Nylon Market Size, Share & COVID-19 Impact Analysis, By Type (Nylon 6 {resin & fiber} Nylon 6,6 {resin & fiber}), By Application (Automotive, Electrical & Electronics, Appliances, Film & Coating, Wire & Cable, Consumer, Industrial & Machinery and Others), and Regional Forecast, 2020-2027

The global nylon market size was valued at USD 24.26 billion in 2019 and is anticipated to reach USD 28.79 billion by 2027, exhibiting a CAGR of 6.0% during the forecast period.

Nylon is a highly versatile polymeric material that is used in various industries for different applications. Be it the automotive industry or sports, adoption of this product is significant. For instance, nylon fiber is used in airbags of vehicles as well as in professional volleyball nets.

Moreover, the demand for sustainable polymeric products is gradually increasing and nylon plays a key role in the development of such products. For example, the French company Longchamp is making bags from waste nylon. Additionally, Osprey, a manufacturer of products for the outdoor industry, has partnered with Hyosung in August 2020 to use its 100% recycled fiber for various outdoor products. Similarly, Prada, a renowned luxury brand, introduced a sleek sustainable re-nylon collection at Selfridges corner shop in August 2020. Thus, such developments in the market are expected to promote healthy growth over the forecast period.

Downturn in Automotive Industry Triggered by COVID-19 to Take a Toll on 2020 Earnings

Nylon is prominently used in the automotive industry. The outbreak of COVID-19 has halted the production and operations of more than 250 automotive manufacturing facilities all around the globe. As a result, the demand has significantly gone down and it is expected to incur double digit decline in 2020 as compared to 2019. However, soft recovery is expected as a result of changing government norms in order to boost consumer spending.

The market is expected to recover by the end of the short-term forecast as the uncertainties caused by the outbreak of COVID-19 are likely to affect the demand and supply in the forthcoming years. The escalating tension between major economies such as the US and China is likely to hamper the market growth and delay the market recovery. Most of the key players have witnessed low-profit margins in the first half which has taken a big bite out of their earnings.

LATEST TRENDS

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Introduction of Innovative Products and Applications is the Current Nylon Market Trend  

In the context of adapting to the new normal and curtailing the transmission of COVID-19, various stakeholders and research teams are developing innovative products to make life easy for the consumers. For instance, DRDO, India, in May 2020, developed a new polyurethane (PU) coated technology that will reduce the cost of PPE kits. There has been an exponential growth in the demand for PPE kits all over the globe and India has quickly ramped up its PPE production and started exporting to its allied countries.

DRIVING FACTORS

Growing Demand from Automotive Industry to Fuel Market Growth

More than three-fifth of the nylon 6 fibers and around one-third of nylon 66 fibers are used in the manufacturing of tire cord due to their high tensile strength and the ability to withstand high temperature. With the increasing production of automotive tires, the demand for these fibers is further expected to increase. These fibers are further used in the manufacturing of automotive airbags. Customers prefer airbags-equipped vehicle variants due to the increasing awareness about the benefits of airbags as a security feature. Additionally, several vehicle owners are custom-fitting airbags into their vehicles that will bode well for the global market growth.

Though the automotive industry was in the slow lane in 2018 & 2019 in most parts of the world, the industry is expected to showcase a considerable growth over the coming years on the back of increased sales of electric vehicles. Electric vehicles are strongly backed with government subsidies, for instance, Norwegian Government has exempted all e-vehicles from non-recurring vehicle fees to boost the sales, which in turn, will create lucrative growth opportunities for tire and other automotive components manufacturers.

RESTRAINING FACTORS

Strong Presence of Substitutes to Hamper Market Growth

Nylon is widely used in various applications just like other polymers such as PE, PU, polyester, and others. The cost factor, availability of the other polymers, and the physical & chemical properties are the major factors that affect the demand and consumption. For instance, there were major disruptions in the supply of the product experienced by the market during the years 2018 and 2019 due to the force majeure of multiple adiponitrile manufacturing facilities. This resulted in a tight supply of resin in the market. Consumers had to switch to other engineering plastic resins, and preferred the usage of close ally of nylon 6 for similar applications.

SEGMENTATION

By Type Analysis

Engineering Properties of Nylon 66 to Create Lucrative Growth Opportunities

Nylon 66 possesses excellent properties such as high elasticity of engineering plastics that make it ideal for injection molding applications. It is predominantly used to make plastic components for automotive, electronic appliances, and other industries. Besides, nylon 66 films and coatings produced by the extrusion process have healthy demand in the packaging industry, especially for food & fluids packaging such as grease, acidic food, oils, etc. These are clear, printable & thermoplastic films that make them ideal for industrial applications. It is further suitable for use in microwave cooking applications. These films have exceptional strength and toughness, along with excellent oxygen barrier properties. Moreover, these are reported to be puncture, scratch, and flex-crack resistant.

Nylon 6 fibers dominate the global market on the back of strong adoption in the textile industry. Due to its high mechanical strength, toughness and wear resistance, it is used to manufacture webbing products such as dog leashes, safety belts, luggage straps, sports goods, and others. 

By Application Analysis

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Automotive Segment Expected to Generate Highest Revenue

The automotive segment accounts for a significant share in the global market. Due to the high usability of the resin and fiber in automobiles in the form of tire cord, airbags, and injection molded components, it results in high revenue generation from the automotive segment. In a bid to minimize vehicle weight and optimize fuel efficiency, the demand for plastics is continuously increasing in the automotive industry. With the increasing sales of electric vehicles and the establishment of proper infrastructure to support the market growth of electric vehicles, engineering plastics such as nylon is expected to play a major role.

Film & coatings segment accounts for a prominent share in the global market. Nylon films exist as un-oriented nylon and bi-axially oriented (BOPA) films. These films are dominantly used in the packaging of goods & products that require a high oxygen barrier, along with high strength. Some of these goods & products include processed meat (sausage, bacon) cheese & other dairy products, smoked fish, and semi-finished microwavable meals. Moreover, these films are easily recyclable. The ban on the use of single-use plastics around the globe is expected to boost the nylon market share during the forecast period.

REGIONAL INSIGHTS

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The market in the Asia Pacific stood at USD 13.92 billion and is anticipated to remain dominant owing to the rising demand from automotive and films & coating applications for the packaging industry during the forecast period. The demand in the region is predominantly driven by emerging economies such as China and India. China accounts for more than half of the total consumption and production in the region. Also, to decrease its dependence on imports, major producers are coming up with production facilities in China, to cater to the rising demand in the country and the surrounding region. On the other hand, nylon 6 and caprolactam are oversupplied in the regional market that has resulted in lower operating rates.

North America is one of the largest producers. It accounts for more than 40% share of the global nylon 66 capacity. The automotive industry drives the regional market. The ban on single-use plastics in the U.S. is expected to further increase the demand for films in the region.

The market in Europe is expected to grow moderately over the forecast period backed by strong demand from the automotive industry. Lawmakers in Europe are introducing attractive norms such as subsidies to increase the sales of electric vehicles. For instance, Germany has increased the amount of subsidy granted on electric vehicles and has extended the environmental bonus criterion to the e-vehicles owner until the end of 2025. Similarly, France has also increased the subsidy amount.

Meanwhile, countries like Sweden have announced an exemption from vehicle tax for e-vehicle owners. This is expected to increase the electric vehicle sales and the consumption of nylon in the automotive industry during the forecast period. Moreover, the EU has voted for a complete ban on single-use plastic by 2021, which is expected to boost the consumption of recyclable plastic films during the forecast period.

Latin America and the Middle East & Africa regions account for single-digit shares in the global market. The turbulence in the political and economic conditions in Latin America is expected to slow down the market growth. The demand in the Middle East & Africa region is driven by more developed economies of the region such as GCC countries in the Middle East and Egypt & South Africa in the African region.

KEY INDUSTRY PLAYERS

Major Companies Focus on Expansion of Production Facilities to Boost Sales Revenue

The global market is already oversupplied due to large numbers of installed capacities for the production of nylon. Key players in the supply chain are increasing the capabilities of the product and its feedstock such as adiponitrile. Ube industries, INVISTA, Ascend, etc., are some of the players that are expanding their capacities and feedstock to meet the increasing demand. Also, the prices of these polymeric materials are highly volatile, which is expected to hamper the growth. However, pricing contracts with the customers may help to stabilize the costs. Also, the changing geopolitical equations and trade policies directly impact the supply chain.  

LIST OF KEY COMPANIES PROFILED:

• DuPont (U.S.)


• BASF SE (Germany)


• Lanxess AG (Germany)


• Nylon Corporation of America, Inc. (NYCOA) (U.S.)


• Shenma Industrial (China)


• Ascend (Thailand)


• Domo Chemicals (Belgium)


• Radici Partecipazioni SpA (Italy)


• Invista (U.S.)


• DSM (The Netherlands)


• Formosa Group (Taiwan)


• SINOPEC (China)


• Ube Industries (Japan)


• LIBOLON (Japan)


• ZIG SHENG INDUSTRIAL CO., LTD. (Taiwan)


• Other

KEY INDUSTRY DEVELOPMENTS:

• August 2020: Nylstar, a Spanish manufacturer of nylon yarns, introduced yarn made of INVISTA’s recycled nylon 6,6 polymer with Global Recycled Standard Certification. The company claims to retain the high quality of this yarn and is in par with the quality of its other yarns.


• August 2019: Solvay and BASF, manufacturers of specialty chemicals & materials, reached an agreement with Domo Chemicals, a manufacturer of polymers, to divest Solvay’s performance polyamides business in Europe as part of the European Commission’s merger control clearance process. The deal is worth USD 1.78 billion on a cash & debt-free basis.


• September 2018: INVISTA, a manufacturer of polymeric materials headquartered in the US, announced plans to add 40 kilotons of Nylon 66 by 2020 at its facility in Shanghai Chemical Industry Park (SCIP), China. The production is expected to come on stream in 2020. The added capacity will enable the company to serve more customers in Asia-Pacific region.

REPORT COVERAGE

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A growing trend is observed in the penetration of the market across the industries. The report provides qualitative and quantitative insights into the key market and a detailed analysis of the market size & growth rate for all possible segments that exist in the market. Along with this, the report provides an elaborative analysis of the market dynamics and competitive landscape. Various key insights presented in the report are the price trend analysis, recent industry developments in this market, the regulatory scenario in crucial countries, macro, and microeconomic factors, SWOT analysis, and key nylon industry trends, competitive landscape, and company profiles.

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