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The Caprolactam Market size is forecast to increase by USD 5.39 billion, at a CAGR of 5.73% between 2023 and 2028. The growth of the market hinges on several critical factors. Firstly, the commercial significance of nylon serves as a driving force, underpinning its demand across various industries. Secondly, there's a noticeable shift towards bio-refineries, reflecting a broader trend towards sustainable and eco-friendly production methods. The market is driven by the demand for non-woven fabrics and synthetic chemical fibers, particularly in the automotive sector. Lastly, the abundance of ammonium sulfate waste presents an opportunity for repurposing and recycling, contributing to both environmental sustainability and economic viability. These factors collectively shape the trajectory of the market, highlighting the importance of balancing economic considerations with environmental concerns in the ongoing evolution of the nylon industry.
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Chemical fiber and carpet fiber industries rely on its production, contributing to its market growth. However, challenges such as wear and tear, abrasion, and crushing may affect its performance. Additionally, regulations on fuel economy and vehicle emissions pose challenges for the automotive sector, impacting its usage. Trends indicate a shift towards lightweight automotive vehicles and bio-based caprolactam, reflecting the industry's focus on sustainability and innovation amidst evolving market dynamics. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The commercial importance of nylon is a key growth factor driving the growth of the global caprolactam market. Nylon is resistant to high temperatures and can be dyed to any desired color for aesthetic effect. It is used in the manufacture of cooking utensils and utensils such as forks, tongs, brushes, slotted spoons, and spatulas. Additionally, nylon provides a superior non-stick surface finish.
Nylon can be drawn into fibers, which have higher strength and are extensively used in the textile industry. These fibers are used in the manufacture of fabrics with greater toughness and durability. Apart from apparel, nylon is also used in the manufacture of sports equipment, harness straps, ropes, and fishing nets. Thus, the rising importance of nylon is increasing its demand, which, in turn, will drive the market during the forecast period.
A shift in focus to bio-based nylon 6 polymers is a key trend in the growth of the global caprolactam market. Companies that produce nylon 6 polymer plan to switch to bio-based nylon 6 polymer production in the next few years to reduce emissions by more than 80%. In addition, the use of renewable resources also reduces the cost of producing nylon 6 polymer. BASF developed and successfully produced a castor oil-based polymer in the early 1960s.
The company has been developing more bio-based products and increasing its product portfolio in this sector. Ultramid Balance, a nylon 6 polymer, is composed of 60% sebacic acid, a castor oil derivative. This product outperforms its standard nylon 6 products, offering higher stability and resistance to chemicals. In addition, the production of bio-based nylon 6 will not be dependent on fluctuating crude oil prices, thereby maintaining the prices of nylon 6 in the coming years. Thus, owing to such factors, the market is expected to grow during the forecast period.
A large amount of waste ammonium sulfate is a major challenge for the growth of the global caprolactam market. Ammonium sulfate is a commercially important fertilizer. However, it is under scrutiny because it is produced in large quantities as a by-product in the manufacture of caprolactam. Nearly 40% ammonium sulfate is a by-product of a conventional manufacturing cycle using cyclohexane. About 5 tons of ammonium sulfate are produced as a by-product for every ton of caprolactam produced.
Ammonium sulfate is also known to cause skin irritation and is harmful if inhaled. If large quantities are produced, sufficient care has to be taken for its downstreaming without leakages. However, the recovery process of ammonium sulfate is usually tedious and not economical. The industry is seeking alternative and sustainable methods to produce caprolactam and reduce the amount of ammonium sulfate that is produced in the waste streams. Such factors will restrain the growth of the market during the forecast period.
The report includes the adoption lifecycle of the market research and growth, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market research report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Aquafil Spa - The company offers caprolactam technologies which are used to revamp chemical manufacturing facilities. Also, the company offers various products which include Borgolon e Microlon which are products made from dope-dyed Polyamide 6, Dryarn, and many more.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market exhibits diverse applications and influences from various sectors. Key components such as non-woven fabrics and chemical fibers find extensive use, particularly in the automobile sector where synthetic chemical fibers are essential for producing lightweight vehicles. Raw materials like ammonia and phenol are integral to caprolactam production, further utilized in manufacturing Nylon clothing and Nylon 6 fibers. The market also intersects with textile commodities and films, catering to diverse industries. With the rise of bio-based caprolactam, environmental concerns are addressed, aligning with regulations aimed at reducing vehicle emissions and enhancing fuel economy. This segmentation underscores caprolactam's versatility and relevance across various sectors, driving its market growth.
The market share growth by the Textile Yarn segment will be significant during the forecast period. Caprolactam, a crucial precursor in the production of nylon resins, plays a significant role in the manufacturing of polyamide containing textile products, particularly textile yarns. The electronics industry's growing demand for lightweight and durable components has led to an increase in the usage of polyamide grades in various applications. Moreover, stringent fuel economy regulations aimed at reducing vehicle emissions have fueled the demand for nylon resins in automotive industries. The Asia Pacific region, with its abundant labor force and favorable climatic conditions, is a major contributor to the global textile industry. Countries like China, India, Japan, Pakistan, South Korea, and Bangladesh have a substantial presence in the textile sector, making it a key market for caprolactam. China, being the largest textile consumer globally in 2020, is a significant driver of the caprolactam market growth.
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The Textile Yarn segment was valued at USD 6.55 billion in 2018. Nylon 6 fiber is manufactured in two general product types: one is the regular type for textile purposes, and another one is the high-strength type for industrial purposes. Most nylon 6 is manufactured in the form of staple fiber yarn and filament yarns for the manufacture of tire cords, apparel, carpets, hosiery, upholstery, parachutes, seat belts, ropes, and industrial cords. This variety of applications can be attributed to the specific combination of fiber properties such as tensile strength, elastic recovery, flame resistance, chemical resistance, light stability, and thermal stability, among others. Relatively high fiber strength and initial modulus are necessary for reinforcing applications such as yarns, textiles, tires, and composites. Such demand from various end-users is anticipated to promote the demand for nylon 6 fibers, which, in turn, will increase the demand for caprolactam during the forecast period.
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APAC is estimated to contribute 75% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional market trends and drivers that shape the market during the forecast period. Nylon 6, one of the most profitable and commercially important polymers or plastic, has been in huge demand due to its ease of possibility. APAC has been under focus for the producers as well as the importers due to the concentration of emerging economies. China, Japan, and India are anticipated to be the prime countries in APAC. Japan and China have been leading the marketin APAC but are expected to witness high growth compared to the global caprolactam manufacturing industry because of the significant presence of demand for products of synthetic fibers. Countries such as India, China, Bangladesh, Vietnam, Indonesia, Thailand, and Singapore are likely to experience heavy growth in the construction sector. Therefore, the increase in expenditure in the construction sector will further drive the growth of the market in APAC during the forecast period.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
The market plays a vital role across multiple industries, contributing to the production of various essential products. From sleeping bags to automotive components like wheel covers and fan blades, caprolactam is indispensable. It forms the backbone of the textile yarn segment and industrial yarn segment, influencing sectors such as house furnishing and carpet fibers. Additionally, caprolactam's application extends to electronics, where it enhances the performance of various devices. With a focus on environmental sustainability, the market witnesses the rise of polyamide containing products, aligning with fuel economy regulations. As a key component in diverse industries, caprolactam continues to drive innovation and meet evolving market demands.
Moreover, the market encompasses a diverse range of applications, from engineering plastics and films to textile fibers and industrial fibers. Its role extends to various sectors, including the production of automotive parts and chemical intermediates. Caprolactam serves as a crucial monomer in the synthesis of numerous chemical substances, influencing product prices and raw material prices. Its versatility is evident in everyday items like toothbrushes, raincoats, and bedsheets, as well as specialized products such as racket strings and conveyor belts. With its unique properties like moisture absorption and mechanical strength, caprolactam remains integral to the production of high-performance materials like Nylon 6 fibre and various Polyamide grades.
Market Scope |
|
Report Coverage |
Details |
Page number |
169 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.73% |
Market growth 2023-2027 |
USD 5.39 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
5.33 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 75% |
Key countries |
US, China, Japan, India, and Germany |
Competitive landscape |
Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
AdvanSix Inc., Alpek SAB de CV, Aquafil Spa, BASF SE, Capro Co., Caprolactam Chemicals Ltd., China Petrochemical Development Corp., Domo Chemicals GmbH, Fibrant, Genomatica Inc., Grupa Azoty SA, Gujarat State Fertilizers and Chemicals Ltd., Highsun Holding Group, Kuibyshevazot Engineering Plastics(Shanghai) Co. Ltd., Lanxess AG, LUXI Group Co. Ltd., ORLEN Unipetrol AS, Sumitomo Chemical Co. Ltd., Toray Industries Inc., and Ube Corp. |
Market dynamics |
Parent market growth analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the market forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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