Global Caprolactam Market - 2024-2031

Report Overview

Global Caprolactam Market reached US$ 15.98 billion in 2023 and is expected to reach US$ 22.83 billion by 2031, growing with a CAGR of 4.5% during the forecast period 2024-2031.

Caprolactam, a key raw material in the production of nylon 6, finds applications in manufacturing carpets, industrial yarns, engineering plastics and films. The global caprolactam market is experiencing significant growth, driven by its widespread use in producing nylon 6 fibers and resins, which are essential in industries such as textiles, automotive and electrical.

The automotive industry is another key driver, with caprolactam-based nylon 6 being used for parts such as air intake manifolds, engine covers and gears. The automotive industry is increasingly using nylon 6 components for weight reduction. According to Kormax, a global manufacturer of nylon, components made from nylon are up to 80% lighter than those produced from metal.

The Asia-Pacific region plays a strong growth in the global caprolactam market, driven primarily by strong demand from industries like textiles, automotive and electronics. The region's growing industrial base, particularly in China, India, Japan and South Korea, is fueling market expansion. According to industry reports, in 2023, the Asia-Pacific region accounted for over 75% of the global caprolactam consumption, supported by its strong position in the textile and automotive industries.

Market Dynamics

Growing Demand to Manufacturing Lightweight Components

The automotive and aerospace industries are key sectors driving the demand for lightweight components. In these industries, reducing the weight of components is essential for improving fuel efficiency, enhancing performance and meeting strict environmental regulations. Lightweight components, such as those made from nylon 6 (derived from caprolactam), are used in the manufacturing of parts.

Furthermore, Airlines are increasingly focusing on weight reduction strategies. Lightweight materials, efficient cargo loading and elimination of non-essential items contribute to lower fuel consumption. A report by IATA indicates that reducing aircraft weight by 1% can lead to a 0.75% decrease in fuel burn.

Heavily Implementation of Caprolactam in EV's

The demand for caprolactam is also rising with the growth of EVs. Nylon 6 is commonly used in battery casings, cable insulation and various structural components in EVs, driving caprolactam consumption further. It is known for its high impact resistance and ability to withstand high temperatures, making it ideal for protecting battery systems. For instance, companies like BASF SE and LANXESS AG have developed advanced nylon 6 formulations specifically designed for automotive applications, including EVs.

Furthermore, According to the IEA, electric car sales could reach 65% of total car sales in 2030. The IEA also projects that the global EV fleet will grow by a factor of eight or more by 2030, with EVs accounting for over 10% of the road vehicle fleet. This growth of the EV market is boosting the demand for caprolactam, driven by the increasing use of nylon 6 in critical components such as battery casings, cable insulation and structural parts

Strict Government Regulations with Fluctuating Raw Material Prices

The production of caprolactam involves the release of hazardous substances, leading to stringent environmental regulations. The Occupational Safety and Health Administration (OSHA) has set strict exposure limits and safety standards for handling caprolactam. Compliance with these regulations increases operational costs and may limit the production capacity of manufacturers.

Furthermore, the primary raw material for caprolactam production is cyclohexane, whose price is volatile and influenced by the crude oil market. The cyclohexane prices in China for Q4 2023 reached 1,000-1,300 USD/MT in December. In Q4 2023, prices increased notably due to heightened inventory acquisition activities. This volatility impacts caprolactam production costs and, subsequently, market pricing stability.

Market Segment Analysis

The global caprolactam market is segmented based on raw material, product, application, end-users and region.

Increasing Influence of the Textile Industry in the Caprolactam Market

The global caprolactam market, essential in the textile industry for producing nylon, has experienced significant movements in recent years due to various factors including raw material prices, technological advancements and shifting demand patterns. As the textile industry continues to evolve, the need for caprolactam is expected to grow, supported by ongoing innovations and expanding applications of nylon-based textiles.

The demand for caprolactam in the textile industry is influenced by several factors, including growth in the fashion and apparel sectors, increasing consumer preference for durable and high-performance materials and expanding industrial applications. According to the Textile Exchange, global fiber production increased from around 112 million tons in 2021 to a record 116 million tons in 2022. This is expected to grow to 147 million tons in 2030 if business continues as usual.

Market Geographical Share

Emerging Sustainability, Urbanization And Technological Advancement Trends In Asia-Pacific

Asia-Pacific commands the largest share of the global caprolactam market, holding a significant share of the market. China, as the largest producer of nylon 6 worldwide, significantly influences the caprolactam market. The country hosts several major manufacturers, such as Guangdong Xinhui Meida Nylon Co Ltd, BASF (China) Co. Ltd and Liheng (Changle) Polyamide Technology Co. Ltd.

According to data from the Chinese Ministry of Industry and Information Technology, China's exports of textiles, garments and accessories had US$ 319.376 billion in 2022. Furthermore, India also plays a crucial role in Asia-Pacific caprolactam market. India is set to achieve US$ 250 billion in textiles production and US$ 100 billion in exports by 2030. According to the WTO (World Trade Organization), India is the third-largest textile export industry with a 6.3% market share.

In India, the export of fabric from the decentralized sector of the country was recorded as US$ 22.2 billion in 2021 with a significant growth rate of 47.8% from the previous year. Moreover, potential countries such as Vietnam, Taiwan and Bangladesh are also making substantial contributions to the textile industry, which will likely continue to drive up the demand for caprolactam in the region.

Market Competitive Landscape

The major global players in the market include Advansix Inc., BASF SE, Century Enka, DOMO Chemicals, Fibrant (Highsun Group), Junsei Chemical Co., Ltd., Kishida Chemical Co.,Ltd., Otto Chemie Pvt. Ltd, SINOPEC and UBE Corporation.

Sustainability Analysis

Caprolactam production involves the use of cyclohexane and ammonia, which contribute to environmental emissions, including greenhouse gases and hazardous pollutants. The industry is increasingly subject to stringent environmental regulations aimed at reducing these impacts. For example, the European Union's REACH (Registration, Evaluation, Authorization and Restriction of Chemicals) regulations impose strict limits on the emission of harmful substances.

Several companies are adopting sustainable production practices to align with global environmental goals. For instance, BASF is bundling and accelerating its extensive cross-company activities to reduce its CO2 emissions by 25 percent by 2030 compared with 2018 and become climate neutral by 2050. Moreover, the company working on improving the efficiency of its caprolactam production process, incorporating advanced catalytic technologies that reduce energy consumption and emissions.

Similarly, the shift towards bio-based feedstocks is another key trend. Some manufacturers are exploring the use of renewable resources to produce caprolactam, aiming to reduce dependence on fossil fuels. For instance, Fibrant's EcoLactam(R) Bio is biomass-balanced Caprolactam where the carbon is verifiably replaced by renewable resources, as certified by ISCC PLUS.

Russia-Ukraine War Impact

The Russia-Ukraine war has significantly impacted the global caprolactam market, primarily through disruptions in energy prices and supply chain uncertainties. Caprolactam, a key precursor in the production of nylon 6, saw substantial price increases due to these energy cost hikes. Producers had to raise prices by €1000-1300 per ton for deliveries in April, translating to an increase of over 35% from previous levels.

The sharp rise in caprolactam prices was driven by the unprecedented uncertainty and visibility issues in the energy markets. The automotive industry faced challenges due to shortages of semiconductors-a situation worsened by the reliance on neon gas and palladium, which are sourced from Russia and Ukraine. The global market participants anticipated a reduction in polymer demand, projecting a decline of between 20-30% in April 2022.

By Raw Material

Phenol

Cyclohexane

By Product

Nylon 6 Resins

Nylon 6 Fibers

By Application

Industrial Yarn

Engineering Resin

Films

Others

By End-User

Automotive

Textile

Aerospace & Defense

Others

By Region

North America

US

Canada

Mexico

Europe

Germany

UK

France

Italy

Spain

Rest of Europe

South America

Brazil

Argentina

Rest of South America

Asia-Pacific

China

India

Japan

Australia

Rest of Asia-Pacific

Middle East and Africa

Key Developments

In December 2023, BASF announced a significant reduction in its European caprolactam production capacity to strengthen its value chain amid market challenges. The company will close four plants at its Ludwigshafen site, affecting both caprolactam and key precursors like anolone and oleum. This move aims to enhance cost efficiency, with BASF retaining a capacity of 400,000 metric tons annually in the region to remain competitive in the global caprolactam market.

In 2022, Xuyang Group significantly advanced the caprolactam market with the commencement of production at its Cangzhou Park site, following the completion of the second phase of its caprolactam expansion project. This development added substantial capacity to the market, as the expansion project increased the company's production capability to 750,000 tons per year.

In 2022, Century Enka launched the commercial production of NTCF (nylon tire cord fabric) made from 100% recycled nylon waste, in collaboration with Apollo Tyres. This sustainable material represents a significant innovation, with Century Enka utilizing its in-process waste to recycle back into caprolactam. The initiative aims to conserve crude oil, a finite resource and reduce the environmental impact of polyamide waste.

Why Purchase the Report?

To visualize the global caprolactam market segmentation based on raw material, type, application, end-user and region.

Identify commercial opportunities by analyzing trends and co-development.

Excel spreadsheet containing a comprehensive dataset of the caprolactam market, covering all levels of segmentation.

PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.

Product mapping available as excel consisting of key products of all the major players.

The global caprolactam market report would provide approximately 67 tables, 73 figures and 212 pages.

Target Audience 2024

Manufacturers/ Buyers

Industry Investors/Investment Bankers

Research Professionals

Emerging Companies