Almost ~90% of the caprolactam is used in the production of nylon 6 fibers and in the textile production process in India, China, and Bangladesh to cater to the export market. Another inhibitor to the growth in demand for caprolactam is the production of Ammonium Sulfate. The governments in various countries are regulating the production of caprolactam due to a rise in the production of ammonium sulfate, leading to numerous environmental concerns. This has led to a surge in the pressure to identify an alternative process for the production of caprolactam. Leading global manufacturers are investing heavily in optimizing the caprolactam production process to reduce their impact on the environment.
According to MarkNtel Advisors’ research report titled “Global Caprolactam Market Analysis, 2020” the market size of the caprolactam market worldwide is forecast to cross USD 17 billion mark by 2025, exhibiting growth at a steady CAGR of ~4%, in value terms during 2020-25. Asia-Pacific region currently holds the largest market share in the global market on account of the high demand for industrial yarn and engineered plastics in the region along with the presence of a large automobile production base.
China and India are the major demand generating regions for caprolactam across the globe. However, in India, there exists only one manufacturer of caprolactam, which is Gujarat State Fertilizers Limited. It has been operating at a lower capacity utilization rate over the last few years due to fluctuation in the availability and prices of the raw materials used for the production of caprolactam. Another leading manufacturer, Fertilizers and Chemicals Travancore Limited, shut down their production periodically to maintain viability in the market as the profit margins associated with caprolactam business are quite low and the end product prices are uncertain. There are numerous manufacturers in the world who are manufacturing caprolactam and consuming it to produce nylon 6 resins and fibers and remain viable in the market for Caprolactam as stated in the MarkNtel Advisors’ research report “Global Caprolactam Market Analysis, 2020”.
Growth Opportunities in the Caprolactam Market
As per MarkNtel Advisors’ study, a substantial share of caprolactam is consumed in the production of textile yarns, industrial yarns hold more than 50% market share in the end-user segment for caprolactam, which by far, dominates the second-largest end-use segment which include industrial yarn, engineering plastics, carpet fibers, and staple fibers. In the market segmentation by type, the majority of the caprolactam is used in the production of nylon 6 resins followed by nylon 6 fibers. The nylon 6 resins find a wide variety of applications in the automotive sector to produce parts and accessories, replacing metals, owing to their high-temperature resistance and high tensile strength.
As of 2019, the caprolactam market presents opportunities for technologically sound manufacturers by investing in optimizing the production process and targeting specific end-user categories. The leading international manufacturers or competitors of caprolactam include European companies DSM Intermediates, KuibyshevAzot, Chemical, KurskKhimvolokno Ltd and other Asian giants such as Sumitomo Chemicals, China Petrochemical Corporation, China Petrochemical Development Corporation, and Shandong Haili Chemical Industry Co. Ltd., etc.
“Global Caprolactam Market Analysis, 2020”, provides comprehensive qualitative and quantitative insights on the market potential, regional opportunities, key factors impacting sales and purchase decisions, hotspots, and growth opportunities available for caprolactam providers across the globe. Moreover, the report also encompasses the expert verbatim, key strategic imperatives for success for competitors along with strategic factorial indexing measuring competitor's capabilities on 16 parameters. This will help companies in the competition assessment, formulation of Go to Market Strategies and identifying the blue ocean for their offerings.
1. By End-Product (Nylon 6 resins, Nylon 6 fibers)
2. By Applications (Industrial Yarns, Engineering Resins & Films, Textiles & Carpets Fibers, and Others)
3. By End-Use (Textile, Automotive, Carpet Manufacturing and Others)
4. By Region (Asia-Pacific, Europe, North America, South America, Middle East & Africa)
5. By Company (Royal DSM NV, Sumitomo Chemicals, BASF SE, Honeywell Chemical Intermediates, GSFC Limited, among others)
Key questions answered in the study:
1. What are the current and future trends of the Global Caprolactam Market?
2. What are the market statistics such as market size, forecast, market shares under diverse market segmentation, etc. of global caprolactam market?
3. How the market has been evolving in terms of type, technology trends and applications?
4. What is the expert opinion on the future current and future outlook of the Global Caprolactam Market?
5. How the competition has been benchmarked across various regions followed by competitor’s comparative factorial indexing?
6. What are the key growth drivers, challenges and hotspots coming up in the Global Caprolactam Market across various geographies?
7. What are the margins of stakeholders at various levels of the value chain of Caprolactam Market?