The global naphtha market is projected to register a substantial CAGR during the forecast period, between 2021 and 2028. Naphtha refers to a highly flammable hydrocarbon mixture that is a toxic type of raw petrol or gasoline. Naphtha is obtained by distillation of crude oil and is utilized as a raw material for the chemical industry. The presence of straight chains of alkanes or paraffin in naphtha allows it to dilute heavy oil and produce high-octane gas and use it to clean metal. Naphtha is also an essential part of hydrocarbon cracking process, which is conducted under extreme pressure and heat, due to its superior heat resistant properties. Naphtha can be produced from natural gas condensates, petroleum distillates, and the distillation of coal tar and peat.
Market Trends, Drivers, Restraints, and Opportunities:
- Rising consumption of naphtha in the petrochemical industry and the demand for fertilizers is a major driver for the naphtha market.
- Naphtha is a crucial component for plastics as well. The wide use of plastic in daily life can spur the demand for naphtha in the market.
- Growing requirement for economical high octane fuel in both developing and developed countries is fostering the growth of the market.
- The volatility of the prices of crude oil has negatively impacted the naphtha market as the production of naphtha depends on the availability of crude oil.
- The COVID-19 brought a hard time for the producers and manufactures in the naphtha market. However, relaxation in restrictions is positively influencing the market growth.
- Lack of investments, economic breakdown, and lack of skilled labour stunted the growth of the market.
- Rapid rate of industrialisation and urbanisation, especially in developing countries has increased the demand for fuel and naphtha, thus driving the market growth during the forecast period.
Scope of the report:
The report on the global naphtha market includes an assessment of the market, size, share, trends, segments, and regional markets. Overview and dynamics have been included in the report.
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Attributes
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Details
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Report Title
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Naphtha Market – Global Industry Analysis, Size, Share, Growth, Trends, and Forecast
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Base Year
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2020
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Historic Data
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2018 & 2019
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Forecast Period
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2021–2028
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Segmentation
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Types (Light Naphtha and Heavy Naphtha), End-users (Petrochemicals, Agriculture, Paints & Coatings, Aerospace, and Others)
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Regional Scope
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Asia Pacific, North America, Europe, Latin America, and Middle East & Africa
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Report Coverage
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Market scope, analysis, share, competitive analysis, growth facts, restraints, opportunities, and revenue forecast
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Naphtha Market Segment Insights:
Rising petrochemical feedstock use has driven the light naphtha segment
Based on types, the naphtha market can be bifurcated into light naphtha and heavy naphtha. Light naphtha refers to the fraction boiling between 30°C and 90 °C consisting of molecules with five to six carbon atoms. Naphtha is used as a base material for the production of high-grade gasoline through catalytic reforming process. It has petrochemical uses as it is used in steam crackers in order to produce ethylene, which ultimately results in the manufacturing of plastics. Heavy naphtha refers to a distillation cut which has the same density as finished gasoline. Heavy naphtha has approximately seven to nine carbon atoms , which is produced from the atmospheric distillation unit.
Wide application of naphtha drives the petrochemical segment
On the basis of end-users, the market can be segmented into petrochemicals, agriculture, paints & coatings, aerospace, and others. The petrochemicals segment is rapidly growing due to the wide application of naphtha as a fuel and the increasing investments in the petrochemical industry toward the manufacturing of naphtha, using crude oil. Naphtha is used for manufacturing aromatics and olefins in the petrochemical industry. The aerospace uses naphtha as a fuel. Naphtha is used by the paints & coatings industry as an excellent paint thinner and is used as a cleaning agent due to its ability to dissolve with a greater volatility. The agriculture segment uses naphtha as a fertilizer, especially in the plant reformers, where high temperatures are required. It is also used as a fuel for steam generation in the plants where reforming is done with steam.
Asia Pacific to dominate the market
In terms of regions, the global naphtha market can be fragmented into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. Asia Pacific constituted a significant share of the market in 2020 due to rapid urbanization in developing countries such as China, India, and Japan. Moreover, increase in investments by petrochemical industries and growing automotive infrastructure are driving the market in Asia Pacific. The market in North America is projected to expand at a significant CAGR during the forecast period due to growing expenditure in the petrochemical industry.
Segments
Segments covered in the report
By Types
- Light Naphtha
- Heavy Naphtha
By End-users
- Petrochemicals
- Agriculture
- Paints & Coatings
- Aerospace
- Others
By Regions
- North America
- Europe
- Latin America
- Asia Pacific
- Middle East & Africa
Competitive Landscape
Key players in the global naphtha market include Reliance Industries Limited; Exxon Mobil Corporation; Saudi Arabian Oil Co.; Formosa Petrochemical Corporation; and LG Chem.
These players have widely engaged in several market development strategies including collaborations, agreements, mergers & acquisitions, production capacity expansion, new product launches, and partnerships to strengthen their geographical presence and expand their customer base globally.
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