Report Overview

India Naphtha Market – Industry Trends & Forecast Report, 2030

India Naphtha Market size was estimated at USD 17.40 billion in 2023. During the forecast period between 2024 and 2030, India Naphtha Market size is projected to grow at a CAGR of 3.5% reaching a value of USD 22 billion by 2030. Prominent drivers of the market include the increasing demand for naphtha as a versatile liquid hydrocarbon, derived from crude oil or coal tar, which plays a crucial role across multiple industrial applications. Its use spans from refining high-octane gasoline to metal cleaning and as a key component in petrochemical production, particularly in the manufacturing of aromatics and olefins. The ongoing expansion of the petrochemical sector, along with a growing need for cost-effective fuel options, is driving consumption. Additionally, the construction boom in both residential and commercial sectors is pushing up the demand for paints and cleaning agents, in which naphtha is a vital ingredient. With the increasing focus on fuel efficiency and emissions reduction, naphtha’s importance in developing specialized fuel mixtures further cements its role in India's industrial landscape.

Naphtha – Overview

Naphtha is a flammable liquid hydrocarbon mixture typically derived from crude oil but can also be obtained from natural gas condensates, petroleum distillates, and coal tar. It plays a critical role in diluting heavy crude oil, reducing its viscosity to facilitate transportation, as undiluted heavy crude is difficult to move via pipelines or load onto tankers. Naphtha stands out as an efficient dilutant, as it can be recycled after processing. Its importance has grown with the global decline in lighter crude oil production, leading to increased reliance on heavier oil reserves.

India Naphtha Market

Growth Drivers

Rapid Expansion of India Petrochemical Industry

The rapidly expanding India petrochemical industry is significantly boosting the growth of India Naphtha Market. With an increasing demand for petrochemicals across sectors like automotive, healthcare, agriculture, and textiles, the need for naphtha, a key feedstock in the production of olefins and aromatics, has surged. Government initiatives such as reducing import duties on naphtha from 4% to 2.5% and support through Production Linked Incentive (PLI) schemes are further driving this growth. Additionally, infrastructure development, increased healthcare spending, and growing consumption of polymers are contributing to rising naphtha utilization, strengthening its role in India's expanding petrochemical sector.

Challenges

Fluctuations in Crude Oil Prices

Fluctuations in crude oil prices significantly restrain the growth of India Naphtha Market, as naphtha is primarily derived from crude oil. The volatility in global crude oil prices directly impacts naphtha production costs, making it difficult for market players to maintain stable pricing. Events like the 2020 oil price crash, driven by the COVID-19 pandemic and geopolitical tensions between major oil-producing nations such as Russia and Saudi Arabia, created price instability. Unpredictability leads to uncertainty in supply chains, hampers profitability, and discourages investments in India Naphtha Market, ultimately restraining the market growth.

Impact of Escalating Geopolitical Tensions on India Naphtha Market

Escalating geopolitical tensions among countries across regions could have a significant impact on the growth of India Naphtha Market. These tensions may disrupt global trade routes, leading to supply chain disruptions and volatility in naphtha prices. Political instability in key oil-producing nations could limit the availability of crude oil, from which naphtha is derived, thus affecting production levels. Additionally, sanctions or trade restrictions imposed during geopolitical conflicts can increase import costs and reduce access to critical resources, further straining the market. Consequently, the India naphtha market may face challenges in maintaining stable growth amidst rising geopolitical uncertainties.

India Naphtha Market

Segmental Coverage

India Naphtha Market – By Type

By type, India Naphtha Market is bifurcated into Light Naphtha and Heavy Naphtha segments. The light naphtha is expected to hold a higher share in India Naphtha Market by type over the forecast period, due to its critical role as a feedstock for petrochemical production. Widely used in gasoline blending, as a solvent, and in steam cracking for producing olefins, light naphtha's versatility makes it a vital component in multiple industries. Its cost-effectiveness, driven by simpler refining processes compared to heavier naphtha, further enhances its appeal. Additionally, rising demand for fertilizers and petrochemical products in India and across the Asia Pacific region is boosting the prominence of light naphtha, ensuring its market dominance.

India Naphtha Market – By Technology

Based on technology, India Naphtha Market is divided into Gasoline Blending, Naphtha Reforming, and Steam Cracking segments.

India Naphtha Market – By End User

On the basis of end user, India Naphtha Market is divided into Petroleum, Agriculture, Paints & Coatings, and Aerospace segments. The petroleum segment holds the highest share in India Naphtha Market by end user. The rising demand for affordable fuel, spurred by rapid industrialization and urbanization in both emerging and established economies, is expected to boost the market for naphtha, a critical component in the petrochemical industry. This trend is fueled by the need to satisfy the energy requirements of a growing population while addressing environmental concerns. As societies expand and economies evolve, the demand for sustainable and cost-effective energy sources intensifies. Naphtha stands out as a versatile and accessible solution, reflecting the broader transition towards sustainable energy in the sector. This shift highlights a commitment to reducing environmental impact while maintaining the affordability and availability of energy.

India Naphtha Market – By Region

The in-depth research report on India Naphtha Market covers the market in the country’s major regions: North India, South India, East India, and West India regions. West India holds the highest share in India Naphtha Market and is expected to maintain its dominance during the forecast period. The region is home to major industrial hubs and refineries, such as the Jamnagar Refinery in Gujarat is one of the largest refineries globally. These facilities are crucial in naphtha production and distribution, cementing West India's role as a key market player. The area's advanced infrastructure and logistical networks facilitate the efficient transportation and distribution of naphtha to various sectors, including petrochemicals, agriculture, and manufacturing. Additionally, West India's proximity to major import-export ports enhances its ability to engage in international trade, ensuring a steady naphtha supply from global markets. This strategic advantage, combined with a skilled workforce and a supportive business environment, underpins the region's leading position in the naphtha market.

Competitive Landscape

Major players operating in India Naphtha Market include Bharat Petroleum Corporation Limited, Hindustan Petroleum Corporation Limited (HPCL), Indian Oil Corporation Limited (IOCL), Nayara Energy, Mangalore Refinery & Petrochemicals Ltd (MRPL), Reliance Industries Limited (RIL), and Hemraj Petrochem Pvt Ltd. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In August 2024 - Reliance Industries announced its plans to use naphtha supplies as partial payment for crude oil purchases from Venezuela. Following recent United States’ approval to resume trade with Venezuela, Reliance plans to use naphtha, a refined product, to offset part of the crude costs.

Scope of the Report

By Type

• Light Naphtha

• Heavy Naphtha

By Technology

• Gasoline Blending

• Naphtha Reforming

• Steam Cracking

By End User

• Petrochemical

• Agriculture

• Paints & Coatings

• Aerospace

By Region

• North India

• South India

• East India

• West India

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. India Naphtha Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Rapid expansion of India's petrochemical industry
         2. Government initiatives to improve infrastructure
         3. Rising disposable income
      2. Restraints
         1. Fluctuations in crude oil prices
         2. Competition from alternative feedstocks
         3. Growing concerns about environmental pollution and greenhouse gas emissions
      3. Opportunities
         1. Diversifying into the production of value-added naphtha-based products
         2. Investing in advanced technologies
         3. Exploring ways to integrate renewable energy sources into the petrochemical production process
      4. Challenges
         1. Inadequate infrastructure, such as pipelines and storage facilities
         2. Stricter environmental regulations
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. India Naphtha Market: Marketing Strategies
5. India Naphtha Market: Pricing Analysis
6. India Naphtha Market Overview
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Type
         1. Light Naphtha
         2. Heavy Naphtha
      2. By Technology
         1. Gasoline Blending
         2. Naphtha Reforming
         3. Steam Cracking
      3. By End User
         1. Petrochemical
         2. Agriculture
         3. Paints & Coatings
         4. Aerospace
         5. Others
      4. By Region
         1. North India
         2. South India
         3. East India
         4. West India
7. North India Naphtha Market
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Type
      2. By Technology
      3. By End User
8. South India Naphtha Market
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Type
      2. By Technology
      3. By End User
9. East India Naphtha Market
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Billion)
      2. By Volume (Billion Tons)
   2. Market Share & Forecast
      1. By Type
      2. By Technology
      3. By End User
10. West India Naphtha Market
    1. Market Size & Forecast, 2019–2030
       1. By Value (USD Billion)
    2. Market Share & Forecast
       1. By Type
       2. By Technology
       3. By End User
11. Competitive Landscape
    1. List of Key Players and Their Offerings
    2. India Naphtha Company Market Share Analysis, 2023
    3. Competitive Benchmarking, By Operation Channel Parameters
    4. Key Strategic Development (Mergers, Acquisitions, Partnerships, etc.)
12. Impact of Escalating Geopolitical Tensions on India Naphtha Market
13. Company Profiles (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, and SWOT Analysis)
    1. Bharat Petroleum Corporation Limited
    2. Hindustan Petroleum Corporation Limited (HPCL)
    3. Petroleum Corporation Limited
    4. Indian Oil Corporation Limited (IOCL)
    5. Nayara Energy
    6. Mangalore Refinery & Petrochemicals Ltd (MRPL)
    7. Reliance Industries Limited (RIL)
    8. Hemraj Petrochem Pvt Ltd
    9. Other Prominent Players
14. Key Strategic Recommendations
15. Research Methodology
    1. Qualitative Research
       1. Primary & Secondary Research
    2. Quantitative Research
    3. Market Breakdown & Data Triangulation
       1. Secondary Research
       2. Primary Research
    4. Breakdown of Primary Research Respondents, By Region
    5. Assumption & Limitation

*Financial information of non-listed companies will be provided as per availability

**The segmentation and the companies are subjected to modifications based on in-depth secondary for the final deliverable

List of Figures

Table 1        India Naphtha Market Segmentation

Table 2        India Naphtha Market Value Chain Analysis

Table 3        Company Market Share Analysis, 2023

Table 4        India Naphtha Market Size, By Value (USD Billion), 2019–2030

Table 5        India Naphtha Market Size, By Volume (Billion Tons) 2019–2030

Table 6        India Naphtha Market Share, By Type, By Value (USD Billion) 2019–2030

Table 7        India Naphtha Market Share, By Type, By Volume (Billion Tons) 2019–2030

Table 8        India Naphtha Market Share, By Technology, By Value (USD Billion) 2019–2030

Table 9        India Naphtha Market Share, By Technology, By Volume (Billion Tons) 2019–2030

Table 10      India Naphtha Market Share, By End User, By Value (USD Billion) 2019–2030

Table 11      India Naphtha Market Share, By End User, By Volume (Billion Tons) 2019–2030

Table 12      India Naphtha Market Share, By Region, By Value (USD Billion) 2019–2030

Table 13      India Naphtha Market Share, By Region, By Volume (Billion Tons) 2019–2030

Table 14      North India Naphtha Market Size, By Value (USD Billion), 2019–2030

Table 15      North India Naphtha Market Size, By Volume (Billion Tons) 2019–2030

Table 16      North India Naphtha Market Share, By Type, By Value (USD Billion) 2019–2030

Table 17      North India Naphtha Market Share, By Type, By Volume (Billion Tons) 2019–2030

Table 18      North India Naphtha Market Share, By Technology, By Value (USD Billion) 2019–2030

Table 19      North India Naphtha Market Share, By Technology, By Volume (Billion Tons) 2019–2030

Table 20      North India Naphtha Market Share, By End User, By Value (USD Billion) 2019–2030

Table 21      North India Naphtha Market Share, By End User, By Volume (Billion Tons) 2019–2030

Table 22      South India Naphtha Market Size, By Value (USD Billion), 2019–2030

Table 23      South India Naphtha Market Size, By Volume (Billion Tons) 2019–2030

Table 24      South India Naphtha Market Share, By Type, By Value (USD Billion) 2019–2030

Table 25      South India Naphtha Market Share, By Type, By Volume (Billion Tons) 2019–2030

Table 26      South India Naphtha Market Share, By Technology, By Value (USD Billion) 2019–2030

Table 27      South India Naphtha Market Share, By Technology, By Volume (Billion Tons) 2019–2030

Table 28      South India Naphtha Market Share, By End User, By Value (USD Billion) 2019–2030

Table 29      South India Naphtha Market Share, By End User, By Volume (Billion Tons) 2019–2030

Table 30      East India Naphtha Market Size, By Value (USD Billion), 2019–2030

Table 31      East India Naphtha Market Size, By Volume (Billion Tons) 2019–2030

Table 32      East India Naphtha Market Share, By Type, By Value (USD Billion) 2019–2030

Table 33      East India Naphtha Market Share, By Type, By Volume (Billion Tons) 2019–2030

Table 34      East India Naphtha Market Share, By Technology, By Value (USD Billion) 2019–2030

Table 35      East India Naphtha Market Share, By Technology, By Volume (Billion Tons) 2019–2030

Table 36      East India Naphtha Market Share, By End User, By Value (USD Billion) 2019–2030

Table 37      East India Naphtha Market Share, By End User, By Volume (Billion Tons) 2019–2030

Table 38      West India Naphtha Market Size, By Value (USD Billion), 2019–2030

Table 39      West India Naphtha Market Size, By Volume (Billion Tons) 2019–2030

Table 40      West India Naphtha Market Share, By Type, By Value (USD Billion) 2019–2030

Table 41      West India Naphtha Market Share, By Type, By Volume (Billion Tons) 2019–2030

Table 42      West India Naphtha Market Share, By Technology, By Value (USD Billion) 2019–2030

Table 43      West India Naphtha Market Share, By Technology, By Volume (Billion Tons) 2019–2030

Table 44      West India Naphtha Market Share, By End User, By Value (USD Billion) 2019–2030

Table 45      West India Naphtha Market Share, By End User, By Volume (Billion Tons) 2019–2030

List of Tables      

Table 1        India Naphtha Market Size, By Value (USD Billion), 2019–2030

Table 2        India Naphtha Market Size, By Volume (Billion Tons) 2019–2030

Table 3        India Naphtha Market Share, By Type, By Value (USD Billion) 2019–2030

Table 4        India Naphtha Market Share, By Type, By Volume (Billion Tons) 2019–2030

Table 5        India Naphtha Market Share, By Technology, By Value (USD Billion) 2019–2030

Table 6        India Naphtha Market Share, By Technology, By Volume (Billion Tons) 2019–2030

Table 7        India Naphtha Market Share, By End User, By Value (USD Billion) 2019–2030

Table 8        India Naphtha Market Share, By End User, By Volume (Billion Tons) 2019–2030

Table 9        India Naphtha Market Share, By Region, By Value (USD Billion) 2019–2030

Table 10      India Naphtha Market Share, By Region, By Volume (Billion Tons) 2019–2030

Table 11      North India Naphtha Market Size, By Value (USD Billion), 2019–2030

Table 12      North India Naphtha Market Size, By Volume (Billion Tons) 2019–2030

Table 13      North India Naphtha Market Share, By Type, By Value (USD Billion) 2019–2030

Table 14      North India Naphtha Market Share, By Type, By Volume (Billion Tons) 2019–2030

Table 15      North India Naphtha Market Share, By Technology, By Value (USD Billion) 2019–2030

Table 16      North India Naphtha Market Share, By Technology, By Volume (Billion Tons) 2019–2030

Table 17      North India Naphtha Market Share, By End User, By Value (USD Billion) 2019–2030

Table 18      North India Naphtha Market Share, By End User, By Volume (Billion Tons) 2019–2030

Table 19      South India Naphtha Market Size, By Value (USD Billion), 2019–2030

Table 20      South India Naphtha Market Size, By Volume (Billion Tons) 2019–2030

Table 21      South India Naphtha Market Share, By Type, By Value (USD Billion) 2019–2030

Table 22      South India Naphtha Market Share, By Type, By Volume (Billion Tons) 2019–2030

Table 23      South India Naphtha Market Share, By Technology, By Value (USD Billion) 2019–2030

Table 24      South India Naphtha Market Share, By Technology, By Volume (Billion Tons) 2019–2030

Table 25      South India Naphtha Market Share, By End User, By Value (USD Billion) 2019–2030

Table 26      South India Naphtha Market Share, By End User, By Volume (Billion Tons) 2019–2030

Table 27      East India Naphtha Market Size, By Value (USD Billion), 2019–2030

Table 28      East India Naphtha Market Size, By Volume (Billion Tons) 2019–2030

Table 29      East India Naphtha Market Share, By Type, By Value (USD Billion) 2019–2030

Table 30      East India Naphtha Market Share, By Type, By Volume (Billion Tons) 2019–2030

Table 31      East India Naphtha Market Share, By Technology, By Value (USD Billion) 2019–2030

Table 32      East India Naphtha Market Share, By Technology, By Volume (Billion Tons) 2019–2030

Table 33      East India Naphtha Market Share, By End User, By Value (USD Billion) 2019–2030

Table 34      East India Naphtha Market Share, By End User, By Volume (Billion Tons) 2019–2030

Table 35      West India Naphtha Market Size, By Value (USD Billion), 2019–2030

Table 36      West India Naphtha Market Size, By Volume (Billion Tons) 2019–2030

Table 37      West India Naphtha Market Share, By Type, By Value (USD Billion) 2019–2030

Table 38      West India Naphtha Market Share, By Type, By Volume (Billion Tons) 2019–2030

Table 39      West India Naphtha Market Share, By Technology, By Value (USD Billion) 2019–2030

Table 40      West India Naphtha Market Share, By Technology, By Volume (Billion Tons) 2019–2030

Table 41      West India Naphtha Market Share, By End User, By Value (USD Billion) 2019–2030

Table 42      West India Naphtha Market Share, By End User, By Volume (Billion Tons) 2019–2030 

Table 43      Bharat Petroleum Corporation Limited Company Overview

Table 44      Bharat Petroleum Corporation Limited Financial Overview

Table 45      Hindustan Petroleum Corporation Limited (HPCL) Company Overview

Table 46      Hindustan Petroleum Corporation Limited (HPCL) Financial Overview

Table 47      Petroleum Corporation Limited Company Overview

Table 48      Petroleum Corporation Limited Financial Overview

Table 49      Indian Oil Corporation Limited (IOCL) Company Overview

Table 50      Indian Oil Corporation Limited (IOCL) Financial Overview

Table 51      Nayara Energy Company Overview

Table 52      Nayara Energy Financial Overview

Table 53      Mangalore Refinery & Petrochemicals Ltd (MRPL) Company Overview

Table 54      Mangalore Refinery & Petrochemicals Ltd (MRPL) Financial Overview

Table 55      Reliance Industries Limited (RIL) Company Overview

Table 56      Reliance Industries Limited (RIL) Financial Overview

Table 57      Hemraj Petrochem Pvt Ltd Company Overview

Table 58      Hemraj Petrochem Pvt Ltd Financial Overview