In order to gain competitive advantage, some of the most prominent companies in the global caprolactam market are focusing on capacity expansion. In addition to this, the market players are likely to capitalize on opportunities prevalent in end-use segments such as engineering plastics, electronics, and industrial yarn.
In a recent study, Transparency Market Research (TMR) identifies some of the leading market players, which include Honeywell, DSM, Ube Industries, BASF SE, Capro Corporation, and others. Strategies these companies adopt can sway prevalent market trends.
TMR pegged the global caprolactam market at US$8,662.5 mn in 2012. By the end of 2019, the market is forecast to reach US$13,801.9 mn, exhibiting a positive 6.9% CAGR between 2013 and 2019. Among key application segments, nylon-6 fibers emerged dominant, holding an estimated 66% of the overall market in 2012. The dominance of nylon-6 fibers is attributable to its superior chemical and physical properties such as light weight and high tensile strength.
Regionally, Europe and Asia Pacific emerged as leading markets for caprolactam in 2012. As per TMR, Asia Pacific held nearly 71% of the global market emerging dominant in 2012. Some of the leading players in the caprolactam market are aiming towards capacity expansion in Asia Pacific, which is giving the regional segment significant impetus.
Increasing Use of Nylon-6 Resins across Diverse Applications to Boost Growth
According to TMR, the rising use of nylon-6 across diverse automotive and engineering applications will give significant impetus to the global caprolactam market. Furthermore, the economic development in Asia Pacific will offer the market lucrative growth opportunities. Among other reasons, the expanding automotive sector will bring good news for the market. Over the last few years, the automotive industry is exhibiting impressive growth in China, India, and Brazil. This, coupled with the increasing disposable income of people in these nations, will fuel the demand for caprolactam.
Furthermore, growth in fabrics industry will boost growth opportunities for the market. Other than this, the rising use of nylon 6 in engineering plastics and films, floor coverings, and in the production of industrial yarns will boost sales in the coming years. Given the scenario, growth in end-use segments will have positive impact on the overall market during the forecast period.
Demand from Automotive Sector to Create Lucrative Growth Opportunities
The use of nylon 6 resins is expected to rise considerably in the coming years. Their increasing used in applications such as packaging, engineering plastics, electronics, and musical instrument strings will enable the caprolactam market report accelerated growth. As per TMR, the superior physical and chemicals features of nylon 6 resins will boost their demand through the forecast period.
For instance, the market will find increasing use of nylon 6 resins in engineering applications due to its physical properties such as high fatigue resistance and high strength. Furthermore, paradigm shift towards producing environmentally friendly versions of automobiles has increased the use of nylon 6 over plastics in the automotive sector.
Going forward, the increasing demand and production of vehicles will positively influence growth prospects for the caprolactam market. On the downside, unpredictability in raw material prices can hinder the market’s growth to an extent.