Naphthenic Acid Market - Forecasts from 2023 to 2028

The global naphthenic acid market is expected to grow at a CAGR of 1.24% during the forecast period

Naphthenic acid is a type of organic acid that is derived from petroleum. It is commonly found in crude oil and its refined products, such as lubricating oils, greases, and asphalt. Naphthenic acids are used in a wide range of industrial applications, including oil and gas production, mining, and chemical manufacturing. The global naphthenic acid market is expected to grow significantly during the projected period, driven by increasing demand from various end-use industries. The major applications of naphthenic acid include corrosion inhibition, metalworking fluids, lubricants, and rubber processing. These applications are expected to drive the demand for naphthenic acid during the projected period. The increasing demand for lubricants and greases in the automotive and industrial sectors is also expected to boost market growth.

Market Drivers:

Increasing requirement for wood preservatives to raise the demand for naphthenic acid

Increasing requirements for wood preservatives can be considered as a stimulant for the naphthenic acid market. Wood preservatives are utilized to safeguard wood from deterioration, decay, and insect infestation, consequently enhancing its robustness and longevity. Naphthenic acid serves as a fundamental element in the manufacturing of wood preservatives, specifically in oil-based formulations. The demand for wood preservatives is projected to escalate due to the growing infrastructure development, expanding urbanization, and amplifying the furniture sector. Wood is widely utilized in the construction of edifices, bridges, and other structures, as well as in the fabrication of furniture and other wooden products. Consequently, with the amplifying demand for these products, the demand for wood preservatives, and hence, naphthenic acid, is also anticipated to surge.

Mounting significance of lifespan enhancement of engine expected to fuel the naphthenic acid market

The mounting significance of enhancing the lifespan of engine life is a major factor driving the naphthenic acid market. Increasing the longevity of engine life involves reducing the wear and tear on engine components, thereby reducing the need for maintenance and repairs. Naphthenic acid is used as a key additive in lubricating oils and greases, which are essential to reduce friction and wear on engine components. The demand for naphthenic acid is expected to increase due to the growing importance of extending engine life. This is driven by the need to reduce operating costs, improve efficiency, and meet regulatory requirements for emissions and fuel efficiency. Naphthenic acid plays a crucial role in helping engine manufacturers meet these requirements.

Market Developments:

• In November 2021, researchers from the Department of Biological Sciences at The University of Calgary, Canada, received funding from Genome Canada for a research project. The project aimed to investigate the potential of wetland plants and microbes in bioremediating oilsands process-affected water (OSPW) contaminated with naphthenic acids. The multi-institutional grant of over $6.3 million was utilized for genomics approaches to improve constructed wetland treatment systems that can remove contaminants from industrial wastewater. The goal was to gain a better understanding of the molecular aspects of remediation and the role of plants in the process, with the ultimate aim of commercializing this OSPW remediation approach. The research was built upon more than a decade of investigations into the impact of naphthenic acid toxicity on cells.
• Petroperu S.A., a prominent naphthenic acid player, in its 1Q2023 release in May 2023, mentioned the commissioning of new units as of March 2023, which include primary and vacuum distillation units, hydrogen purification and production plant, hydrotreatment plants of naphtha, and other process and auxiliary units.  

The refined naphthenic acid segment is expected to witness robust growth. 

The refined naphthenic acid type is a highly sought-after product in the naphthenic acid market. It is typically used in applications that require a high degree of purity, such as in the production of lubricants, grease, and other industrial chemicals. The demand for refined naphthenic acid is expected to grow steadily during the forecast period, driven by factors such as the increasing demand for lubricants and the growing demand for high-quality industrial chemicals. In addition, the rising demand for renewable energy sources is expected to further drive the demand for refined naphthenic acid, as it is used in the production of biofuels.

North America to stay a significant naphthenic acid marketplace

Based on geography, the naphthenic acid market is segmented into North America, South America, Europe, Middle East and Africa, and Asia Pacific. North America is one of the significant regions for the naphthenic acid market due to the presence of major oil refineries and oil sands in Canada and the United States. The increase in US crude oil production in 2021 has a positive impact on the North American naphthenic acid market. Due to being a significant producer and user of crude oil, the US has experienced a rise in demand for naphthenic acid with the increase in crude oil production. Naphthenic acid has multiple applications within the oil and gas sector. 

According to the US Energy Information Administration, US crude oil production has steadily increased from 3.4 million barrels in 2017 to 4.3 million barrels in 2022. However, there was a slight dip in production in 2020 as compared to 2019. The increase in crude oil production can be attributed to various factors, including the use of advanced drilling techniques and technology, which have allowed for the extraction of oil from previously inaccessible reserves. This increase in production has had a significant impact on the global oil market, as well as the North American naphthenic acid market, with the US being a major producer and exporter of crude oil. The region is a net exporter of naphthenic acid, with Canada being the major producer and exporter of the acid globally. The demand for naphthenic acid in North America is primarily driven by the automotive and tire industry, where it is used in the manufacturing of lubricants, greases, and rubber products. The construction industry also contributes to the demand for naphthenic acid through its use in asphalt production.

Market Segmentation:

By Type

• Refined Naphthenic Acid
• High-Purity Naphthenic Acid

By Application

• Rubber Additives
• Wood Preservatives
• Fuel And Lubricant Additives
• Paint And Ink Driers
• Others

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• Germany
• France
• United Kingdom
• Spain
• Others
• Middle East And Africa
• Saudi Arabia
• UAE
• Israel
• Others
• Asia Pacific
• China
• India
• South Korea
• Indonesia
• Thailand
• Taiwan
• Others