Naphtha Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 4.00 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Asia Pacific |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Naphtha Market Analysis
The global naphtha market is projected to register a CAGR of more than 4% during the forecast period.
The COVID-19 pandemic severely impacts the global naphtha market. The pandemic significantly affected the construction industry's growth. The lockdown imposed in response to the pandemic disrupted the construction materials supply chain. It also caused a significant shortage of workforce. Several major construction projects have been shut down for a considerable amount of time, which led to a decrease in demand for paints and coatings and their additives, thus, hindering the naphtha market growth rate. Similarly, the aerospace industry is severely affected by the COVID-19 pandemic. But, in the post-pandemic period, the opening of economies and government support to different industries led to increasing demand for naphtha and showing signs of recovery of market growth.
- Over the medium term, the naphtha market growth is likely driven by the rising demand for naphtha as a feedstock in the petrochemical Industry. Additionally, the increasing need for fertilizers in India will likely boost the demand for naphtha.
- The primary driver of the market studied is the rising demand for fertilizers in India. Moreover, due to rapid industrialization and urbanization in countries, like China, India, and Japan, the transportation sector is growing, stimulating the gasoline demand and driving the need for the naphtha market.
- The demand for natural gas liquid in the United States is expected to hinder the growth of the naphtha market.
- With the increasing demand for naphtha from fast-developing countries like China, India, and Japan, the Asia-Pacific region is expected to dominate the global market.
Naphtha Market Trends
This section covers the major market trends shaping the Naphtha Market according to our research experts:
Rising Demand from Petrochemical Industry
- Naphtha is used in various industries as light naphtha and heavy naphtha. Naphtha is majorly used in the petrochemical industry as feedstock. Around 50% of the naphtha produced is being used in the petrochemical industry.
- In the petrochemical industry, naphtha is used for manufacturing aromatics and olefins, like benzene, butadiene, ethylene, toluene, and propylene. Continuous growth in the industry makes it proactive in maintaining the development of the naphtha market.
- Olefin-rich naphtha is mainly used as a feedstock for processing cost-effective high-octane diesel. Naphtha consumption increased in both emerging and industrialized economies due to the increasing demand for cost-effective fuel due to rapid urbanization and a growing global population.
- Naphtha consumption and production are growing in fast-developing economies such as India, China, and ASEAN. For instance, the Malaysian petrochemical industry is multiplying recently, with many FDIs flowing into the country. A Malaysian national oil and gas company, Petronas, along with Saudi Aramco, announced the establishment of two joint ventures for the Refinery and Petrochemicals Integrated Development (RAPID) project in Johor, worth USD 7 billion. The collaboration mentioned above resulted in a refinery construction with a capacity to process 300,000 barrels of crude oil per day and six petrochemical plants with a combined annual output of more than 3.5 million metric tons.
- As per data published by US Energy Information Administration, the global consumption of refined petroleum products increased significantly in the post-pandemic period.
- The United Kingdom is expected to lead the upcoming projects in the European region's oil and gas sector, accounting for 25% of the pipelined projects which are likely to commence by 2025. The country shall be boasting 111 oil and gas industry projects in the near term, out of which 83 will be upstream projects, 23 will be midstream, with refinery and petrochemical at three and two, respectively.
- As of September 2022, Ineos, a petrochemicals company, will develop an oil and gas field in Denmark, marking the country's first approval of such a project in years. INEOS will collaborate with Danoill and Nordsfonden to develop the Solsort West field in the North Sea, with the first oil and gas production expected in the fourth quarter of 2023.
- Hence, the above factors are likely to increase the demand for naphtha for various applications in the end-user industries. Thus, this is expected to drive the demand for naphtha during the forecast period.
Asia-Pacific to Dominate the Market
- The Asia Pacific region dominated the global market share. Due to the growth in various end-user industries, such as petrochemical, fertilizers, paints, and coatings, the demand for naphtha is continuously rising in countries such as China, India, and Japan.
- The Japanese aerospace industry manufactures aircraft components for commercial and defense aircraft. Commercial aircraft production is increasing over the past couple of years owing to the increasing cargo demands.
- The South Korean Defense Acquisition Program Administration (DAPA) plans to work on light aircraft with an investment of USD 2.1 billion, which is expected to be operable in 2033. Hyundai Heavy Industries is involved in this manufacturing process with annual maintenance of USD 210 million.
- The Australian aerospace industry is one of the significant industries in the country, which contributes to around 2% of its GDP and manages about 10% of the world's airspace. Moreover, Australia's aerospace and defense industry includes approximately 1,000 firms and generates around USD 4 billion in annual revenue. Of this total revenue, 45% comes from exports to Europe, the United States, China, and ASEAN countries.
- The growth trend of the market is likely to remain the same in the next few years, which will drive its growth in the region.
Naphtha Industry Overview
The naphtha market is partially consolidated in nature. In terms of market share, few players currently dominate the market. Key players in the market include Reliance Industries Limited, Exxon Mobil Corporation, Saudi Arabian Oil Co. (Saudi Aramco), Formosa Petrochemical Corporation, and LG Chem(not in any particular order).
Naphtha Market Leaders
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Reliance Industries Limited
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Exxon Mobil Corporation
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Saudi Arabian Oil Co.
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LG Chem
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Formosa Petrochemical Corporation
*Disclaimer: Major Players sorted in no particular order
Naphtha Market News
- October 2022: LG Chem shuts down its naphtha crackers in South Korea for maintenance for seven weeks. It will affect the supply of petrochemicals in the region during maintenance.
- November 2021: Exxon Mobil announced an investment in a multi-billion-dollar chemical complex in Guangdong province in southern China. It will enhance the company's production of 1.6 million tonnes/year.
Naphtha Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
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4.1 Drivers
- 4.1.1 Increasing Demand for Petrochemicals in Asia Pacific
- 4.1.2 Rising Demand for Fertilizers in India
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4.2 Restraints
- 4.2.1 Natural Gas Liquid Demand in the United States
- 4.3 Industry Value Chain Analysis
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4.4 Industry Attractiveness - Porter's Five Forces Analysis
- 4.4.1 Bargaining Power of Suppliers
- 4.4.2 Bargaining Power of Consumers
- 4.4.3 Threat of New Entrants
- 4.4.4 Threat of Substitute Products and Services
- 4.4.5 Intensity of Competitive Rivalry
- 4.5 Feedstock Analysis
5. MARKET SEGMENTATION (Market Size in Volume)
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5.1 By Type
- 5.1.1 Light Naphtha
- 5.1.2 Heavy Naptha
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5.2 By End-user Industry
- 5.2.1 Petrochemical
- 5.2.2 Agriculture
- 5.2.3 Paints and Coatings
- 5.2.4 Aerospace
- 5.2.5 Other End-user Industries
-
5.3 By Geography
- 5.3.1 Asia Pacific
- 5.3.1.1 China
- 5.3.1.2 India
- 5.3.1.3 Japan
- 5.3.1.4 South Korea
- 5.3.1.5 Rest of Asia Pacific
- 5.3.2 North America
- 5.3.2.1 United States
- 5.3.2.2 Canada
- 5.3.2.3 Mexico
- 5.3.3 Europe
- 5.3.3.1 Germany
- 5.3.3.2 United Kingdom
- 5.3.3.3 Italy
- 5.3.3.4 France
- 5.3.3.5 Rest of Europe
- 5.3.4 South America
- 5.3.4.1 Brazil
- 5.3.4.2 Argentina
- 5.3.4.3 Rest of South America
- 5.3.5 Middle-East and Africa
- 5.3.5.1 Saudi Arabia
- 5.3.5.2 South Africa
- 5.3.5.3 Rest of Middle-East and Africa
6. COMPETITIVE LANDSCAPE
- 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
- 6.2 Market Share (%)**/ Ranking Analysis
- 6.3 Strategies Adopted by Leading Players
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6.4 Company Profiles
- 6.4.1 AMOC (Alexandria Mineral Oils Co.)
- 6.4.2 BP PLC
- 6.4.3 Chevron Phillips Chemical Company LLC
- 6.4.4 China National Petroleum Corporation (CNPC)
- 6.4.5 China Petroleum & Chemical Corporation (SINOPEC)
- 6.4.6 Exxon Mobil Corporation
- 6.4.7 Formosa Petrochemical Corporation
- 6.4.8 LG Chem
- 6.4.9 MGTPetroil.com
- 6.4.10 PetroChina Company Limited
- 6.4.11 Petroleos Mexicanos
- 6.4.12 Reliance Industries Limited
- 6.4.13 Royal Dutch Shell PLC
- 6.4.14 SASOL
- 6.4.15 SABIC
- 6.4.16 Saudi Arabian Oil Co. (Saudi Aramco)
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
- 7.1
Naphtha Industry Segmentation
Naphtha is a light flammable liquid containing a mixture of hydrocarbon molecules, typically between 5 and 10 carbon atoms. It mainly consists of straight-chain alkanes (paraffin), but it may also have cyclohexanes (naphthenes) and aromatics. The naphtha market is segmented by type, end-user industry, and region. By type, the market is segmented into light naphtha and heavy naphtha. By end-user industry, the market is segmented into petrochemical, agriculture, paints and coatings, aerospace, and other end-user industries. The report also covers the market size and forecasts for the naphtha market in 15 countries across major regions. For each segment, the market sizing and forecasts have been done based on volume (kilo metric tons).
| By Type | Light Naphtha | |
| Heavy Naptha | ||
| By End-user Industry | Petrochemical | |
| Agriculture | ||
| Paints and Coatings | ||
| Aerospace | ||
| Other End-user Industries | ||
| By Geography | Asia Pacific | China |
| India | ||
| Japan | ||
| South Korea | ||
| Rest of Asia Pacific | ||
| By Geography | North America | United States |
| Canada | ||
| Mexico | ||
| By Geography | Europe | Germany |
| United Kingdom | ||
| Italy | ||
| France | ||
| Rest of Europe | ||
| By Geography | South America | Brazil |
| Argentina | ||
| Rest of South America | ||
| By Geography | Middle-East and Africa | Saudi Arabia |
| South Africa | ||
| Rest of Middle-East and Africa |
Naphtha Market Research FAQs
What is the current Naphtha Market size?
The Naphtha Market is projected to register a CAGR of greater than 4% during the forecast period (2024-2029)
Who are the key players in Naphtha Market?
Reliance Industries Limited, Exxon Mobil Corporation, Saudi Arabian Oil Co., LG Chem and Formosa Petrochemical Corporation are the major companies operating in the Naphtha Market.
Which is the fastest growing region in Naphtha Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Naphtha Market?
In 2024, the Asia Pacific accounts for the largest market share in Naphtha Market.
What years does this Naphtha Market cover?
The report covers the Naphtha Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Naphtha Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the major factors driving the Naphtha Market growth?
The major factors driving the Naphtha Market growth are a) Rising demand from the petrochemical industry for naphtha as a feedstock b) Growing transportation sector in developing economies like China and India, leading to higher gasoline demand and subsequently, naphtha demand c) Increasing demand for fertilizers
What are the segments covered in the Naphtha Market Report?
The segments covered in the Naphtha Market Report are a) Type: Light Naphtha and Heavy Naphtha b) End-user Industries: Petrochemical, Agriculture, Paints and Coatings, Aerospace
Naphtha Industry Report
The global naphtha market, inclusive of heavy naphtha, has been significantly valued in recent years and is projected to experience growth during the forecast period, as per the industry reports created by Mordor Intelligence™. This growth is driven by the utilization of aromatics, including heavy naphtha, in the manufacturing of various products such as rubber, oils, edible fats, and personal care products. The rising demand for plastics in sectors like packaging, electrical & electronics, and manufacturing is predicted to stimulate market growth. Heavy naphtha, known for its lower carbon emission levels compared to other hydrocarbon fuels, is commonly used as a fuel for lanterns, power stoves, and other heating types of equipment in the power and electricity sector. The market, segmented based on type, process, application, end-user, and region, sees the Asia-Pacific region dominating due to the flourishing chemical sector and expanding end-use businesses such as automotive, construction, and plastic in developing countries like South Korea, Taiwan, and India. Mordor Intelligence™ provides a comprehensive naphtha analysis that includes a market forecast outlook and historical overview. A sample of this industry analysis is available as a free report PDF download, offering insights into the naphtha market share, size, and revenue growth rate.
