The global adiponitrile market size is expected to witness a substantial rise in the coming future, and grow at a significant CAGR over the forecast period (2019 - 2027).

Market Overview

Adiponitrile (ADN) is a viscous, odorless liquid that is slightly less dense than water. It is fairly soluble, and is colourless for the most part but can take a faint yellowish tinge. The chemical has major application in the manufacture of hexamethylene diamine (HMDA) through catalytic hydrogenation, out of which over 90% is used for making nylon 6,6 fibers and resins. Owing to its high anodic and thermal stability, adiponitrile is also used as a solvent for electrolyte solutions for high-voltage lithium batteries.

Market Dynamics

Nylon 6,6 has a wide range of properties such as light weight, and water resistance which makes it ideal for application in swim-wear. Moreover, the growing demand for nylon 6,6 in end-use industries such as textile, plastic, and fiber, is expected to benefit the growth of the global adiponitrile market. ADN is used in the manufacture of conveyor belts, carpet fibres, ropes, strings in musical instruments, textile manufacturing, tire cords, and in the automotive industry among others. The rapidly expanding textile industry is projected to facilitate the demand for adiponitrile in the near future. There has been an increasing demand for production of adipic acid in polyurethane applications such as thermal insulation, footwear, and auto seating. However, growth of the adiponitrile market may be hampered by price fluctuations in natural gas, as the chemical can also be manufactured from Butadiene. Moreover, increasing health and environment concerns regarding the production of adiponitrile are expected to restrain the market growth over the forecast period. Inhaling or swallowing ADN can cause irritation to the skin, respiratory tract, and in the eye. Furthermore, it can cause Cyanosis in which the skin gets a bluish tinge due to less blood oxygenation. Inhalation can cause a variety of mild to acute symptoms such as dizziness, weakness, irregular heartbeat, convulsion, or coma which can result in death.

Market Outlook

Developed economies such as the U.S. are expected to dominate the market share owing to a variety of applications of nylon 6,6 in the textile and automotive sector. Emerging economies such as China are also expected to contribute significantly to the market growth over the forecast period. Government initiatives such as ‘Make in India’ are also propelling demand for adiponitrile in India, which in turn will contribute to the growth of the adiponitrile market in the Asia Pacific region. The rapidly growing automotive sector in China is also projected to account for the rise in consumption of adiponitrile in the region. Furthermore, the flourishing automotive sector in countries such as Germany, Sweden and Italy is expected to support growth of the Europe adiponitrile market. Other regions such as Latin America, Middle East, and Africa are witnessing significant industrialization and are likely to emerge as major markets for adiponitirile over the course of the next few years. However, increasing competition and entry of new market players has resulted in a price rivalry in some of the developed economies, which has led manufacturers to shift focus to emerging regions such as China to set up new production facilities. This, in turn, is estimated to facilitate growth of the Asia Pacific adiponitrile market over the forecast period.

Key Players

The major players dominating the global adiponitrile market include Royal Dutch Shell, Rhodia group, Evonik Industries, Dupont, Solvay, Lyondellbasell Industries, Saudi Basic Industries Corporation, Invista, The DOW chemical company, BASF, Ineos, Braskem, LG Chem, JSR Corporation, and China Petroleum & Chemical Corporation among others.

Key Development

Several players are engaged in organic and inorganic growth strategies such as merger & acquisition and capacity expansion to strengthen their global position. For instance,

  • In May 2019, Ascend Performance Materials, producer of polyamide 6,6 resin (PA66), announced the addition of 90 KT of adiponitrile capacity at its Alabama facility and has submitted a permit application to Alabama Department of Environmental Management and received permission in September 2019.
  • In August 2019, BASF, one of the leading chemical company, acquired non-European business from Solvay, which also includes its 50% share in Butachimie’s adiponitrile production facility in France.
  • In February 2019, Shanghai Chemical Industry Park (SCIP) and Invista entered into a partnership to build adiponitrile plant in China with 400,000 tonnes of facility.

In August 2018, Invista, the fiber and polymers arm of Koch Industries, invested nearly US$ 1 billion to build adiponitrile plant in China.

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