Polyamide 12 Market Is Expected To Witness High Growth Owing To Increasing Demand From Automotive Industry
The Polyamide 12 Market is estimated to be valued at US$ 335 Billion in 2022 and is expected to exhibit a CAGR of 5.9% over the forecast period 2022-2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Polyamide 12, also known as Nylon 12, is a semi-crystalline thermoplastic polymer. It possesses excellent fatigue and impact resistance, oil and chemical resistance along with high strength and stiffness even at low temperatures. These mechanical properties make it ideal for use in various automotive, electrical & electronics and industrial applications.
Market key trends:
One of the key driving factors for polyamide 12 market growth is the increasing usage of polyamide 12 in the automotive industry. Material manufacturers are increasingly promoting the use of polyamide 12 especially in under-the-hood applications such as intake manifolds, lubricant lines, oil pans and brackets owing to its superior mechanical properties. The automotive industry is under immense pressure to reduce vehicle weight and strengthen critical components in order to improve fuel efficiency and meet stringent emission norms. Polyamide 12 helps automakers achieve both these objectives and is hence witnessing rising preference over other materials. This will continue supporting the increasing demand and growth of the polyamide 12 market over the forecast period.
Porter’s Analysis
Threat of new entrants: New entrants face high capital requirements for setting up manufacturing units and gaining brand recognition in the established market.
Bargaining power of buyers: The polyamide 12 market has numerous buyers but individual buyers have low bargaining power due to the availability of substitutes.
Bargaining power of suppliers: A few manufacturers dominate the supply of polyamide 12 providing suppliers with moderate bargaining power over buyers.
Threat of new substitutes: The development of new materials like high-performance plastics poses a moderate threat to polyamide 12.
Competitive rivalry: Intense competition exists among the prominent players.
SWOT Analysis
Strengths: High strength-to-weight ratio, chemical resistance, durability, dimensional stability of polyamide 12.
Weaknesses: Sensitivity to moisture absorption, high production costs.
Opportunities: Growth in end-use industries like automotive, electrical & electronics, growing demand in Asia Pacific and Latin America.
Threats: Fluctuations in raw material prices, stringent environmental regulations.
Key Takeaways
The global Polyamide 12 Market Demand is expected to witness high growth, exhibiting CAGR of 5.9% over the forecast period, due to increasing demand from the automotive industry. The superior properties of polyamide 12 make it suitable for manufacturing automotive components.
Regional analysis: Asia Pacific dominates the global polyamide 12 market and is expected to grow at the fastest rate during the forecast period. Abundant availability of raw materials and low production costs make Asia Pacific an attractive market for polyamide 12 manufacturers. China dominates the Asia Pacific region owing to the large automotive production base in the country.
Key players in the polyamide 12 market are Arkema Group, DowDuPont Inc., Ensinger GmbH, Evonik Industries AG, UBE Industries Inc., Techmer PM LLC., Invista, EMS-Chemie Holding AG, RTP Company Inc., Toray Industries Inc., Formulated Polymers Limited, and Merck KGaA. Key players are focusing on capacity expansion and new product development to strengthen their position in the market.