Polyamides Market - Forecast(2023 - 2028)

The Polyamides Market size is forecast to reach US$ 35.5 billion by 2027, after growing at a CAGR of 5.2% during the forecast period 2022-2027. Polyamides are thermosetting plastics that are processed by injection molding and possess excellent thermal, mechanical, and chemical-resistant properties. They are used in a wide range of applications which include carpet fibers, knitted garments, flat panel display, cable guards, bearings, protective coverings, air coolers, automotive upholstery, and other applications. According to the German Association of the Automotive Industry (VDA), the global expenditure rose to US$ 51.5 billion in 2020, out of which the German automotive industry accounts for more than one-third of total global R&D expenditure in the automotive sector. An increase in demand from the automotive and textile industries acts as the major driver for the market. On the other hand, fluctuating prices of raw materials may act as a major constraint for the market.

There is no doubt that the COVID-19 lockdown has significantly reduced automotive, and production activities as a result of the shutdown of automotive sites, shortage of labor, and the decline of the supply and demand chain all over the world, thus, affecting the market. Studies show that the outbreak of COVID-19 sharply declined the production of automobiles in 2020 due to a lack of operations across multiple countries around the world. According to OICA (International Organization of Motor Vehicle Manufacturers), the production of automobiles decreased by 16% globally in the year 2020, compared to 2019. However, a slow recovery in the automotive industry has been witnessed across many countries around the world since 2021. For instance, recent insights from OICA states that the total automobile production in 2021 in Europe, America, Asia, and Africa increased by 25%, 17%, 28%, and 37% respectively in comparison to 2020.

In this way, a steady increase in automotive production activities is expected to increase the demand for polyamides since they are primarily used in the production of glass-reinforced plastics-based structural parts, engine covers, flat panel display, rocker valve covers, airbag containers, cable guards, and other interior and exterior parts of the automotive. This indicates a slow and steady recovery of the market in the upcoming years.

The “Polyamides Market Report– Forecast (2022-2027)”, by IndustryARC covers an in-depth analysis of the following segments of the Polyamides Industry.

Aliphatic Polyamides held the largest share in the Polyamides Market in 2021 and is expected to grow at a CAGR of 5.3% between 2022 and 2027, owing to their increasing demand due to the characteristics and benefits it offers over other types of polyamides. For instance, aliphatic polyamides offer better resistance to abrasion, chemical, and corrosion in comparison to aromatic polyamides which include aramid, and polyphthalamide. They have higher electromagnetic resistance, higher strength, and flexibility as compared to aromatic polyamides. Furthermore, aliphatic polyamides offer excellent thermal resistance, wear resistance, UV light resistance, flame resistance, and noise dampening properties. Hence, all of these properties and benefits of aliphatic polyamides are driving its demand over other types of polyamides, which in turn, is expected to boost the growth of the market during the forecast period.

The automotive industry held the largest share in the Polyamides Market in 2021 and is expected to grow at a CAGR of 5.5% between 2022 and 2027, owing to the properties of polyamide that is driving its demand in the automotive sectors across the globe. Polyamides are primarily used in the structural and decorative components and electronic components of an automobile. They are also used as a substitute for metals in order to reduce automotive system costs and to integrate lighter components to increase fuel efficiency. For instance, recent insights from the European Automobile Manufacturers' Association (ACEA) states that total passenger car production during the fourth quarter of 2020 reached around 34 million in Asia-Pacific, 14 million in Europe, 1.3 million in the Middle East/Africa, 1.7 million in South America, and 9.6 million in North America respectively. This, in turn, increased the demand for polyamides for use in structural parts, engine covers, flat panel display, airbag containers, cable guards, and other interior and exterior parts of the automotive Hence, such new automotive production is expected to drive the market growth during the forecast period.

The Asia Pacific held the largest share in the Polyamides Market in 2021 up to 28%. The consumption of polyamide is particularly high in this region due to its increasing demand from the automotive sector. For instance, a recent study published by the OICA (International Organization of Motor Vehicle Manufacturers) during the fourth quarter of 2020 states that around 25 million, 3.5 million, 8 million, and 3.4 million units of vehicles were produced in China, South Korea, Japan, and India, respectively, which in turn, contributed to approx. 50% of the global automobile production during the year 2020. Likewise, according to the Department of Promotion Industry and Internal Trade (DPIIT), the Indian Automobiles market invested around US$ 24.5 million worth of FDI (Foreign Direct Investment) during the year June 2020.

In this way, an increase in production from the automotive industry in the region is expected to increase the demand for polyamide since it is primarily used in automotive cooling systems, flat panel display, cable guards, along with other automotive upholstery, thus, resulting in the growth of the market during the forecast period

According to a recent study published by the German Association of Automotive Industry during the fourth quarter of 2020, the new registration of motor vehicles reached up to 16,763 units in Europe, 37,467 units in Asia, 3080 units in South America, 17,421 units in North America, 12,733 units in Western Europe, and 5180 units in other regions worldwide. According to a recent study published by the International Netherlands Group (ING), the global sales of new electric vehicles have increased by 50% in 2021 and it is expected to increase by 8% in 2022. Furthermore, according to the European Automobile Manufacturers Association (ACEA), the EU demand for new passenger cars significantly increased by 25.2% from January-June 2021 and reached around 5.4 million units in total. Hence, an increase in demand and production of motor vehicles is expected to increase the demand for polyamides for use in automotive parts and components. This is expected to accelerate the growth of the market in the upcoming years.

Polyamides are primarily used in the production of fabric used in the textile industry. Polyamide fabrics are relatively cheaper, light-weight, and offer greater elasticity and flexibility. For instance, in July 2021, India announced the Non-Woven Fabric Manufacturing Expansion Project worth INR 220 million (US$ 2.9 million) in Himachal Pradesh. A recent article published on fibre2fashion states that Vietnam’s garment manufacturing business accounts for around 70% of the majority of businesses. It also states that the import of textiles and clothing by the United States increased by 26.79 % up to US$ 41.689 billion during the initial five months of 2021. Likewise, the value of U.S. man-made fiber, textile, and clothing shipments reached about US$ 64.4 billion in 2020. Furthermore, in 2021, United Nations Environment Programme (UNEP) announced the commencement of a new project that is targeted to provide the approval of eco-innovation along with the use of Product Environmental Footprint (PEF) within textile SMEs in Kenya, South Africa, and Tunisia.

In this way, an increase in textile operations across the world is expected to increase the demand for polyamide fabric, owing to its lower cost, and properties such as lightweight, greater elasticity, and flexibility. This is most likely to drive market growth in the upcoming years.

Most of high-performance polyamides are primarily derived from crude oil. When the availability of crude oil, additives, or other materials that are primarily used in the production of polyamide fluctuates, the overall cost of producing the polyamide increases. For instance, the Brent crude prices across the world decreased to US$ 9.12 per barrel on April 21, 2020, which was the lowest record since December 10, 1998. In April 2020, India’s Crude Oil Basket (COB) reached US$ 19.90 per barrel, which was the lowest record since February 2002. During the first 11 months of the year 2020-21, the average annual price of India’s COB was around US$ 42.72 per barrel, which decreased by 30% from the average COB price in 2019-20. Likewise, as per revised estimates for 2020-21, the COB has increased by around 35% from its initial budget estimate. Since October 2021, Vietnam has also witnessed a spike in demand for crude oil. According to the oil price, the price of light crude oil exceeded US$ 94.38 per barrel in February 2022, an increase of 3.63% that is equivalent to US$ 3.3, the highest record since November 2014. Similarly, the price of Brent crude oil also increased and reached up to US$ 95.39 per barrel, an increase of 1.98% which is equivalent to US$ 1.85. In this way, such fluctuating prices of crude oil may confine the growth of the market.

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the Polyamides Market. Global Polyamides top 10 companies are: