Proliferating demand for high octane gasoline across the globe is a key driving factor for the C5 – C8 normal paraffin market. As C5 – C6 normal paraffin is commonly consumed for the production of iso-C5/C6 compound that further combined with the gasoline in order to enhance an octane number of gasoline. Similarly, with growth of automotive industry as well as growing gasoline-powered vehicle parc in developing region that in turn is expected to result in increasing demand for high octane gasoline, further driving the growth of C5 – C8 normal paraffin market over the forecast period.
Moreover, recovery of oil and gas industry coupled with growing refining capacity provides impetus for market growth. Moreover, C5 – C8 n-paraffin fractions are further separated and processed to form several chemical products such as n-pentane, n-hexane and n-heptane, among other chemical compounds. Generally, n-paraffin are used as special-purpose solvents in multiple industries such as cleaning, adhesives and sealants and pharmaceutical, among others. Thereby, growing demand for C5 – C8 derivative compounds is anticipated to further accelerate the growth of market over the forecast period.
Demand from different sectors is expected to rise, resulting in gasoline-blending to become leading application
C5 – C8 n-paraffin fractions are further processed and separated to form several chemical products such as n-pentane, n-hexane, and n-heptane, among several other chemical compounds. The demand for n-pentane for the production of polystyrene foam and pharmaceuticals is growing which in turn is fueling the growth of n-pentane in the market. Furthermore, the swelling demand for n-Hexane from end-use industries such as adhesive and sealant, agrochemical, and pharmaceutical, among others is anticipated to drive the demand for n-hexane and subsequently benefit the C5-C8 normal paraffin market over the course of the forecast period. N-Heptane is employed various synthesis and adhesive and sealant applications.
Demand for adhesives and sealants is intensifying owing to the intensive progress in automobile production and surging demand from packaging materials, which is likely to fuel the growth of the n-heptane market and, in turn, positively impact the C5-C8 n-paraffin market. N-octane n-paraffin compounds are most commonly employed in the oil and gas industry for analyzing the octane number in automobile fuel as well as many other gasoline and petrochemical products. Additionally, rising demand for gasoline and petrochemical products is anticipated to stem from plastic, adhesive and sealant, pharmaceutical, chemical, and cosmetic industries, which in turn is expected to bolster the growth of the global C5 – C8 n-paraffin market in the coming years.
Market consolidation and expansion will provide much scope to companies in the long run
Increasing consolidation and expansion activities in the C5 – C8 normal paraffin market are posing significant impact on the market growth since the past few years. This can principally be attributed to the efforts being made by the market participants to meet growing demand for gasoline and gain access to the high-revenue markets in Asia Pacific. Key players are also focusing on strengthening their foothold in India, China, and ASEAN countries. In March 2017, ExxonMobil expanded its hydrocarbon fluids production capacity by 250,000 tons per year at its Antwerp, Singapore and Texas plants.
Overview of the Global C5-C8 Normal Paraffin Market with Reference to the Global Chemicals and Materials Industry Outlook
Recycle and reuse practices are impacting the sales of virgin materials, resulting into lesser dependency on volume-driven growth. New materials are showcasing potential for driving value-based growth, but chemical companies are still some time away from achieving voluminous production, while maintaining high quality at the same time. Barring few exceptions, a majority of players are still prioritizing short-term volume growth over long-term value growth. Pressure on improving bottom-line is influencing manufacturers to improve efficiency and reduce operational costs. The impact of value-driven growth may not be visible in the short-term, but long-term outlook remains in favor of a balanced approach between value and volume.
Manufacturers are under increasing pressure to incorporate digital solutions in their offerings. Forward-thinking manufacturers are investing in technology to reduce human interference and streamline key operational aspects such as ordering and shipping. Resonating its influence over every industry, Internet of Things (IoT) has the potential to transform and disrupt the chemical sector. Connectivity through IoT devices is gaining traction, whereas product-level sensors on dispensing equipment and barrels are helping manufacturers track their consignments digitally. Through assessment of long-term benefits, chemical companies are capitalizing on digitization by adopting digital platforms & processes that eliminate human error in profit-associated operations.
Manufacturers continue seeking low-priced feedstock in a bid to marginally reduce pre-production costs. Industry leaders are joining forces to replace fossil fuel-derived feedstock with bio-based alternatives. However, concerns related to producing affordable and sustainable feedstock at mass scale remains a challenge. Access to quality and affordable feedstock will continue to remain a focus area for manufacturers. Chemical manufacturing processes are running on limited energy, while volume of feedstock is getting stranded at ports as disapproval from import authorities keeps disrupting supply chains in sectors, such as oleochemicals and petrochemicals industries.
Chemical manufacturers have promised support and adherence to governments & regional authorities that are committing towards green, sustainable initiatives. Development of bio-alternatives is gaining momentum. Research & academic institutes are teaming up with manufacturers to formulate sustainable substitutes for commonly-used chemical substrates. Many companies are keeping a close eye on advancements in “green chemistry.” Shift towards eco-friendly chemicals will gain momentum in the future on the back of government regulations and end-user preference. Rising costs of fossil fuels will also instrument the upsurge for sustainable chemicals manufacturing.
List of factors tracked in the Chemicals and Materials Market Report
PMR utilizes robust methodology and approach to arrive at market size and related projections. The research methodology for this report is based on 3 dimensional model. We conduct about 45-60 min duration detailed interviews with product manufacturers; apart from this we also collect market feedback from industry experts. To validate this data, we interact with senior panel members having more than 10 years of experience in relevant field. The panel members help in validating the findings and fill the gaps if any. In addition, we leverage on our existing pool of information, paid database and other valid information sources available in public domain. Usually industry interactions extend to more than 50+ interviews from market participants across the value chain.
PMR collects data from secondary sources including company annual reports_bk_01_01_2020, association publications, industry presentations, white papers, and company press releases apart from these we leverage over paid database subscriptions and industry magazines to collect market information and developments in exhaustive manner. After being done with desk research, detailed questionnaire and discussion guide is formulated to initiate primary research with key industry personnel; the discussion aims at collecting key insights, growth perspectives, prevalent market trends and quantitative insights including market size and competition developments. Both of these research approaches help us in arriving at base year numbers and market hypothesis.
In this phase, PMR validates the data using macro and micro economic factors. For instance, growth in electricity consumption, industry value added, other industry factors, economic performance, growth of top players and sector performance is closely studied to arrive at precise estimates and refine anomalies if any.
Data Analysis and Projection
Data analysis and projections were made based on proprietary research frameworks and statistical analysis, which was further validated from industry participants. These frameworks include Y-o-Y growth projections, macro-economic factor performance, market attractiveness analysis, key financial ratios, and others.
For public companies we capture the data from company website, annual reports_bk_01_01_2020, investor presentations, paid databases. While for privately held companies, we try to gather information from the paid databases (like Factiva) and based on the information we gather from databases we estimate revenue for the companies. In addition, the team tries to establish primary contact with the companies in order to validate the assumptions or to gather quality inputs.
Standard Report Structure
The global C5-C8 Normal Paraffin market has been segmented into:
By Product Type: