The Global Adipic Acid Marketwas valued at US$ 7.16 billion in 2016, according to a new report published byCoherent Market Insights. Adipic acid or hexanedioic acid are organic compounds with molecular formula (CH2)4(COOH)2. Commercially, adipic acid is formed by the reaction between cyclohexanone and cyclohexanol. Increasing demand for durable, chemical-resistant, strong and lightweight fibers for manufacture of automotive parts is a major factor fueling demand for adipic acid—a primary ingredient for manufacture of composite materials. The bulk consumption of adipic acid is as a feedstock for manufacture of nylon 6,6 resin and engineering fibers. Also, adipic acid find wide application in manufacture of plasticizers, polyurethanes, pharmaceuticals, and food additives.
Adipic acid finds wide application in various industries such as electrical & electronics, automotive, consumer goods, wires & cables, packaging films & coatings, and appliances. Rampant growth of these end-use industries, in turn creates a highly conducive environment for growth of the adipic acid market. Nylon is a widely used material for manufacturing clothing, due to its low cost and superior performance and life as compared to conventionally used materials such as cotton. Stringent government regulations is expected to be the key challenges for adipic acid manufacturing industries. On November 24, 2010, THE EUROPEAN PARLIAMENT and THE COUNCIL of the EUROPEAN UNION, introduced DIRECTIVE 2010/75/EU to account the whole environmental performance of the plant, such as emissions to water, air and land, use of raw materials, generation of waste, energy efficiency and prevention of accidents, noise and restoration of the site upon closure.
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Nylon 6,6 fiber is the largest application segment, accounting for 41.2% market share in the global adipic acid market in 2016. These resins are mostly preferred as, offer high resistance to chemicals and corrosion—a property much sought after in industrial applications, assists with effective light weighting of automotive without compromising on strength and is highly resistant to degradation from microorganisms. Polyurethanes segment is projected to witness the fastest growth during the forecast period. These materials are most suitable in footwear, heavy-duty equipment, appliances, electrical enclosures, and automotive parts. Textile is expected to be the largest end-use industry of nylon 6,6 fiber during the forecast period. These fibers are widely used in carpeting of workspaces and industries due to its superior chemical resistant properties. Thus, rampant industrial growth across emerging economies would create key growth areas for players in the global adipic acid market.
Key takeaways of the adipic acid market:
- Asia-Pacific is projected to be the fastest growing region in global adipic acid market. It accounted for around 25% of overall adipic acid market revenue in 2016. The market in this region is expected to be primarily driven by rampant growth of end-use industries in China, India, and ASEAN countries. The growing paints & coatings and automotive end-use industries is a key driver for the growth of adipic acid in the Asia-Pacific region. For instance, according to Indian Paint Association (IPA)--on January 6, 2017, the Indian paint market is expected to reach US$ 11.06 billion by the end of 2019-20 from around US$ 6.29 billion in 2014-15.
- The market in Latin America is expected to register a significant growth rate over the forecast period. Rise in discretionary income, resulting in higher spending on clothing and luxury items, along with increasing automotive sales, and construction activities leading to increasing use of paints and coatings is expected to create lucrative growth opportunities for the players in the adipic acid market in this region.
- Automotive industry is one of the key end-use industries in the global adipic acid market. Strong automobile sales in Asia-Pacific and Europe is expected to fuel growth of the adipic acid over the forecast period. The automotive parts such as doors, rims, door handles, and under-the-hood components are the key automotive application of adipic acid. According to India Brand Equity Foundation (IBEF), is a Trust established by the Department of Commerce, Ministry of Commerce and Industry, Government of India, the Indian auto industry is one of the largest in the world. The industry accounts for 7.1 per cent of the country's Gross Domestic Product (GDP). The Two Wheelers segment with 81 per cent market share is the leader of the Indian Automobile market owing to a growing middle class and a young population are expected to fuel the growth of the adipic acid market.
- Asahi Kasei Corporation, Ascend Performance Materials Inc., BASF SE, Invista, Lanxess Ag, PetroChina Liaoyang Petrochemical, Radici Group, Rhodia, Shandong Haili Chemical Industry Company Ltd., and Shandong Hongye Chemical Company, Ltd. are few of the key players in global adipic acid market.
- Companies are mainly focusing on expansions, mergers & acquisitions, and joint ventures in the market in order to strengthen their foothold. For instance, on March 20, 2014, Rennovia Inc. and Johnson Matthey Davy Technologies Ltd. collaborated to develop and commercialize the production technology for bio-based glucaric acid and adipic acid. Also, on February 27, 2015, Rennovia Inc. and Johnson Matthey Davy Technologies Ltd. collaborated to co-develop commercial catalysts for biobased adipic acid.
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