Cyclohexanone Market Size, Share & COVID-19 Impact Analysis, By Application (Caprolactam, Adipic Acid, Solvents, Others), and Regional Forecast, 2020-2027

The global cyclohexanone market size was USD 7,690.4 million in 2019 and is projected to reach USD 10,462.4 million by 2027, exhibiting a CAGR of 4.7% during the forecast period. Asia Pacific dominated the cyclohexanone market with a market share of 62.35% in 2019.

Cyclohexanone, known as oxocyclohexane, or pimelic ketone, or cyclohexyl ketone, is a clear oily liquid with a colorless or pale yellow tinge and a pungent odor. The demand for it is primarily driven by its use for production of caprolactam and adipic acid. Caprolactam is extensively used in the manufacture of nylon and is further used in various end-use sectors such as manufacturing, automobile, consumer goods, and electronics. The high demand for pesticides due to the rising agriculture industry is likely to create lucrative market opportunities.

Production of Cyclohexanone Impacted by COVID-19  

The chemical industry has been impacted by the widespread effects of the COVID-19 pandemic. The disruption of supply chains across prime regions and uncertainty in demand has negatively impacted the market. Additionally, the government restriction on the movement of the people and the suspended manufacturing activities due to infection risk amongst the workforce is likely to hamper the market growth.

The crude oil price war going amidst the pandemic has been plunging the petrochemical prices to unprecedented levels. China, one of the major producers of cyclohexanone, experienced a rise in price that has been tripled compared to the preceding years. Closure of companies due to regional regulations and the labor shortage is anticipated to decline the trade of pimelic ketone.

CYCLOHEXANONE MARKET TRENDS

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Rising Demand for Solvents to Aid the Market

Cyclohexanone is used as a solvent and thinner for lacquers, particularly those containing nitrocellulose or vinyl chloride polymer and copolymer resins, including polyvinyl chloride. The latest trends in paints and coating industries, such as PVC coatings, anti-corrosive coatings, and other polymer-based coatings, will positively impact the market. There has been significant research in developing sludge solvent for piston style aircraft lubrication in gasoline. Cyclohexanone is a potential sludge solvent that can be used in such applications. The increasing demand for such a versatile solvent is likely to support market growth rate.

Pimelic ketone has strong solvency in hydrocarbons and chemical solvents, which means that it can be well mixed and miscible in most organic solvents. Additionally, it is an important chemical solvent used in various industries such as paint and printing. An essential ingredient in the production of herbicides, pimelic ketones are antihistamines and a catalyst for polyester and silicone resins. Moreover, they are used as an additive in lacquers and paints to avoid blushing and as a solvent for PVC printing inks. Thus, the growing demand for solvents from various end-use industries such as paints & coatings, agriculture, and others is expected to fuel market growth.

CYCLOHEXANONE MARKET GROWTH FACTORS

Increasing Demand for Nylon from Various End-User Sector to Aid Market Growth

Cyclohexanol and cyclohexanone are oxygenated compounds formed by cyclohexane oxidation. These oxidation materials are very important in manufacturing adipic acid, caprolactam, or other materials such as nylon-6 and nylon-66 across the chemical industry. Nylon is one of the most popular polymers used as a fabric. Nylon 6 is composed of caprolactam, and nylon 6,6 is composed of adipic acid. About 24% of nylon 6 is used in engineering resins, and the remaining in nylon fibers. Nylon 6 is used in the manufacturing of carpets, textiles, and other industrial yarns.

Nylon 6,6 is a general-purpose extruded nylon grade that is rugged, has excellent electrical insulating properties, along with noise dampening properties. Nylon resins are noted for their performance properties such as excellent abrasion, high tensile strength, chemical and heat resistance, and low friction coefficient. Therefore, they are used in engineering plastics for several industrial applications such as automobile, electronics, industrial components, and films for food packaging, carpeting, garments, sportswear, and recreational equipment.

In Europe, the demand for engineering resins has experienced significant demand, while the industry for nylon fibers is growing in the region. In the U.S., the automotive industry is a significant outlet for nylon, especially for hooded applications and airbags, along with carpets, textiles, industrial yarns, cable coating, film, and electronics. In North America, more than half of nylon 6,6 is used to produce nylon, separated into fibers and engineering resins. Some nylon customers choose nylon 6,6 because of its properties of heat and chemical resistance, and formability. Automakers claim that it provides better characteristics for intake manifolds, fan shrouds, fuel vapor containers, air cleaners, and heat sinks.

RESTRAINING FACTORS

Increasing Demand for Bio-based Substitute to Hinder Market Growth

Companies are manufacturing a bio-based replacement for cyclohexanone. For Instance, Vertec BioSolvents introduced VertecBio ELSOL CXR solvent, which is a bio-based alternative to cyclohexanone. This cleaning solvent leaves no residue and is an excellent solvent for paint, coating, and ink formulations. Furthermore, the solvent is 20-30% more efficient in viscosity reduction than pimelic ketone. Bio-based solvents have low vapor pressure and high loading capacity and are 100% biodegradable to carbon dioxide & water, having derived from renewable resources.

The bio-based solvents do not contribute to global warming and contain zero ozone-depleting chemicals (ODCs). Additionally, they do not include other environmentally harmful ingredients such as hazardous air pollutants (HAPs). Therefore, the rising usage of bio-based substitutes is likely to hinder the market during the forecast period.

CYCLOHEXANONE MARKET SEGMENTATION ANALYSIS

By Application Analysis

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Caprolactam to Hold the Leading Share in The Market

On the basis of application, the market segments include caprolactam, adipic acid, solvents, and others.

The caprolactam segment held a major share of the market in 2019. Caprolactam is used in the manufacturing of nylon 6 to process fiber and resin, where it is used as an engineering thermoplastic, particularly in the automobile, electrical & electronics industries. Furthermore, it is used for the extrusion of products such as monofilaments and film that is likely to drive the segment growth.

The demand for engineering polymers in the regions such as Asia Pacific, North America, and others is expected to boost the demand for adipic acid. Adipic acid is used as a precursor to the manufacture of nylon 66, a commonly used component in specialized manufacturing items used in the construction, automobile, footwear, furniture, and electrical & electronics industries. This is likely to aid the segment growth during the forecast period.

Cyclohexanone is used as a high-end solvent with excellent efficiency across several industrial applications such as inks, coatings, pharmaceuticals, adhesives, photosensitive materials, pesticides, and other industries.  It is also an important industrial solvent for paints, particularly those containing nitrocellulose, vinyl chloride polymers, and their copolymers or methacrylate polymer paints.

REGIONAL CYCLOHEXANONE MARKET ANALYSIS

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The market size in Asia Pacific stood at USD 4,794.7 million in 2019. The growing automotive industry is expected to be a key factor in the growth of the global market. The region provides considerable potential for adipic acid manufacturers to develop a base in the region due to the availability of low-cost skilled labor and government funding for industrial growth. The rapid industrialization that leads to the establishment of several automobile and appliance manufacturing plants, especially in India and China, is likely to affect the growth of caprolactam positively. The growing demand for adipic acid and caprolactam is likely to drive the market during the forecast period.

North America is one of the main supply centers for engineered polymers, making it a possible source for the availability of adipic acid. The increasing adoption of adipic acid in the region due to high demand from automotive manufacturers is projected to boost the demand for the regional market. Adipic acid is commonly used in manufacturing composite from nylon and is used in the automotive industry.

The increasing demand for lightweight materials in Europe is projected to positively influence the demand for caprolactam. In the automobile industry, metals are replaced by engineered plastics due to their beneficial properties such as low moisture absorption capacity and high mechanical strength.

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The demand for the market in the Middle East & Africa is projected to rise, powered by new nylon 66 chip/resin and fiber end-users. The demand for nylon has risen due to large-scale investment in the automotive industry, which is adopted extensively. The Middle East has seen a rise in the demand for luxury cars due to the increasing customer buying power leading to the high consumption of cyclohexanone.

The market in Latin America is expected to witness substantial growth during the forecast period due to the increasing per capita disposable income. The growing demand for nylon from the automotive industry in the region is likely to drive the market.

KEY INDUSTRY PLAYERS

Strategic Planning Adopted by Companies to Strengthen Their Market Share

Several small-scale and large-scale manufacturers are present in the market. The major companies present in the market are BASF SE, Asahi Kasei Corporation, Domo Chemicals, UBE INDUSTRIES, LTD., and TPCC. Some of the key players are actively focusing on expanding the manufacturing process of cyclohexane, pimelic ketone, caprolactam, and adipic acid.

BASF SE and Asahi Kasei Corporation are leading the market due to their sizable regional reach across the globe. These companies already have a large customer base, product range, and integration across the supply chain. Besides, the top companies still have immense investment potential for R&D and marketing, allowing a well-established supply chain.

LIST OF KEY COMPANIES PROFILED IN CYCLOHEXANONE MARKET:

• BASF SE (Ludwigshafen, Germany)


• Domo Chemicals (Gent-Zwijnaarde, Belgium)


• OSTCHEM (Donetsk region, Ukraine)


• Fibrant (Urmond, Netherlands)


• UBE INDUSTRIES, LTD. (Tokyo, Japan)


• TPCC (Taipei City, Taiwan)


• Qingdao Hisea Chem Co., Ltd (Qingdao, China)


• ARIHANT SOLVENTS AND CHEMICALS (Tamil Nadu, India)


• JIGCHEM UNIVERSAL (Maharashtra, India)


• Shreeji Chemical (Thane, India)


• LUXI GROUP (New York, U.S.)


• Honeywell International Inc (North Carolina, U.S.)


• Shandong Haili Chemical Co., Ltd. (Shandong Province, China)


• Shandong Hualu-Hengsheng (Shandong Province, China)


• Asahi Kasei Corporation (Tokyo, Japan)


• Gujarat State Fertilizers & Chemicals Ltd (GSFC) (Gujarat, India)


• Other Players

KEY INDUSTRY DEVELOPMENTS:

• January 2020 – DOMO Chemicals completed the acquisition of Solvay’s Performance Polyamides Business in Europe. This acquisition is a major step in improving DOMO Chemicals' nylon-based engineering materials business.


• August 2019 – Sinochem Group announced that Sinochem Investment Development Co., Ltd. acquired 39% of Luxi Group's equity under Sinochem Group and SINOCHEM became the significant shareholder of the Luxi Group.

REPORT COVERAGE

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The global cyclohexanone market research report provides a detailed analysis of the market and focuses on key aspects such as the competitive landscape and the leading product applications. Also, the report offers insights into market trends and highlights vital global industry developments. Research methodology such as bottom-up and top-down approach is used in the study. In addition to the factors mentioned above, the report encompasses depth analysis that has contributed to the growth of the market over recent years.

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