Alkylated Naphthalene Market - Snapshot
Alkylated naphthalene used in lubricant-grade oils are produced by alkylation of naphthalene in the presence of a catalyst. Alkylated naphthalene is categorized as a Group-V base oil by the American Petroleum Institute (API). However, alkylated naphthalene is rarely used as a sole base oil. It is primarily used in a lubricant formulation, replacing a portion of a Group-II, Group-III, or PAO base oil. Incorporating alkylated naphthalene in a formulation improves thermal and thermo-oxidative stability of the formulation. This improves the overall shelf life and performance of lubricants.
Rapid Industrialization in Developing Economies to Drive Alkylated Naphthalene Market
Developing economies, such as member nations of BRICS, collectively accounted for 23.9% share of the global GDP in 2017. BRICS countries expected to witness a significant increase in their GDP by 2022. This has resulted in growth of sectors such as industrial machinery, automotive, and energy, which has boosted the demand for alkylated naphthalene and finished lubricants. Furthermore, the global international trade increased at a growth rate of 2.5% from 2016 to 2017, which boosted the requirement for lubricants from marine and transportation industries. This, in turn, increased the demand for alkylated naphthalene. Therefore, rise in trade, industrialization, and urbanization is driving the lubricant demand. This, in turn, is boosting the demand for alkylated naphthalene.
Increase in Automobile Sales to Drive Alkylated Naphthalene Market
The automotive sector is a major consumer of lubricants. Additionally, usage of lubricants is imperative in the automotive sector, which increases dependency on lubricants and alkylated naphthalene. Rapid growth in population and rise in disposable income have propelled the demand for passenger and commercial vehicles. The global sales of cars and commercial vehicles stood at 96.8 million units in 2017. This is augmenting the demand for finished lubricants and alkylated naphthalene. Increase in disposable income and easy finance options have made purchasing of cars easy for the common man. Which is why the sale of 4 wheelers is increasing in developing countries. Lubricants are imperative for the smooth functioning of these vehicles. This, in turn, increases the demand for lubricants.
Several economic factors such as over-production of crude oil, slowdown in the demand for oil from China, changes in energy portfolios of countries cause fluctuations in oil prices. Since crude oil is an indirect raw material employed in the production of alkylated naphthalene, the price fluctuation is reflected in alkylated naphthalene prices. These factors have created volatility in prices of and demand for alkylated naphthalene. Volatility of raw material prices restrains the production of and demand for alkylated naphthalene.
Leading Players Focusing on Geographical Expansion
Key players profiled in the alkylated naphthalene market include ExxonMobil Corporation, King Industries Inc., and NACO Corporation. These players engage in long-term contracts, geographical expansion, and development and launch of new products. For instance, in June 2018, ExxonMobil Corporation acquired PT Federal Karyatama (FKT), an Indonesia-based lubricant manufacturer, which is a major manufacturer of motorcycle lubricants in the world. The acquisition is expected to help ExxonMobil strengthen its position in the lubricant oils industry in Indonesia. Additionally, in June 2018, ExxonMobil and Synthetic Genomics Inc. announced a breakthrough in joint research on advanced biofuels involving the modification of an algae strain. This is expected to double biofuel oil content without significantly inhibiting the strain.
Demand for Food Grade Alkylated Naphthalene to Increase in the Near Future
Food grade alkylated naphthalene is widely used to manufacture lubricants that are used in food processing plants. Food grade alkylated naphthalene is essential for applications where there is a chance of accidental food contact. Increasing consumption of processed food across the globe is driving the food processing. This, in turn, is driving demand for the alkylated naphthalene. In terms of value, the standard grade alkylated naphthalene segment accounted for significant share of the global alkylated naphthalene market in 2017 due to superior cost-to-performance ratio offered by these products.
Emerging Economies to Create Opportunities in Alkylated Naphthalene Market
In terms of volume, North America and Europe are leading regions of the alkylated naphthalene market. In terms of value, the market in Asia Pacific is projected to expand at a substantial pace during the forecast period, followed Latin America and Middle East & Africa. The market in Latin America is estimated to expand considerably owing to the rise in demand for lubricants in the automotive industry and increase in demand for these chemicals in compressor oil applications. In terms of country, the market in India, Canada, South Korea, and Mexico is anticipated to expand at a significant pace due to the rise in demand for lubricants in various end-use industries such as automotive, manufacturing, and mining during the forecast period.
Alkylated Naphthalene Market - Overview
This report analyzes and forecast the alkylated naphthalene market at the global and regional level. The market has been forecast based on revenue (US$ thousand) and volume (tons) from 2018 to 2026. The study includes drivers and restraints of the global alkylated naphthalene market. It also covers the impact of these drivers and restraints on demand for alkylated naphthalene during the forecast period. The report also highlights opportunities in the alkylated naphthalene market at the global level.
The report comprises a detailed value chain analysis, which provides a comprehensive view of the global alkylated naphthalene market. The Porter’s Five Forces model for the alkylated naphthalene market has also been included to help understand the competitive landscape in the market. The study encompasses market attractiveness analysis, wherein applications are benchmarked based on their market size, growth rate, and general attractiveness.
The study provides a decisive view of the global alkylated naphthalene market by segmenting it in terms of grade, viscosity index, and application. The segments have been analyzed based on present and future trends. Regional segmentation includes the current and projected demand for alkylated naphthalene in North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. The report also covers demand for individual grade, viscosity index, and application segments in all the regions. Key players operating in the alkylated naphthalene market include ExxonMobil Corporation, King Industries Inc., and NACO Corporation. Market players have been profiled in terms of attributes such as company overview, financial overview, business strategies, and recent developments.
The report provides the size of the alkylated naphthalene market for 2017 and forecast for the next nine years. The size of the global alkylated naphthalene market has been provided in terms of revenue and volume. Market numbers have been estimated based on grades, viscosity index, and applications of alkylated naphthalene. Market size and forecast for each grade, viscosity index, and application have been provided for the global and regional market.
We conducted in-depth interviews and discussions with a number of key industry participants and opinion leaders to compile the research report. Primary research represents the bulk of research efforts, supplemented by extensive secondary research. We reviewed key players operating in various end-use industries, annual reports, press releases, and relevant documents for competitive analysis and market understanding. Secondary research also includes recent trade, technical writing, internet sources, and statistical data from government websites, trade associations, and agencies. This has proven to be the most reliable, effective, and successful approach for obtaining precise market data, capturing industry participants’ insights, and recognizing business opportunities.
Global Alkylated Naphthalene Market, by Grade
Global Alkylated Naphthalene Market, by Viscosity Index
- 22–65 SUS
- 65–90 SUS
- 90–115 SUS
- Above 115 SUS
Global Alkylated Naphthalene Market, by Application
- Automotive Engine & Gear Oils
- Hydraulic Fluids
- Heat Transfer Oils
- Compressor Oils
- Paper Machine Oils
- Industrial Lubes & Greases
- Others (including turbine oils, wind mill oils, and vacuum oils)
Global Alkylated Naphthalene Market, by Region
- Asia Pacific
- South Korea
- Rest of Asia Pacific
- Russia & CIS
- Rest of Europe
- North America
- Middle East & Africa
- South Africa
- Rest of Middle East & Africa
- Latin America
- Rest of Latin America
- Extensive analysis of the alkylated naphthalene market trends and shares from 2017 to 2026 to identify market opportunities and analyze industry developments
- List of key developments in the alkylated naphthalene market made by key players
- List of key factors responsible for building the upcoming opportunistic roadmap for the alkylated naphthalene market at global, regional, and country level
- Comprehensive analysis regarding investments and price trends that impact the outlook of the global alkylated naphthalene market between 2017–2026
- Insights into market opportunities for various stakeholders in the value chain and a detailed competition landscape for key players dominating the industry to understand competition level
- Porters’ Five Forces analysis highlights the potency of buyers and suppliers and enables stakeholders to make profit-oriented business decisions. It helps analyze the strengths and weaknesses to gain strategic position in the market.