NAPHTHENIC ACID MARKET ANALYSIS

Market Challenges And Opportunities

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.

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.

• Negative impact of naphthenic acid on environment
• Presence of alternatives