ID: MRFR/CnM/3826-CR | April 2020 | Region: Global | 338 pages
According to MRFR, the Global Polyamide Market is projected to witness substantial growth at a CAGR of over 5% to reach USD 38.56 Billion by the end of 2025. The major growth of this market is due to the increasing demand for polyamide 6 and polyamide 66 from the automotive industry.
The outbreak of coronavirus disease (COVID-19) and consequent lockdowns levied by governments of many countries have temporarily halted large end-use polyamide industries' activity. As a result, the industry is undergoing a downturn. Movement limitations tend to have a clear and immediate effect, and after the obligatory social gap has finished, it is assumed that things will return to normal circumstances. In addition, harmful effects on human health can create hindrances to the growth of the market during the forecast period.
Growing Adoption from Automotive Sector to Drive Market Growth
Owing to the expanding automotive industry, demand for polyamide is expected to rise in the coming years. Therefore, during the forecast period, the high demand for polyamides in the automotive industry is projected to fuel the growth of the global polyamide market. One of the main factors driving development is the growing need for lightweight materials in the automobile and transportation industries. In addition, rising vehicle fuel economy issues and high demand for green solutions are expected to fuel commodity demand.
Growing R&D Investments to Create Growth Avenues for Market Players
Demand for polyamide has grown in recent years as a result of large-scale developments in the automotive industry, where it is commonly used. Asia-Pacific has seen a rise in demand for luxury cars due to an increase in customer buying power, which has resulted in increased consumption of polyamide in this area. Increasingly, polyamide is being used in vehicles to substitute metal with plastic, which has contributed to a rise in demand in this market. The increasing popularity of bio-based polyamides is expected to be an advantage in the future.
Fluctuating Crude Prices to Impede Market Growth
However, fluctuating crude oil prices have influenced the production of petrochemicals and, consequently, the production of hexamethylene diamine, adipic acid and caprolactum. Therefore, the volatile prices of raw materials are likely to curb the growth of the global polyamide industry over the prognosis period. The development of the demand being studied is projected to be hampered by stringent government regulations and competition from elastomer-based alternatives. In addition, there is now an early warning of a relative downturn in the world economy. This would have a negative effect on the polyamide industry which could delay ongoing investment and development in the polyamide sector for a few years.
Global Polyamide has been segmented based on Type, Class, Application, and End-Use Industry.
The worldwide market has been divided into three segments by type, namely PA 6, PA 66, and bio polyamides & specialty polyamides. A significant market share of over 51 percent of the global market was kept in the PA 6 segment and is likely to rise at the fastest CAGR during the forecast period.
The demand for polyamides has been divided by class into aliphatic polyamides (class of nylon) and semi-aromatic & aromatic polyamides. In addition, the section of aliphatic polyamides (nylon class) is segmented into PA 4,6, PA 6,6, PA 6, PA 6,10, PA 6,9, PA 11, and others. Similarly, PA 6T, PA 6I, poly (p-phenylene terephthalamide, and others) are further classified into the semi-aromatic & aromatic polyamides category. In 2018, the aliphatic polyamides (nylon class) segment held a greater share of over 61 percent and is projected to record a CAGR of 5.2 percent during the forecast period.
The primary application segments covered under the framework of the report are fabrics, wire & cables, 3D printing, sports equipment, engine components, braking & transmission parts and household goods & appliances, among others. One of the fastest-growing segments in the global market is projected to be the 3D printing sector, while the engine parts segment is expected to have the largest share in the global market.
The global polyamide market has been divided into automobiles, electrical & electronics, textiles, aerospace & defence, packaging, consumer goods, and others by the end-use industry. In 2018, the automotive industry had the highest share of the polyamide market and a CAGR of 5.5% is expected to be registered during the assessment period.
The geographical overview of the global market has been conducted in four major regions, including the Asia Pacific, North America, Europe, and the rest of the world.
Asia Pacific is projected to record the highest growth due to higher per capita income in developing markets, middle-class population growth, and increased living standards. The rapidly expanding automotive manufacturing industry is also supplementing the regional consumer demand for the commodity. The great driving forces for growth are the supply of low-cost raw materials and labour and increased purchasing capacity. Moreover, the global specialty polyamide suppliers are drawn by large untapped opportunities and friendly government policies to set up their production and distribution facilities in the region.
U.S. to be the Major Contributor for North America
The North American economy is powered by the growth of numerous end-use U.S. The U.S. automotive sector is also marked by an overwhelming demand for expensive quality vehicles and is predicted to see a rise in sales in the coming years. The U.S. consumer goods industry is estimated to be driven largely by increasing consumer income levels and low inflation. In addition, key players in the industry are pursuing bold and new strategies to capitalise on growth, create alliances, or acquire other businesses to obtain access to a broader customer base and exploit market solutions. During the forecast period, these variables are projected to fuel U.S. commodity demand.
Key Players Focus Mainly on Product Development
The global polyamide market is highly fragmented and different tactics, such as new product releases, extensions, alliances, joint ventures, collaborations, acquisitions, and others, have been used by major players to expand their presence in this market. Expansion, product growth, and agreement are some of the main tactics adopted by the global polyamide industry players.
November 2020: For engineered plastics, monofilaments, and cable links, Ascend Value Materials introduced many new grades of its HiDura long-chain polyamides. HiDura polyamide 610 and 612 have been developed to provide exceptional dimensional stability and long life with improved chemical, impact and abrasion resistance.
July 2020: The Board of Directors of BASF India approved the purchase of the company's 100% interest in BASF Value Polyamides from BASF Nederland B.V. BASF SE and BASF SE. The acquisition of BASF Value Polyamides will reinforce the role of the organisation as a leading industry service supplier and increase market penetration to key growth markets.
By End-Use Industry
Frequently Asked Questions (FAQ) :
The Asia Pacific region has the chance to score the highest for the polyamides market in the coming years.
The notable players performing well for the global polyamides market are Honeywell International, Inc. (U.S.), BASF SE (Germany), Evonik Industries AG (Germany), Dupont (U.S.), Asahi Kasei Corporation (Japan), Huntsman International LLC (U.S.), Formosa Plastics Corporation (Taiwan), Koninklijke DSM N.V. (the Netherlands), Arkema SA (France), and UBE INDUSTRIES, LTD (Japan).
Strategies like a merger, acquisition, collaboration, product innovation, launch, advertising, brand promotion, and others are going to be significant for the global polyamides market.
The engineering segment has the upper hand in the application segment of the polyamides market.
Factors like high standard performance, better efficiency, enhanced durability, notable reliability, and others are going to place the polyamides market ahead.