Naphtha Market Size was valued at USD 294.5 billion in 2022. The naphtha industry is projected to grow from USD 305.1 Billion in 2023 to USD 377.2 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 3.60% during the forecast period (2024 - 2030). Olefin-rich naphtha is currently a common feedstock for manufacturing affordable high-octane fuel. This is one of the primary market driver for the expansion of the market, along with continuing expansion in the petrochemical sector and the growing use of it for the production of aromatics and olefins.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Many industries use both light and heavy naphtha. The primary feedstock utilized in the petrochemical industry is naphtha. The petrochemical industry uses about 50% of the produced naphtha. For the petrochemical industry's manufacturing of aromatics and olefins including benzene, butadiene, ethylene, toluene, and propylene. The industry is aggressive in ensuring the growth of the naphtha market due to its continual expansion. Olefin-rich naphtha is primarily used as a feedstock to create low-cost, high-octane diesel. As a result of accelerating urbanization and an expanding population, its consumption rose in both emerging and developed economies. Fast-growing economies like those in India, China, and ASEAN see increases in its production and demand. For instance, the Malaysian petrochemical industry is expanding rapidly as a result of the large inflow of FDI. Saudi Aramco and the national oil and gas firm of Malaysia, Petronas, announced the formation of two joint ventures for the $7 billion Refinery and Petrochemicals Integrated Development (RAPID) project in Johor. A refinery with a daily processing capacity of 300,000 barrels of crude oil and six petrochemical units with a combined yearly output of more than 3.5 million metric tonnes were built as a result of the collaboration above. Thus, this factor is driving the market CAGR.
Figure 1: Chemicals and petrochemicals consumption in India
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
According to data released by the US Energy Information Administration, the post-pandemic period saw a significant rise in the  use of refined petroleum products. With 25% of the pipelined projects in the European region projected to start up by 2025, the United Kingdom is anticipated to take the lead in the forthcoming oil and gas projects. In the near future, the nation will have 111 oil and gas sector projects, of which 83 will be upstream projects, 23 will be midstream projects, three will be refinery projects, and two will be petrochemical projects. The development of an oil and gas field in Denmark by the petrochemical giant Ineos will begin in September 2022, marking the nation's first approval of such a project in years. The demand for naphtha for diverse applications in the end-user sectors is therefore projected to expand as a result of the considerations above. As a result, this is anticipated to fuel its demand during the projection period.
Furthermore, the demand for naphtha is anticipated to be driven by the expansion of the transportation and electrical industries across several nations as a result of greater consumer trade. New furnace materials have been developed due to technological breakthroughs, which have also improved distillation processes. The usage of naphtha is rising as the chemical industry expands. Strategic alliances and the emergence of new markets will also operate as market drivers, boosting the market. Thus, it is anticipated that this aspect will accelerate naphtha market revenue ly.
The  naphtha market segmentation, based on type, includes Light Naphtha and Heavy Naphtha. The heavy naphtha segment held the majority share in 2022 in the  naphtha market data. In contrast to heavy naphtha, which increases fuel efficiency in catalytic reformers in refineries, light naphtha is frequently used in petrochemical steam crackers.
Figure 2: Â Naphtha Market, by Type, 2022 & 2030 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The  naphtha market segmentation, based on application, includes Chemicals, Energy and Fuel and Others. The chemicals segment dominated the market growth in 2022 and is projected to be the faster-growing segment during the forecast period, 2022-2030. It aids in the production of ethylene, propylene, and gasoline through the steam cracking process. Catalytic reformation, which involves the extraction of benzene, toluene, and xylene, is another application.
The  naphtha market data, based on process, includes Gasoline Blending, Naphtha Reforming, Steam Cracking and Others. The steam cracking segment dominated the naphtha market revenue in 2022 and is projected to be the faster-growing segment during the forecast period, 2022-2030. The main uses of it are as a feedstock for high-octane gasoline, reforming to make aromatics, and steam cracking to produce olefins. The food and beverage industry, as well as the chemical industry, will likely increase their need for aromatics and olefins in the upcoming years, driving the market upward.
By Region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The Asia Pacific Naphtha market accounted for USD 134.9 billion in 2022 with a share of around 45.80% and is expected to exhibit a significant CAGR growth during the study periodThe demand for naphtha has been continuously increasing in nations like India, China, and Japan due to expansion in a variety of end-user sectors, including petrochemicals, paints & coatings, and fertilizers, among others. Over the next five years, China is expected to build a large number of chemical companies, which will raise its demand.
Further, the major countries studied in the market report are: The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 3: Â NAPHTHA MARKET SHARE BY REGION 2022 (%)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
North America naphtha market accounts for the second-largest market share. The region's petrochemical and oil sectors' rising demand for naphtha. The fast-growing tight oil and shale gas production in North America, notably the US, will be a factor in the capacity expansions and surplus supplies that are anticipated. Further, the US naphtha market held the largest market share, and the Canada naphtha market was the fastest growing market in the region
Europe Naphtha Market is expected to grow at the fastest CAGR from 2022 to 2030. due to the modification of chemical trade laws. Chemical processes comprising propane cracking and gasoline production are expected to steer product demand in the European market. Moreover, UK naphtha market held the largest market share, and the Germany naphtha market was the fastest growing market in the region
Major market players are spending a lot of money on R&D to increase their product lines, which will help the market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, with key market developments such as new product launches, contractual agreements, increased investments, mergers and acquisitions, and collaboration with other organizations. Competitors in the naphtha industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.
One of the primary business strategies adopted by manufacturers in the  naphtha industry to benefit clients and expand the market sector is to manufacture locally to reduce operating costs. In recent years, naphtha industry has provided medicine with some of the most significant benefits. The naphtha market major player such as Chevron Corporation, Reliance Industries Limited, Shell Chemicals, SABIC (Saudi Arabia), BP PLC (UK), Exxon Mobil Corporation. (US), China Petrochemical Corporation, Indian Oil Corporation Ltd (India) and Novatek (Russia).
The Irving, Texas-based ExxonMobil Corporation is a multinational American oil and gas company. It was created on November 30, 1999, through the merger of Exxon and Mobil, both of which are currently used as retail brands alongside Esso for gas stations and downstream products. It is the largest direct descendant of John D. Rockefeller's Standard Oil. In November 2021, Exxon Mobil declared its intention to invest in a multibillion-dollar chemical complex in the southern Chinese province of Guangdong. It will increase the business's 1.6 million tonne annual production.
The largest petrochemical, gas, and oil refining conglomerate in the world, China Petrochemical Corporation or Sinopec Group, is run by SASAC on behalf of the State Council of the People's Republic of China. It has its headquarters in Beijing's Chaoyangmenwai neighbourhood, directly across the street from the CNOOC Group, a rival state-owned oil corporation.
October 2022:Â For seven weeks, LG Chem will be putting its naphtha crackers in South Korea offline for maintenance. During repair, it will have an impact on the region's supply of petrochemicals.
July 2019:Â To get naphtha from Russia to the Venezuelan company PDV LLC, ships were employed. Approximately 330,000 t of naphtha were shipped to satisfy the nation's requirement for gasoline.
Naphtha Type Outlook (USD Billion, 2018-2030)
Naphtha Application Outlook (USD Billion, 2018-2030)
Naphtha Process Outlook (USD Billion, 2018-2030)
Naphtha Regional Outlook (USD Billion, 2018-2030)
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 294.5 billion |
| Market Size 2023 | USD 305.1 billion |
| Market Size 2030 | USD 377.2 billion |
| Compound Annual Growth Rate (CAGR) | 3.60% (2024-2030) |
| Base Year | 2022 |
| Market Forecast Period | 2024-2030 |
| Historical Data | 2018 - 2021 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Type, Application, Process and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and Rest of the World |
| Countries Covered | The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Chevron Corporation, Reliance Industries Limited, Shell Chemicals, SABIC (Saudi Arabia), BP PLC (UK), Exxon Mobil Corporation. (US), China Petrochemical Corporation, Indian Oil Corporation Ltd (India) and Novatek (Russia) |
| Key Market Opportunities | The use of the same across numerous market vertices to satisfy the level of production and worldwide demand plays a significant function |
| Key Market Dynamics | The use it as a significant feedstock component, particularly in the petrochemicals industry, has a bright future |
Naphtha Market Highlights:
Frequently Asked Questions (FAQ) :
The naphtha market size was valued at USD 294.5 Billion in 2022.
The market is projected to grow at a CAGR of 3.60% during the forecast period, 2024-2030.
Asia Pacific had the largest share in the market
The key players in the market are Chevron Corporation, Reliance Industries Limited, Shell Chemicals, SABIC (Saudi Arabia), BP PLC (UK), Exxon Mobil Corporation. (US), China Petrochemical Corporation, Indian Oil Corporation Ltd (India) and Novatek (Russia).
The heavy naphtha category dominated the market in 2022.
The chemicals had the largest share in the market.
Research Analyst Level I In her 3 years of experience in the market research field, she has handled critical cross-domain projects. she has an in-depth knowledge of market estimation & analysis, problem-solving, primary as well as secondary research, and team management.she holds an engineering degree and is an mba professional from a well-known university, capable of evaluating the market and competitive conditions. an exceptional strategist with excellent communication skills and a passion for delivering cutting-edge & practical insights for the market. proficient in multi-tasking, and can successfully deal with competing demands, while maintaining complete confidentiality. generated business through active client and project development, networking, and high-quality responses. her knowledge and skills have helped in making solid business decisions, securing funding from investors, and avoiding business failures.
Get in Touch
© 2024 Market Research Future ® (Part of WantStats Reasearch And Media Pvt. Ltd.)
