Long Chain Dicarboxylic Acid Market Size, Share & Trends Analysis By Application (Nylon & Other Polyamides, Powder Coatings, Lubricants, Adhesives, Pharmaceuticals, Corrosion Inhibitors), By Region And Segment Forecasts, 2018 - 2025

Industry Insights

The long-chain dicarboxylic acid (LCDA) market size was valued at USD 147.8 million in 2015 and is expected to witness a CAGR of 7.0% over the forecast period 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 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.

U.S. long-chain dicarboxylic acid market, by application, 2013-2025 (USD Million)

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 manifold, 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.

Application insights

Lubricants was the second largest application segment accounting for more than 13% of the global volume in 2015. An increase in demand for lubricants is observed in the 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 demand for powder coatings in the application segment of the LCDA market was estimated at over USD 18 million in 2015. 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.

Global long-chain dicarboxylic acid market volume, by application, 2015

The LCDA application such as adhesives, corrosion inhibitors, and pharmaceuticals together accounted for more than 20% of the market share by volume in 2015. 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.

Regional insights

China dominated the global long-chain dicarboxylic acid market accounting for over 25% of the volume in 2015 on account of large-scale production and consumption in the country. 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. Asia Pacific LCDA demand was more than 24-kilo tons in 2015 due to growing needs from the end-use industry 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.

Long Chain Dicarboxylic Acid Market Share Insights

Key players in the market include Cathay Industrial Biotech Ltd., Shandong Hilead Biotechnology Co., Ltd, Invista B.V, Zibo Guangtong Chemical Co., Ltd., and Evonik Industries AG. In June 2016, Cathay Industrial Biotech Ltd. announced capacity expansion which would enable the company to meet market demand for bio-based products that include long chain dibasic acids (LCDA), bio-pentane diamine (DN5), and bio-polyamide (bio-PA).

In October 2016, Invista opened a new 2,15,000-ton capacity hexamethylene diamine (HMD) plant and a 1,50,000-ton capacity polymer plant in China. These plants would help the development of nylon 6,6 products, where long-chain dicarboxylic acid (LCDA) is used as a precursor.

Report Scope

Segments covered in the report

This report forecasts revenue growth at global, regional & country levels and provides an analysis on the latest trends and opportunities in each of the sub-segments from 2013 to 2025. For the purpose of this study, Grand View Research has segmented the long chain dicarboxylic acid market on the basis of application, and region:

• Application Outlook (Volume, Kilo Tons; Revenue, USD Million, 2013 - 2025)

  • Nylon & Other Polyamides

  • Powder Coatings

  • Lubricants

  • Adhesives

  • Pharmaceuticals

  • Corrosion Inhibitors

  • Others

• Regional Outlook (Volume, Kilo Tons, Revenue, USD Million, 2013 - 2025)

  • North America

    • U.S.

  • Europe

    • UK

    • Germany

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

  • MEA