Cyclohexanone Market Size, Share & Trends Report

Cyclohexanone Market Size, Share & Trends Analysis Report By Application (Adipic Acid, Caprolactam, Solvents), By Region (North America, Europe, APAC, CSA, MEA), And Segment Forecasts, 2020 - 2027

  • Published Date: Mar, 2020
  • Base Year for Estimate: 2019
  • Report ID: GVR-4-68038-450-5
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2018
  • Number of Pages: 119

Report Overview

The global cyclohexanone market size was estimated at USD 7.5 billion in 2019 and is expected to expand at a revenue-based CAGR of 3.3% from 2020 to 2027. The market is mainly driven by its consumption for the production of caprolactam, followed by adipic acid. Caprolactam is majorly used in the production of nylon which is further used across various end-use industries including automotive, construction, consumer goods, and electronics.

Cyclohexanone is a colorless, flammable organic liquid, which is majorly derived from cyclohexane. Some manufacturers have also developed new technologies for the direct production of the chemical from phenol. More than three fourth of the cyclohexanone produced worldwide is manufactured from cyclohexane and the rest is produced from phenol. The majority of the companies have integrated business wherein they utilize cyclohexanone for the production of caprolactam. The high amount of captive consumption has resulted in a significantly low volume of the product being traded globally.

U.S. cyclohexanone market

North America is one of the major markets for cyclohexanone owing to the growing demand for caprolactam and adipic acid in the U.S. and Canada. According to the U.S. Environmental Protection Agency (EPA), U.S. accounted for roughly 30% to 35% of the global adipic acid consumption in 2018. Adipic acid is mainly used in the production of nylon 66, which is further utilized for manufacturing different textile products such as apparel, carpets, and upholstery. Growing demand for carpets in the region is further driving the demand for adipic acid. Carpet manufacturing predominantly accounts for around 30% of adipic acid demand in the country.

North America is projected to be the second-largest consumer of textile yarn by 2022, after the Asia Pacific. Polyester and cotton are the two major textile yarns used in the region. Multiple textile yarn manufacturers in the U.S. and Canada are investing heavily in the North America market due to rapidly changing consumption patterns coupled with growing demand for clothing and other home furnishing products. Changing lifestyle and rising health awareness in U.S. have generated a strong demand for sports apparel and gym equipment primarily manufactured from nylon 6 and 66, thereby positively affecting the industry.

High water absorption, ease of dyeing, and high melting point of nylon makes it suitable for several applications including textiles, parachutes, camping fabrics, and fishing lines. The development of engineered plastics, technological advancements in 3D printing, and innovations in the textile industry are anticipated to generate lucrative opportunities for nylon globally. 3D printing technology can be used in a broad spectrum of industries such as aviation, automotive, consumer goods, healthcare, and heavy machinery. The demand for 3D printing technology is growing globally due to high production efficiency and durability.

According to a presentation given at the 5th International Conference on 3D Printing Technology and Innovations, the global value for 3D printing is anticipated to grow from USD 13 billion in 2019 to USD 25 billion by 2023. The demand for 3D printing is anticipated to be driven by its rising use in healthcare, consumer goods, electronics, and automotive industries. This factor is likely to positively influence the demand for cyclohexanone in the production of nylon.

The rising trend for bio-based substitutes is anticipated to hinder the cyclohexanone market growth. Polyester is one of the major threats for the market as it used as a key substitute for nylon in application industries.

Application Insights

Caprolactam was the largest application of cyclohexanone in 2019 with a market share of 67.6% and is expected to continue its dominance over the forecast period owing to high nylon production. In addition, different commercial processes of producing caprolactam such as Hydroxylammonium ammonium Sulfate Oximation (HSO), Hydroxylammonium Phosphate Oximation (HPO), Honeywell Phenol Process, Enichem and Sumitomo process, and Cyclopol process utilize cyclohexanone as the raw material.

Though major cyclohexanone producers are investing in R&D activities for sustainable production, growing demand for nylon is anticipated to continue the usage of conventional manufacturing processes for the next few years. Caprolactam is an essential raw material for formulating nylon 6 fibers, films, and resins. Around 70% of the world’s caprolactam produced is utilized for producing nylon 6 fibers and the rest 30% is utilized for manufacturing films and resins.

The current penetration of cyclohexanone as a solvent is less; however, it is anticipated to grow at a significant rate of 3.7% from 2020 to 2027, mainly due to its non-corrosive properties. As a solvent, it is used across various application industries including paints and coatings, agriculture, and lubricants.

Regional Insights

Asia Pacific is anticipated to be the largest as well as the fastest-growing region globally, in terms of volume, over the forecast period. The fast-growing industrial sector in the region coupled with rising economic standards of the Asian countries are anticipated to be the key identified areas pushing the consumption of cyclohexanone with a CAGR of 3.4% in terms of revenue from 2020 to 2027.

The market growth in Asia Pacific is determined by the presence of a significant amount of skilled labor at low cost along with government support for industrial development. These factors have contributed to a shift in production plants toward developing economies, particularly China and India, thus generating lucrative opportunities in the region over the forecast period. China is the largest producer and consumer of cyclohexanone globally. The country also exports a large quantity of cyclohexanone due to its colossal manufacturing industry.

Global cyclohexanone market

Central and South America and Middle East and Africa regions have witnessed a very low penetration of cyclohexanone with a collective share of 7.5%, in 2019. Most of the cyclohexanone in the region is sourced from Asian countries despite vast oil reserves and high oil production. Low level of awareness among consumers along with limited participation and cooperation from the government are the key factors responsible for the slow growth rate of the product in these regions.

Cyclohexanone Market Share Insights

The global market is categorized by a number a small scale and a few large scale manufacturers. Some of the market participants have complete integration across the value chain, wherein they are involved in the production of cyclohexane, cyclohexanone, as well as caprolactam and adipic acid. Some of the companies in the market are BASF SE, Gujarat State Fertilizers and Chemicals Ltd, and Asahi Kasei Corporation.

BASF and Asahi Kasei Corporation are leading the market owing to their strong geographical presence across the globe. These companies also have a strong customer base, product portfolio as well as integration throughout the value chain. In addition, the top companies also have huge investment capacities for R&D and marketing, thus enabling a well-established supply chain.

Report Scope

Attribute

Details

Base year for estimation

2019

Actual estimates/Historical data

2016 - 2018

Forecast period

2020 - 2027

Market representation

Volume in Kilotons, Revenue in USD Million, and CAGR from 2020 to 2027

Regional scope

North America, Europe, Asia Pacific, Central & South America, Middle East & Africa

Country Scope

U.S., Canada, Mexico, Germany, U.K., France, Spain, China, India, Japan, South Korea Brazil, Argentina, Saudi Arabia, South Africa

Report coverage  

Revenue forecast, company share, competitive landscape, growth factors and trends

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Segments Covered in the Report

This report forecasts revenue and volume growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global cyclohexanone market report on the basis of application and region:

  • Application Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

    • Caprolactam

    • Adipic Acid

    • Solvents

      • Paints & Dyes

      • Agriculture

      • Others

    • Others

  • Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

    • North America

      • U.S

      • Canada

      • Mexico

    • Europe

      • Germany

      • U.K.

      • Spain

      • France

    • Asia Pacific

      • China

      • India

      • Japan

      • South Korea

    • Central & South America

      • Brazil

      • Argentina

    • Middle East & Africa

      • Saudi Arabia

      • South Africa

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