Caprolactam Market - Forecast(2024 - 2030)

Caprolactam Market size is forecast to reach $23.3 billion by 2030, after growing at a CAGR of 5.1% during 2024-2030, owing to the wide usage of caprolactam as an intermediate in the production of nylon 6 fibers and resins. Caprolactam with a distinctive odor is a white 'hygroscopic' crystalline solid. Most caprolactam is used to produce 6 fibers of nylon, which is the starting material for fibers that have many uses in textile and industrial manufacturing. Owing to its properties like impact, high temperature, and abrasion resistance, an excellent balance of strength and resistance to bases, it is extensively replacing metal-based applications, which is the major factor driving the caprolactam market growth during the forecast period. A significant trend in the caprolactam market is the increasing demand driven by the growth in nylon production. Caprolactam is a crucial precursor for the synthesis of nylon 6, a versatile polymer used in a wide range of applications. The expanding demand for nylon in industries such as textiles, automotive, and consumer goods is a major factor propelling the caprolactam market forward. The textile industry, in particular, relies heavily on nylon for its durability and versatility. As global economies advance and consumer preferences evolve, the demand for nylon and, consequently, caprolactam continues to experience notable growth, shaping the dynamics of the market. A prominent trend in the caprolactam market is the industry's increasing emphasis on sustainable production practices. Environmental concerns and regulatory pressures have prompted manufacturers to explore and implement eco-friendly processes in caprolactam production. Efforts are underway to reduce the carbon footprint, energy consumption, and waste generation associated with caprolactam manufacturing. Companies are investing in research and development to discover and adopt greener technologies and raw materials. Sustainable production not only aligns with global environmental goals but also responds to the growing market demand for eco-conscious products. This trend reflects a commitment within the caprolactam industry to balance growth with environmental responsibility.

Caprolactam Market Report Coverage

The report: “Caprolactam Market – Forecast (2024-2030)”, by IndustryARC, covers an in-depth analysis of the following segments of the caprolactam Industry.

 

By Raw Material: Cyclohexane, Phenol, and Toluene

By Application: Nylon 6 Fiber, and Nylon 6 Resin

By End-Use Industry: Textile, Industrial Fibers, Engineering Plastics, Carpet Fibers, Automotive, Electrical & Electronics, and Others

By Geography: North America, South America, Europe, Asia Pacific, and RoW

•Asia Pacific dominates the caprolactam market, owing to the increasing demand and production of lightweight vehicles that require nylon 6 resins. As per Volkswagen Group the Asia-Pacific area, the volume of demand for light commercial vehicles in 2022 was marginally higher than that of the year before (+2.1%). 

•Nylon 6 offers chemical resistance, resistance to damage from oils and resistance to abrasion. In a wide range of applications across the textile, automotive, and electrical and electronics industries, the benefits have increased the utilization of nylon 6.

•Nylon has high-temperature resistance and can be dyed for aesthetic appeal with the desired colour. Nylon is also used in the manufacture of sports equipment, ropes, and fishing nets, in addition to apparel. With the growing commercial significance of nylon, the global caprolactam market is set to grow significantly over the forecast period.

•Due to the COVID-19 pandemic, most countries have gone under lockdown, due to which operations of various industries such as textile and automotive have been negatively affected, which is hampering the caprolactam market growth.

The cyclohexane held the largest share in the caprolactam market in 2023. Cyclohexane is extensively utilized for the manufacture of adipic acid and hexamethylenediamine, which is then further used for the manufacturing of Nylon 66 and caprolactam. Cyclohexane is widely used as a raw material owing to its easy availability and low cost than other raw materials. Due to these advantages, cyclohexane is extensively used as a raw material for caprolactam.

The nylon 6 fibers application held the largest share in the caprolactam market in 2023. owing to the extensive usage of nylon 6 for manufacturing textile, and industrial fibers. Nylon 6 fibers are smooth and dimensionally stable and have properties like high elasticity and resistance to mildew and moths due to which it is extensively used in the textile industry. Nylon 6 fibers are used in numerous applications such as toothbrushes, raincoats, sportswear, bed sheets, curtains, ropes, racket strings, threads, and sleeping bags. And since the demand for nylon 6 is increasing in the textile industry, the demand for caprolactam is also anticipated to increase during the forecast period.

The textile yarn industry held the largest share in the caprolactam market in 2023 and is growing at a CAGR of 6.7%. Textile yarn is widely utilized in various applications such as apparel and house furnishing. Rising demand for textile yarn coupled with the use of nylon 6 fibers in bedspreads, upholstery, curtains, and carpets is anticipated to have a positive impact on the industry over the next few years. Growing nylon fabrics demand owing to properties like high tensile strength, elasticity, scrub resistance, and heat resistance is projected to have a positive impact on the industry. According to Invest India, increased the technical textile industry from its current $22 billion to $300 billion by the time it reaches 100 in 2047, placing India as the fifth-largest producer of technical textiles worldwide. With the increasing textile industry, the demand for nylon 6 is also increasing which is driving the caprolactam market growth during the forecast period.

Asia Pacific region held the largest share in the caprolactam market in 2023 up to 7.2%, owing to the increasing demand for nylon 6 from the automotive and textile sectors in the region. The APAC region is witnessing increased demand for luxury cars due to the increase in the purchasing power of consumers. This has led to increased nylon 6 demand in the region, which, in turn, is driving the nylon 6 engineering plastics segment. As per Nikkei Asia, Indonesia's output rose by more than 30% throughout that time, reaching 1.47 million units in 2022. According to Invest India, India's domestic clothing and textile sector produced 7% of the nation's value-added output and contributed 2% of the GDP. India accounts for 4% of the world's textile and clothing trade. During 2021–2022, textiles and clothing made for 10.33% of India’s total exports thus, with the increasing automotive and textile production in the region, the demand for nylon 6 resin will also increase, which will then substantially propel the caprolactam market in the region during the forecast period.

 

Strict standard emission and fuel economy regulations for vehicles have been imposed by several governments around the world. As the automotive industry is facing stringent environmental norms, Nylon 6 provides the advantage of better fuel efficiency by way of weight reduction and lower fuel emissions. These standard regulations have compelled automotive OEMs to increase the use of lightweight materials such as nylon resins, as these advanced lightweight materials assist in increasing the fuel economy of a vehicle while ensuring safety and performance. The emission regulations for light-duty vehicles, such as Corporate Average Fuel Economy (CAFÉ) and Greenhouse Gas Emission, set standards for vehicle fuel consumption. These regulations by the governments have made sure that the car manufacturers henceforth might need to manufacture much lighter vehicles to obey these norms, which acts as a driver for the caprolactam market during the forecast period. 

The automotive industry is one of the largest markets for Nylon resin and compounds due to its excellent properties like tensile strength, chemical resistance, heat resistance, abrasion resistance, and more. Nylon 6 is extensively utilized in the automotive sector in under-the-hood, chassis, exterior, and interior applications. Nylon 6 reinforced compounds are being used for many metal replacement applications in car engine components like intake manifolds, gears, bearings, and more, which is expected to increase the demand for thermoset resin during the forecast period. According to the International Trade Administration (ITA), the Chinese government expects that automobile production will reach 35 million by 2025. Thus, the increasing automation production will require more nylon 6, which will act as a driver for the caprolactam market.

    

Nylon 6 is made from caprolactam polymerization and is known to have properties such as strength, stiffness, high thermal resistance, and high abrasion resistance, but the key parameter considered during its selection is moisture absorption. Polyamide-containing products absorb moisture, thereby reducing their physical characteristics and making the product stiff. This drawback has to be taken into account by the manufacturers when producing polyamide end application parts. Different grades of polyamide have different moisture absorption rates. These moisture absorption properties of nylon 6 are anticipated to hinder the caprolactam market growth during the forecast period. 

Due to the COVID-19 pandemic, the import and export of textile commodities have significantly fallen during the course. There’s been a supply chain disruption in the global and local enterprises which are dealing with the manufacturing of caprolactam. Also, the productions in the textile sectors are expecting to experience difficulties like untimely deliveries of caprolactam and there’s been a delay in the shipment consignments. All of which are affecting the caprolactam market during the outbreak.

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the caprolactam market. In 2023, the market of caprolactam has been consolidated. Major players in the caprolactam market are AdvanSix Inc., Alpek S.A.B. de C.V., The Aquafil Group, BASF SE, Capro Co., China Petrochemical Development Corporation, Domo Chemicals, Grupa Azoty, Gujarat State Fertilizers & Chemicals Limited, Highsun Group, KuibyshevAzot PJSC, Lanxess AG, Luxi Chemical Group Co. Ltd., Spolana., Toray Industries, Inc., Ube Industries, Ltd.

•In March 2022, the successful delivery of 5 million tonnes of caprolactam at its Leuna location was announced by DOMO Chemicals, a fully integrated manufacturer of PA6 and a global pioneer in engineered material solutions.

•In February 2022, an agreement was reached by which Solvay will license its state-of-the-art hydrogen peroxide (H2O2) technology to Hubei Sanning Chemical Industry Co. Ltd. for use in its 500 kilotons-per-year caprolactam factory, which is scheduled to begin operations by the end of 2023.

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