USD 186.04 Billion
Naphtha Market Size, Share, Growth Analysis, By Type (Light Naphtha & Heavy Naphtha), By Process, By Application, By Region - Industry Forecast 2025-2032
Report ID:
SQMIG15B2120 |
Region:
Global |
Published Date: December, 2024
Pages:
168
|Tables:
0
|Figures:
0
Naphtha Market Insights
Naphtha Market size was valued at USD 194.04 Billion in 2023 and is poised to grow from USD 202.38 Billion in 2024 to USD 271.74 Billion by 2032, growing at a CAGR of 4.30% during the forecast period (2025-2032).
Changes in the refining capabilities driven by technologies have enhanced the yield and production of naphtha that tends to become a more competitive feedstock option for petrochemical production. Advanced technologies, including steam cracking, have allowed for the efficient conversion of naphtha into high-value olefins (e.g., ethylene), improving its competitiveness even further. Performance, flexibility and sustainability demanded by naphtha end users are forcing the development of these technologies towards shaping the future of market evolution and growth.
Naphtha is also widely used as a solvent in several sectors including paint and coatings, commercial cleaning and specialty chemicals apart from its application as petrochemical feedstock. The low cost & high solubility also contributes to its application as a high-performance solvent. High usability of naphtha as a solvent from the growing production, automotive, and manufacturing sectors has gained traction in terms of demand. Market growth is further driven by ongoing research activities for improving its solvent properties. The naphtha market is also significantly driven by the transportation sector. This is because as the transportation sector grows, there is a higher need for plastic products also, which are made from naphtha and man-made fiber. Such continued demand for petrochemicals will also increase the usage of naphtha as a feedstock which further contributes to the expansion of naphtha market growth.
Market snapshot - 2025-2032
Global Market Size
Largest Segment
Light naphtha
Fastest Growth
Heavy naphtha
Growth Rate
4.3% CAGR
Global Naphtha Market ($ Bn)
Country Share for North America Region (%)
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Naphtha Market Segmental Analysis
Global Naphtha Market is segmented by Type, Process, Application and region. Based on Type, the market is segmented into Light Naphtha & Heavy Naphtha. Based on Process, the market is segmented into Gasoline Blending, Naphtha Reforming, Steam Cracking, Others. Based on Application, the market is segmented into Chemicals, Energy & Fuel, Others. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & and Africa.
Analysis by Product
In 2023, the light naphtha accounted for the largest revenue share in terms of product segment in the naphtha market. Light naphtha is much in demand by the petrochemical industry for its high paraffin content, which is used to manufacture plastics and chemical compounds. Light naphtha serves as an important feedstock and blending agent in the petrochemical and automotive industries, thus contributing to its demand due to increased industrialization and urbanization of economy. Price fluctuations of the raw material and competitive substitutes availability like LPG may prove to be a long-term challenge for the market.
The category of heavy naphtha is projected to achieve the highest growth rate over the naphtha market forecast period. This is a result of its use in the production of petrochemicals, especially plastics, synthetic rubber and resins. In addition, heavy naphtha is important for gasoline and as a diluent for transporting crude oil. Naphtha is a bulk consumer and is used predominantly in the transportation sector, fertilizers and power plants with aromatics and olefins being key outputs from naphtha. Heavy naphtha is the raw material used to generate benzene, butadiene, ethylene, propylene and toluene as one of the major components in petrochemical industry.
Analysis by Application
Based on application, the chemicals segment was dominating with the largest naphtha market share in 2023. Gas, ethylene and propylene are the main products derived from naphtha. In recent times, the need for chemicals has increased in various industries for providing better quality products and services to the customers. This segment is majorly growing with the demand for chemicals, such as paints and coating. Furthermore, the increase in demand for chemicals and cleaning products utilized by the automotive and manufacturing sectors has also had an impact on increasing the demand of naphtha-derived products. Naphtha is a key feedstock for petrochemical products.
The energy/fuel segment is witnessing the fastest market growth over the naphtha market forecast period. This is due to a rise in consumption from automobile & construction industries, increase in disposable income and augmenting demand for chemical industries. In addition, the growth of power plants and fertilizer units also promotes market development. With the industrial growth and economic development of emerging economies, energy consumption rises, leading to a growing demand for naphtha-containing fuels. Increasing number of automobiles and the rising production capacity of factories post pandemic has increased the energy/fuel demand substantially which is projected to boost the demand for naphtha.
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Naphtha Market Regional Insights
In 2023, the North America naphtha market held a major share of the global naphtha market. Gasoline demand in the region is increasing, driven by economic growth and improved business activity. Moreover, North America is home to most of the renowned marketplace players, which aid in fostering innovation while also enhancing infrastructure growth of petrochemical industry. The forecast period is expected to witness a rise in the U.S. naphtha market because of growing petrochemical industries, rising use of naphtha in construction sector, and increasing significance of naphtha for power plants, fertilizer units and paint industries.
During the naphtha market forecast period, Asia-Pacific is expected to account for the largest revenue growth in the global naphtha market. Market growth is driven by rapid industrialization and urbanization as well as the growth of the automotive industry and an increase in disposable income. Furthermore, growing demand for plastic in the construction sector adds to the naphtha market expansion in Asia-Pacific. The naphtha market in the Asian Pacific is driven by China, fueled with fast economic growth and developing various industrial sectors directly leads to a high demand for naphtha. Furthermore, the Chinese government has also been promoting investment policies in the petrochemical industries.
Global Naphtha Market By Geography
- Largest
- Fastest
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Naphtha Market Dynamics
Naphtha Market Drivers
Increasing Capacity of Refining Industry
- Production rates of naphtha depend on refinery capacity and configuration. Ample supply from refineries with high naphtha yields will be offset by tighter supply from refiners with lower yields. By the same token, changing crude oil prices and availability alter refining economics impacting naphtha supply and pricing. The capacity and yield of refineries have been on the rise due to improved supply chain management and implementation of technology.
Growing Demand as a Solvent Across Industries
- Naphtha is used as a solvent in paint and coatings, industrial cleaning, and certain specialty chemicals. Rising demand for naphtha solvent is predominantly strengthened by the growing construction, automotive and manufacturing industries. This, along with the continuous research and development for improving solvent properties of naphtha and alignment with environmental factors will help fuel its market presence appealing to the end-user.
Naphtha Market Restraints
Low Sustainability of Naphtha and other Downstream Products
- The production & consumption of naphtha results in air pollution, greenhouse gas emissions and ecological damages which leads the regulatory bodies to impose strict environmental regulations. Several emission control technologies in addition to cleaner production techniques have been widely adopted including combustion modifications and burnup optimization of hydrocarbons, which results in heavy economical burden towards naphtha producer and consumers due to higher operational cost.
High Degree of Substitution
- Natural gas liquids, liquefied petroleum gas (LPG), and coal derivatives can substitute naphtha feedstock in both petrochemical productions. These substitutes would either be cheaper than naphtha, available in surplus quantity and/or generate lesser emissions than naphtha. This competition is threatening the share of naphtha in the market, pushing down prices and challenging its continued position as a viable source for petrochemical production over the long-term.
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Naphtha Market Competitive Landscape
Major players in the naphtha industry are investing in R&D for more effective and environmentally friendly naphtha. This includes innovations such as refining processes and new naphtha applications. In addition, demand for naphtha in emerging markets such as petrochemicals and solvents is increasing, enticing the top players to extend their reach. leading players are partnering with other industry corporations and jointly investing in ventures that share knowledge, technology, and resources. The major players are aligning themselves up with the latest technologies like AI and analytics to streamline inventory management and logistics. Moreover, there is a movement towards green chemistry and investment in cleaner technologies to lower emissions and waste.
Top Player’s Company Profile
- BP PLC
- Chevron Phillips Chemical Company LLC
- China National Petroleum Corporation (CNPC)
- China Petroleum & Chemical Corporation (SINOPEC)
- Exxon Mobil Corporation
- Formosa Petrochemical Corporation
- LG Chem
- PetroChina Company Limited
- Petroleos Mexicanos (PEMEX)
- Reliance Industries Limited
- Royal Dutch Shell PLC
- SASOL
- SABIC
- Saudi Arabian Oil Co. (Saudi Aramco)
- TotalEnergies
- Mitsubishi Chemical Corporation
- Indian Oil Corporation (IOC)
- Phillips 66
- OMV AG
- Alexandria Mineral Oils Co. (AMOC)
Recent Developments
- In July 2023, Exxon Mobil Corporation acquired the experienced carbon capture, utilization and storage (CCS) solutions and enhanced oil recovery developer Denbury Inc.
- In May 2023, Chevron Corp resumed oil operations in Venezuela, which will enhance output with the objective of hastening a plan to repatriate all the debt Natixis expects from the OPEC nation by 2025-year end.
- In May 2022, BP plc (NYSE:BP) entered a 10-year offtake agreement with UK-based Clean Planet Energy, to promote the company’s development of facilities that convert hard-to-recycle-waste plastics into circular petrochemical feedstocks and ultra-low Sulphur diesel (ULSD).
Naphtha Key Market Trends
- Advancement in Refining Process: Improvements in the steam cracking and other conversion technologies also increase naphtha value through cost-effective and efficient pathways of converting to high-value olefins such as ethylene. The petrochemical industry has experienced technological advancements, which have influenced naphtha consumption patterns and a competitive landscape through efficient, flexible, and sustainable usage of naphtha.
- Growing Trend for Olefin Rich Naphtha: Naphtha is rich in olefins, has higher levels of ethylene and other high value olefins and is typically used as a feedstock for petrochemical production, most notably steam cracking. Ethylene-derived products are essential for industries that rely heavily on making plastics, automotive and construction applications which creates the demand for olefin-rich naphtha. Continued global growth of these sectors will only increase demand for this naphtha type, opening additional space in the market, influencing pricing and investment decisions across it.
Naphtha Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, increasing production of high-octane fuel by using olefin-rich feedstock is the major factor driving the global naphtha industry. This trend combined with the increasing growth in petrochemical industry and rising usage of this material for production of aromatics and olefins is thriving the industry. In addition, rising requirements for affordable fuel along with increasing consumption in developing as well as industrialized regions are positively driving the market scenario. Increasing construction and infrastructure activities for both residential and commercial spaces are leading to a high growth rate in the paint & cleaning agents’ market. Additionally, the increasing requirement to meet international standards for improved fuel economy and lower emissions is driving the creation of tailored fuels that are further propelling the market.
| Report Metric | Details |
|---|---|
| Market size value in 2023 | USD 194.04 Billion |
| Market size value in 2032 | USD 271.74 Billion |
| Growth Rate | 4.30% |
| Base year | 2024 |
| Forecast period | 2025-2032 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
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| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Naphtha Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Naphtha Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Naphtha Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Naphtha Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Naphtha Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Naphtha Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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