Global naphtha market to grow at a CAGR of 4.5% during the period 2016-2020

02-Jun-16

Significant developments in the naphtha market are expected to come from the APAC, which is home to some key rising economies like China and India while it also houses some key naphtha consumers, such as South Korea, Taiwan, and Japan that have based a significant portion of their infrastructure growth on naphtha, as per Sandle Research. The analysts forecast global naphtha market to grow at a CAGR of 4.5% during the period 2016-2020. According to the 2016 report, a key growth driver for naphtha market is the rise in demand for petrochemicals. One of the strongest drivers for the naphtha market is the huge demand that the developing economies have for petrochemicals, primarily ethylene and propylene for production of plastics. The naphtha market is primarily driven by the upsurge in the demand for gasoline across the globe. The need for naphtha, which is important in the blending of gasoline, is increasing rapidly due to the increase in demand for transportation and subsequently, gasoline. In 2015, the gasoline segment dominated the naphtha market globally by occupying around 51% of the overall market share. Its role as a gasoline blending component due its properties that are very close to gasoline is the key factor for the growth of this segment. The following companies are the key players in the global naphtha market: Shell Chemicals, BP, Chevron, BASF, Dow Chemicals, ExxonMobil, Saudi Basic Industries Corporation (SABIC), Mangalore Refinery and Petrochemicals Limited, OAO Novatek, and Sinopec. Other Prominent Vendors in the market are: Indian Oil Corporation, Lotte Chemical Corporation, Mitsubishi Chemical, Sasol, and Vitol. The availability of abundant supplies of gas at virtually no cost had put the petrochemical industry at a distinct cost advantage with most naphtha being exported. The ongoing shift of the Middle East from a gas surplus state to that of shortage in the coming years is expected to reflect positively on the market. This shift is prompting petrochemical producers to move towards a shift in the technology based on naphtha by making changes to the basic operating fundamentals that were employed over the last decade.