The global naphtha market was worth more than USD xx billion in revenue in 2018 and is expected to cross USD xx billion in 2023, growing at a healthy CAGR of over xx% during the forecast period.
Naphtha is a mixture of hydrocarbons produced from crude oil distillation and natural gas condensation process. It is a major feedstock for producing many petrochemicals. Important petrochemicals produced from steam cracking of naphtha include ethylene, propylene and butylene. Other important petrochemicals produced from catalytic reforming of naphtha include benzene, toluene and xylenes. The other major use of naphtha is as a fuel additive for gasoline, jet fuel and others.
Based on the chemical and physical properties, naphtha can be
- Heavy naphtha, which has greater than 6-9C chains and rings
- Light naphtha, which has less than 6 C chains and rings
As Naphtha is the major feedstock for petrochemicals production, demand for petrochemicals is expected to increase the growth of this market. Demand from petrochemicals based markets is actually increasing because of growing population and extra income in developing countries. Rising demand of downstream petrochemicals from various industries such as packaging, automotive and construction industry is likely to drive Naphtha demand. Additionally, demand for fuel additives is likely to increase at a greater rate because of an upsurge in demand from end-use markets, which in turn will boost Naphtha demand.
Drivers and Restraints of Naphtha Market
Growing investments in downstream industries in regions like Asia and the Americas are likely to offer tremendous possibilities for Naphtha market in the future. As a result of accessibility to raw material, multinational businesses are investing in resource-rich regions to be able to limit the overall production cost. In the USA and China, the shale gas revolution has made the gas condensed light naphtha much cheaper in the recent past until the global market was flooded with crude oil oversupply.
Naphtha is exposed to the probability of volatility in supply and price of crude oil and natural gas. Naphtha has an adverse effect on the environment. Its acute toxicity and flammability often make environmental regulatory institutions to implement strict regulations on Naphtha usage. Existing and future regulations concerning the use of Naphtha and its derivatives in end products are likely to challenge the market growth.
Naphtha Market by Region
Asia was the largest consumer of naphtha and this pattern is anticipated to continue to be identical over the following few years. Consumption in China is showing upward trend because of increase in economic activity. Growing demand for fuel, packaging, construction and other industries will drive naphtha market in China. With major production capacities in China and South East Asia, the region is likely to grow in terms of global supply capability. Consumption of naphtha in the Americas and the Middle East is likely to grow at a significant rate due to demand from fuel, packaging and construction industry. Demand from Europe and Africa was low relatively and is likely to stay same in the next few years.
Top players in this market include Total SA, Indian Oil Corp., Novatek, ChemChina, Mitsubishi Chemical, Reliance Industries, Lotte Chemical Corp., Novachem, SABIC, among others.
The report covers exhaustive analysis on:
- Global Market Size
- Global Market Segments
- Market Regional Analysis
- Global Market Competitive Landscape
- Production Technology
- Global Market Value Chain
- In depth summary of parent market
- Altering market characteristics in the industry
- Detailed market segmentation
- Historical and forecast market size in terms of volume and value
- Current industry developments
- Competitive landscape
- Potential and niche segments, regions showing promising growth