solvent naphtha market REPORT OVERVIEW
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The global solvent naphtha market size was USD 8953 million in 2021. The global COVID-19 pandemic has been unprecedented and staggering, with solvent naphtha experiencing lower-than-anticipated/higher-than-anticipated demand across all regions compared to pre-pandemic levels. As per our research, the market is expected to reach USD 11980 million in 2028, exhibiting a CAGR of 4.2% during the forecast period. The sudden rise in CAGR is attributable to the market's growth and demand returning to pre-pandemic levels once the pandemic is over.
Numerous designed chemical products, including architectural paints and protective coatings, printing inks and printing press cleansers, other cleaning compounds, insecticides, degreasing formulations, and home items, contain solvent naphtha, which is made up of a mixture of hydrocarbons. Since each refinery produces its own solvent naphtha with distinct initial and end boiling points as well as other physical and chemical properties, the word "solvent naphtha" is a catch-all.
COVID-19 Impact: lockdown Limitations to Hamper Market Growth
The COVID-19 outbreak has a negative effect on the world naphtha market. The Covid-19 epidemic has had a significant impact on the expansion of the building sector. The lockdown that the government imposed has hampered the flow of building supplies. The demand for coatings, paints, and their additives has decreased as a result of the lengthy closure of numerous large building projects, which has slowed the growth of the naphtha market. Similar to how the COVID-19 outbreak has significantly impacted the desire for new airplanes, the aerospace industry has also been severely impacted.
LATEST TRENDS
"Technological Advancements to Gain Traction in Market"
The growing product use in a number of industries, including transportation, construction, and plastic, is driving the global solvent naphtha market. The naphtha business is expanding due to the increased demand for gasoline because the olefin-rich substance is frequently used to combine gasoline-grade fuel. The global solvent naphtha market is also being driven by the rising demand for petrochemicals like ethylene and propylene for the production of plastics. Additionally, the development of alternative technologies such hydro-pyrolysis of the product, which saves energy and lowers the cost of manufacturing This is helping to provide a bright picture for the global naphtha market, along with the development of distillation columns and new furnace materials.
solvent naphtha market Segmentation
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- By Type Analysis
By type, the market is segmented into Paraffin Solvent, Cycloparaffin Solvent, C9 Solvent, C10 Solvent, and Others.
- By Application Analysis
Based on application, the market is classified into Paints & Coatings, Agro Chemicals, Rubber & Resin, Printing Inks, Industrial Cleaning, and Others.
DRIVING FACTORS
"Increasing Investments by Prominent Players to Cater Market Growth"
As part of their commitment to the environment, major oil corporations in the solvent naphtha market have announced the beginning of clean fuel and aromatics initiatives. They are making investments in capacity increases to add naphtha splitter columns. These columns aid in separating light and heavy naphtha from hydrotreated naphtha. These columns serve as the primary feeder for the continuous catalytic reforming (CCR) and isomerization plants, which have respective operational capacities of 65,000 and 90,000 barrels per day. In order to reach their target clients, it has been discovered that the majority of industry participants have been relying on third-party distributors. The most common tactic used by manufacturers in the naphtha industry to promote product penetration in various end-use scenarios is a distribution agreement.
"Rising Demand from Chemical Industry to Foster Growth"
Olefin-rich naphtha, a naphtha derivative, is primarily utilized as a feedstock to produce low-cost high-octane diesel. The usage of naphtha has increased in both industrialized and developing countries as a result of population growth and the quick urbanization of certain regions. Another solvent that is widely used is petroleum naphtha. It is present in a wide range of cleaning products. In addition, it is employed to thin varnish, paint, and asphalt. Naphtha is also used in the dry-cleaning industry. This increases the need for naphtha and is anticipated to propel market expansion. Distillation procedures have been enhanced by modern technology, which has also sparked the creation of innovative furnace materials. The use of naphtha is increasing as the chemical industry expands.
RESTRAINING FACTORS
"High Cost of the Material to Hamper Market Growth"
The main component of the global naphtha market is crude oil. The market for solvent naphtha is facing a significant growth constraint due to the variation and volatility in the price at which crude oil may be purchased. During the projection period, it is expected that the demand for natural gas liquid and the move away from using naphtha in favor of less expensive alternatives like LPG will restrain the solvent naphtha market growth in the coming years.
solvent naphtha market REGIONAL INSIGHTS
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"Increasing Demand in Automotive Sector to Foster Growth in Asia Pacific "
Asia Pacific is expected to hold a dominating part of the solvent naphtha market share. The rising population along with increased use of transportation and electrical equipment is anticipated to drive product demand. Over the course of the forecast period, the market is anticipated to develop as a result of rising plastics demand in the automotive and construction industries. Over the course of the projected period, rising polymer production in developing nations like China, India, and Japan is anticipated to positively affect the region's demand for solvent naphtha.
The North American shale gas boom has changed petrochemical producers in the US, Canada, and Mexico from expensive to among the lowest-cost producers internationally, second only to the Middle East, and has replaced the use of solvent naphtha in fuels. The production of naphtha grew as a result of this price decline's impact on shale distillation.
KEY INDUSTRY PLAYERS
"Key Players Focusing on Innovative Technology Development to Grow in the Market"
The market's leading producers of roofing materials are concentrating on providing appropriate, cutting-edge, stiff, and long-lasting roofing materials. Backward integration is a major priority for many roofing product producers in order to control product quality. In order to meet the rising customer demand, industry participants place a strong emphasis on growing their product range by creating novel solutions and more affordable goods with better qualities. The companies emphasize the development of the market by launching advanced products. The key players focus on gaining mergers and collaborations with other key companies to enhance their product portfolio.
List of Market Players Profiled
- Shell (U.K.)
- ExxonMobil (U.S.)
- Total (France)
- Chevron (U.S.)
- Philips (Netherlands)
- SK (South Korea)
- Calumet (U.S.)
- Idemitsu (Japan)
- BP (U.K.)
- DuPont (U.S.)
- Citgo (U.S.)
- Reliance (Mumbai)
- KAPCO (U.S.)
REPORT COVERAGE
An overview of the product is provided along with the product description. Numerous industry elements are included in the research.
- The pandemic's aftereffects and the subsequent lockdown.
- The market's most recent trend is currently fueling expansion.
- The factors are most likely to stimulate market growth.
- The reasons the market is expected to grow more slowly.
- A comprehensive regional analysis of the market is conducted.
- Significant players and their business offices are also covered in the article.
| REPORT COVERAGE | DETAILS |
|---|---|
Market Size Value In |
US$ 8953 Million in 2021 |
Market Size Value By |
US$ 11980 Million by 2028 |
Growth Rate |
CAGR of 4.2% from 2021 to 2028 |
Forecast Period |
2022-2028 |
Base Year |
2022 |
Historical Data Available |
Yes |
Segments Covered |
Type Analysis and Application Analysis |
Regional Scope |
Global |
Frequently Asked Questions
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What value is the solvent naphtha market expected to touch by 2028?
Based on our research, the solvent naphtha market is projected to touch USD 11980 billion by 2028.
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What CAGR is the solvent naphtha market expected to exhibit by 2028?
The solvent naphtha market is expected to exhibit a CAGR of 4.2% by 2028.
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Which are the driving factors of the solvent naphtha market?
Rising demand from chemical industry and increasing investment by prominent players to foster growth are the factors driving the solvent naphtha market.
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Which are the top companies operating in the solvent naphtha market?
Shell, ExxonMobil, Total, Chevron, Philips, SK, Calumet, Idemitsu, BP, DuPont, Citgo, Reliance, KAPCO are the top companies operating in the solvent naphtha market.
