Nylon Market Size, Share & Trends Analysis Report By Product (Nylon 6, Nylon 66), By Application (Automobile, Electrical & Electronics, Engineering Plastics, Textiles), By Region, And Segment Forecasts, 2021 - 2028

Report Overview

The global nylon market size was valued at USD 29.76 billion in 2020 and is expected to witness a compound annual growth rate (CAGR) of 5.8% from 2021 to 2028. Increasing demand for nylon from automobile applications is expected to propel the market growth during the forecast period. The automobile industry is highly concentrated. Even though the product range is high owing to a large number of market participants, around 49% of the market is dominated by top players including GM, Toyota, Ford, and Volkswagen. Nylon is used in engine components, such as bushings, bearing, oil containers, wire harness connectors, fuse boxes, cylinder head covers, crankcases, and timing belts. The rise in production can mainly be attributed to the rapid growth of the automotive industry of Europe. 

In recent years, the automobile industry has witnessed robust growth, especially from Asia Pacific market. Infrastructure development and improving socio-economic trends are some of the major factors that have contributed to the growth of this sector in APAC. Moreover, favorable regulations, availability of workforce, and initiatives by the government to provide attractive FDI regulations have resulted in major players shifting their manufacturing bases to countries, such as China, India, and Indonesia.

Currently, raw materials account for over 45% of the overall manufacturing cost of the vehicles. Steel and aluminum are the preferred raw materials in the automobile industry. However, owing to the stringent regulations focusing on improving fuel efficiency and maintaining CO2 emissions at manageable levels, raw material trends are expected to undergo a drastic change. Nylon 6 finds descriptive use as films and coatings to prevent the raw materials from undergoing corrosion.

These trends have resulted in the adoption of nylon in the automobile industry as it is more sustainable than plastics. Apart from being lightweight and versatile, the materials also facilitate higher design flexibility that enables the production of advanced shapes without compromising the safety and stability of the vehicle.

Automobile manufacturers are expected to use nylon on a larger scale owing to the environmental benefits and the advantages offered by it that are in line with the emission regulations laid down across the globe. However, the threat of substitutes from other products and their biodegradable nature, such as polypropylene (PP), bioabsorbable polymers, para-aramid synthetic fiber, and polyvinylidene fluoride,is anticipated to hamper the market growth.In recent years, PVF is gaining acceptance as a major substitute for nylon fishing lines.

Product Insights

The nylon 6 product segment led the market in 2020 accounting for more than 56% share of the global revenue. The unique properties of PA 6 make the product a cost-effective substitute for materials, such as steel, bronze, brass, gunmetal, aluminum, plastics, and rubbers. These properties attract electrical protection device manufacturers to use PA 6 in their products. The use of nylon 6 in various applications over the past few years has established its reliability, utility, and supportive economics on the basis of cost and performance. The excellent surface finish of the product even under reinforced conditions makes it a suitable product for applications where aesthetics is important.

Nylon 6 also attracts substantial demand from the premium carpet industry. Turkey is one of the largest importers of nylon for its extensive nylon-based textile industry. The clothing and apparel industries are also witnessing staggering growth owing to consumer preference for experimenting with different types of raw materials. Nylon 6 fabrics are smooth, dry quickly, and require minimal care. They have low absorbency, which can be both advantageous due to quick-drying properties and disadvantageous due to low permeability making the fabric feel clammy and uncomfortable in warm, moist weather.

Application Insights

The automobile application segment led the market and accounted for more than 36% share of the global revenue in 2020. Nylon composites are used to increase the environmental sustainability of automotive parts and to reduce the weight of automotive components. The composites are used to manufacture hydraulic clutch lines, headlamp bezels, automotive cooling systems, air intake manifolds, and airbag containers. They are also used in exterior parts, such as wheel covers, fuel caps, tailgate handles, doors, front end grilles, and exterior mirrors. Nylon composites are expected to drive demand in the automotive industry due to factors, such as excellent mechanical properties, wear resistance, and the growing need for lightweight vehicles to improve fuel efficiency.

The product has been extensively used in the automotive engine compartments to replace steel parts, owing to the benefits derived from them, such as lower weight and greater design flexibility as against traditional metals. The trend of engine downsizing has been prevailing in the automotive industry for a long time and can be attributed to the ability of small-cylinder capacity engines to toggle between the air charge temperatures. Several market participants have positively responded to this trend by developing oil & heat resistant polymer compounds for a wide array of automotive designs.

The Ultramid Endure produced by BASF SE is one such example of a glass fiber reinforced PA66. Not only is the material super resistant to continuous thermal loads but also has good processability for under-hood automotive composites to be manufactured from it. However, the Covid-19 pandemic has adversely affected the global supply chain of the automobile industry. Thus, a decline in automobile production and consumption is expected to limit the demand for nylon used in the manufacturing of auto parts, such as hydraulic clutch lines, headlamp bezels, air intake manifold, airbag containers, and others.

Regional Insights

Asia Pacific dominated the global market in 2020 and accounted for over 43% share of the overall revenue. The availability of low-cost raw materials and labor coupled with the increased consumer spending power is a major driver for the regional market growth. The presence of a huge untapped market and supportive government policies are attracting global companies to set up their manufacturing and distribution facilities in APAC, which will also drive the regional market.

Nylon is gaining attention from electrical & electronics manufacturers as plastic parts are more compact and can be easily integrated with other components, thus simplifying the design procedure. It enables manufacturers to develop smarter MCB having thinner walls. Increasing concerns about the size and carbon footprint of electrical devices are majorly driving product demand.

As the market reaches out to new entrants and new consumers, most of the countries in Asia Pacific are witnessing a fall in the unit price of nylon. In contrast, in developed markets, such as South Korea and Japan, a premium approach regarding offerings and prices is becoming a new trend as mainstream trademarks lose market share in the affordable and mid-range product segment owing to changing consumer preferences.

Key Companies & Market Share Insights

The market is moving towards consolidation on account of the presence of a large number of global and regional players. Major players have strong distribution networks and product brands in the global market. The ongoing R&D activities exhibit growth and expansion opportunities to manufacturers, which, in turn, is projected to positively influence the overall market growth. Many prominent manufacturers have increased their production capacities to meet the rising demand from various application industries and to gain a competitive edge. Merger & acquisition is another key strategy adopted by market players to remain competitive.

Raw material suppliers play a crucial role in the value chain as they provide basic materials that are required to initiate the manufacturing process of nylon products. The outstanding performance of nylon to manufacture lightweight and fuel-efficient automotive will continue to boost the demand in the automotive industry over the forecast period. Some prominent players in the global nylon market include:

• BASF SE

• Lanxess AG

• Huntsman Corp.

• AdvanSix, Inc.

• Ube Industries Ltd.

• Domo Chemicals

• Toray Industries, Inc.

• Ashley Polymers, Inc.

• Ascend Performance Materials LLC

• Toyobo Co. Ltd.

• Goodfellow Group

Nylon Market Report Scope

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 2028. For the purpose of this study, Grand View Research has segmented the global nylon market report on the basis of product, application, and region:

• Product Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2028)

  • Nylon 6

  • Nylon 66

• Application Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2028)

  • Automobile

  • Electrical & Electronics

  • Engineering Plastics

  • Textiles

  • Others

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2028)

  • North America

    • U.S.

  • Europe

    • Germany

    • France

    • U.K.

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

  • Central & South America

  • Middle East & Africa