Naphtha is a colourless, extremely volatile and highly flammable liquid hydrocarbon mixture. It is obtained during the distillation of coal tar, petroleum or wood. Depending on its composition, source and use, naphtha is known by several names including petroleum spirits, shellite, ligroin, white gas, etc. It is majorly used as a feedstock for manufacturing high-octane gasoline component. Apart from this, naphtha also finds applications in the chemical and paint industries as a solvent and paint thinner. A new research report by IMARC Group, titled “Naphtha Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2018-2023” estimates that the global naphtha market was worth US$ 144 Billion in 2017. The report further anticipates the market to reach a value of US$ 181 Billion by 2023, at a projected CAGR of more than 3% over the forecast period.
Global Naphtha Market Drivers/Constraints:
- Naphtha is employed as a feedstock in the petrochemical industry for the production of several olefins and aromatics such as ethylene, propylene, butadiene, benzene and toluene. Growth in the petrochemical industry is increasing the demand for naphtha globally.
- Derivatives of naphtha are used for manufacturing industrial chemicals, plastics and synthetic fibre precursors. A rise in the usage of these end-products has created an attractive market for naphtha, thereby facilitating the market growth.
- Olefin-rich naphtha is used for blending gasoline as it enables economic production of high-octane fuel. A surge in the demand for low-cost fuel due to expanding population and rapid urbanization has further increased the consumption of naphtha in both the developed and developing regions.
- There are myriad factors that hamper the growth of the global naphtha market. Naphtha needs high safety precautions as it is volatile at room temperature and toxic in nature.
Based on application, the market has been segmented into petrochemical feedstock and gasoline blending. Among these, petrochemical feedstock holds the majority of the global market share as naphtha is one of the primary raw materials used in the production of petrochemicals such as propylene, ethylene, toluene, benzene, etc.
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On a geographical front, Asia Pacific enjoys a leading position in the global naphtha market. Rising consumption of plastics in the region has escalated the demand for petrochemicals, thereby bolstering the growth of the market. Other major regions include Europe, North America, Latin America, and Middle East and Africa.
The competitive landscape of the global naphtha market has also been analysed with some of the leading players being:
- Lotte Chemical Corporation
- Mangalore Refinery and Petrochemicals Limited
- OAO Novatek
- Shell Chemicals
- Total S.A.
- Mitsubishi Chemical
- Reliance Industries Limited
- Indian Oil Corporation
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