The global caprolactam market size is estimated at US$ 16,885.6 Million in 2022 and is expected to expand at a CAGR of 6.57% and expected to reach at US$ 28,091.1 Million by 2023-2030.
Nylon 6 fiber and nylon 6 resin have wide applications in automotive and textile industry due to their high tensile strength and superior elasticity. Automakers are focusing on light weighting of vehicles in order to improve fuel efficiency and performance. Thus, metallic parts of automobiles are being rapidly replaced by polyamide 6 and nylon 6 due to high temperature and chemical resistance. For instance, door handles, air bag containers, radiator grilles, relay boxes, air intake manifold and engine cover, among others are manufactured from polyamide 6 or nylon 6. Also, nylon 6 have wide applications in electrical and electronic equipment industry, due to high electrical insulation and low weight as compared to metal tubes, which includes circuit breakers, voltage switchgears, contactors, tubes for wiring & cables protection, connectors, among others. Also, increasing number of women in the workforce, growing westernization, increasing disposable income and growing demand for convenience food across the globe, is expected to fuel demand for Caprolactam market. Nylon 6 is a key constituent in specialty films. The market is expected to gain traction in Asia Pacific due to burgeoning growth of various end-use industries in China and India. As per Coherent Market Insights, the nylon 6 fibers segment accounted for 52.94% revenue share in 2022.
| Report Coverage | Details | ||
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| Base Year: | 2022 | Market Size in 2022: | US$ 16,885.6 Mn |
| Historical Data for: | 2017-2021 | Estimated Year: | 2023 |
| Forecast Period 2023 to 2030 CAGR: | 6.57% | Forecast Period: | 2023-2030 |
| Geographies covered: |
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| Segments covered: |
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| Companies covered: |
BASF SE, China Petroleum & Chemical Corporation, China Petrochemical Development Corporation, Honeywell International Inc., KuibyshevAzot OJSC, Royal DSM N.V., UBE Industries, SINOPEC among others. |
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| Growth Drivers: |
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| Restraints & Challenges: |
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Market Restraints
Plummeting costs of caprolactam due to increasing production capacity and oversupply is expected to be the key challenge for caprolactam market. As a result, from 2020 continuous caprolactam production capacity reduction are taking place to provide stability in supply and price. On September 12, 2020, BASF SE announced plans to reduce caprolactam production at its Ludwigshafen plant by 100,000 MT over the following 18 months. Moreover, DSM Chemicals ceased operations at its caprolactam plant in the U.S. by the end of 2020. Furthermore, according to Coherent Market Insights analysis, due to continuous oversupply of caprolactam by China, some existing caprolactam production plants are expected to shut down during the forecast period.
Figure 1. Caprolactam Market-Regional Share, (Revenue in 2022)
Figure 2. Caprolactam Market-Product type, (Volume in 2022)
Global Caprolactam Market- Impact of Coronavirus (Covid-19) Pandemic
COVID-19 outbreak negatively impacted the caprolactum market. Due to lockdown imposed across the globe, supply chain constraints obstructed the expansion of industry. However, the market recovered last year in 2021 and expected to grow in the upcoming years.
Recent Development:
In November 2022, DOMO Chemicals, a leader in polymide- based engineered material solution and services, is presented its entire range of high performing TECHNYL solutions to a global audience.
In August 2019, Hengyi Petrochemical, A manufacturer of petrochemicals announced completion of 400 KT/ year of caprolactum project.
In September 2022, China Petrochemical Development Corporation achieves recognition for the 2nd year in a row with inclusion in S&P global sustainability.
In January 2023, UBE Corporation has decided to expand the polymide hollow fiber production facilities for gas separation membranes at its UBE chemical factory.
Multinational players need to maintain the supply and price, as the market for caprolactam is fragmented in Asia Pacific.
Major players in the global caprolactam market include BASF SE, China Petroleum & Chemical Corporation, China Petrochemical Development Corporation, Honeywell International Inc., KuibyshevAzot OJSC, Royal DSM N.V., UBE Industries, SINOPEC among others.
Caprolactam are organic compounds with molecular formula ((CH2)5CNH). It is a colorless, solid, toxic substance and process an irritant properties. The caprolactam market is segmented by nylon 6 fiber and nylon 6 resin. The nylon 6 fiber is the largest segment and is mainly used in textile, carpet, industrial yarns and others end-use industries. Also, the nylon 6 resins are used in automobiles, specialty films packaging for food, wires & cables and other end-use industries. Demand is growing for caprolactam across the world in end-use industries due to various application of nylon 6 resin and nylon 6 fibers. Asia Pacific is expected to dominate the market according to Coherent Market Insights. Growing demand for electronic gadgets and equipment in Asia Pacific due to populous economy and changing lifestyle is expected to drive growth of the market. Growing electronics industry is propelling demand for nylon 6 resin and fiber consumption. Continuous technological innovations aimed at improving manufacturing process of the product to reduce ammonium sulfate production as a by-product, due to its hazardous nature and increase in production cost is expected to propel demand for caprolactam during 2023-2030. For instance, in June 17, 2019, Honeywell International Inc., introduced a new Aegis nylon resin designed to protect electrical wirings and cables used in industrial and consumer products. Moreover, in May, 2019, Sumitomo Chemical Company Limited raised caprolactam price by US$ 70 per MT to US$ 1,880 per MT. Furthermore, in May 2019, BASF SE raised caprolactam price by USD 110.2 per MT in North America. In November 2021, China Petroleum & chemical corporation core pacific group is committed to sustainability, leading the way with ESG. In February 2023, UBE corporation announces organizational and personnel changes. In May 2022, DSM announces sale of engineering materials business.
Market Dynamics
Caprolactam are the primary raw materials required in the manufacturing of engineering plastics. Growing textiles industry is expected to fuel the market for caprolactam in Asia Pacific in forecast period. According to India Brand Equity Foundation (IBEF), is a Trust established by the Department of Commerce, Ministry of Commerce and Industry, Government of India. For instance, Raymond Group, in 2021, has signed a Memorandum of Understanding (MoU) with Maharashtra government for setting up a textile manufacturing plant with an investment of US$ 208.7 million in Maharashtra’s Amravati district of India. Moreover, the Clothing Manufacturer Association of India (CMAI), signed Memorandum of understanding with China Chamber of Commerce (CCCT), for import and export of textiles. Moreover, nylon 6 have wide applications in the manufacturing of fishing nets, sports equipment, tracking harness, ropes, among others. The demand for caprolactam in end-use industries is propelling, due to rapid innovation and development of new product aided advantages. For instance on June 17, 2019 Honeywell International Inc., introduced a new Aegis nylon resin designed to protect electrical wirings and cables used in industrial and consumer products.
Market Taxonomy
This report segments the global caprolactam market on the basis of raw material and product type. On the basis of raw material, the market is segmented as cyclohexane/benzene, phenol and others. On the basis of product type, the global caprolactam market is segmented as nylon 6 fiber, nylon 6 resin & films and polymer chips. The nylon 6 fibers market is further sub segmented into textile, carpet, industrial yarn and others. The nylon 6 resin and films, are also sub segmented into automotive, specialty films packaging for food, wires & cables and others.
Key features of the study:
Detailed Segmentation:
“*” marked represents similar segmentation in other categories in the respective section.
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