Caprolactam Market is Anticipated to Grow US$ 13.80 Billion by 2019
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According to the report, the global caprolactam market was worth nearly USD 8.66 billion in 2012. By observing growth at a CAGR of 6.9% during the forecast period, the market could reach a market value worth nearly USD 13.80 billion by 2019. Volume-wise, the caprolactam industry observed demands worth nearly 3,580.0 kilo tons in 2012.
Caprolactam is organic compound having a huge array of applications across many industries. It is the key raw material of nylon-6, a synthetic polymer that is used extensively in a variety of applications. The rising demand for nylon-6 in a variety of automotive and engineering applications is considered the major driving force behind the growth of this industry. The rapid economic developments in the Asia Pacific region is also expected to substantially benefit the global caprolactam market.
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However, the unpredictable prices of raw-material are expected to slow-down the growth of this market to some extent during the forecast period.
Application-wise, nylon-6 fibers were observed as holding leading market position, with an estimated 66% shares, in 2012. The popularity of nylon-6 fibers can be accounted to its superior chemical and physical characteristics such as high tensile strength and light weight, properties that have made them the material of choice for carpet and textiles industry. Their demand is also on a rise from industrial yarn applications where nylon-6 fibers are used for tire cords for enhanced wear resistance and high strength.
Use of caprolactam in the production of nylon-6 resins could be the fastest growing application market of this industry. Applications of nylon-6 resins are on a rise in electronic applications and engineering plastics.
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Geographically, Asia Pacific held nearly 51% shares of the total revenues garnered by the global caprolactam market in 2012. This was followed by Europe and North America. The report states that the region of Asia Pacific could continue its leading market position, both in terms of consumption as well as demand, during the forecast period.
The leading market position of this region could be contributed to its improving economic position, cheap availability of raw materials, land, equipment and abundant skilled labor.
Consumption of caprolactam could grow at a CAGR of about 6.4% in terms of volume in Europe during the forecast period.
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