The global naphthenic acid market size was valued at USD 64821.7 thousand in 2021 and is anticipated to witness a compound annual growth rate (CAGR) of 1.59 % from 2022 to 2030. The market for naphthenic acid is expected to witness significant growth due to rising demand for textile and wood preservatives. The market will also get benefit from the increasing construction industry. Increasing investments in infrastructure development and the growing standard of living are further projected to augment market growth.
Global Naphthenic Acid Market: Regional Insights
Regionally, Asia-Pacific is expected to dominate the global naphthenic acid market due to improving standards of living and increased investment in infrastructure development in the China which will boost demand for naphthenic acid. Moreover, China is also expected to become the world's largest single market for civil aircraft over the next 20 years. It currently operates 2,185 general aviation aircraft and plans to construct over 500 airports by 2020.
At the same time, North America is also expected to witness fastest growth in the global market over the forecast period owing to the high production of crude oil in the region. According to the U.S. Energy Information Administration (EIA), at present, petroleum refineries in the country produce an average of 11 to 12 gallons of diesel fuel from each 42-gallon (U.S.) barrel of crude oil.
Figure 1. Global Naphthenic Acid Market, By Region
Global Naphthenic Acid Market Drivers:
Growing demand for wood preservatives is primarily fueling growth of the global naphthenic acid market. Rapid urbanization and industrialization due to rise in infrastructure activities is fueling growth of the wood preservatives market. This is in turn augmenting market growth of naphthenic acid market.
Growing importance of increasing lifespan of engine life is again projected to propel market growth. Naphthenic acid is majorly used in lubricants and greases, these lubricants are widely used in the transportation and aviation industry. Growing number of fleet delivery is further projected to foster market growth. According to Boeing, to support increasing fleet, there is a need for more than 24,830 new deliveries, for growth and replacement, over the next 20 years.
Global Naphthenic Acid Market Opportunities:
Strong growth in the electronic industry is projected to bring lucrative growth opportunities over the forecast period. The global electronics industry is expected to grow by around 3% in 2020 according to German Electrical and Electronic Manufacturers’ Association (ZVEI) estimates. Growing electronics production is expected to increase the usage of magnetic fluids, which in turn will positively impact the naphthenic acid market through the years to come.
Expanding aviation sectors across developing countries is also projected to present significant growth opportunities. According to the Coherent Market Insights analysis, currently China is running 2,185 general aviation aircraft. Moreover, it is planning to build more than 5,000 aircraft and 500 airports, by 2020, which, in turn, is expected to boost the demand for jet fuels in the country.
|Base Year:||2021||Market Size in 2021:||US$ 64821.7 Thousand|
|Historical Data for:||2017 to 2020||Forecast Period:||2022 to 2030|
|Forecast Period 2022 to 2030 CAGR:||1.59 %||2030 Value Projection:||US$ 64873.3 Thousand|
Anhui Fulltime Specialized Solvent & Reagent Co., Ltd, haihang industry co., ltd., Karvan – l, Merck KGaA, Merichem Company, Midas Chemical Company Limited, Shanghai Changfeng Chemical Industrial Factory, Shenyang Zhang Ming Chemical Co. Ltd, Tokyo Chemical Industry Co., Ltd., and Umicore Cobalt & Specialty Materials (CSM)
|Restraints & Challenges:||
Global Naphthenic Acid Market Trends:
Increasing paints and coatings industry is expected to emerge as a major trend for naphthenic acid market. According to the Canadian Paint & Coatings Association, the industry’s economic output was around USD 12 billion at present.
Growing demand from military industry for manufacturing napalm is expected to propel market growth. Moreover, increasing demand for insecticide-resistant pests is again augmenting market growth.
Global Naphthenic Acid Market Restraints:
Negative impact of naphthenic acid on environment is expected to hinder the market growth. Naphthenic acid are difficult to be biodegraded in the environment naturally.
Presence of alternatives is again expected to restrict the market growth over the forecast period. For instance, 2-Ethylhexanoic acid is used in the manufacture of chemicals, corrosion inhibitors and anti-scaling agents, intermediates, lubricants and lubricant additives, paint and coating additives, etc.
Figure 2. Global Naphthenic Acid Market, By Type
Global Naphthenic Acid Market Segmentation:
The global naphthenic acid market report is segmented into type, application, and geography
Based on type, the market is segmented into Refined Naphthenic Acid and High Purity Naphthenic Acid. Out of which, Refined Naphthenic Acid is expected to dominate the global market over the forecast period and this is attributed to the growing demand from wood treatments, corrosion inhibitors, paint and ink driers, defoamers, emulsifiers, cutting oils, tire cord adhesives, fuel additives and vinyl stabilizer applications.
High Purity Naphthenic Acid segment is also expected to witness significant growth in the near future due to the growing demand from paint and coatings, tire, and furniture industry
Based on application, the market is segmented into Paint and Ink Driers, Wood Preservatives, Fuel and Lubricant Additives, Rubber Additives, and Other Applications. Out of which, Paint and Ink Driers is expected to dominate the global market over the forecast period and this is attributed to the growing paints and Inks industry due to rapid urbanization and industrialization. In Aug 2019, Yansefu Inks and Coatings (YICPL) expanded its production capacity at the Bawal site, to cater the rapidly increasing demands of the customers with their innovative products and solutions.
Wood Preservatives segment is also expected to witness significant growth in the near future and this is owing to the strong growth of the furniture industry. According to the China Furniture Association, there are more than 100,000 furniture manufactures located in the five major furniture manufacturing bases.
Global Naphthenic Acid Market: Key Companies Insights
The global naphthenic acid market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis. Some of the key players in the global naphthenic acid market are Anhui Fulltime Specialized Solvent & Reagent Co., Ltd, haihang industry co., ltd., Karvan – l, Merck KGaA, Merichem Company, Midas Chemical Company Limited, Shanghai Changfeng Chemical Industrial Factory, Shenyang Zhang Ming Chemical Co. Ltd, Tokyo Chemical Industry Co., Ltd., and Umicore Cobalt & Specialty Materials (CSM)
*Definition: Naphthenic acids are organic compounds that are produced from petroleum hydrocarbons. They are cyclic or acyclic and contain a carbon backbone of nine to 20 carbons. These acids can be highly toxic but biodegradation can reduce their levels. They are also useful in industrial processes and in biorefining.
Naphthenic acid is an acid composed of a mixture of cyclopentyl and cyclohexyl carboxylic acids. Its molecular mass ranges from 120 to 700 atomic mass units. It has a carbon backbone that contains nine to twenty carbons. Naphthenic acid is released from the oil sands during extraction processes, which causes a variety of environmental effects including contamination of ground and surface water.
Growing demand for naphthenic acid from the textile and wood industries will fuel market growth. Growth in the global naphthenic acid market is also expected to continue to be driven by rising demand in the automobile, pharmaceutical, and household cleaning industries. Increasing concern about skin and hair problems among youth will also contribute to the growth in this market. Furthermore, rising demand for anti-aging products is further expected to drive the market during the forecast period. However, environmental degradation is likely to hinder market growth.
Key features of the study: