Global naphtha market expected to grow at a CAGR of 3.2% from 2013 to 2019

03-May-14

Demand for naphtha is expected to grow at a CAGR of 5.1% in terms of revenue from 2013 to 2019 and the market was valued at US$167,711.8 mln in 2012 are expected to reach US$237,625.2 mln by 2019. In terms of volume the market is expected to grow at a CAGR of 3.2% from 2013 to 2019, as per Transparency Market Research. The market witnessed growth in recent years due to rising demand for naphtha from various end-user industries such as plastic, construction, transportation and many others. In addition, development of new manufacturing technique is another factor contributing towards the market growth. However, volatile prices of crude oil and availability of cheap and abundant alternatives such as shale gas and LPG are the factors restraining market growth. In 2012, the naphtha market by applications was dominated by chemicals segment and accounted for over 60% share of the market in terms of volume as well as revenue. Naphtha is mainly used as feedstock for production of petrochemicals. In terms of volume the chemicals application is expected to grow at a CAGR of 3.3% from 2013 to 2019. Energy and fuel segment is expected to grow at a rate of 5.0% from 2013 to 2019 in terms of revenue. Naphtha is also used for gasoline blending in various industries. The demand for naphtha in energy and fuel applications is highest from the steel industry followed by fertilizers plants and power plants. Asia Pacific dominated the market and accounted for over 40% share of the market in terms of both revenue and volume. This dominance is driven mainly due to rising demand for plastics used in building materials, electronics and cars. As Naphtha being the dominant feedstock for plants that produces the key plastic ingredient ethylene. In terms of volume, North America market is expected to grow at a rate of 2.6% from 2013 to 2019 followed by Europe which is expected to grow at CAGR of 2.1% for the same period. Growing demand from the gasoline sector and plastic industry are the factors contributing towards the market growth in this region.