Long Chain Dicarboxylic Acid Market Size, Share & Trends Analysis Report By Application (Nylon & Other Polyamides, Powder Coatings, Lubricants, Adhesives, Pharmaceuticals, Corrosion Inhibitors), By Region, And Segment Forecasts, 2023 - 2030

Long Chain Dicarboxylic Acid Market Trends

The global long chain dicarboxylic acid market size was valued at USD 227.0 million in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 7.0% from 2023 to 2030 on account of its increased usage in nylon & other polyamide and powder coating applications. The long-chain dicarboxylic acid is produced through fermentation using either aerobic or anaerobic processes. The manufacturing process for long-chain dicarboxylic acid (LCDA) is a bio-based product and offers environmental compliance advantages.

Increasing usage of applications such as nylon & other polyamides, powder coatings, lubricants, pharmaceuticals, corrosion inhibitors, & adhesives across end industries such as automotive, and building & construction is anticipated to propel industry growth over the next nine years. The powder coating due to its uniform, durable, and attractive finish is used to coat aluminum extrusion frames. These frames are further utilized to manufacture windows and door frames used in the building and construction industry.

Nylon & other polyamide is the largest application segment. It is expected to gain market share over the forecast period on account of beneficial properties such as strength, heat resistance, and durability. These properties make nylon & other polyamides lucrative for usage in end-user industries which include electronic components, packaging, automotive, and building & construction. High-performance nylon is used to manufacture manifolds, as it helps to reduce the weight of the system. The reduction in the weight of the system lowers production costs and increases fuel efficiency.

The rising demand for long-chain dicarboxylic acids from applications such as lubricants, powder coatings, and corrosion inhibitors, is expected to drive the market over the forecast period. The stringent environmental regulations laid down by the REACH and EPA to use bio-based product is also expected to increase the demand for long-chain dicarboxylic acid from 2016 to 2025.

The high cost of the acid is expected to restrain the LCDA market over the forecast period. The cost of LCDA varies depending on the cost of raw materials, which tend to be volatile. The substantial investment necessary in research and development is also a major cost responsible for the high price of LCDA.

Regional Insights

Asia Pacific dominated the market and accounted for the largest revenue share of 30.7% in 2022 and is expected to grow at the fastest CAGR of 7.32% during the forecast period. The government of China has set up policies to attract investment in the building & construction sector which is driving the industry growth. The high-performance nylon is used for exterior building & construction products including glazing, expansion joints, seals, window setting blocks, door bulb seals, etc. The growing demand for LCDA is due to growing needs from the end-use industries such as building & construction, automotive, and industrial equipment manufacturing.

Asia Pacific was leading the long-chain dicarboxylic acid owing to low manufacturing cost and easy availability of skilled workforce and raw materials. The substantial demand for the nylon & other polyamide, lubricants, and adhesives application of long-chain dicarboxylic (LCDA) is expected to boost the market demand over the forecast period.

Application Insights

The lubricants segment held a revenue share of 16.5% in 2022. An increase in demand for lubricants is observed in industrial equipment manufacturing, automotive, transportation, and other end-user industries. Lubricants help reduce friction, maintain thermal stability, and offer high load-carrying capacity to the equipment. These factors are expected to positively impact the market over the forecast period.

The powder coating segment is expected to grow at a CAGR of 7.7% over the forecast period. Powder coatings perform multiple functions in industries such as construction equipment, infrastructure, transportation, electrical, furniture, and general metal manufacturing. Hence, the demand for powder coatings from a wide range of industries is expected to fuel up its growth during the forecast period.

The LCDA applications such as adhesives, corrosion inhibitors, and pharmaceuticals together accounted for more than 20% of the market share by revenue in 2020. These applications are growing over the forecast period due to the major environmental benefits offered by LCDA. Corrosion inhibitors are used before the steel is embedded in concrete during the construction of the building. This protects the steel from the alkaline & high moisture environment and results in better durability of the building.

Key Companies & Market Share Insights

The market is highly competitive, with a large number of manufacturers accounting for a majority of the market share. Product approvals, strategic acquisitions, and innovations are just a few of the important business strategies used by market participants to maintain and grow their global reach.

Recent Developments

• In June 2023, Cathay Biotech Inc. successfully secured additional funding and established a significant strategic partnership with China Merchants Group (CMG). As part of the collaboration, CMG has committed to purchasing bio-based polyamides manufactured by Cathay, with a minimum targeted volume of 10,000 tons for the year 2023. This collaboration marks a significant step forward for both companies in the bio-based materials market.

• In May 2023, DuPont revealed its definitive agreement to acquire Spectrum Plastics Group from AEA Investors. This strategic move is aimed at enhancing DuPont's current portfolio, which includes packaging, biopharma & pharma processing, and medical devices. The acquisition will play a pivotal role in fortifying DuPont's position within the stable and reliable healthcare market.

• In September 2022, INVISTA unveiled the Asia Innovation Center at the Shanghai International Chemical New Materials Innovation Center (INNOGREEN) at SCIP. This cutting-edge facility is dedicated to addressing the specific application needs of engineering polymers in critical industries like automotive and electrical & electronics.

Long Chain Dicarboxylic Acid Market Report Scope

Global Long Chain Dicarboxylic Acid Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global long chain dicarboxylic acid market report based on application, and region:

• Application Outlook (Revenue in USD Million, Volume in Kilo Tons, 2018 - 2030)

  • Nylon & Other Polyamides

  • Powder Coatings

  • Lubricants

  • Adhesives

  • Pharmaceuticals

  • Corrosion Inhibitors

  • Others

• Regional Outlook (Revenue in USD Million, Volume in Kilo Tons, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • U.K.

    • Germany

    • France

    • Italy

    • Spain

  • Asia Pacific

    • China

    • Japan

    • India

    • South Korea

  • Central and South America

    • Brazil

    • Argentina

  • Middle East and Africa

    • Saudi Arabia

    • South Africa