Naphtha Market- By Type (Light Naphtha, Heavy Naphtha) Application (Chemicals, Energy and Fuel, Others), Process (Gasoline Blending, Naphtha Reforming, Steam Cracking, Others) - Global Opportunity Analysis and Industry Forecast, 2020 – 2030

Naphtha Market was valued at USD 152.23 billion in 2020 and is set to grow with a CAGR of 2.7 % from 2020-2030. Naphtha is a extremely versatile product that can be found in refined or shale oil and coal tar. Naphtha is a hydrocarbon mixture that is highly volatile and insoluble in water, flammable and colourless. This is obtained on an industrial basis by distilling organic ingredients, such as shale, petroleum, or gas. This finds diverse applications for portable stoves such as gasoline output, cleaning fluids, shoe polishing, and heat. Prevalent production sources include refineries, coal, and chemical plants. Crude oil refining is an integral part of manufacturing cycle. The cracking of hydrocarbons under intense pressure and temperature requires highly durable materials. Other factors which control material choice include environmental regulations and regional prices. Depending on the structure of hydrocarbons and the method of extraction, there are mainly two types of naphtha, i.e. paraffinic and strong formation. In refinery catalytic reformers, heavy naphtha also known as straight run benzene (SRB) is widely used to increase the fuel's octane number.

Market Dynamics and Factors:

In the petrochemicals industry rising use of naphtha as a feedstock is the key driver of market development. In addition, naphtha also finds use in fuel blending, chemical solvents, and fluid washing. Increasing demand for petrol in the transportation industry is also expected to boost global naphtha market growth. Petrochemical steam crackers play a significant role in light naphtha. Olefins and aromatics are the main products of the cracking process. Olefins include polyethylene and polypropylene as the main feedstock for plastics processing. Many chemical processes, including chemical intermediates, polymers, and synthetic rubber, use olefins as their primary tool.

Market Segmentation:

Based on the type, the global naphtha market can be segmented by light naphtha and heavy naphtha. Based on process, the market is bifurcated into gasoline blending, naphtha reforming, steam cracking, others. Depending upon the applications, the market is segmented into Gasoline Blending and Petrochemical feedstock. Geographic segments includes regions comprising North America, Europe, Asia-Pacific, and RoW.

Geographic Analysis:

Asia-Pacific reported the largest global naphtha market share in 2017 and it is projected that the regional market will experience the highest CAGR during the review period. During the forecasted period, the growing chemical industry is projected to drive growth in the Asia-Pacific naphtha market. Furthermore, technical advances such as improved processes for distillation and the use of advanced furnace materials promote business growth. Developing countries like China, India, Indonesia, and Thailand are major gasoline and energy users. This is likely to deliver the lucrative incentives for manufacturing capacity expansion to industry players in these countries.  High oil refinery expansion in the Middle East area is expected to fuel the global naphtha  market  in the near future.

Competitive Scenario:

The companies like Mitsubishi Chemical and Reliance Industries have consolidated their operations to improve economies of scale and overall productivity, starting from crude oil and natural gas processing to end-product manufacture. Indian Oil Corp., Novatek, SABIC Total SA, Novachem, Lotte Chemical Corp., and Mangalore Refinery and Petrochemicals Limited (MRPL) also participate in the industry.

Naphtha Market Report Scope