Naphtha Market Size, Share & Trends Analysis Report By Product (Light Naphtha, Heavy Naphtha), By Application (Chemicals, Energy/Fuel), By Region (Europe, MEA, APAC), And Segment Forecasts, 2024 - 2030

Naphtha Market Size & Trends

The global naphtha market size was valued at USD 189.5 billion in 2023 and is projected to grow at a CAGR of 4.3% from 2024 to 2030. Growing end use industries, development of new manufacturing processes, rise in the petrochemical industry, and expanding transportation sectors are the factors driving the naphtha market growth. In addition, growing technological advancement in the refining process increases naphtha utilization. Moreover, the expanding transportation sector increases the need for gasoline, further driving the naphtha market demand.

The naphtha market is driven by innovations in refining technologies, which have improved the yield and quantity of naphtha, making it a more competitive feedstock for petrochemical production. The application of advanced technologies, such as steam cracking, has enabled the efficient conversion of naphtha into high-value olefins, such as ethylene, further boosting its competitiveness. The development of these technologies has driven performance, flexibility, and sustainability in naphtha usage, shaping the market’s evolution and growth.

In addition to its use as a petrochemical feedstock, naphtha serves as a solvent in various industries, including paint and coatings, commercial cleaning, and specialty chemical manufacturing. Its ability to dissolve large quantities of materials at a low cost makes it a preferred choice for many methods. The expanding production, automotive, and manufacturing sectors have led to regular calls for naphtha as a solvent, driving its demand. Ongoing research efforts to enhance its solvent properties are expected to further drive market growth.

The transportation sector is another significant driver of the naphtha market. As the transportation sector expands, there is increased demand for products that include plastics and artificial fibers, which are derived from naphtha. This extended demand for petrochemicals leads to higher consumption of naphtha as a feedstock, thereby boosting the naphtha market. Overall, the naphtha market is driven by the combination of technological advancements, expanding industrial applications, and growing demand from the transportation sector. These factors are expected to continue shaping the market growth and competitiveness in the future.

Product Insights

Light naphtha dominated the product segment in the naphtha market with a revenue share of 61.5% in 2023. Light naphtha is highly sought after in the petrochemical industry due to its high paraffin content, used to produce plastics and chemical compounds. The rising industrialization and urbanization in the economy drive demand for light naphtha as a feedstock and blending agent, fueling growth in the petrochemical and automotive industries.

The heavy naphtha segment is expected to register the fastest growth of 4.6% over the forecast period. Segment growth is expected to be driven by technological advancements, increasing market demand, regulatory support, and cost reduction. Continuous innovation has improved efficiency and effectiveness, while favorable policies from authorities promote the use of heavy naphtha, further driving market growth in the forecast period.

Application Insights

Chemicals in the application segment dominated the naphtha market with a revenue share of nearly 69.9% in 2023. Naphtha is primarily used to produce gas, ethylene, and propylene. The demand for chemicals, including paints and coatings, is driving growth in this segment. Moreover, the rising demand for chemicals and cleaning agents used in the automobile and production industries has also boosted the demand for naphtha-based products.

The energy/fuel segment is expected to register significant growth over the forecast period, driven by increasing demand from the automobile and construction industries, rising disposable income, and growing demand from chemical industries. Moreover, the expansion of power plants and fertilizer units contributes to market growth. As emerging economies develop industrially and economically, their energy consumption increases, with a corresponding rise in demand for naphtha-based fuels.

Regional Insights

The North America naphtha market held a significant share of the global naphtha market in 2023. The region is experiencing a rise in gasoline intake, fueled by economic increase and enhanced business activity. In addition, North America drives the presence of distinguished marketplace players, fostering innovation, funding, and infrastructure improvement in the petrochemical sector.

U.S. Naphtha Market Trends

The naphtha market in the U.S. is expected to grow in the forecast period due to increasing petrochemical industries, increased demand for naphtha in the construction industry, and increased importance of naphtha in power plants, fertilizer units, and paint industries has driven the market growth.

Europe Naphtha Market Trends

Europe naphtha market was identified as a lucrative region in 2023. The growth of this region can be attributed to elements including strong demand for naphtha from the petrochemical industry, disposable income increase driving commercial activities, emphasis on cleaner fuels, deliver chain dynamics, and global market trends shaping the overall naphtha market growth.

The naphtha market in the UK is poised for rapid growth in the coming years, driven by the expansion of the petrochemical industry, increasing refining capacity, demand for cleaner fuels, and export opportunities. These factors will collectively shape the market’s growth trajectory over the forecast period.

Germany naphtha market held a substantial market share in 2023, owing to the well-developed infrastructure and access to key market players that help in the export opportunities. Moreover, the regulation regarding environmental safety for cleaner fuels has driven the naphtha market in Germany.

Asia Pacific Naphtha Market Trends

The naphtha market in Asia Pacific dominated the global naphtha market with a revenue share of 44.7% in 2023. The market dominance can be attributed to factors such as rapid industrialization and urbanization, a rise in the automotive industry, and an increase in disposable income lead market growth. In addition, an increase in the plastic intake in the construction sector drives the naphtha market growth in Asia Pacific.

China naphtha market dominated the Asian Pacific naphtha market with a revenue share of 37.3% in 2023. This dominance can be attributed to the economic growth and development in industries leading to high demand for naphtha. In addition, the Chinese government has been implementing policies regarding investments in the petrochemical industries.

The naphtha market in India held a substantial market share in 2023 owing to competitive pricing strategies, an increase in the petrochemical industries, and strategic location. Moreover, the location of India has the advantage of exporting and importing chemicals in the global market easily.

Middle East & Africa Naphtha Market Trends

The Middle East & Africa naphtha market is expected to register a CAGR of 4.8% over the forecast period. Countries in the MEA are expanding their infrastructure for petrochemicals such as new refineries and petrochemicals plants. Continuous advancement in refining technologies has enhanced the efficiency and production of naphtha leading to market growth.

Key Naphtha Company Insights

Some key companies in the naphtha market include Reliance Industries Limited; Exxon Mobil Corporation; Saudi Arabian Oil Co.; and others. The industry is characterized by intense competition among key players who focus on product innovation, strategic partnerships, and expansion to gain a larger market share.

• Reliance Industries Limited is an Indian petrochemicals company, operating across various sectors including petrochemicals, with a significant presence in the industry.

• Saudi Arabian oil Co. (Aramco) is a naphtha producer, supplying a significant portion of the global petrochemical feedstock. The company’s integrating upstream and downstream operations, including the Amiral complex, to capture more value across the hydrocarbon chain and strengthen its position in the petrochemical industry. 

Recent Developments

• In February 2024, Saudi Aramco solidified its domestic supply chain ecosystem by securing 40 procurement agreements worth USD 6 billion with Saudi-based suppliers, supporting localization initiatives and aligning with the iktva program, which fosters economic growth and diversification in Saudi Arabia.

• In March 2023, ExxonMobil Corporation completed its USD 2 billion Beaumont refinery expansion, adding 250,000 barrels per day capacity to a Gulf Coast complex, equivalent to a medium-sized refinery, boosting energy product output and meeting growing demand.

• In December 2023, Coolbrook cracked naphtha in its large-scale pilot plant, validating its RotoDynamic Reactor Technology for electric steam cracking and reducing CO₂ emissions by 300 million tons annually, solidifying its leadership in electric steam cracking and decarbonization. 

Naphtha Market Report Scope

Global Naphtha Market Report Segmentation

This report forecasts volume and revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global naphtha market report based on product, application, and region.

• Product Outlook (Revenue, USD Billion, 2018 - 2030, Volume in Kilotons)

  • Light Naphtha

  • Heavy Naphtha

• Application Outlook (Revenue, USD Billion, 2018 - 2030, Volume in Kilotons)

  • Chemicals

  • Energy/Fuel

  • Other Applications

• Regional Outlook (Revenue, USD Billion, 2018 - 2030, Volume in Kilotons)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • UK

    • Germany

    • France

    • Italy

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

    • Argentina

  • Middle East & Africa

    • South Africa

    • Saudi Arabia