The Global Caprolactam Market size is estimated at US$ 16,885.6 Million in 2022 and is expected expand at a CAGR of 6.57% and expected to reach at US$ 28,091.1 Million by 2023-2030.
The increasing use of caprolactam in the end-use industries such as automotive, textile and electrical & electronics industry is expected to fuel the market for caprolactam. Asia Pacific is poised to be the growth engine of caprolactam market due to growing economy and changing lifestyle. Moreover, increasing population and growing demand for nylon 6 resin further lends traction to the caprolactam market. China has dominated the caprolactam market in 2022 due to rapid growth of electrical and electronic end-use industries. Stringent government regulation are expected to be key challenges for growth of the caprolactam market during 2023-2030. For instance on October 18, 2021 the Ministry of Commerce of the People’s Republic of China (MOFCOM) introduced regulation as per announcement no. 68 of 2016, to carry out anti-dumping measures against imports of caprolactam from the America and European region.
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Key Trends of the Market:
Caprolactam is widely used as a raw material in the production of nylon 6 resin and nylon 6 fibers, and around 26.13% and 52.94% revenue shares of caprolactam market, were obtained from the nylon 6 resin and nylon 6 fibers, respectively in 2022. Nylon 6 fiber is used to manufacture carpets, textiles, and industrial yarns, while nylon 6 resin has wide applications in the automotive, electrical, and electronics components manufacturing industries. The growing automotive industry in Asia Pacific is expected to fuel growth of the nylon 6 resin market, which in turn, is expected to boost growth of the caprolactam market. For instance, General Motors, a U.S.-based company, announced plans to invest US$ 1 billion in India by 2020. The company plans to increase production capacity of its Talegaon plant in Maharashtra, India from 30,000 units to 220,000 units by 2025. The growing textile industry across Asia Pacific, owing to growing textile industry in economies such as India is expected to boost the growth of the caprolactam market in forecast period. For instance, the Government of India is actively encouraging new entrepreneurs to invest in the textile sector by increasing allocation of funds to Mudra Bank from US$ 20.4 billion to US$ 36.6 billion.
Key takeaways of the market:
- Asia Pacific is projected to be the largest region in global caprolactam market. It accounted for around 64.52% of overall caprolactam market revenue in 2022. The market in this region is expected to be primarily driven by rampant growth of end-use industries in countries such as China, India, and ASEAN. The growing textile and automotive end-use industries, rising urbanization, growing demand for electronic gadgets and electrical equipment are some of the key drivers for the growth of caprolactam market in the Asia Pacific region.
- The market in Latin America is expected to register a significant growth rate over the forecast period. Rise in discretionary income along with increasing automotive sales are expected to create lucrative growth opportunities for key players in this region.
- Automotive and textile industry are the key end-use industries in the caprolactam market. Strong growth in automobile sales in Asia Pacific and Europe are expected to enhance growth of caprolactam market during the forecast period. The automotive applications such as gear, fittings, and bearing and under-the-hood components are the key automotive application for the use of caprolactam.
- BASF SE, China Petroleum & Chemical Corporation, China Petrochemical Development Corporation, Honeywell International Inc., KuibyshevAzot OJSC, Royal DSM N.V., UBE Industries, SINOPEC, Sumitomo Chemical Company Limited, are few of the key players in global caprolactam market.
- Technological advancement is leading to the key innovation in new product launches. Companies are also investing in expansions, mergers & acquisitions, and joint ventures in the market. 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.
