POLYAMIDE 12 MARKET ANALYSIS

Polyamide 12 belong to the family of polyamides, popularly known as nylon, and the number represents the presence of 12 carbon atoms in the molecule respectively. Wear resistance, strong mechanical qualities, low gas permeability, and chemical resistance are the characteristics of polyamide 12. Bio-based polyamide 12 are gaining popularity due to its eco-friendly nature.

Global Polyamide 12 market was valued at US$ 313.9 Billion in 2021 in terms of revenue, exhibiting a CAGR of  5.9% during the forecast period (2022 to 2030).

Drivers

Increased demand for lightweight automobiles propels growth of the polyamide 12 market. Increased passenger car sales, particularly in emerging economies  anticipated to boost demand for polyamides in automotive applications. Rising investments in the automobile sector is another reason for growth of automobiles market. For instance, according to Indian Brand Equity Foundation report in February 2022, the automobile sector received cumulative equity Foreign Direct Investment inflow of about US$ 30.78 billion between April 2000 and September 2021. Moreover the Government of India expects automobile sector to attract US$ 8-10 billion in local and foreign investments by 2023. Growing automobile industry would benefit growth of the polyimide 12 market.

Nylon 12 has broad range of applications in automotive sector, owing to the exceptional characteristics of the material including resistance to cracking under stress, excellent chemical resistance, lower moisture absorption, superior abrasion resistance, lower melting point, higher elongation, lightweight, brilliant control strength, which is driving market growth for polyamide 12 globally. Further, it is also utilized to produce multilayer pipes for e.g. hydraulic lines, pneumatic brake lines, and fuel pipes for engineering of automobiles globally.

In terms of revenue, Asia Pacific is expected to dominate the polyamide 12 market during the forecast period. The Asia-Pacific had the major market share of nearly 33.4% in 2021, as a result of swift industrial growth in the region. Emerging economies such as India, China, and Japan are considered as major contributors to the polyamide 12 market growth in the Asia Pacific region. India, and China are focusing mainly on improving their infrastructure and promoting their manufacturing industry.

Figure 1. Global Polyamide 12 Market Value Share (%), By Region, 2021

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Market Restraints

High competition from manufacturers of hybrid polymers and composites is one of the major factors that is expected to hamper growth of market over the forecast period. Moreover, instability in cost and the presence of substitutes to polyamide 12 which offer low cost material is expected to obstruct the global polyamide 12 market growth during the forecast period.

Market Trends

Automobile manufacturers are focusing on the manufacturing of lightweight vehicles which is driving market growth for polyamide 12 which is a key trend in the global polyamide 12 market.  Increasing focus on emission control has been witnessed in automotive industry. This has prompted several of the industry participants to develop vehicles that are relatively lighter in weight than metal. Metal-to-plastics conversion has been a prominent trend in the automotive industry over the past few years.

Figure 2. Global Polyamide 12 Market Value Share (%), By End-use Industry, 2021

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Based on end-use industry, the automotive segment held dominant position in market and accounted for a revenue share of 55.5% in 2021 Increasing demand for light weight vehicles is a major factor fuelling demand for polyamide 12 in the automotive industry. For instance, according to the international energy report in December 2021, about 3 million new electric light vehicles were registered in 2020 and Europe led with 1.4 million light vehicle registrations. There is a 43% of growth in the 2021 for light vehicle from the previous year 2020. The growing market for light vehicles will drive the market for the polyamide 12 globally.

Recent Developments

• In February, 2022, BASF, a Germany chemical company announced the acquisition of Solvay’s PA66 Business for the manufacturing of polyamides. Solvay is a Belgian chemical company. BASF will take over Solvay’s polyamide business and operate under the brand name of Ultramid. Acquisition of Solvay’s polyamide business would lead to strengthened backward integration covering the entire polyamide 66 value chain.
• In May, 2021, Arkema Group a specialty chemicals manufacturing company announced the acquisition with Agiplast a leader in the regeneration of high performance polymers, in particular specialty polyamides and fluoropolymers. With the acquisition Arkema would be able to offer a full service to customers in terms of materials circularity, addressing growing polyamide market.
• In February, 2018, Evonik Industries, a manufacturer of specialty chemicals opened a production line for specialty polyamide 12 powders (PA 12) of its VESTOSINT brand at its largest global production site in the Marl Chemical Park in Germany. The new facility primarily produces high-performance powders for the 3-D printing market, which is expanding heavily with double-digit growth rates.

Competitive Section

Major players operating in the global polyamide 12 market include Arkema Group, DowDuPont Inc., Ensinger GmbH, Evonik Industries AG, UBE Industries Inc., Techmer PM LLC., Invista, EMS-Chemie Holding AG, RTP Company Inc., Toray Industries Inc., Formulated Polymers Limited, and Merck KGaA