Global Renewable Naphtha Market Size Analysis
According to a research survey conducted by ChemView Consulting, in 2022, the Global Renewable Naphtha Market was worth US$ 490.7 Mn and is expected to grow at a CAGR of 9.5% over the forecast period. While the historical CAGR is 8.2%, the market is expected to hit US$ 1,216.1 Mn by 2032 end.
Renewable naphtha is a byproduct that refineries currently make when they turn renewable feedstock into diesel. It is an intermediary product that can be converted to gasoline, polymers, or feedstock to manufacture hydrogen.
GROWING DEMAND FOR FUEL-EFFICIENT VEHICLES FUELS THE SALES OF RENEWABLE NAPHTHA
Globally rising production and vehicle fleets are driving demand for renewable naphtha. After the economic slump brought on by COVID-19, global vehicle production is increasing steadily.
Crude oil is the source of traditional fuels like gasoline and diesel used in automobiles. When these fuels are used, toxic pollutants, including NOx, SOx, CO2, and other greenhouse gases, are released into the atmosphere, endangering the environment and ecosystem. A fantastic alternative to fossil fuels, renewable naphtha mixed fuel emits fewer hazardous emissions than traditional fossil fuels.
INCREASING PRICES OF BIO-BASED FUELS RESTRICTS THE GROWTH
The market’s growth is hampered by increased customer interest in electric vehicles and rising pricing for bio-based fuels. Sales growth in the plastics production market is anticipated to be hindered by strict regulations on producing synthetic plastics like ethylene and propylene.
Market Segments Covered in Report
By Region and Country:
Why does the demand for light renewable naphtha continue to increase?
The market for renewable naphtha is expected to be dominated by the light naphtha segment, which is expected to account for 92.8% of the market. Sales of light renewable naphtha will continue to benefit from the growing desire for eco-friendly alternatives to plastic and the rising demand for bio-based materials.
Manufacturers in the renewable naphtha market are investing in research and development to bring new goods to call for various applications, given the nature of the product and scope of use.
Why is there a widespread use of renewable naphtha in plastic production?
About 72.9% of the market for renewable naphtha is anticipated to be accounted for the segment used as feed to manufacture plastic. The demand for consumer goods is predicted to rise together with investments in the manufacturing of bio-based plastics, which will cause the plastics industry to expand quickly. Because it is utilized in applications where it serves as an intermediary product, such as the manufacture of hydrogen gas, the need for renewable naphtha is anticipated to rise.
High demand from the plastics, bio plastics, and fuel blending industries will likely fuel the segment’s continued growth in the foreseeable future. Additionally, the popularity of bio-based polymers will support the development of renewable naphtha.
The regions analyzed for the market include North America, Europe, Latin America, Asia Pacific, the Middle East, and Africa.
The main participants in the renewable naphtha market are concentrating on increasing their production capacity by establishing new production facilities in developing nations. In addition, players are working with plastic manufacturers to increase their market share. In addition, major market players will continue to use mergers, acquisitions, and research and development as important growth tactics.
The key developments in the Global Renewable Naphtha Market are:
A list of some of the key suppliers present in the market are:
Global Renewable Naphtha Market 2022-2032: Report Coverage and Highlights
|Historical data available for||2017-2021|
|Market analysis||USD Million for Value and Tons for Volume, and CAGR from 2022 to 2030|
|Key regions covered||North America, Latin America, Europe, Asia-Pacific, Middle East, and Africa|
|Key countries covered||US, Canada, Brazil, Mexico, Germany, Italy, France, UK, Spain, Netherlands, Norway, Russia, China, Japan, South Korea, India, Indonesia, Thailand, Vietnam, Australia & New Zealand, Saudi Arabia, Turkey, UAE, South Africa, Nigeria, Egypt|
|Key segments covered||By Type, Application, and Region|
|Customization scope||Available upon Request|
|Pricing and purchase options||Available upon Request|
Frequently Asked Questions
In the forecast period between 2022 and 2032, the market is expected to grow at a CAGR of 9.5%.
Globally rising production and vehicle fleets are driving demand for renewable naphtha.
Key Global Renewable Naphtha Market players are Neste, ENI, Darling Ingredients Inc., CNPC, Diamond Green Diesel, Renewable Energy Group, Inc., Marathon Petroleum Corp., Preem, Phillips 66, and UPM Biofuel.
The market’s growth is hampered by increased customer interest in electric vehicles and rising pricing for bio-based fuels.
Europe is expected to account for the largest market revenue share in the Global Renewable Naphtha Market.
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