The global Cyclohexane market size is projected to grow from USD USD 21.7 billion in 2023 to USD USD 38 billion by 2032, registering a CAGR of 4.9% between 2024 and 2032. The rising demand for Cyclohexane from end-use applications such as Caprolactam and Adipic Acid will further drive the Caprolactam demand in the forecast period.
Cyclohexane is a colorless, flammable, volatile liquid hydrocarbon, which is mainly produced from the hydrogenation of benzene. It is primarily used for the manufacturing of adipic acid and caprolactam, which can be further used to produce nylon. It is also a common and important organic solvent in various chemical reactions and industrial processes. The cyclohexane ring is relatively stable, and the molecule does not undergo reactions easily, making it a useful and inert solvent in many applications.
The Cyclohexane market is segmented into Caprolactam and Adipic Acid. Cyclohexane is used in the nylon industry where approximately 85% of it is consumed in the industrial production of adipic acid and caprolactam, which are then used to manufacture nylon6 and nylon6,6 and around 15% is used both as a solvent for paints, varnish, resins, oil, and in plasticizers.
Nylon 6 is manufactured by polymerizing caprolactam, and Nylon 6,6 is produced by reacting adipic acid and hexamethylenediamine. Caprolactam is the primary material used for manufacturing nylon 6 and adipic acid is used to produce nylon 66. Nylon 6 resins are used for a number of automobile applications, such as seat filling and cushioning and nylon filaments are used to make safety hoses, and safety belts in cars.
Adipic acid is a widely used chemical in multiple industries with strong growth in automotive, electrical & electronics and pharmaceutical in developing countries will have positive impact on growth of Cyclohexane market. Cyclohexane is also used as an intermediate in the production of various chemicals such as cyclohexanone.
The global Cyclohexane market is oversupplied at present, therefore there have been several shutdowns. For instance, Sumitomo Chemical announced that the company is closing down their production units for Caprolactam at its Ehime Works, Japan facility.
LANXESS and BP Refining are planning to form a partnership for the use of sustainable raw materials in high-tech plastics production. BP refining will supply biobased Cyclohexane to LANXESS’ production site in Antwerp, Belgium.
In March 2023, BASF declared to shut down its Caprolactam production line and reduction of the Adipic Acid manufacturing capacity at the Ludwigshafen site, Germany.
The world exported an average of 1089 thousand tons of Cyclohexane between 2016 and 2022. The total value of these imports was USD 928,310,000. Saudi Arabia and Germany are the largest exporters of Caprolactam with combined average exports of 390 thousand tons in 2021. Belgium is the largest Caprolactam importer, with imports of 503 thousand tons valued at USD 782,264,000.
Asia-Pacific is the largest market for cyclohexane, and it is expected to grow at a fast rate over the next few years. China is the biggest market for cyclohexane in the region accounting for more than 75% of the regional share. It is one of the largest producers of nylon 6 in the world, owing to the growing demand from the automotive and textile industries. The increasing demand for lightweight vehicles and electric vehicles is expected to drive the demand for nylon 6, which will positively impact the Cyclohexane market.
In India, the growing demand for adipic acid and caprolactam is driving the demand for cyclohexane as the government's initiatives to promote the manufacturing sector and increasing investments in infrastructure development are expected to drive the demand for cyclohexane in the country.
Western Europe and Central & Eastern Europe accounted for a combined share of more than 20% of the Cyclohexane market share followed by North America. The regions have seen a significant shift towards electric vehicles with companies like Tesla and Nissan making a presence in the region. In recent years, the industry has been challenged by regulatory pressures to reduce emissions, leading to a surge in electric vehicle adoption, with countries like Norway leading the way.
The automotive industry is one of the largest markets for Nylon due to its excellent properties like tensile strength, chemical resistance, heat resistance, abrasion resistance, and more. Cyclohexane is used to manufacture Caprolactam and Adipic Acid which is then utilized to make Nylon fibers and resins. Nylon is used in automotive applications, which include car seat filling and seat covering. Nylon yarns are also used for reinforcing rubbers in tires.
Nylon 6 is commonly used in the automotive sector for under-the-hood applications, chassis, exterior applications, and interior applications and is also utilized for many metal replacements in car components like intake manifolds, gears, and bearings, which is expected to increase the Cyclohexane demand during the forecast period.
The expansion and growth of the automobile sector across the globe is another factor driving the industry’s growth. Owing to these applications, the market is expected to witness even more lucrative growth opportunities as the use of nylon in automobile production increases.
The rising demand for Textiles will positively impact the Cyclohexane market in the upcoming years. Cyclohexane is used as a raw material to produce nylon fibers which are commonly used in the production of clothing, industrial textiles, and carpets owing to their high tensile strength, resistance to abrasion, and durability. The rising demand for lightweight and high-performance materials in the automotive industry will help in driving the Cyclohexane demand.
The rising environmental safety and protection concerns regarding the usage of cyclohexane and the volatility of raw materials prices will act as a challenge to the development of the cyclohexane market. Strict regulations imposed by the government to limit pollution will further restrict the growth of the cyclohexane market.
For example, the U.S. Environmental Protection Agency (EPA) has established rules and regulations to limit the release of hazardous air pollutants from industrial sources which includes usage of cyclohexane.
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