Polycaprolactone Market - Forecast(2023 - 2028)

Polycaprolactone Market Overview

Polycaprolactone market size is estimated to reach US$1.5 billion by 2027, after growing at a CAGR of 10.6% during the forecast period 2022-2027. Polycaprolactone is a biodegradable polyester that is partially crystalline and has a low melting point of 60°C and glass transition temperature of -60°C. The major methods of producing polycaprolactone are, ring-opening polymerization using catalysts like stannous octoate or by polycondensation of carboxylic acid. Polycaprolactone is used for making thermoplastic polyurethane which is used as a coating, adhesives, and elastomers in end users like construction, paints, automobiles, etc. Also, it is used in the healthcare sector in drug delivery devices, sutures, tissue management, and fused filament fabrication is used as printing filament. 3D printing technology. The factors like the growing demand for thermoplastic polyurethane in end-user like construction and automotive, increase in dental practice and high demand for biodegradable plastic packaging products are diving the growth of the polycaprolactone market. However, as polycaprolactone is derived by the chemical synthesis of crude oil, hence the fluctuating price of crude oil can affect the production of polycaprolactone which can hamper the growth of the polycaprolactone industry.

COVID-19 Impact

The measures taken by the government like lockdown, restriction on public movement & logistics, and regulations on import/exports to prevent the widespread of COVID-19 disrupted the functionality of various end-users of polycaprolactone like construction, automotive and dentistry, etc. For instance, in International Construction and Infrastructure Surveys, the construction and infrastructure activities across all regions went down in Q1 of 2020 with China in the Asia-Pacific region having the sharpest workload contraction. Also, as per the International Organization of Motor Vehicle Manufacturing, in 2020 there was a 16% global decline in vehicles production. Moreover, as per the 2020 report of the American Dental Association, the dental practice revenue in the US decreased to 6% as average production for practices was down by 3.1% in 2020 compared to 2019. Polycaprolactone is used in making thermoplastic polyurethane which is used as an insulator in buildings and for automotive parts like rocker panels, cladding, etc., while it is also used for dental implants. The decrease in productivity of these sectors created less demand for polycaprolactone for thermoplastic production, thereby harming the growth of the polycaprolactone industry.

Report Coverage

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

By Production Method – Ring-Opening Polymerization, Polycondensation of Carboxylic Acid
By Form – Synthetics, Pellets, Nanosphere, Microsphere
By Application – Thermoplastic Polyurethane (Adhesives, Coatings, Elastomers), Printing Filament, Biomedical (Drug Delivery Device, Sutures, Wound Care Management, Orthopedics, Dental Implant, Tissue Engineering), Others
By End User – Healthcare, Construction (Residential Construction, Commercial Construction), Automotive (Commercial Vehicles, Passenger Vehicles), Paints, Packaging, Others
By Geography - North America (USA, Canada, Mexico), Europe (UK, Germany, France, Italy, Netherland, Spain, Russia, Belgium, Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Australia, and New Zealand, Indonesia, Taiwan, Malaysia, Rest of APAC), South America (Brazil, Argentina, Colombia, Chile, Rest of South America), Rest of the World (Middle East, Africa)

Key Takeaways

• Asia-Pacific dominates the polycaprolactone market, as the region consists of major end-users of biodegradable polyester like automotive, construction, paints, and medical sector. 
• Technological advancements in printing techniques like 3D printing provide growth opportunities to the polycaprolactone industry as, by fused filament fabrication, polycaprolactone will be used as printing filament in 3D printing. 
• Ring-opening polymerization (ROP) is commercially preferred more than polycondensation of carboxylic acid for manufacturing polycaprolactone pellets due to its lower operation cost and higher monomer conversion.

Polycaprolactone Market Segment Analysis – By Form

Pellets held s significant share in the polycaprolactone market in 2021, with a share of over 35%. Pellets of polycaprolactone which is a biodegradable polyester are easy to manufacture, fabricate, and can be easily blended. Hence such pellets are majorly used as raw material in the production of thermoplastic polyurethane which has various end-users like the construction & automotive sector. The rapid development in these sectors has increased the consumption of polyurethane in them. For instance, as per the 2021 report of the U.S Census Bureau, construction activities in the U.S have steadily increased, with residential construction showing an increase of 4.1% in November, up by 1% from 2020 same month. Also, as per European Automobile Manufacturers Association, the production and registration of passenger cars in the EU increased by 53.4% in 2021. Thermoplastic polyurethane is used in the construction sector for building materials, repairing & refurbishing underground pipe systems, and as adhesives, while in automotive it is used for making parts like panels, ditch covers. The increase in production output of this sector will create more demand for thermoplastics polyurethane in them, resulting in more consumption of polycaprolactone pellets in thermoplastic polyurethane production.

Polycaprolactone Market Segment Analysis – By End User

Automotive held a significant part in the polycaprolactone market in 2021, with a share of over 30%. This owns to factor that polycaprolactone-based thermoplastics polyurethane is used in various automotive interior parts like inside door panels, armrests, instrumental panels, and exterior parts like bumper, rocker panels. Moreover, polyurethane coating is applied on automotive parts to protect them from rust, scratch, and abrasion. The increase in production of automotive vehicles on account of high demand has increased the usage of thermoplastic polyurethane in them. For instance, as per the International Organization of Motor Vehicle Production, the global motor vehicle production from January to September 2021 was 57.2 million units compared to 52.1 million units last year for the same period, hence showing an increase of 9.7%. Such an increase in the global production scale of vehicles will lead to more usage of thermoplastic polyurethane for coatings and automotive parts, resulting in more usage of polycaprolactone in thermoplastic polyurethane production. This will have a positive impact on the growth of the polycaprolactone industry.

Polycaprolactone Market Segment Analysis – By Geography

Asia-Pacific held the largest share in the polycaprolactone market in 2021, with a share of over 41%. The region consists of major end-users of polycaprolactone like construction, automotive, paints in major economies like China, India, Japan, with China having the largest automotive and construction sector. The economic development in these nations has led to an increase in the industrial output of their sectors including end-users of polycaprolactone. For instance, as per the 2021 report of the European Automobile Manufacturers Association on global vehicle production, China produced 32% of 74 million cars manufactured worldwide with Japan & Korea producing 16%. For instance, as per the State Council for the People’s Republic of China, in July 2021 China has approved projects related to the development of affordable rental homes. Polycaprolactone-based thermoplastic polyurethane is used as adhesives in building materials like cement, and for interior/ exterior automotive parts like bumper and inside door panels. The growing development in these sectors on account of rapid urbanization & economic development will lead to more usage of polycaprolactone-based thermoplastic polyurethane in them, which will positively impact the growth rate of the polycaprolactone industry in the Asia-Pacific region.

Polycaprolactone Market Drivers

Increase in Dental Practice

Polycaprolactone being a biodegradable polymer has a low degradation rate, is abrasion resistance, and chemical resistance. Hence, such rich properties make polycaprolactone a component for making durable dental devices such as mouth-guard, dental aligners, retainers, and orthodontics elastics. The growing scale of hygiene appointments on account of rising awareness of hygiene teeth will positively impact the usage of polycaprolactone in the dentistry sector. For instance, as per American Dental Association, in 2020, the dental practice in the US increased by 4% to 5% in the beginning months on account of an increase in complete hygiene appointments. Polycaprolactone is used in dental processes like root canal and dental splint, hence such an increase in complete hygiene appointments will lead to more usage of polycaprolactone for such dental processes, thereby having a positive impact on the growth of the polycaprolactone industry. 

Increase in Scale of Construction Activities

The development in economies, rapid urbanization, and various infrastructural projects undertaken by countries have increased the scale of construction activity. For instance, in preparation for the 2021 Expo, Dubai awarded about 47 construction contracts with a total value of US$ 3 billion to local and foreign companies. In 2019 National Development and Reform Commission of China approved 26 infrastructure projects estimated to be completed by 2023. Also, in 2021, Oman’s Ministry of Housing and Urban Planning five new integrated projects that would provide 4800 housing units. Polycaprolactone-based thermoplastic polyurethane is used in making thin films and sheets used in underground pipes, and as adhesives, it is used in cement which lowers its carbon emission. Hence, the increase in construction activities will lead to more usage of polycaprolactone for such building material, which will have a positive impact on the growth of the polycaprolactone industry.

Polycaprolactone Market Challenges

The fluctuating price of crude oil

Polycaprolactone is chemically derived from crude oil by ring open polymerization. Hence the price of crude oil keeps fluctuating due to geopolitical, whether or supply chain mishap reasons which disrupt the flow of crude oil to markets. Such disruption leads to irregular production of polycaprolactone by manufacturers which leads to a shortage in supply of polycaprolactone-based products to major end-users like construction, automotive, and dental. For instance, as per the December 2021 report of the U.S Energy Information Administration, the crude oil price dropped to 39.17 US$ per barrel in 2020 from 56.99 US$ per barrel in 2019. Hence due to the price reduction, crude oil production fell by 8% in 2020 i.e., 11.3 million barrels per day compared to 12.2 million barrels in 2019. Such a decrease in crude oil production reduced the polycaprolactone production, thereby harming the growth of the polycaprolactone industry.

Polycaprolactone Industry Outlook

The companies to develop a strong regional presence and strengthen their market position, continuously engage in mergers and acquisitions. In polycaprolactone market report, the polycaprolactone top 10 companies are:

1. ITOCHU Chemical Frontier Corporation
2. CORBION N.V
3. Durect Corporation
4. Shenzen Esun Industries
5. Haihang Industries
6. Otto Chemical Pvt Ltd
7. Merck KGaA
8. Shenzen Polymtek Biomaterial Co. Ltd
9. Polyscience Inc.
10. Perstorp Holding A.B

Recent Developments

• In 2021, LyondellBasell and Nestle announced their long-term collaboration for the production of sustainable polymers, that would be sold under the brand name Circulen. The new product will be a significant step towards the fight against climate change.
• In 2021, Polyplastic Co. Ltd acquired Daicel Evonik Ltd. And such acquisition will increase the product portfolio of the company and enable to company to provide its customers with collaborative technology solutions.
• In 2020, ITOCHU Chemical Frontier Corporation formed a collaboration with Chromocenter Inc. and such collaboration will expand companies’ business in the pharmaceutical sector in the regenerative medicine and cell therapy field.

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