The naphtha market is anticipated to register a CAGR of over 4%, during the forecast period. The major driver of the market studied is the rising demand for fertilizers in India. The demand for natural gas liquid in the United States is expected to hinder the growth of the market studied.
- Rising demand for jet fuel is expected to act as an opportunity for the market in the future.
- With the increasing demand for naphtha coming from fast-developing countries, such as China, India, and Japan, the Asia-Pacific region is expected to dominate the global market.
Key Market Trends
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.
- Consumption and production of naphtha are majorly growing in developing countries, such as India, China, etc.
- The demand for naphtha in India is majorly driven by the increasing demand from the petrochemical industry, as a feedstock, to produce petrochemical components, such as olefins, aromatics, etc.
- Hence, the aforementioned factors are likely to increase the demand for naphtha for various applications in the end-user industries. This, in turn, is expected to drive the demand for naphtha, during the forecast period.
Asia-Pacific Region to Dominate the Market
- The Asia-Pacific region dominated the global market share. Owing to the rising demand for naphtha and growing petrochemical industries in countries, such as China, India, and Japan, the usage of naphtha is increasing in the region.
- Increasing applications of naphtha in various industries, such as agriculture, aviation, etc., as a fertilizer and jet fuel, in countries, such as India, Japan, and China.
- The growth trend of the market is likely to remain the same in the next few years, which is further likely to drive its growth in the region.
- Moreover, the naphtha market in Asia-Pacific is also expected to witness the highest CAGR, during the forecast period.
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, China Petroleum & Chemical Corporation, Formosa Petrochemical Co., LG Chem, and Petroleos Mexicanos.
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