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Long Chain Dicarboxylic Acid (LCDA) Market Opportunities and Forecasts 2025

Long Chain Dicarboxylic Acid (LCDA) Market Opportunities

LCDA is produced through the fermentation process using either anaerobic or aerobic digestion. It is an organic acid with a long chain of carboxyl function groups. LCDA is a biobased product. The manufacturing process of LCDA is environmentally compliant. It is employed in various applications in powder coatings, pharmaceuticals, nylon, adhesives, corrosion inhibitors, and lubricants across end-user industries such as building & construction and automotive. LCDA is used as key biobased product for the manufacture of many products. Its environmentally-friendly and thus suitable for compliance with various norms laid down by the EPA and REACH in North America and Europe, respectively. Based on application, the market for LCDA can be segmented into pharmaceuticals, powder coatings, adhesives, corrosion inhibitors, lubricants, nylon & other polyamides, and others.

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The market for LCDA is anticipated to expand significantly during the forecast period owing to the increasing usage of LCDA in numerous end-user industries. Powder coatings are used to coat aluminum extrusion frames owing to their durable, attractive, and uniform finish. These frames are further utilized to manufacture windows and door frames used in the building & construction industry. Powder coatings perform multiple functions in industries such as infrastructure, construction equipment, electrical, transportation, furniture, and general metal manufacturing. Hence, growth in the powder coating industry is anticipated to boost the demand for LCDA for the production of powder coatings. LCDA is employed in applications such as pharmaceuticals, adhesives, and corrosion inhibitors. These applications accounted for promising share of the market in 2016. This trend is estimated to continue during the forecast period. Corrosion inhibitors are applied to steel before it is embedded in concrete during construction projects. Corrosion inhibitors protect steel from the alkaline and high moisture environment, thereby improving the durability of the building.

In terms of application, the nylon & other polyamides segment held substantial share of the LCDA market in 2016. This trend is likely to continue during the forecast period. Nylon and other polyamides offer beneficial properties such as heat resistance, durability, and strength. Thus, these are lucrative for usage in end-user industries such as electronic component, packaging, automotive, and building & construction. High performance nylon is used in the manufacture of manifold, as it helps reduce the weight of the system. This lowers production cost and increases fuel efficiency. The nylon & other polyamides segment was followed by the lubricants segment in 2016. Demand for lubricants has been rising in automotive, industrial equipment manufacturing, transportation, and various other end-user industries.

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Lubricants are used to maintain thermal stability, reduce friction, and offer high load carrying capacity to the equipment. These factors augment the lubricants segment. This, in turn, is projected to boost the demand for LCDA during the forecast period. High cost of LCDA is the restraining factor of the LCDA market. The cost of LCDA is dependent on the prices of raw materials required for its production. Significant investment required in research and development activities is also a major factor responsible for the high price of LCDA.

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