Cyclohexane Market Report

Cyclohexane Market Analysis By Application (Adipic Acid, Caprolactam), By End-use (Nylon 6, Nylon 66), Competitive Landscape, And Segment Forecasts, 2014 - 2025

Published: August 2017  |  105 Pages  |  Format: PDF  |  Report ID: GVR-1-68038-987-6

Industry Insights

The global cyclohexane market size was estimated at 9,192.4 kilo tons in 2016. Increasing consumption of automotive and textile applications are expected to be a key factor driving growth. 

Cyclohexane is an intermediate product, which is used for the production of adipic acid and caprolactam. Increasing applications of cyclohexane in various industries along with the growing demand for nylon products in automotive and engineered plastics are major drivers of the global cyclohexane market growth. The product is also getting traction in food and beverage packaging, textile and electrical & electronics which initiated several legislative actions and regulations regarding its safe usage.

North America cyclohexane market volume by application, 2014 - 2025 (Kilo Tons)

North America cyclohexane market

Caprolactam was the largest application of cyclohexane in 2016 and is expected to continue dominating over the forecast period owing to the high demand for nylon 6 production. Major corporations that are dominant in North America and Europe are gradually partnering with manufacturing companies located in Asia Pacific to fulfill the local demand and also to cater their products and services to the high potential markets in Asia Pacific and Latin America. This factor is expected to drive consumption in the respective regions.

Another major factor influencing the growth trend is the increasing preference of end users owing to the rising consumer disposable income. To meet the growing requirements, manufacturers are constantly upgrading their product portfolios, to fulfill the growing needs of customers.

Depletion of non-renewable resources such as crude oil and increasing environmental concerns have encouraged the development of various ground-breaking sustainable technologies that utilize bio-based raw materials for the production of cyclohexane. In bio-based process, E. Coli bacteria convert sugar into 3-dehydroxyshikimate which is further converted to Cis,cis-muconic acid that gets converted to adipic acid when hydrogenated at high pressure.

Increasing governmental and federal regulations that are likely to restrict conventional processing from non-renewable resources can easily be overcome by innovative sustainable technologies. Most processors are increasingly focusing on sustainable Good Manufacturing Practices (GMPs) and attempting to increase efficiency, conserve resources, and optimally utilize available resources. These initiatives are further expected to boost the global cyclohexane market growth over the forecast period.

Several companies all over the world have invested heavily in recycling of nylon to reduce the dependency on renewable resources and reduce the global pollution level. Growing population coupled with rapid urbanization and industrialization in emerging economies has also driven federal governments to increase their manufacturing spending to cater to the rising demand.

Recently, there has been a growing impetus towards the provision of greater quality products to retain customer loyalty, since low switching costs & lowly differentiated products have reduced supplier power in recent years. Companies are thus actively engaged in product development & research, technological advances and even strategic collaborations to improve their standing globally. Key manufacturers are importing cyclohexane to reduce reliance on local companies. The pricing and supply paradigm depends on the top manufacturers as they hold a significant share in production. Although, the price of cyclohexane does not depend on raw material since the production cost is much higher than the raw material cost.

Application Insights 

The cyclohexane is used to produce adipic acid and caprolactam which are further utilized to manufacture many ends use products such as nylon 6, nylon 66 and others. Nylon being an end use product can be used to make a thread which can be further transformed to textile and clothing. Caprolactam is the primary feedstock for the manufacturing of nylon 6, although adipic acid is majorly used to produce nylon 66. 

Asian plants are operating at maximum capacity which is a considerable force that keeps the global caprolactam prices low. In January 2017, prices hit a two year high of USD 1,830/ton. There has been a more than 30% price reduction in prices post shale gas boom leaving manufacturers bankrupt. In the 2016-2017 period, with manufacturers shutting down production, the prices are showing an increase; however, the prices haven’t reached an optimum level to attain a profit for producers.

It is estimated that the Asian manufacturers might have to bring production down by 50% for a perfect supply demand balance. The prices in first quarter of 2011 were hovering around USD 1.2-1.4 per Kg as the global crude oil prices were the highest peak resulting in producers operating in low profit as the operating costs were high where energy costs were significantly high.

In the wake of shale gas as the prices crude oil prices decreased, the global tightness index of the prices was somewhere around 0.9-0.8. In the first half of 2013, as the global crude oil prices showed signs of decreasing caprolactam manufacturers were making substantial revenue as their operating to gateway price ratio were balanced.

End-use Insights

The global nylon market at its production level is witnessing aggressive acquisitions and mergers. The current scenario depicts that producers of nylon resins are taking into account the low production cost of nylon if backward integration is attained. It resulted in a capacity expansion in Asia Pacific, North America, and Europe.

In the currents scenario, majority of the nylon manufacturers are producing caprolactam and nylon resins, therefore positioning themselves at all the stages of the nylon value chain. The global demand for nylon has seen a paradigm shift due to rising awareness among consumers. Nylon 6 emerged as the largest end use segment and accounted for over 55.8% of the total revenue in 2016.

Global cyclohexane market volume by end use, 2016 (%)

Global cyclohexane market

Commercially nylon is manufactured by ring opening polymerization of caprolactam. Hydrolytic or anionic mechanisms either can fulfill the process. However, Nylon 6 and Nylon 66 is almost produced exclusively by hydrolytic polymerization as it is easier to control and exhibits better adaptation for large scale operations.

The consolidation and oversupply of the nylon supply chain are gradually progressing and will likely show a trend of continuing in the future. Caprolactam capacities, which are the primary feedstock for nylon 6 resins are being concentrated in China since the local Chinese textile accounts for over 33% of the global nylon 6 demand in 2016. This phenomenon has led key players to venture and establishment production facilities in Asia.

Market leaders such as DSM and Honeywell have already invested into parts of the supply chain or have it on their immediate action plan. In early, 2015 DSM engaged in a joint venture with CVC Capital Partner with the establishment name Chemical Invest to position themselves into the heart of the supply chain of the nylon value chain.

Government initiatives coupled with increased awareness about nylon products surged the demand for cyclohexane end use. The low production cost, relaxed government regulations, and growth in nylon consumption further boosted the demand globally.

Regional Insights

Asia Pacific was leading the cyclohexane consumer; accounted for over 38.3% of the total revenue in 2016. Emerging economies in the region including India and China, are developing economies; undergoing significant economic changes. Growing population and increasing living standards spurred the cyclohexane demand in the area. 

China is the largest producer and consumer of cyclohexane globally. China’s rapid urbanization, supported by strong economic growth resulted in an active cyclohexane market. Due to growing awareness and increasing disposable income, the country is witnessing a shift from traditional to bio-based cyclohexane production.

Europe accounts for over 23.7% of the total global volume in 2016. Growing consumption mainly in the U.S. and China coupled with easy regulations regarding quality are expected to remain key driving factors for the industry. Also, abundant raw material availability is also expected to drive the cyclohexane demand over the forecast period.

Competitive Insights

The global market of cyclohexane is highly competitive and fairly concentrated, with top six companies accounting for maximum share of the global production in 2016. Key participants include Sinopec Limited, BASF, BP PLC, Koninklijke DSM N.V. and Sigma-Aldrich Corporation. 

Application development and customized applications are expected to be key parameter for being competitive, with frequent mergers and acquisitions being undertaken as an attempt to diversify application portfolio and gain market share.

Report Scope

Attribute

Details

Base year for estimation

2016

Actual estimates/Historical data

2014 - 2016

Forecast period

2017 - 2025

Market representation                                                

Volume in Kilo Tons, revenue in USD Million and CAGR from 2017 to 2025

Regional scope

North America, Europe, Asia Pacific, Latin America, Middle East & Africa

Country scope

U.S., Canada, Germany, France, China, India, Brazil, GCC Region

Report coverage             

Volume and revenue forecast, company share, competitive landscape, growth factors and trends

15% free customization scope (equivalent to 5 analyst working days)

If you need specific market information, which is not currently within the scope of the report, we will provide it to you as a part of customization


Segments covered in the report

This report forecasts revenue growth at global, regional & country levels and provides an analysis on the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global cyclohexane market on the basis of application, end-use and region:

  • Application Outlook (Volume, Kilo Tons; Revenue, USD Million, 2014 - 2025)

    • Adipic acid

    • Caprolactam

    • Others

  • End-use Outlook (Volume, Kilo Tons; Revenue, USD Million, 2014 - 2025)

    • Nylon 6

    • Nylon 66

    • Others

  • Regional Outlook (Volume, Kilo Tons; Revenue, USD Million, 2014 - 2025)

    • North America

      • U.S.

      • Canada

    • Europe

      • Germany

      • France

      • U.K.

    • Asia Pacific

      • China

      • India

      • Japan

    • Latin America

      • Mexico

    • Middle East & Africa

      • GCC Region

Key questions answered by the report
Request for Customization

Choose License Type

Single User - $4,950
Library Access - $7,950

Buy Chapters or Sections

Avail customized purchase options to meet your research needs:

  • Buy sections of this report
  • Buy country level reports
  • Request for historical data
  • Request discounts available for Start-Ups & Universities

Why Choose Us

  • Research support

    24/5 Research support

    Get your queries resolved from an industry expert. Request for a free product review before report purchase.

  • Custom research service

    Custom research service

    Speak to the report author to design an exclusive study to serve your research needs.

  • Quality assurance

    Quality assurance

    A testimonial for service excellence represented in the form of BBB "A" Accreditation.

  • BBB Rating dandb
  • Information security

    Information security

    Your personal and confidential information is safe and secure.

  • BOA