Polyamide In Electronic Protection Device Market Size, Share & Trends Analysis Report By Product (PA6, PA66, PA4,6, High Temperature Polyamide, Polyphthalamide), By Device, And Segment Forecasts, 2018 - 2025

Industry Insights

The global polyamide in electronic protection device market size was valued at USD 378.7 million in 2016 and is expected to ascend at a CAGR of 3.2% from 2017 to 2025. The market is anticipated to be driven by growing product demand from construction and electrical and electronic industries, specifically in emerging economies of Asia Pacific.

Growth of the construction sector in Asia Pacific can be attributed to the burgeoning population, specifically in China, and this is anticipated to drive product consumption in building components such as electronic component housing, insulated protective materials, and exterior panels. Expanding electrical and electronics and automotive industries are also contributing to high market growth in this region.

Technological advancements in electronic protection devices (EPD) are expected to boost the use of polyamides owing to their performance advantages and properties. Demand for polyamides in EPDs is projected to witness growth owing to their inclusion in innovative smart grids and primary distribution switchboard technology for Solid Insulation Switchgear (SIS). However, the availability of cheap substitutes for polyamides is expected to remain a key challenge for market participants.

Polyamide is a cost-effective and environment-friendly material. It offers performance advantages such as abrasion and heat resistance. These factors are encouraging EPD manufacturers to opt for polyamides in EPDs by replacing other thermoset materials. Presently, the cost of polyamide, by virtue of its dynamic floating price, is low owing to the oversupply of caprolactam in the Asian market.

Polyamides are witnessing a sharp rise in terms of sales and product modifications in electrical switches and gear segments. Advancements in polyamide grades for use in electrical protection devices are projected to propel their demand over the forecast period.

At a production level, the market is witnessing aggressive mergers and acquisitions. Low production cost is prompting polyamide manufacturers to backward integrate across the value chain, in turn, resulting in capacity expansions in the Asia Pacific, North America, and Europe. In the current scenario, a majority of manufacturers are producing caprolactam and nylon resins, thereby integrating themselves across the value chain.

Raw material prices have a considerable impact on finished products and influence the pricing dynamics of the subsequent end-use industries. Benzene supply witnessed some irregularities from 2016 to 2017 amid low global crude oil prices, not allowing midstream petrochemical refining companies to make significant profits. As a result, some plants were shut down in North America and Asia, prompting disruption in global supply. Caprolactam, a derivative of cyclohexane, finds a positive correlation to the supply-demand scenario of benzene.

Product Insights

By way of product, the polyamide in the electronic protection devices (EPD) market is segmented into PA 6, PA 66, PA 4,6, high-temperature polyamide, and polyphthalamide (PPA). Better temperature and abrasion resistance characteristics of PA 6 contribute to its increasing popularity in sectors operating under heavy voltages and current. With a shift from conventional grids to smart grids, Stanyl is expected to observe an increase in its consumption share in the switchgear segment.

The product offers an exclusive combination of thermal and mechanical characteristics to ensure its usefulness in various demanding electrical and load-bearing applications. PA 66 offers ease of fabrication and has a low coefficient of friction, excellent abrasion, and high impact and wear resistance. Cost-effectiveness is a crucial factor in this market as high raw material and development costs contribute to the increased cost of the finished product.

PA 66 demonstrates high dimensional stability, coupled with excellent resistance to wear owing to its lower moisture absorption property. Electrical protection devices require high heat, water, and electromechanical resistance to perform according to established standards. PA 66 has a shorter and stronger bond, which provides a denser and tighter structure in comparison to PA 6.

Superior properties of PA 66 over PA 6, which is the largest product segment in this market, is a major factor triggering product demand. In thermally and mechanically stressed moldings, PA 66 has emerged as the preferred grade of polyamide on account of its strong dielectric resistance. The development of polymer technology has widened the application scope of PA 66, which, in turn, is projected to drive the product segment over the coming years.

Device Insights

Sizes of MCB and MCCB are drastically reducing over the past few years for cost optimization and better functioning. Product cost diminishes by over 15.0% through this move, which gives manufacturers a leveled playing field in an otherwise stiffly competitive market. Therefore, the challenge for manufacturers is to enhance the performance of polyamides of all grades to suit housing preferences for switches and gears. Although experiments for high-temperature polyamides are being carried out, they are not yet ready for commercialization. Once commercialized, industry experts believe that they have the potential to outgrow any competition in terms of performance and price.

MCCB was the second-largest device segment and accounted for a volume-based share of over 33.0% in 2016. The segment is projected to ascend at a healthy growth rate over the forecast period. Developments in this segment can primarily be attributed to unprecedented regulatory pressure imposed by various regulatory bodies to improve product performance and safety.

Regional Insights

Evolving economic indicators, such as rising industrial output and GDP of regions, are expected to be the main factors driving the market in Asia Pacific. Low feedstock prices are also expected to boost consumption in this region.

Favorable regulations, availability of skilled and economical workforce, and initiatives by governments to define attractive FDI regulations have resulted in major players shifting their manufacturing bases to countries such as China, India, and Indonesia. Availability of raw material at low prices, owing to increased capacity utilization, has propelled the demand for polyamide as a key material for manufacturing shields for switchgears.

As of 2016, Europe was the second-largest regional market accounting for a share of over 15.0% in 2016, in terms of both revenue and volume. The market is expected to remain positive over the forecast period owing to rising urbanization and ongoing industrial evolution.

Polyamide in Electronic Protection Devices (EPD) Market Share Insights

Industry participants are focusing on developing polyamide grades to help E&E manufacturers comply with the Waste Electrical and Electronic Equipment (WEEE) Directive, EU’s Restriction of Hazardous Substances in Electrical and Electronic Equipment (RoHS) Directive, and four processes of the EU REACH regulation: registration, evaluation, authorization, and restriction of chemicals.

Strategic partnerships with distribution companies such as RESINEX, Nexeo Solutions, and TER Plastics POLYMER GROUP allow major participants to supply their products across the globe. Companies such as Ube Industries, Ltd.; Toray Industries, Inc.; and NILIT Ltd. are some of the suppliers in the market. EPD manufacturers generally share their requirements with polyamide suppliers, keeping in mind the expected product functioning performance they want to achieve by mentioning their parameters.

Report Scope

Segments Covered in the Report

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 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global polyamide in electronic protection devices (EPD) market report on the basis of product, device, and region:

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

  • PA 6

  • PA 66

  • PA 4,6

  • High Temperature Polyamide

  • Polyphthalamide (PPA)

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

  • MCB

  • MCCB

  • Relays

  • Contactors

  • Terminal Blocks

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

  • North America

    • The U.S.

  • Europe

    • Germany

    • The U.K.

    • France

  • Asia Pacific

    • China

    • India

    • Japan

  • Central & South America

  • Middle East & Africa