Naphtha Market Outlook 2031

  • The global naphtha market was valued at US$ 249.68 Bn in 2020
  • It is estimated to expand at a CAGR of 5.1% from 2021 to 2031
  • The global naphtha market is expected to reach the US$ 431.53 Bn by the end of 2031

Analysts’ Viewpoint on Naphtha Market Scenario

With the start of the new financial year, manufacturers are revising their budgeting for investments and expenditures to overcome long-term implications of the COVID-19 outbreak. However, volatility of raw material prices, high prices of naphtha in North America, and shift in trends toward cheaper alternatives such as LPG are compelling market players in the naphtha market to set up business activities in Asia Pacific. Hence, market players should balance their businesses for mission-critical applications in Western countries and simultaneously capitalize on revenue opportunities in Asia to maximize profits. They should increase sales of naphtha in power plants, steel plants, fertilizer units, and paint applications.

Investment in Capacity Expansions Help Acquire Market Dominance

Major oil companies in the naphtha market are announcing the launch of clean fuel and aromatics projects as a responsibility toward the environment. They are investing in capacity expansions to incorporate naphtha splitter columns. These columns help to split the hydro-treated naphtha into light and heavy naphtha. Such columns are the main feeder to the continuous catalytic reforming (CCR) and the isomerization units, which have an operating capacity of 90,000 and 65,000 barrels per day, respectively.

It has been found that most of the industry participants have been relying on third-party distributors to reach their target customers. Distribution agreement is the most popular strategy among manufacturers in the naphtha market to increase their product penetration in various end-use cases.

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Balanced Relationship with Ecosystem Partners Necessary During COVID-19 Outbreak

Manufacturers in the naphtha market are maintaining optimum inventory levels to ensure continuity in production and supply chains during COVID-19 outbreak. Cash-rich companies are taking data-driven decisions before making inroads in new regions. Manufacturers are ensuring a balanced relationship with ecosystem partners and suppliers to prevent supply chain hiccups.

Companies are making strategic investments in new production and machinery technologies to stay financially afloat during the ongoing pandemic. Although aggressive capacity ramps are being witnessed in China, a new pandemic wave in Shanghai is grabbing the attention of market stakeholders. Complete relaxations in restrictions in Indian states such as Delhi and Maharashtra are benefitting stakeholders in the value chain.

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Sales of Naphtha Challenged by Less-expensive Alternatives such as LPG

The global naphtha market is predicted to expand at a modest CAGR during the forecast period. However, fluctuating crude oil prices and availability of less-expensive alternatives such as shale gas and LPG (Liquefied Petroleum Gas) are predicted to slowdown growth of the market. Hence, manufacturers are diversifying their sales channels in essential applications of naphtha including solvents used for paints, solvents in rubber industry, and dry-cleaning solvents to ensure high sales of naphtha.

The architecture, engineering and construction (AEC) industry is generating stable revenue streams for companies in the naphtha market. The demand for naphtha from the chemicals industry across the globe constituted to 60% of the overall demand in 2020, and this trend is predicted to continue throughout the assessment tenure.

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Marketing & Distribution Strategies Critical to Boost Naphtha Sales

Due to the highly competitive nature of the naphtha market, manufacturers are engaging in long-term contracts with raw material suppliers to overcome volatile pricing for the same. Companies are strengthening their distribution networks since the market is dictated with a high number of fragmented market players, consisting of a large number of small- and medium-scale manufacturers.

Major companies have their own distribution and marketing networks across the globe to bolster sales of naphtha. Manufacturers are maximizing their business in feedstock for petrochemical cracking or for gasoline reforming and blending.

Manufacturers Face Tug of War between Asia and America for Naphtha Sales

Petroleum naphtha is a name primarily used in the U.S. for the petroleum distillate containing mainly aliphatic hydrocarbons. Even though North America is the second-largest market, accounting for more than 20% share globally, the region is estimated to lose its strong business grounds in the near future, owing to the exponential growth in Asia Pacific. This is evident since Taiwan, India, and China are currently expanding markets for naphtha due to the burgeoning growth in plastics, construction, and automotive industries.

High prices of naphtha in North America and shift in trends toward cheaper alternatives are compelling manufacturers in the global naphtha market to gravitate their business activities in Asia Pacific.

Naphtha Market: Overview

  • Naphtha, which can be found in shale oil or refined petroleum and coal tar, is a highly versatile commodity. Coal tar naphtha is a volatile commercial product obtained by the distillation of coal tar, while shale naphtha is acquired by the destructive distillation of oil produced from bituminous shale. Petroleum naphtha is a name primarily used in the U.S. for the petroleum distillate containing mainly aliphatic hydrocarbons.
  • Based on application, the global naphtha market was dominated by the chemicals segment that included petrochemicals and benzene, toluene and xylenes (BTX), which accounted for more than 60% share of the market in 2020. The segment is expected to maintain its dominant position in the next six years. The main uses of naphtha are in steam cracking to make olefins; in reforming to make aromatics; and as a feedstock for high-octane gasoline. It also can be used as a solvent.
  • The energy/fuel segment accounted for the second-largest share of the global market in 2020; however, it is likely to lose market share marginally by 0.1% by the end of 2031. Naphtha is utilized in power plants, steel plants, fertilizer units, etc. The others segment includes all non-renewable applications, and the segment is lose market share by the end of 2031.

Asia Pacific to Exhibit Lucrative Opportunities During Forecast Period

  • Asia Pacific dominated the global naphtha market and accounted for over 60% share, in terms of volume and revenue, in 2020. India, China, and Taiwan are presently expanding markets for naphtha due to expansion of construction, automotive, and plastic industries in these countries. Currently, North America is the second-largest market, globally, and accounted for more than 20% share; however, the region is estimated to lose share in the global market in the near future. This is due to higher prices of naphtha and shift in trends toward cheaper alternatives. Shale gas is becoming an increasingly attractive substitute for naphtha in the market in North America.
  • Europe is also expected to lose its share by 2031 due to higher crude oil prices and low seasonal demand for naphtha in the region. Latin America and Middle East& Africa are expected to gain share of the global market, marginally, due to new ethylene capacity.
  • Naphtha is primarily used as a feedstock for petrochemical cracking or for gasoline reforming and blending. There is a significant threat of forward integration from raw material suppliers to enter market. Major portion of the naphtha produced by companies is used as a feedstock by their own petrochemical complex and the remaining naphtha is exported.
  • The naphtha industry depends highly on conventional sources of raw material and exhibits volatile pricing. Manufacturers engage in long-term contracts with raw material suppliers to overcome the volatile pricing. The global naphtha market is highly fragmented and consists of a large number of small- and medium-scale manufacturers. In this highly dynamic industry, distribution plays a highly important role and is the key to success.

Naphtha Market: Competition Landscape

  • Most of the industry participants have been relying on third-party distributors to reach their target customers. Distribution agreement is the most popular strategy among manufacturers to increase their product penetration in the global market.
  • However, a few major companies have their own distribution and marketing network across the globe. Companies such as Shell, BP, and Chevron are among the major players in the market.

Naphtha Market: Key Development

  • In 2019, Saudi Arabian Oil Co. (Saudi Aramco) launched a US$ 2.6 Bn project, named the Ras Tanura refinery clean fuels and aromatics project, to improve the environmental friendliness of the plant. Expansion project completed the installation of a naphtha splitter column in October 2019. The function of the naphtha splitter column is to split the hydrotreated naphtha into light and heavy naphtha. The column is the main feeder to the continuous catalytic reforming (CCR) and isomerization units, which have an operating capacity of 90,000 and 65,000 barrels per day, respectively.

Naphtha Market Snapshot

Attribute

Detail

Market Size Value in 2020 (Base Year)

US$ 249.68 Bn

Market Forecast Value in 2031

US$ 431.53 Bn

Growth Rate (CAGR)

5.1%

Forecast Period

2021-2031

Quantitative Units

US$ Mn for Value and MM Tons for Volume

Competition Landscape

Company Profiles section includes overview, product portfolio, key subsidiaries or distributors, strategy & recent developments, and key financials

Format

Electronic (PDF) + Excel

Market Segmentation

  • Application
    • Chemicals
    • Energy / fuel
    • Others

Regions Covered

  • North America
  • Europe
  • Asia Pacific
  • Middle East & Africa
  • Latin America

Countries Covered

  • U.S.
  • Canada
  • Germany
  • France
  • U.K.
  • Italy
  • Russia & CIS
  • China
  • Japan
  • India
  • ASEAN
  • Brazil
  • Mexico
  • GCC Countries
  • South Africa

Companies Profiled

  • BP
  • Chevron Shell Chemicals
  • Mangalore Refinery and Petrochemicals Limited
  • Lotte Chemical Corporation
  • Reliance Industries Limited
  • SABIC
  • Vitol
  • Sinopec
  • ExxonMobil
  • Indian Oil Corporation
  • OAO Novatek
  • Total S.A.
  • Mitsubishi Chemical

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Naphtha Market – Scope of Report

The latest study collated and published by Transparency Market Research (TMR) analyzes the historical and present-day scenario of the global naphtha market in order to accurately gauge its future growth. The study presents detailed information about the important growth factors, restraints, and trends that are creating a landscape for the growth of the global naphtha market in order to identify growth opportunities for market stakeholders. The report also provides insightful information about how the global naphtha market would expand during the forecast period of 2021 to 2031.

The report offers intricate dynamics about different aspects of the global naphtha market, which aids companies operating in the market in making strategic development decisions. TMR’s study also elaborates on significant changes that are highly anticipated to configure growth of the global naphtha market during the forecast period. It also includes a key indicator assessment that highlights growth prospects of the global naphtha market and estimates statistics related to growth of the market in terms of value (US$ Mn) and volume (Million Tons).

This study covers a detailed segmentation of the global naphtha market, along with key information and a competition outlook. The report mentions company profiles of players that are currently dominating the global naphtha market, where in various development, expansion, and winning strategies practiced and implemented by leading players have been presented in detail.

Key Questions Answered in TMR’s Report on Naphtha Market

The report provides detailed information about the market on the basis of a comprehensive research on various factors that are playing a key role in accelerating the growth potential of the global naphtha market. Information mentioned in the report answers path-breaking questions for companies that are currently operating in the market and are looking for innovative methods to create a unique benchmark in global naphtha market, so as to help them design successful strategies and make target-driven decision.

  • How are key market players successfully earning revenue out of advantages of naphtha?
  • What would be the Y-o-Y growth trend of global naphtha market between 2021 and 2031?
  • What are the winning imperatives of leading players operating in the global naphtha market?
  • Which are the leading companies operating in the global naphtha market?

Research Methodology – Naphtha Market

The research methodology adopted by analysts for compiling the global naphtha market report is based on detailed primary as well as secondary research. With the help of in-depth insights of the market-affiliated information that is obtained and legitimated by market-admissible resources, analysts have offered riveting observations and authentic forecast for the global naphtha market.

During the primary research phase, analysts interviewed market stakeholders, investors, brand managers, vice presidents, and sales and marketing managers. Based on data obtained through interviews of genuine resources, analysts have emphasized the changing scenario of the global naphtha market.

For secondary research, analysts scrutinized numerous annual report publications, white papers, market association publications, and company websites to obtain the necessary understanding of the global naphtha market.

Naphtha Market – Segmentation

TMR’s research study assesses the global naphtha market in terms of application and region. This report presents extensive market dynamics and trends associated with different segments of the market and how they are influencing growth prospects of the global naphtha market.

Application
  • Chemicals
  • Energy / Fuel
  • Others
Region
  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa

1. Preface

    1.1. Report Description

    1.2. Market Segmentation

    1.3. Research Scope

        1.3.1. Assumptions

    1.4. Research Methodology

2. Executive Summary

    2.1. Global Naphtha Market, Volume and Revenue, 2020– 2031 (Million Tons), (US$ Mn)

3. Global Naphtha Market – Industry Analysis

    3.1. Introduction

    3.2. Value Chain Analysis

    3.3. Drivers

        3.3.1. Growing End-User Industries

            3.3.1.1. Global Paints & Coating and Automotive Plastic Market Revenue, 2020 – 2031 (US$ Mn)

        3.3.2. Development of New Manufacturing Processes

    3.4. Restraints

        3.4.1. Volatile Crude Oil Prices

            3.4.1.1. Global Crude Oil Prices, Estimates and forecast, 2020 – 2031(US$ Mn)

        3.4.2. Shift in Trends from Naphtha Towards Cheaper Alternatives

            3.4.2.1. Global Shale Gas Prices, 2020 – 2031 (US$ Mn)

    3.5. Opportunities

        3.5.1. LPG-Naphtha Margin Gap Narrows

    3.6. Porter’s Five force Analysis

        3.6.1. Bargaining Power of Suppliers

        3.6.2. Bargaining Power of Buyers

        3.6.3. Threat of New Entrants

        3.6.4. Threat of Substitutes

        3.6.5. Degree of Competition

    3.7. Market Attractiveness

    3.8. Company Market Share

        3.8.1. Global Naphtha Market: Company Market Share, 2020

4. Global Naphtha Market - Application Analysis

    4.1. Global Naphtha Market Volume, by Application, 2020& 2031

        4.1.1. Global Naphtha Market Volume (Million Tons) Forecast, by Chemicals, 2020‒2031

        4.1.2. Global Naphtha Market Volume (Million Tons) Forecast, by Energy/Fuel, 2020‒2031

        4.1.3. Global Naphtha Market Volume (Million Tons) Forecast, by Others, 2020‒2031

5. Global Naphtha Market – Regional Analysis

    5.1. Global Naphtha Market Volume, by Region, 2020& 2031

    5.2. North America

        5.2.1. North America Naphtha Market Volume (Million Tons) Forecast, by Application, 2020‒2031

        5.2.2. North America Naphtha Market Value (US$ Mn) Forecast, by Application, 2020‒2031

    5.3. Europe

        5.3.1. Europe Naphtha Market Volume (Million Tons) Forecast, by Application, 2020‒2031

        5.3.2. Europe Naphtha Market Value (US$ Mn) Forecast, by Application, 2020‒2031

        5.3.3. Poland

            5.3.3.1. Poland Naphtha Market Volume (Million Tons) Forecast, by Application, 2020‒2031

            5.3.3.2. Poland Naphtha Market Value (US$ Mn) Forecast, by Application, 2020‒2031

            5.3.3.3. Poland Naphtha Trade (Import & Export)

            5.3.3.4. Naphtha Producers/Suppliers Overview

            5.3.3.5. Key Refineries in Europe

    5.4. Asia Pacific

        5.4.1. Asia Pacific Naphtha Market Volume (Million Tons) Forecast, by Application, 2020‒2031

        5.4.2. Asia Pacific Naphtha Market Value (US$ Mn) Forecast, by Application, 2020‒2031

    5.5. Latin America

        5.5.1. Latin America Naphtha Market Volume (Million Tons) Forecast, by Application, 2020‒2031

        5.5.2. Latin America Naphtha Market Value (US$ Mn) Forecast, by Application, 2020‒2031

    5.6. Middle East & Africa

        5.6.1. Middle East & Africa Naphtha Market Volume (Million Tons) Forecast, by Application, 2020‒2031

        5.6.2. Middle East & Africa Naphtha Market Value (US$ Mn) Forecast, by Application, 2020‒2031

6. Company Profiles

    6.1. BP

        6.1.1. Company Overview

        6.1.2. Financial Overview

        6.1.3. Business Strategy

        6.1.4. SWOT Analysis

        6.1.5. Recent Developments

    6.2. Chevron

        6.2.1. Company Overview

        6.2.2. Financial Overview

        6.2.3. Business Strategies

        6.2.4. SWOT Analysis

        6.2.5. Recent Developments

    6.3. Exxonmobil

        6.3.1. Company Overview

        6.3.2. Financial Overview

        6.3.3. Business Strategies

        6.3.4. SWOT Analysis

        6.3.5. Recent Developments

    6.4. Indian Oil Corporation

        6.4.1. Company Overview

        6.4.2. Financial Overview

        6.4.3. Business Strategies

        6.4.4. SWOT Analysis

        6.4.5. Recent Developments

    6.5. Lotte Chemical Corporation

        6.5.1. Company Overview

        6.5.2. Financial Overview

        6.5.3. Business Strategy

        6.5.4. SWOT Analysis

        6.5.5. Recent Developments

    6.6. Mangalore Refinery and Petrochemicals Limited

        6.6.1. Company Overview

        6.6.2. Financial Overview

        6.6.3. Business Strategy

        6.6.4. SWOT Analysis

        6.6.5. Recent Developments

    6.7. Mitsubishi Chemical

        6.7.1. Company Overview

        6.7.2. Financial Overview

        6.7.3. Business Strategy

        6.7.4. SWOT Analysis

        6.7.5. Recent Developments

    6.8. OAO Novatek

        6.8.1. Company Overview

        6.8.2. Financial Overview

        6.8.3. Business Strategies

        6.8.4. SWOT Analysis

        6.8.5. Recent Developments

    6.9. Reliance industries Limited

        6.9.1. Company Overview

        6.9.2. Financial Overview

        6.9.3. Business Strategies

        6.9.4. SWOT Analysis

        6.9.5. Recent Developments

    6.10. SABIC

        6.10.1. Company Overview

        6.10.2. Financial Overview

        6.10.3. Business Strategy

        6.10.4. SWOT Analysis

        6.10.5. Recent Developments

    6.11. Shell Chemicals

        6.11.1. Company Overview

        6.11.2. Financial Overview

        6.11.3. Business Strategy

        6.11.4. SWOT Analysis

        6.11.5. Recent Developments

    6.12. Sinopec

        6.12.1. Company Overview

        6.12.2. Financial Overview

        6.12.3. Business Strategies

        6.12.4. SWOT Analysis

        6.12.5. Recent Developments

    6.13. Total S.A.

        6.13.1. Company Overview

        6.13.2. Financial Overview

        6.13.3. Business Strategies

        6.13.4. SWOT Analysis

        6.13.5. Recent Developments

    6.14. Vitol

        6.14.1. Company Overview

        6.14.2. Financial Overview

        6.14.3. Business Strategies

        6.14.4. SWOT Analysis

        6.14.5. Recent Developments

List of Tables

Table 1: Global Naphtha Market Snapshot: 2020& 2031

Table 2: Drivers for Naphtha Market: Impact Analysis

Table 3: Restraints for Naphtha Market: Impact Analysis

Table 4: North America Naphtha Market Volume (Million Tons), by Application, 2020‒2031

Table 5: North America Naphtha Market Value (US$ Mn), by Application, 2020‒2031

Table 6: Europe Naphtha Market Volume (Million Tons), by Application, 2020‒2031

Table 7: Europe Naphtha Market Value (US$ Mn), by Application, 2020‒2031

Table 8: Poland Naphtha Market Volume (Million Tons), by Application, 2020‒2031

Table 9: Poland Naphtha Market Value (US$ Mn), by Application, 2020‒2031

Table 10: Asia Pacific Naphtha Market Volume (Million Tons), by Application, 2020‒2031

Table 11: Asia Pacific Naphtha Market Value (US$ Mn), by Application, 2020‒2031

Table 12: Latin America Naphtha Market Volume (Million Tons), by Application, 2020‒2031

Table 13: Latin America Naphtha Market Value (US$ Mn), by Application, 2020‒2031

Table 14: Middle East & Africa Naphtha Market Volume (Million Tons), by Application, 2020‒2031

Table 15: Middle East & Africa Naphtha Market Value (US$ Mn), by Application, 2020‒2031

List of Figures

Figure 1: Market Segmentation

Figure 2: Global Naphtha Market Volume (Million Tons) and Value (US$ Mn), 2020‒2031

Figure 3: Value Chain Analysis

Figure 4: Global Paints & Coating and Automotive Plastic Market Value (US$ Mn), 2020 – 2031

Figure 5: Global Crude Oil Prices, Estimates and Forecast, 2020– 2031(US$ Mn)

Figure 6: Global Shale Gas Prices, 2020 – 2031 (US$ Mn)

Figure 7: Porter’s Five force Analysis

Figure 8: Naphtha Market Attractiveness

Figure 9: Global Naphtha Market: Company Market Share, 2020

Figure 10: Global Naphtha Market Volume (Million Tons) and Value (US$ Mn), by Application, 2020 and 2031

Figure 11: Global Naphtha Market Volume (Million Tons) and Value (US$ Mn), by Chemicals, 2020– 2031

Figure 12: Global Naphtha Market Volume (Million Tons) and Value (US$ Mn), by Energy/Fuel, 2020– 2031 

Figure 13: Global Naphtha Market Volume (Million Tons) and Value (US$ Mn), by Others, 2020– 2031

Figure 14: Poland Naphtha Trade (Import & Export)

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