The Global Naphtha Market is projected to gain the significant growth during the forecast period primarily due to major applications of naphtha including personal care products.
Naphtha is a colourless, volatile petroleum distillate obtained as an intermediate product from boiling of petroleum at a range of 100–200°C. Naphtha is highly volatile, flammable, and contains aromatic hydrocarbons. The primary applications of naphtha include use as a solvent, ingredient in gasoline, and component in plastics. Naphtha is used as a fuel owing to its large amount of chemical energy and volatility. It is used to power stoves, lanterns, heating units, blow torches and cigarette lighters. Naphtha is also used as a solvent in cleaning agents, paints, varnish and asphalt. It is used as a raw material for plastics such as polypropylene and polyethylene.
The growing demand for naphtha from diverse industries such as chemical, energy and power, and others primarily drives the growth of the naphtha market. There has been an increased demand of transportation fuel globally, which supports the market growth. The growing use of naphtha in petrochemical industry owing to use in hydrocarbon cracking process boosts the adoption. There has been an increasing application of naphtha in fats, rubber, and personal care products, which further supports the growth of the naphtha market. Naphtha is being increasingly used in plastics owing to increased demand from construction, packaging and electrical & electronics. There has been an increased demand of naphtha in emerging economies owing to development of energy and transportation sectors. Global players are expanding their business in developing region to increase their customer base and improve the geographical outreach.
The global Naphtha market is segmented on the basis of end-user, and geography.
Geographically, the global Naphtha market is categorized into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.
On the basis of geography, Asia-Pacific is expected to dominate the global naphtha market during the forecast period. The increasing demand from the transportation sector is expected to drive the growth of the naphtha market in this region. There has been a growing demand of naphtha from industries such as construction, automotive, and electronics among others in the region. Economic growth and strengthening markets for petrochemicals in countries such as India, China and Taiwan are expected to provide numerous growth opportunities in the future.