Middle East & Africa Bio-based Naphtha Market Outlook

the middle east & africa (mea) bio-based naphtha market is forecasted to witness a stable growth during the period 2018 to 2032. this growth is attributed mainly to the bio-based raw materials abundant in this region particularly agricultural waste such as sugarcane waste, wheat straw, etc and their convenience to cost-effectively convert into fuels. various governmental initiatives have encouraged industry players to introduce bio-based naphtha products to the regional market. for instance, the national commissioners initiative (nci) in saudi arabia which was launched in 2019 is expected to promote the use of bio-based naphtha and other biofuel products in the region. adopting bio-based naphtha products in fuel formulations helps in reducing pollution, hazardous environmental challenges, and decreasing carbon emissions to meet national targets for sustainability. moreover, advantages associated with polygeneration facilities powered by bio-based naphtha is expected to bolster the product demand. polygeneration facilities use the thermal energy of the fuel that is produced from the bio-based naphtha to generate a number of by-products which can serve various applications in commercial and industrial segments. furthermore, increasing number of applications associated with bio-based naphtha, such as fuel for automobiles and other internal combustion engines, is boosting the mea bio-based naphtha market. the addition of bio-based naphtha to petrol and diesel improves the engine performance, which further increases the demand for the product. industrial players are increasingly investing in capacity expansions and technological advancements associated with production of bio-based naphtha along with associated products. the development of innovative technologies in the mea region for the production of bio-based naphtha and its by-products is expected to drive the regional market. to illustrate, neste, a finland-based company, has developed a unique technology for the production of bio-based naphtha at its facility located in rotterdam, netherlands. however, high cost associated with raw materials, transportation charges of renewable feedstock, and rising number of environmental regulations are among the major factors that may restrain the growth of market during the forecast period. further, competition from conventional oil and gas is also expected to hinder the growth of mea bio-based naphtha market.