Global naphtha market to grow at CAGR of 5.1% uptil 2019

13-Nov-14

Global naphtha market will report a CAGR of 5.1% from 2013 to 2019, as per Transparency Market Research. As per this market research report, till about two years back, the global naphtha market was dominated by the Asia Pacific both in terms of revenue and volume. Due to the booming plastics, construction, and the automotive markets, Taiwan, India, and China are witnessing high growth rates in the global naphtha market. The second largest naphtha market accounting for almost one fourth of the total share is North America. However, according to industry forecasts, it has been concluded that this market may witness a fall in its market value in the forthcoming years. This expected trend can be attributed to rising demand for cheaper alternatives, and higher prices of naphtha. Europe’s share may also decrease by the year 2019 due to lower seasonal demand for naphtha, and rising prices of crude oil. The main feedstock that is used for gasoline reforming, blending and petrochemical cracking is naphtha. Naphtha is primarily found in coal tar, refined petroleum, and shale oil. It is a very versatile commodity and is extensively applied in the energy industry. Destructive distillation of oil from bituminous shale produces shale naphtha. Whereas, the distillation of coal tar produces coal tar naphtha, which is a very volatile commercial item. The two types of naphtha are paraffinic and heavy naphtha. Heavy naphtha is mainly used for manufacturing aromatics, and paraffinic naphtha is ideal for manufacturing olefins, and polyolefins. According to this TMR report, the global naphtha market is segmented on the basis of application, and geography. Chemicals, energy/fuel, and others are the three main classifications under the application segment. Chemicals include petrochemicals, benzene, xylene, and toluene. Energy and fuels category includes steel plants, power plants, and fertilizer units. Others includes non renewables. Under the application segment, the global naphtha market is dominated by chemicals like xylenes, toluene, benzene, and petrochemicals. In fact, this application segment accounts for more than 50% share in the global naphtha market.