Global Naphthenic Acid Market Overview
The Naphthenic Acid Market Size was estimated at 0.66 (USD Billion) in 2022. The Naphthenic Acid Industry is expected to grow from 0.68 (USD Billion) in 2023 to 0.9 (USD Billion) by 2032. The naphthenic acid market CAGR (growth rate) is expected to be around 3.17% during the forecast period (2024 - 2032).
Key Naphthenic Acid Market Trends Highlighted
The naphthenic acid market is driven by increasing demand from the lubricant, metalworking fluid, and plasticizer industries. Growth in these end-use industries, particularly in emerging economies, is expected to continue to drive market expansion.
Additionally, the rising popularity of bio-based naphthenic acids due to concerns over sustainability is creating growth opportunities.
Key trends in the naphthenic acid market include the adoption of advanced technologies for efficient production and the development of new applications in industries such as pharmaceuticals and cosmetics.
Furthermore, the increasing focus on renewable and sustainable raw materials is driving the demand for bio-based naphthenic acids, offering opportunities for market participants to explore new revenue streams.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Naphthenic Acid Market Drivers
The Increasing Demand for Naphthenic Acid in the Production of Corrosion Inhibitors
The rise in demand for corrosion inhibitors is a major driver of growth in the naphthenic acid market. Naphthenic acid is a key component in the production of corrosion inhibitors, which are used to protect metal surfaces from corrosion.
The increasing use of metals in various industries, such as construction, automotive, and manufacturing, has led to a growing demand for corrosion inhibitors. Naphthenic acid-based corrosion inhibitors are highly effective in preventing corrosion in a wide range of environments, making them a preferred choice for many industries.
The growing demand for corrosion inhibitors is expected to continue to drive the growth of the naphthenic acid market in the coming years. Key factors contributing to the increasing demand for corrosion inhibitors include: The rising use of metals in various industries, such as construction, automotive, and manufacturing.
The increasing awareness of the importance of corrosion protection. The development of more effective and environmentally friendly corrosion inhibitors. The naphthenic acid market is expected to witness significant growth in the coming years, driven by the increasing demand for corrosion inhibitors.
The Growing Use of Naphthenic Acid in the Production of Lubricants
Lubricants Naphthenic acid is also a popular material for the production of lubricants. Lubricants are used to reduce moving parts’ friction in machinery and equipment.
Such machines and equipment include various industrial devices and home appliances, which need to be protected from wear and other environmental impacts. Naphthenic acid-based lubricants are popular for their excellent performance and high resistance to both high temperatures and pressures.
In addition, these lubricants demonstrate good oxidative stability and wear resistance. The rapid growth of machinery and equipment across diverse industries, including manufacturing, mining, and transportation, explains the increasing demand for lubricants.
In the future, naphthenic acid-based lubricants are also likely to become more popular because of their excellent performance and reliability. Importantly, the following factors contribute to the growing demand for lubricants: The expanding machinery and equipment use in a variety of industries.
Increased awareness of the role and significance of lubrication in machinery and equipment. The development of more efficient, effective, and environmentally friendly lubricants. Assessment of the naphthenic acid market: The Lubricant Demand Scenario The naphthenic acid market is experiencing rapid and significant growth, mostly because of the increasing demand for lubricants.
The Expanding Use of Naphthenic Acid in the Production of Oilfield Chemicals
Naphthenic acid also has applications in the production of oilfield chemicals. Oilfield chemicals refer to chemicals used in the exploration and production of oil and gas. Naphthenic acid-based oilfield chemicals are used for a variety of purposes, including drilling fluids, production chemicals and stimulation chemicals.
These chemicals are highly effective in improving oil and gas recovery and can withstand harsh conditions. The demand for oil and gas has been increasing, and this is expected to continue in the coming years.
In addition, the development of more effective and environmentally friendly oilfield chemicals is another factor that has been driving the growth of the naphthenic acid market. Based on these factors, it is expected the naphthenic acid market will continue to grow in the coming years.
Naphthenic Acid Market Segment Insights:
Naphthenic Acid Market Type Insights
The naphthenic acid market is segmented into oil-based, petroleum-based, coal-based, and biomass-based naphthenic acid. Among these, the oil-based segment accounted for the largest market share in 2023. This is primarily due to the widespread availability and cost-effectiveness of oil-based naphthenic acid, which makes it a preferred choice in various applications.
The market growth is attributed to the rising demand for naphthenic acid in various end-use industries such as oil and gas, metalworking, and chemical processing. Furthermore, the increasing application of naphthenic acid in the production of corrosion inhibitors, emulsifiers, and detergents is also contributing to market growth.
In terms of regional segmentation, Asia-Pacific is projected to hold the largest market share during the forecast period. This is primarily due to the presence of a large and growing manufacturing sector in the region, which is a major consumer of naphthenic acid.
Additionally, the rising demand for naphthenic acid in the automotive and construction industries in the region is expected to drive market growth. Overall, the naphthenic acid market is expected to experience moderate growth during the forecast period.
The increasing demand for naphthenic acid in various end-use industries, coupled with the growing adoption of sustainable and eco-friendly products, is expected to drive market growth.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Naphthenic Acid Market Application Insights
The application segment is a crucial aspect of the naphthenic acid market, influencing the market growth and product demand. Among the key applications of naphthenic acid, metalworking fluids hold a significant market share.
In 2024, the naphthenic acid market revenue from metalworking fluids is expected to reach approximately $120 million, showcasing a notable market growth. Corrosion inhibitors represent another significant application segment, with an estimated market value of $90 million in 2024. Naphthenic acid's ability to protect metal surfaces from corrosion drives the demand in this segment.
Moreover, the increasing use of naphthenic acid in lubricants and greases contributes to the market growth, with a projected market valuation of $80 million in 2024.
Oil and gas additives, paints and coatings, rubber and plastics, and water treatment chemicals are other notable application segments, each contributing to the overall naphthenic acid market statistics.
Naphthenic Acid Market End Use Industry Insights
The naphthenic acid market is segmented by end-use industry into automotive, construction, manufacturing, oil and gas, power generation, pharmaceuticals, and transportation. The automotive industry is the largest end-use segment, accounting for over 35% of the market in 2023.
The construction industry is the second largest end-use segment, followed by the manufacturing industry. The oil and gas industry is a major end-use segment for naphthenic acid, as it is used in oil refining and production. The power generation industry is also a major end-use segment, as naphthenic acid is used in the production of electricity.
The pharmaceutical industry is a growing end-use segment for naphthenic acid, as it is used in the production of drugs and other healthcare products. The transportation industry is also a growing end-use segment for naphthenic acid, as it is used in the production of vehicles and other transportation equipment.
Naphthenic Acid Market Purity Grade Insights
The naphthenic acid market segmentation by Purity Grade, such as 'Less than 95%', '95-98%', '98-99%', and '99% and above', offers valuable insights into the market dynamics. The 'Less than 95%' segment accounted for a significant market share in 2023, owing to its widespread use in various industrial applications.
However, the '99% and above' segment is projected to grow at a notable CAGR during the forecast period, driven by increasing demand for high-purity naphthenic acid in specialty chemicals and pharmaceuticals. The '95-98%' and '98-99%' segments are also expected to contribute to the overall naphthenic acid market revenue growth, supported by their applications in industries such as metalworking and lubricants.
Naphthenic Acid Market Regional Insights
Regionally, the market is segmented into North America, Europe, APAC, South America, and MEA. North America held the largest market share in 2023, accounting for over 35% of the revenue. The growth in this region is attributed to the presence of major oil and gas companies and the increasing demand for naphthenic acid in various industries such as lubricants, paints, and coatings.
Europe is the second-largest market for naphthenic acid, with a market share of around 30%. The growing demand for eco-friendly and sustainable products in the region is driving the market growth.
APAC is expected to witness the fastest growth during the forecast period, owing to the increasing demand for naphthenic acid in emerging economies such as China and India. The growing construction and automotive industries in these countries are major contributors to the market growth.
South America and MEA are expected to have a moderate growth rate during the forecast period, with MEA expected to have a slightly higher growth rate due to the increasing demand for naphthenic acid in the oil and gas industry.
Naphthenic Acid Market Key Players and Competitive Insights:
The naphthenic acid market is witnessing intense competition among established players. Major players in the naphthenic acid market are constantly innovating and expanding their product portfolios to stay ahead in the market. The naphthenic acid market is characterized by a high level of research and development, with companies investing heavily in new technologies and applications of the product.
Leading naphthenic acid market players are focusing on strategic partnerships, acquisitions, and collaborations to strengthen their market positions and gain a competitive edge. The naphthenic acid market Competitive Landscape is expected to remain dynamic in the coming years, with new entrants and existing players vying for market share.
Among the leading players in the naphthenic acid market, Buckman Laboratories International, Inc. is a specialty chemical company that offers a wide range of naphthenic acid products for various industrial applications.
The company's naphthenic acid products are known for their high quality and performance and are used in a diverse range of industries, including oil and gas, mining, and water treatment.
Buckman Laboratories International, Inc. has a strong presence, with manufacturing facilities in North America, Europe, and Asia-Pacific. The company's commitment to innovation and customer service has helped it maintain a leading position in the naphthenic acid market.
Another key player in the naphthenic acid market is Stepan Company, a manufacturer and marketer of specialty chemicals. The company's naphthenic acid products are used in a variety of applications, including metalworking fluids, lubricants, and corrosion inhibitors.
Stepan Company has a strong focus on research and development and has developed a number of innovative naphthenic acid products that meet the specific needs of its customers. The company's reach and commitment to customer service have enabled it to become a leading player in the naphthenic acid market.
Key Companies in the naphthenic acid market Include:
-
Sasol
-
BASF
-
Dow Chemical Company
-
ExxonMobil Chemical Company
-
Shell Chemicals
-
SK Innovation
-
Arkema
-
Chevron Phillips Chemical Company
-
Evonik Industries
-
Momentive Performance Materials Inc.
-
Huntsman Corporation
-
The Lubrizol Corporation
-
Sinopec Corp.
-
Mitsui Chemicals
-
LyondellBasell Industries Holdings
-
INEOS Group
-
LG Chem
-
PetroChina Company Limited
Naphthenic Acid Market Developments
The market growth is primarily driven by the increasing demand for naphthenic acid in the production of lubricants, metalworking fluids, and corrosion inhibitors. The automotive and manufacturing industries are the major end-use sectors for naphthenic acid, and their growth is expected to positively impact the market.
Recent developments in the market include the launch of new products and the expansion of production capacities by major players. For instance, in 2023, Evonik Industries announced the expansion of its naphthenic acid production capacity at its Antwerp, Belgium, site. The company plans to invest around EUR 20 million (USD 21.5 million) to increase the production capacity by approximately 30%.
Other notable developments include the growing adoption of bio-based naphthenic acid and the development of new applications in the pharmaceutical and cosmetic industries. These factors are expected to contribute to the steady growth of the naphthenic acid market in the coming years.
Naphthenic Acid Market Segmentation Insights
Naphthenic Acid Market Type Outlook
-
Oil-based Naphthenic Acid
-
Petroleum-based Naphthenic Acid
-
Coal-based Naphthenic Acid
-
Biomass-based Naphthenic Acid
Naphthenic Acid Market Application Outlook
Naphthenic Acid Market End Use Industry Outlook
-
Automotive
-
Construction
-
Manufacturing
-
Oil and Gas
-
Power Generation
-
Pharmaceuticals
-
Transportation
Naphthenic Acid Market Purity Grade Outlook
-
Less than 95%
-
95-98%
-
98-99%
-
99% and above
Naphthenic Acid Market Packaging Type Outlook
-
Drums
-
Barrels
-
Tank
-
Bulk Containers
Naphthenic Acid Market Regional Outlook
-
North America
-
Europe
-
South America
-
Asia Pacific
-
Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
0.66(USD Billion) |
| Market Size 2023 |
0.68(USD Billion) |
| Market Size 2032 |
0.9(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
3.17% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Sasol, BASF, Dow Chemical Company, ExxonMobil Chemical Company, Shell Chemicals, SK Innovation, Arkema, Chevron Phillips Chemical Company, Evonik Industries, Momentive Performance Materials Inc., Huntsman Corporation, The Lubrizol Corporation, Sinopec Corp., Mitsui Chemicals, LyondellBasell Industries Holdings, INEOS Group, LG Chem, PetroChina Company Limited |
| Segments Covered |
Type, Application, End Use Industry, Purity Grade, Packaging Type, Regional |
| Key Market Opportunities |
Growing demand from lubricant and oil amp gas industries Rising use in paints and coatings Increasing application in metalworking fluids Expanding consumption of personal care products Growing popularity in pharmaceuticals |
| Key Market Dynamics |
Rising demand Technological advancements Fluctuating prices Growing environmental concerns Expanding applications |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The naphthenic acid market was worth around 0.68 billion USD in 2023.
The naphthenic acid market is projected to grow at a CAGR of 3.17% from 2024 to 2032.
The Asia-Pacific region dominated the naphthenic acid market in 2023, accounting for around 40% of the market share.
The oil and gas industry accounted for the largest share of the naphthenic acid market in 2023, accounting for around 60% of the market share.
Some of the key competitors in the naphthenic acid market include BASF, Chevron Phillips Chemical Company, ExxonMobil, and Shell.
The key factors driving the growth of the naphthenic acid market include the increasing demand for naphthenic acid in the oil and gas industry, the growing use of naphthenic acid in metalworking fluids, and the rising demand for naphthenic acid in the automotive industry.
The key challenges facing the naphthenic acid market include the volatility of raw material prices, stringent environmental regulations, and the intense competition from other types of acids.
The key opportunities for the naphthenic acid market include the growing demand for naphthenic acid in emerging markets, the development of new applications for naphthenic acid, and the increasing awareness of the benefits of naphthenic acid.
The key trends in the naphthenic acid market include the increasing use of naphthenic acid in green chemistry, the development of sustainable naphthenic acid production processes, and the growing adoption of naphthenic acid in personal care products.
The naphthenic acid market is expected to reach around 0.9 billion USD by 2032.
