|
Forecast
Period
|
2026-2030
|
|
Market
Size (2024)
|
USD
115.56 million
|
|
CAGR
(2025-2030)
|
3.42%
|
|
Fastest
Growing Segment
|
Sulphonated
Naphthalene Formaldehyde (SNF)
|
|
Largest
Market
|
West
India
|
|
Market
Size (2030)
|
USD
140.47 million
|
Market Overview
India Naphthalene Derivatives Market was reached
reach USD 115.56 million by 2024 and is anticipated to reach USD 140.47 million with a CAGR of 3.42% during the forecast period.
Naphthalene derivatives,
which are organic compounds derived from naphthalene, a polycyclic aromatic
hydrocarbon, have gained significant importance due to their diverse
applications across multiple industries such as construction, textiles,
agriculture, and pharmaceuticals. In textile industry, Based on the IBEF data, as of
December 2024, the Indian Textile and Apparel Industry is valued at more than
US$ 100 billion, employing over 45 million people, and contributing to 14% of
the country's industrial production. In the construction industry, naphthalene
derivatives play a crucial role as superplasticizers in concrete and cement
mixtures. These derivatives enhance the workability and strength of the
materials, thereby improving the overall quality of construction projects. With
the construction sector in India experiencing rapid growth, the demand for
naphthalene derivatives is expected to soar, presenting a substantial growth
opportunity for the market.
Technological advancements have further propelled
the naphthalene derivatives market in India. These advancements have resulted
in the development of innovative production methods and improved product
quality, expanding the range of applications for naphthalene derivatives. As a
result, the market is witnessing continuous growth and evolution, creating new
avenues for market players. However, it is important to acknowledge the
sustainability challenges associated with naphthalene production and its
derivatives. Environmental concerns have become a significant factor in shaping
the market dynamics. This presents a unique opportunity for industry
stakeholders to focus on innovation and develop eco-friendly production
methods, ensuring a sustainable future for the naphthalene derivatives market.
Thus, the India naphthalene derivatives
market is poised for substantial growth, driven by the escalating construction
activities, a flourishing textiles industry, and continuous technological
advancements. For instance, In
2021, I G Petrochemicals Ltd. (IGPL), a leading producer of Phthalic Anhydride
(PAN), began ramping up its production to address the demand-supply gap by
planning a brownfield expansion of its Phthalic Anhydride facility in FY24. The
IGPL board approved the brownfield expansion, which will increase the PAN
capacity by 53,000 MTPA, with a total project cost of ₹345 crore. In
December 2020, IGPL commissioned the 53,000 MTPA PAN capacity, while the
commercial production of its new downstream product, Diethyl Phthalate (DEP) —
an advanced plasticizer — began at its Taloja, Maharashtra facility in November
2021, with a capacity of 8,400 MTPA. While sustainability concerns pose challenges, they also serve as
catalysts for innovation within the sector. With ample opportunities for
stakeholders, the future of the India naphthalene derivatives market looks
promising and dynamic.
Key Market Drivers
Growing Demand of Naphthalene Derivatives in
Pharmaceutical Industry
Naphthalene derivatives, organic compounds derived
from naphthalene, a polycyclic aromatic hydrocarbon, play a crucial role as
intermediates in the synthesis of various compounds used in the pharmaceutical
industry. With notable applications in the production of anti-inflammatory
drugs, naphthalene derivatives such as naproxen and nabumetone exhibit their
efficacy. These derivatives find utility in the manufacturing of
antiseptics, synthetic resins, and dyes.
The Indian pharmaceutical sector, experiencing
rapid growth, is driven by factors like increasing healthcare expenditure, a
growing middle-class population, and rising disease prevalence. This surge in
pharmaceutical activities has led to a substantial demand for naphthalene
derivatives in the market. Technological advancements and extensive research
and development activities have further contributed to the increased usage of
naphthalene derivatives in the pharmaceutical industry. This includes the development
of new methods of drug synthesis and formulation, expanding the scope of their
applications.
Hence, the demand for naphthalene
derivatives in the pharmaceutical industry serves as a significant driver for
the Indian naphthalene derivatives market. As the pharmaceutical sector
continues to expand and innovate, the utilization of naphthalene derivatives is
expected to witness a further increase, thereby propelling the growth of the
market in the foreseeable future.
Growing Demand of Naphthalene Derivatives in
Construction Industry
In the construction industry, naphthalene
derivatives play a vital role due to their unique properties. These
derivatives, known for their odorless nature and low volatility, are
extensively used as superplasticizers in concrete and cement mixtures. By enhancing
the workability and strength of these materials, naphthalene derivatives
contribute to the overall quality and durability of construction projects.
As the construction sector in India experiences
rapid expansion, driven by urbanization and infrastructural development, the
demand for naphthalene derivatives has witnessed a corresponding surge. This
increased demand can be attributed to the growing need for high-performance
construction materials that can withstand the test of time. Naphthalene
derivatives, with their remarkable characteristics, have emerged as a preferred
choice for achieving superior concrete performance.
These led to rise in demand for naphthalene
derivatives in the construction industry serves as a significant driver of the
Indian naphthalene derivatives market. As the construction sector continues to
expand and evolve, the use of these derivatives is expected to further
increase, propelling the market growth to new heights. With their indispensable
role in enhancing concrete properties, naphthalene derivatives are poised to
shape the future of the construction industry in India and beyond.
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Key Market Challenges
Variability in Price and Availability of Raw
Materials
Naphthalene derivatives, which are organic
compounds derived from naphthalene, a polycyclic aromatic hydrocarbon, play a
crucial role in various industries. The production process of these derivatives
heavily relies on the availability and cost of raw materials, particularly
naphthalene itself. However, the market for naphthalene derivatives is
susceptible to fluctuations in energy prices and overcapacity, especially in
China.
The uncertainty surrounding raw material prices and
their availability can lead to unstable production costs. Consequently, this
instability can have a direct impact on the market prices of naphthalene
derivatives, making it challenging for businesses to plan their investments
effectively. The volatile nature of the market can also deter potential
investors, hindering the overall growth of the naphthalene derivatives
industry.
Any disruption in the supply of raw
materials can result in production delays, further exacerbating the challenges
faced by manufacturers in meeting market demand. This volatility poses
significant obstacles for the naphthalene derivatives industry, requiring
careful strategies to mitigate risks and ensure consistent supply. while the Indian naphthalene
derivatives market shows great potential for growth, it is important to address
the variability in the price and availability of raw materials. By implementing
strategic planning, innovative production methods, and sustainable practices,
businesses can overcome this hurdle and pave the way for continued growth and
prosperity in the market.
Key Market Trends
Surge in Technological Advancements
Technological advancements are playing a pivotal
role in shaping the naphthalene derivatives market in India. These innovations
are not only driving improvements in the production process, enhancing
efficiency, and reducing environmental impact, but they are also
revolutionizing the industry in various ways.
For instance, recent advancements have led to the
development of new and more cost-effective methods for the synthesis of
naphthalene derivatives. These methods not only ensure a more sustainable
production process but also contribute to the overall reduction of waste and
emissions. These technological innovations have enabled better
quality control measures, ensuring that the produced derivatives meet the
highest standards of purity and effectiveness.
These advancements have also resulted
in increased yield in the production process. This means that manufacturers can
now produce larger quantities of naphthalene derivatives, meeting the growing
demand from various end-user industries. The construction sector, for example,
relies on these derivatives for the production of asphalt and other materials.
Similarly, pharmaceutical companies use them in the synthesis of certain drugs,
while agrochemical and paint industries utilize them for their specific
applications.
Therefore, the surge in technological
advancements is undoubtedly a defining trend in the Indian naphthalene
derivatives market. As these advancements continue to drive improvements and
offer more sustainable solutions, they are expected to further fuel the growth
of the market in the coming years, meeting the increasing demand and
contributing to the overall development of various industries.
Adoption
of Environmentally Sustainable Production Processes
A key
trend in the India Naphthalene Derivatives Market is the increasing adoption of
environmentally sustainable production processes. With growing awareness of
environmental concerns and stricter regulatory frameworks, manufacturers are
focusing on reducing the ecological footprint of their operations. This
includes the adoption of green chemistry principles, waste minimization
techniques, and energy-efficient technologies. Companies are also exploring
bio-based alternatives and renewable raw materials to produce naphthalene
derivatives, aiming to meet the rising demand for eco-friendly products across
industries such as construction, textiles, and agriculture.
There is a shift towards the development of low-emission and biodegradable
products, particularly in the construction and agrochemical sectors, which are
significant consumers of naphthalene derivatives. This trend aligns with
India's increasing emphasis on sustainable industrial growth and adherence to
international environmental standards.
The
move towards sustainable practices is not only helping manufacturers address
regulatory compliance but also enhancing their competitiveness in domestic and
international markets. As global customers increasingly prefer environmentally
responsible suppliers, Indian manufacturers adopting these practices are better
positioned to secure long-term growth and market share. This trend is expected
to drive innovation and investment in research and development, further
transforming the India Naphthalene Derivatives Market into a more sustainable
and future-ready industry.
Segmental Insights
Derivative Insights
Based on the category of derivative, the
sulphonated naphthalene formaldehyde (SNF) segment emerged as the dominant
player in the Indian market for naphthalene derivatives in 2024. One of the
primary reasons for SNF's dominance in the construction industry is its high
demand. SNF serves as a superplasticizer, playing a crucial role in enhancing
the workability and strength of concrete and cement mixtures. Its exceptional
properties make it indispensable for construction projects, ensuring optimal
performance and durability.
Considering the current economic landscape, India
stands as the second fastest-growing economy. With the country witnessing a
substantial boom in construction activities, the demand for SNF has soared to
meet the industry's requirements. This surge in demand further highlights the
invaluable role that SNF plays in shaping and supporting the construction
sector's growth and development.
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Regional Insights
West India emerged as the dominant player in the
India Naphthalene Derivatives Market in 2024, holding the largest market share
in terms of value. West India, comprising states like Maharashtra and Gujarat,
is known for its strong industrial base. These states have gained recognition
for their thriving chemical industries, which play a crucial role in the
production of various naphthalene derivatives. These derivatives, widely used
in sectors such as pharmaceuticals, textiles, and agrochemicals, contribute
significantly to the region's economic growth.For instance, In
June 2021, Thirumalai Chemicals had commissioned its Phthalic Anhydride plant
at Dahej, Gujarat, with a capacity of 24,000 TPA and a total investment of ₹135
crores, the plant
primarily catered to customers in Western India, and the company had initiated
plans to expand capacity and diversify product offerings at the site.
The presence of these industries
is advantageous as it ensures a steady supply of raw materials, availability of
skilled labor, and well-established supply chains.
The region enjoys the benefits of robust
infrastructure, including a well-connected network of roads, ports, and
railways. This excellent connectivity facilitates the seamless transportation
of raw materials and finished products, ensuring efficiency and
cost-effectiveness for businesses operating in the region. The strategic
proximity to major ports further enhances the region's competitive advantage,
enabling easier access to global markets and promoting export-oriented
activities. This, in turn, contributes to the overall dominance of West India
in the market.
Apart from its industrial prowess, West India is
also witnessing rapid urbanization and a significant upswing in construction
activities. Naphthalene derivatives, such as superplasticizers used in
concrete, are in high demand in the construction industry. With the region's
construction sector booming, the demand for these compounds has surged,
providing additional impetus to the growth of the chemical industry in West
India. This trend further solidifies the region's position as a key player in
the market, attracting investment and fostering economic development.
Recent Developments
- In
June 2023, KLJ Group, a prominent leader in the chemical and plasticizers
industry, invested ₹1,200 crore (US $145 million) to commission a BIS-certified
Plasticizers and Phthalic Anhydride production facility at the GIDC Jhagadia
Industrial Estate in Bharuch, Gujarat. This integrated manufacturing facility
marks a significant milestone in KLJ Group's efforts to expand its product
portfolio and address the growing market demand. The facility boasts an annual
production capacity of 300,000 MT of Phthalate Plasticizers, 100,000 MT of
Phthalic Anhydride, 3,500 MT of Maleic Anhydride, and 700 MT of Benzoic Acid.
- In
January 2024, Thirumalai Chemicals Limited announced that its Phthalic
Anhydride plant located at GIDC Estate, Dahej Phase-II, Tal. Vagra, Bharuch,
Gujarat, which had been shut down for maintenance since November 5, 2023, has
resumed operations and production effective January 8, 2024.
Key Market Players
- BASF
India Ltd.
- Sika
India Pvt. Ltd.
- CICO
Technologies Limited
- Choksey
Chemicals Pvt. Ltd.
- Chembond
Chemicals Limited
|
By
Derivative
|
By End User
|
By Region
|
- Sulphonated Naphthalene
Formaldehyde (SNF)
- Phthalic
Anhydride
- Alkyl
Naphthalene Sulphonates Salts (ANS)
- Naphthalene
Sulphonic Acid
- Others
|
- Textiles
- Construction
- Pharmaceutical
- Paints &
Coatings
- Pulp &
Paper
- Others
|
- North India
- East India
- West India
- South India
|
Report Scope:
In this report, the India Naphthalene Derivatives
Market has been segmented into the following categories, in addition to the
industry trends which have also been detailed below:
- India Naphthalene Derivatives Market, By Derivative:
o Sulphonated Naphthalene Formaldehyde (SNF)
o Phthalic Anhydride
o Alkyl Naphthalene Sulphonates Salts (ANS)
o Naphthalene Sulphonic Acid
o Others
- India Naphthalene Derivatives Market, By End User:
o Textiles
o Construction
o Pharmaceutical
o Paints & Coatings
o Pulp & Paper
o Others
- India Naphthalene Derivatives Market, By
Region:
o North India
o East India
o West India
o South India
Competitive Landscape
Company Profiles: Detailed analysis of the major companies present in the India
Naphthalene Derivatives Market.
Available Customizations:
India Naphthalene Derivatives Market report with
the given market data, TechSci Research offers customizations according to a
company's specific needs. The following customization options are available for
the report:
Company Information
- Detailed analysis and profiling of additional
market players (up to five).
India Naphthalene Derivatives Market is an upcoming
report to be released soon. If you wish an early delivery of this report or
want to confirm the date of release, please contact us at [email protected]