The long-chain dicarboxylic acid market is expected to register a CAGR of over 7% during the forecast period. Major factors driving the market studied are increasing demand from the powder coatings segment and growing demand from the nylon and other polyamides segment. However, high product cost and unfavorable conditions arising due to the COVID-19 outbreak are the major factors hindering the growth of the market.
- The growing application of long-chain dicarboxylic acid in adhesives and lubricants is expected to offer various lucrative opportunities for the growth of the market.
- By application, the nylon and other polyamides segment is expected to dominate the market, owing to its increasing usage in various end-user industries, such as packaging, electronic components, automotive, and building and construction.
- Asia-Pacific dominated the market across the world, with the largest consumption from China and India.
Key Market Trends
Increasing Demand from Nylon and Other Polyamides Segment
- Long-chain dicarboxylic acid is produced through eco-friendly routes by the fermentation process. It is an organic acid consisting of long-chain of carboxyl function groups.
- The growing demand for nylon and other polyamides, owing to their properties, such as heat resistance, strength, and durability, is increasing the demand for long-chain dicarboxylic acid and propelling the market.
- Additionally, high-performance nylon is used in manufacturing manifold, as it reduces the overall weight of the system. The reduction in the weight of the system helps in lowering the production cost and increases fuel efficiency. Owing to this, the demand for nylon is increasing, which may increase the demand for long-chain dicarboxylic acid and stimulate the market studied.
- The overall market size of nylon is expected to increase at a CAGR of over 6%, during the forecast period. This may create lucrative growth opportunities for the long-chain dicarboxylic acid market during the forecast period.
- Owing to the above-mentioned factors, the long-chain dicarboxylic acid market is expected to grow rapidly over the forecast period.
Asia-Pacific to Dominate the Market
- Asia-Pacific is expected to dominate the market for long-chain dicarboxylic acid during the forecast period. Owing to the rising demand from various applications, such as lubricants, adhesives, powder coatings, and corrosion inhibitors, the demand for long-chain dicarboxylic acid has been increasing in countries, like India and China.
- The growing demand for lubricants from the automotive, transportation, industrial equipment manufacturing, and other end-user industries is propelling the long-chain dicarboxylic acid market. Lubricants are used to reduce friction, maintain thermal stability, and offer high load carrying capacity to the equipment. This may help in stimulating the market's growth.
- Additionally, the increasing demand for powder coatings in the construction equipment, infrastructure, electrical, and furniture industries is fueling the long-chain dicarboxylic acid market. The powder coatings are used to coat aluminum extrusion frames, which are further utilized in the buildings and construction industry to manufacture windows and door frames. These factors are boosting the long-chain dicarboxylic acid market.
- Furthermore, corrosion inhibitors are used before the steel is embedded in concrete during the construction of building, to protect the steel from alkaline and high moisture environment, which results in better durability of the building. Owing to this, the demand for long-chain carboxylic acid is increasing in the Asia-Pacific construction industry.
- The building construction industry in Asia-Pacific is expected to register a CAGR of 7% during the forecast period. This may help in boosting the long-chain dicarboxylic acid market in the region, during the forecast period.
- Some of the major companies operating in the Asia-Pacific region are Cathay Biotech Inc. and Zibo Guangtong Chemical Co. Ltd.
- The aforementioned factors, coupled with government support, are likely to contribute to the increasing demand for long-chain dicarboxylic acid during the forecast period.
The long-chain dicarboxylic acid market is consolidated in nature, with the top players accounting for a major share of the market. Some of the key companies in the market include Cathay Biotech Inc., Zibo Guangtong Chemical Co. Ltd, Henan Junheng Industrial Group Biotechnology Co. Ltd, AECOCHEM, and INVISTA.
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