Adipic Acid Market Research Report Information by Application (Polyurethane, Nylon 6,6 Fiber, Nylon 6,6 Resin, Adipate Esters, and Others), by End-Use Industries (Automotive, Electrical & Electronics, Packaging & Consumer Goods, Building & Construction, Textile, and Others) and Region - Forecast till 2030

Adipic Acid Market Overview

Adipic Acid Market is projected to be worth USD 8.18 Billion by 2030, registering a CAGR of 4.95% during the forecast period (2021 - 2030).

In recent years, the adipic acid market and its end products have risen in a linear pattern. In the following years, this pace of increase is likely to pick up. Quality, durability, lightweight nature, excellent energy absorbing property, an increase in demand for durable polyamide 66, upcoming safety regulations, and innovative techniques for its utilization are major influencing factors for the global market, with a greater focus on its various types and applications.

The adipic acid market has grown globally due to rapid industrialization and the increasing usage of artificial polymers in various sectors. Nylon manufacture consumes a large amount of the total adipic acid generated worldwide. The reaction of adipic acid with hexamethylene diamine produces nylon used in industry. Nylon 66, made from adipic acid, is used in various sectors, including electronics, textiles, automobiles, and others, because of its exceptional mechanical strength and electrical and thermal insulation. The growing number of nylon uses in many sectors is projected to raise adipic acid demand in the near future. Today, large corporations concentrate their efforts on producing high-quality, tough, and long-lasting fibers that can withstand harsh environments. Adipic acid is also utilized as a flavoring ingredient and a gelling agent in the food and beverage sector.

It's also used in a number of medicine tablets to ensure that acidic or basic medicinal components are released in a regulated manner. However, changing raw material costs and strict rules on environmental externalities generated during the manufacture of adipic acid, particularly the emission of nitrous oxide, may function as market restraints. Nonetheless, bio-adipic acid in numerous sectors to reduce detrimental environmental consequences has played a significant role in the worldwide adipic acid market's rise. Bio-based polyurethane, made from bio-adipic acid, is becoming more popular as an alternative to conventional polyurethane, damaging the environment in electronics, automobiles, and construction.

Covid-19 Analysis

Because of the economic downturn induced by the coronavirus epidemic, the consumption of nylon and nylon-based goods has decreased dramatically, notably in the car industry. As a result, the demand for adipic acid in the nylon manufacturing business has fallen. The worldwide adipic acid market's supply chains and operations have been considerably disrupted by statewide lockdowns and limitations on export-import activity. The usage of adipic acid in the pharmaceutical business, on the other hand, grew as a result of the high demand for medications during the epidemic. As a result, market demand for adipic acid has increased.

The coronavirus epidemic has made debt recovery more difficult. Several state authorities and regulators worldwide have enacted new debt collection policies to lessen the economic expenses imposed by COVID-19 on customers in their jurisdictions. The regulation prohibits debt collectors and creditors from harassing residents. During the COVID-19 scenario, differences in enforcement processes and order for payment procedures and extremely adverse economic repercussions such as increased unemployment may further complicate issues and, in some cases, restrict the capacity to pursue claims.

Chief Factors Existing in the Market

Key market drivers

The most challenging adipic acid market trend patterns have been seen in this business, spanning from supply chain transportation to cost reductions, consumer expectations, and automation. The expansion of the global adipic acid market is influenced by several factors, including a rise in demand to reduce bad debt and improve cash flow, an increase in the need for automation in the accounts receivable process, and an increase in multichannel collection techniques.

Market Challenges

Several issues have arisen throughout the production or manufacturing phase and during the construction of a new facility. One of the most important challenges that everyone faces is the global pandemic. The classification of worldwide health emergencies, which prompted various economic sectors to shut down their operations, was one of the most challenging challenges.

Market opportunities

The construction, automotive, and electronics industries' growing preference for durable and lightweight products, the construction industry's expansion for the production of insulation materials, housing electronics, and exterior panels, the commercialization of bio-adipic acid, and rising demand due to environmentally friendly chemical processes are all factors that will likely accelerate the growth of the adipic acid market during the forecast period.

Market Restraints

As the accounts receivable process is automated and transferred to digital approaches, the adipic acid market will grow rapidly. Furthermore, automating the debt collection and recovery process boosts collection productivity by methodically identifying reasons and reducing case handling time.

Cumulative Evaluation of the Market

The worldwide adipic acid market, according to the report, faced a variety of challenges throughout the pandemic period. Following various countries' lockouts, however, most new organizations in this business have developed to compete in the global commercial sectors. Most economic sectors and investors face considerable obstacles when the market is closed during a lockdown because production and manufacturing operations in companies and factories are reduced. Manufacturing ramped up quickly to meet global demand following the market's liberalization.

The Adipic Acid Market Share by Application (2016), (%)

Source: MRFR Analysis

Market Segmentation

According to the latest adipic acid market analysis report, the global market has been segmented into application, end-use industries, and regional basis. With the application section, the market is further divided into five sections: polyurethane, nylon 6.6 fiber, nylon 6.6 resin, abdicate esters, and others. With the end-user industries, the market is divided into six sections: automotive, electrical & electronics, packaging & consumer goods, building construction, textile, and others. On a regional basis, the market is further divided into five parts: Asia-Pacific, North America, South America, Europe, and Middle East & Africa.

Regional Analysis

China is the world's largest producer of adipic acid, accounting for over half of worldwide capacity. The country is also a key user of the market under investigation. The rising local production of nylon 6 and 6 has been fueled by domestic demand for adipic acid. In addition, China is the world's largest plastic maker, accounting for more than 42 percent of global plasticizer usage in 2019. The country's dominating position in the plasticizer market stimulated adipic acid demand in the country's plasticizer applications.

After the United States, China has the highest defense spending globally. The government intends to increase military spending to strengthen its armed forces. Electronic devices, such as smartphones, OLED TVs, tablets, and other consumer electronics, are also seeing the fastest growth in the market. Electronic product demand is expected to increase in the near future, propelling the adipic acid industry.

In recent years, China's polyurethane production and consumption have increased steadily. Over the projection period, the polyurethane industry's high development rates are predicted to boost market demand for adipic acid in polyurethane applications in the nation. Thanks to increased government investment and assistance under the 13th Five-Year Plan, China's textile sector is also flourishing.

Competitive Intensity within the Industry

According to the report, the global adipic acid market trend has been emerging list of the leading key players, and some of the players are listed below:

• INVISTA


• PetroChina Company Limited


• Asahi Kasei Corporation


• Ascend Performance Materials


• BASF SE


• LANXESS


• Radici Partecipazioni SpA


• Solvay S.A


• Sumitomo Chemical Co., Ltd.


• BioAmber Inc


• Shandong Hongye Chemical Company, Ltd.

Recent Development

November 2020: One of the leading market players, Huabei oil field company based in China had been working on developing environmentally friendly processing of adipic acid as the traditional petrochemical processing of adipic acid from KA oil utilizing nitric acid as the catalysts are bringing in serious pollution to the environment. The team introduced the synthesis of adipic acid from non-renewable feedstocks.

January 2020: One of the leading market players, BASF SE had announced their agreement with Solvay’s polyamide business to focus on their production capacity and this acquisition had brought in consumers better engineering solutions like autonomous driving and e-mobility, which were considered the most advanced solutions in the history of the industry.

DOMO Chemicals stated in March 2020 that it would spend EUR12 million on a new state-of-the-art nylon factory in Zhejiang. BASF completed the acquisition of Solvay's polyamide business in January 2020. BASF will be able to supply superior engineered plastics solutions, such as for autonomous driving and e-mobility, due to this purchase. The deal also improves the company's access to Asia, North and South America, and growing areas. BASF will be present throughout the whole value chain for polyamide 6.6 and increase supply dependability through backward integration into the essential raw ingredient adiponitrile.

Report Overview

The study makes a spectacular attempt to reveal significant opportunities accessible in the worldwide adipic acid market to assist players in achieving a strong market position, with industry-standard accuracy in analysis and excellent data integrity. Buyers of the study will get access to validated and credible market projections, such as the total revenue size of the worldwide adipic acid market. Overall, the research is an excellent tool that businesses can utilize to get a competitive advantage and achieve long-term success in the worldwide adipic acid market. The study's conclusions, data, and material have been evaluated and revalidated using reliable sources. 

Key Industrial Segmentation

Application:

• Polyurethane


• Nylon 6,6 fiber


• Nylon 6,6 resin


• Adipate Esters


• Others

End-User Industries:

• Automotive, Electrical & electronics


• Packaging & consumer goods


• Building & construction


• Textile


• Others

Regional Basis:

• Asia-Pacific


• Europe


• North America


• South America


• Middle East & Africa