hubs in Riga, Latvia, and Kuala Lumpur, Malaysia, to support its global operations in specialty polymers and additives for coatings, composites, and industrial applications.

• In February 2023, Huntsman announced the launch of three new products at the European Coatings Show (ECS), including POLYRESYST IC6005, a polyurethane intumescent coating for construction that delivers passive fire protection and robust durability, showcasing Huntsman’s innovative chemistries and support for formulators.

• In February 2020, BASF launched Vinyl Methyl Oxazolidinone (VMOX) in commercial quantities. Designed as a reactive diluent for UV-curing coatings and inks, including UV inkjet printing, VMOX offers technical advantages over conventional diluents and enables innovative, safer formulations with a favorable toxicological profile.

• In October 2018, Evonik launched VISIOMER GLYFOMA, a low-odor, low-VOC reactive diluent. Suitable for adhesives, composite resins, and gel coats, it serves as a label-free alternative to styrene and MMA, enabling partial or full replacement while maintaining performance.

Market Segment

This study forecasts revenue at global, regional, and country levels from 2020 to 2035. Spherical Insights has segmented the reactive diluents market based on the below-mentioned segments:  

Global Reactive Diluents Market, By Type

• Aliphatic
• Aromatic
• Cycloaliphatic

Global Reactive Diluents Market, By Function

• Mono Functional
• Multi-functional

Global Reactive Diluents Market, By End Use

• Paints & Coatings
• Adhesives & Sealants
• Composite
• Flooring
• Others

Global Reactive Diluents Market, By Regional Analysis

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of the Middle East & Africa