The market for adiponitrile is expected to register a CAGR of over 4% during the forecast period. Major factors driving the market studied are increasing demand from the electrical and textile industries. On the flip side, the slowdown in the global automotive production and unfavorable conditions arising due to the COVID-19 pandemic are hindering the growth of the market.
- The synthesis of adiponitrile via biocatalytic route, which enables a highly regio- and chemo-selective approach toward dinitriles without the use of hydrogen cyanide or harsh reaction condition, is expected to offer various opportunities for the growth of the market over the forecast period.
- The automotive and transportation industry is expected to dominate the global adiponitrile market over the forecast period.
- Asia-Pacific region represents the largest market and is also expected to be the fastest-growing market over the forecast period due to the consumption in countries, such as China, Japan, and India.
Key Market Trends
Automotive and Transportation Industry to Dominate the Market
- Adiponitrile is a nylon-66 intermediate. It is converted into nylon-66 through hexamethylene diamine as an intermediate. Nylon-66 is used heavily in the automotive and transportation sector. It is used in the radiator end tanks, oil pans, air intake manifolds, etc., as it is resistant to heat, oil, and grease.
- Nylon-66 is finding growing importance in the automotive and transportation sector in under-the-hood, chassis, and exterior and interior applications. It is due to its excellent properties, like tensile strength, chemical resistance, heat resistance, and abrasion resistance.
- The increase in the production of airbags is also expected to increase the need for nylon-66, thus increasing the demand for adiponitrile.
- As the automotive industry faces stringent environmental norms, and nylon-66 provides the advantage of better fuel efficiency by weight reduction and lower fuel emissions, thus, guaranteeing the increasing demand for adiponitrile worldwide.
- The demand for adiponitrile from the segment is likely to grow moderately, owing to the slowdown of the automotive industry during the forecast period.
Asia-Pacific Region to Dominate the Market
- Asia-Pacific region is expected to dominate the market for adiponitrile consumption during the forecast period. In countries like China, Japan, South Korea, and India, the demand for adiponitrile has been increasing. It is due to the presence of manufacturing bases in these countries.
- Even though the Asian automotive market declined in 2019, the electric vehicle segment is witnessing acceptance and decent growth.
- Adiponitrile is also used in the electrical and electronics industry. The Asian region is the largest producer of electrical and electronics worldwide, with dominating countries, such as China, Japan, South Korea, Singapore, and Malaysia.
- The Indian textile and apparel industry is expected to witness a CAGR of about 10%, according to India Brand Equity Foundation (IBEF). Adiponitrile being a nylon-66 intermediate, is used to make carpet manufacturing, hosiery, and knitted garments.
- The slowdown in the automotive industry in countries of the Asia-Pacific region is expected to hamper the growth of the market studied during the forecast period. However, the rising demand from the other end-user industries is expected to drive the growth in the Asia-Pacific region.
The adiponitrile market is consolidated. The major companies of the market studied include Kishida Chemical Co. Ltd, Ascend Performance Materials, Butachimie, INVISTA, and Merck KgaA, among others.
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