As per the study by Grand View Research Inc, the global naphtha market size is estimated to reach US$183.38 billion by 2022. The market size for Naphtha was valued at 270.7 mln tons in 2014. But the robust demand for Naphtha in the hydrocarbon cracking process in petrochemical industry propelled the growth of this market.
The largest application of Naphtha was in chemical feedstock that accounted for 65% of the entire market share in 2014. It is used in steam cracking process to produce gasoline and the demand for this hydrocarbon is expected to grow at a CAGR of 7.7% till 2022.
The lighter grades of Naphtha are used in the petrochemical steaming process for producing rubbers, olefins, polymers and aromatics. The demand for plastics in packaging, construction industries, and electronics is anticipated to fuel the demand in future.
Rising consumption of fuel in Asia Pacific region due to rapid industrialization also played a vital role in augmenting the market size of this hydrocarbon. The demand for Naphtha in Asia Pacific was 121.7 million in 2014, which is also likely to witness a major boost.
As far as American market for Naphtha is concerned, it will experience a stagnant growth – at 3% of CAGR. The market size for this hydrocarbon in the Middle East will depend on the consolidated demand from refineries.
A recent report by plastemart revealed that Naphtha price in Asia reached a three-week high to reach at US$62.6/ton. Also, South Korea bought 500,000 tons of Naphtha through tenders. Experts believe this might be the reason for an overrun in the Naphtha prices in Asia-Pacific region.