Naphtha Market To Grow At A CAGR of 3.4% from 2015 to 2022: Grand View Research, Inc.
According to the new report published by Grand View Research, the global naphtha market size will reach $183.38 billion by 2022 from 270.7 million tons in 2014, growing at CAGR of 3.4%, Increasing global demand for transportation fuel is expected to support market growth during forecast period.
San Francisco, March 17, 2016 (GLOBE NEWSWIRE) -- Global naphtha marketsize was 270.7 million tons in 2014 and is anticipated to grow at a CAGR of 3.4% from 2015 to 2022. Increasing global demand for transportation fuel is expected to drive growth. Demand is also being driven by its robust use for hydrocarbon cracking process in the petrochemical industry.
Naphtha is an essential part of hydrocarbon cracking process, which is conducted under extreme pressure and heat, as it exhibits superior heat resistant properties. Various environmental regulations and region dependent pricing also make the choice for usage of naphtha materials in the production process.The global demand is estimated to be worth USD 183.38 billion by 2022.
Chemical feedstock was the largest application of naphtha accounting for 65% of the total market share in 2014 and is anticipated to grow at a CAGR of 7.7% over the forecast period. Chemical feedstock is used for steam cracking process which produces gasoline. Growing demand for gasoline is expected to subsequently bolster demand. Lighter grades of the product are used for petrochemical steaming process, which produces rubber, olefins, polymers and aromatics.
The global market is also being driven by increasing demand of plastics in electronics, packaging and construction industries in future. Energy & fuel contributed to over 25% of the total market revenue in 2014. Rising energy & fuel consumption, particularly in Asia Pacific on account of rapid industrialization as well as expansion of cities, is anticipated to fuel growth. Increasing demand for automobiles is also anticipated to play a vital role in augmenting demand for fuel, which in turn is expected to have a positive impact on the market over the forecast period.
Asia Pacific naphtha demand was 121.7 million tons in 2014 and is likely to witness significant gains over the forecast period. Over the past few years, the region has emerged as the largest exporting hub of petroleum products and the trend is expected to continue over the forecast period. Development of the transport and electrical sectors in the region on account of increasing trade activities coupled with adoption of technological advancement by consumers is expected to drive demand.
The North American market has attained maturity and is expected to witness stagnant growth at a CAGR of 3.0%, in terms of volume, over the projected period. The Middle East market is characterized by consolidation of refineries, which is expected to result in local companies expanding their presence in the global market.
CNPC, British Petroleum, Shell, Chevron and ExxonMobil together accounted for more than 50% of the global industry in 2014.These companies have a strong hold in the market on account of their efficient worldwide-distribution networks. Companies including Reliance Industries and Mitsubishi Chemical are integrated in their operations for crude oil and natural gas production which has resulted in increasing their overall economic profitability.
Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, we offer market intelligence studies ensuring relevant and fact-based research across a range of industries, from technology to chemicals, materials and healthcare.
