The global cyclohexane market is expected to reach USD 32.3 billion by 2025, growing at a CAGR of 4.9% according to a new report by Grand View Research, Inc. Globally changing consumer behavior towards sustainability has been a significant factor driving market growth. Also, the increasing use in 3D printing is positively influencing the demand for the cyclohexane and its products.
Growing population coupled with rapid urbanization and industrialization in emerging economies has also driven federal governments to increase their manufacturing spending to cater to the rising demand. The low production cost and relaxed government regulations further boosting the demand for cyclohexane in the global market. Also, global Nylon 6 Production is estimated to increase at a rapid rate, which is expected to increase demand for cyclohexane globally.
Recently, there has been a growing impetus towards the provision of greater quality products to retain customer loyalty, since low switching costs & lowly differentiated products have reduced supplier power in recent years. Companies are thus actively engaged in product development & research, technological advances and even strategic collaborations to improve their standing in the global market.
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Further key findings from the report suggest:
- The global cyclohexane demand was around 9,192 kilo tons in 2016 and is expected to grow at a CAGR of 4.0% between 2016 and 2025
- Caprolactam was the dominant application segment in 2016 and is projected to be worth USD 19 billion by 2025
- Cyclohexane’s value from nylon 6 end-use was estimated at over USD 11 billion in 2016. Textiles industry growth in South Asian markets will have a positive influence on the segment’s growth
- Asia Pacific is the largest region in terms of revenue in 2016 and is expected to maintain its dominance during the forecast period.
- Growth in the textile, electronics and automotive industry in the emerging countries such as China and India are expected to drive the growth of the cyclohexane market. Increasing demand for packaging materials is pushing the growth in the region.
- The market in Asia Pacific is expected to witness significant growth over the next few years owing to the increasing consumption of nylon in various sectors. The regional market is expected to grow at a CAGR of 5.6% from 2017 to 2025 in terms of volume
- Key industry participants include Sinopec Limited, BASF, BP PLC, Koninklijke DSM N.V. and Sigma-Aldrich Corporation, who dominate the cyclohexane industry in terms of production
- Improving supply chain efficiencies, and establishing exclusive supply agreements shall be a key factor in improving profitability of producers