Global Naphtha Market - Industry Trends and Forecast to 2029

Global Naphtha Market, By Type (Light Naphtha, Heavy Naphtha), Process (Gasoline Blending, Naphtha Reforming, Steam Cracking, Others), Application (Chemicals, Energy and Fuel, Others), End-User Industry (Petrochemical, Agriculture, Paints and Coatings, Aerospace, Others) – Industry Trends and Forecast to 2029

Market Analysis and Size

Global naphtha market is being driven by the increasing product consumption in several industries such as transportation, construction, and plastic. The rising demand for gasoline is raising the growth of the naphtha industry as the olefin-rich material is widely used for blending the gasoline-grade fuel. Furthermore, the growing demand for petrochemicals, like ethylene and propylene for the manufacturing of plastics, is driving the global naphtha market. More, the advent of alternative technologies such as hydro-pyrolysis of the product which saves energy and helps in decreasing the production cost. This, coupled with the growth of distillation column and advanced furnace materials is creating a positive outlook for the global naphtha market.

Data Bridge Market Research analyses that the naphtha market was valued at USD 158.23 billion in 2021 and is expected to reach USD 215.55 billion by 2029, registering a CAGR of 3.94 % during the forecast period of 2022 to 2029. The market report curated by the Data Bridge Market Research team includes in-depth expert analysis, import/export analysis, pricing analysis, production consumption analysis, patent analysis and technological advancements.

Report Scope and Market Segmentation

Market Definition

Naphtha is a type of gasoline or raw petrol which has distilled from raw material and crude oil for the chemical industry. Naphtha consists the portions from crude oil, with a boiling temperature from 30 °C to 200 °C and may have a major share of aromatic compounds. Naphtha refers to a highly versatile hydrocarbon compound that is flammable, colorless, and extremely volatile. It is produced by the distillation of organic substances including wood, coal tar, petroleum, and shale. Naphtha is known by many names such as coal tar naphtha, wood naphtha, petroleum spirits, shellite and white gas it is depending on its source or composition.

Naphtha Market Dynamics

This section deals with understanding the market drivers, advantages, opportunities, restraints and challenges. All of this is discussed in detail as below:

Drivers

• Demand in petrochemical industry

Naphtha is used for manufacturing olefins and aromatics like ethylene, toluene, benzene, butadiene, and propylene in the petrochemical industry. Due to the Continuous growth in the industry it has been proactive in maintaining the growth of the naphtha market.

• Rise the demand of olefin rich naphtha

Olefin-rich naphtha is the derivative of the naphtha which is mostly used as a feedstock for processing the cost-effective high-octane diesel. The consumption of Naphtha consumption has increased in both industrialized and emerging economies due to the growing demand for cost-effective fuel because of increasing population and rapid urbanization.

• Naphtha as a solvent

People generally use petroleum naphtha as a solvent. It can be found in several cleaning agents. It is also used as dilution agent for varnish, paints and asphalt. Dry-cleaning industries also use naphtha in their processes. Due to this increase the demand of naphtha and are expected to increase the growth of naphtha market.

Opportunities

The development of the electrical and transport sectors in the many regions on account of increasing trade activities by consumers is anticipated to drive the demand of the naphtha Advancement in technology has led to the enhanced distillation processes and development of advanced furnace materials. The expanding of chemical industry is further increasing the consumption of naphtha. Moreover, increase in emerging new markets and strategic collaborations will also act as market drivers and further increase useful opportunities for the market's growth rate.

Restraints/ Challenges

Crude oil is a main constituent of the global naphtha market. The fluctuation and volatility that exists in the cost at which crude oil can be obtained is witnessing a major limitation for the naphtha market on the growth path The demand for natural gas liquid and the shift in trends from the use of naphtha to low-cost alternatives for example LPG are anticipated to hinder the naphtha market growth during forecast period.

This naphtha market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the naphtha market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.

COVID-19 Impact on Naphtha Market

The global naphtha market is adversely impacted by the COVID-19 epidemic. The Covid-19 pandemic has considerably affected the growth of the construction industry. Government has imposed the lockdown which has disrupted the supply chain of construction materials. Many major construction projects have been closed for a momentous amount of time, which led to a reduction in demand for coatings and paints and their additives, therefore, obstructing the market growth rate of the naphtha. Similarly, the aerospace industry has also been strictly affected by the COVID-19 epidemic, which negatively affects the demand for new airplanes. Therefore, coatings and paints are required for manufacturing them, in turn, declining the demand for naphtha. After the lockdown restrictions are being eased, the market is regaining the demand that will help reduce the losses that the naphtha market has witnessed during the forecast period.

Global Naphtha Market Scope

The naphtha market is segmented on the basis of type, process, application and end-user. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Type

• Light Naphtha
• Heavy Naphtha

 Process

• Gasoline Blending
• Naphtha Reforming    
• Steam Cracking
• Others

Application

• Chemicals
• Energy and Fuel
• Others

End-User

• Petrochemical
• Agriculture
• Paints and Coatings
• Aerospace
• Others

Naphtha Market Regional Analysis/Insights

The naphtha market is analysed and market size insights and trends are provided by country, type, process, application and end-user as referenced above.

The countries covered in the naphtha market report are U.S., Canada and Mexico in North America, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe in Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in the Asia-Pacific (APAC), Saudi Arabia, U.A.E, South Africa, Egypt, Israel, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA), Brazil, Argentina and Rest of South America as part of South America.

Asia-Pacific dominates the naphtha market in terms of revenue and market share during the forecast period. This is due to the increasing demand for naphtha in this region. The Asia-Pacific region dominates the naphtha market due to the technological advancement such as advanced distillation processes and development of chemical in this region.

During the projected period, North America is anticipated to be the fastest developing region due to the rise in gasoline consumption and the presence of prominent market players in this region.

The country section of the report also provides individual market impacting factors and changes in market regulation that impact the current and future trends of the market. Data points like down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.

Competitive Landscape and Naphtha Market Share Analysis

The naphtha market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to naphtha market.

Some of the major players operating in the naphtha market are:

• Chevron Corporation. (US)
• Reliance Industries Limited (India)
• Shell Chemicals (US)
• SABIC (Saudi Arabia)
• BP PLC (UK)
• Exxon Mobil Corporation. (US)
• China Petrochemical Corporation (China)
• Indian Oil Corporation Ltd (India)
• Novatek (Russia)
• Mitsubishi Chemical Corporation (Japan)
• Lotte Chemical Corporation (South Korea)
• Mangalore Refinery and Petrochemicals Limited (India)
• NOVA Chemicals Corporate (Canada)
• China Petrochemical Corporation. (China)
•  Formosa Plastics Corporation (Taiwan)
•  LG Chem (South Korea)
• Petróleos Mexicanos (Mexico)
• MGTPetroil, (US)
•  Vitol (Netherlands)