The global caprolactam market was worth more than USD xx billion in revenue in 2018 and is expected to cross USD xx billion in 2023, growing at a healthy CAGR of over xx% during the forecast period.
Caprolactam is an organic compound with a lactam or a cyclic amide derived from caproic acid. It is soluble in water and also in most oxygenated and chlorinated solvents. It is primary feedstock in the production of nylon 6 fibers and resins. Around 68% of caprolactam is consumed in the production of nylon fibers, globally. Nylon engineering resins and films constitute the rest 32% of the global demand. Various types of nylon, which is made from caprolactam is used in industries such as automotive, consumer goods, electrical & electronics, textile, and packaging.
Rising demand for nylon fibers, films and engineering resins from various industries such as textiles, automobiles, electronics, and packaging is likely to drive the caprolactam market. As caprolactam is a major feedstock for nylon fibers, films and engineering resins production, demand for these materials is expected to fuel the growth of caprolactam market. Demand for automobiles, textiles, and packaging are actually increasing because of growing population and extra income in developing countries.
Drivers and Restraints of Caprolactam Market
Growing investments in downstream industries in regions like the Far East & South Asia and North America are likely to offer tremendous possibilities for caprolactam market in the future. As a result of accessibility to raw material, multinational businesses are investing in resource-rich regions to be able to limit the overall production cost.
Caprolactam is exposed to the probability of volatility in supply and price of its feedstock. Caprolactam being a derivative of cyclohexane/phenol faces high probability of risk due to price volatility. Caprolactam has an adverse effect on human body if exposed to it for a longer duration. Its remnants are normally found in soil and air which often makes environmental regulatory institutions to implement strict regulations on usage of caprolactam. Existing and future regulations concerning the use of caprolactam and its derivatives in end products are likely to challenge the market growth.
Caprolactam Market by Region
Asia was the largest consumer of caprolactam and its derivatives and this pattern is anticipated to continue to be identical over the following few years. Consumption in Asia is showing upward trend because of increase in economic activity in China. China, Japan and South Korea were the largest consumers of caprolactam in this region, whereas India is likely to grow at a higher pace. Growing demand for automobile, textiles, packaging, electricals/electronics and other industries will drive caprolactam and its derivatives market in Asia. Consumption of caprolactam and its derivatives in rest of the world was minimal however it is likely to grow at a reasonable rate next to Asia. North America is likely to grow at a significant rate due to demand from textiles and automobile industry. Demand from Europe was low relatively and is likely to stay same in the next few years.
Top players in this market include Advansix, Sinopec, Lanxess AG, Grupa Azoty, China Petrochemical Development Corporation, Alpek, Sumitomo Chemical, Toray Industries, UBE Industries, The Aquafil Group, and BASF SE among others.
The report covers exhaustive analysis on:
- Global Market Segments
- Global Market Size
- Supply & Demand
- Global Market Competitive Landscape
- Production Technology
- Global Market Value Chain
Regional analysis includes:
- Middle-East and Africa
- In depth summary of parent market
- Altering market characteristics in the industry
- Detailed market segmentation
- Historical and forecast market size in terms of volume and value
- Current industry developments
- Competitive landscape
- Strategies of key players and products available
- Potential and niche segments, regions showing promising growth