Polyamide 12 Market Is Driven By Growth In The Electric Vehicles Market
Polyamide 12, also known as Nylon 12, is a semi-crystalline polyamide that possesses high strength, good toughness, and good chemical resistance. It is used in a wide variety of applications like sealants, tubing, automotive interiors, wire and cable jacketing. Polyamide 12 exhibits excellent impact resistance even at extremely low temperatures, making it suitable for use in electric vehicles to insulate wires and cables. The global electric vehicles market has been witnessing robust growth in recent years due to rising environmental concerns and stricter emission norms. This has significantly driven the demand for lightweight, high-performance materials like polyamide 12 in vehicle components.
The Global Polyamide 12 Market is estimated to be valued at US$ 405.54 Mn in 2024 and is expected to exhibit a CAGR of 6.4% over the forecast period 2024 to 2030.
Key Takeaways
Key players operating in the polyamide 12 market are Ultralife Corporation, EaglePicher Technologies LLC, EnerSys, Liberating Technologies, Inc., Panasonic Corporation, Tadiran Batteries Ltd., Saft Groupe S.A., Arotech Corporation, SHENZHEN KAYO BATTERY Co., Ltd, and Vitec Group plc. These companies are focusing on new product development and geographic expansion to strengthen their market position.
The global polyamide 12 market is witnessing growing demand from the automotive industry due to its extensive usage in electric vehicles. Polyamide 12 improves vehicle efficiency by reducing weight and lowering energy consumption.
Leading polyamide 12 manufacturers are expanding their production facilities globally to cater to the rising worldwide demand. For instance, Evonik recently commenced commercial operations of its polyamide 12 plant in Mobile, Alabama, USA to increase its annual capacity to 60,000 metric tons.
Market drivers
The rapid proliferation of electric vehicles across the world is a major driver for the polyamide 12 market. Polyamide 12 is increasingly being used in wire and cable insulation, seals, fluid connections, and lightweight interior components in EVs due to its excellent mechanical properties and chemical resistance. Stringent regulations targeting vehicle emissions are encouraging more consumers to switch to environment-friendly electric vehicles. This is expected to boost the consumption of polyamide 12 significantly over the forecast period.
The current geopolitical situation is significantly impacting the growth of the Polyamide 12 Market Share . Political instability and global supply chain disruptions due to ongoing issues like the Russia-Ukraine war are hindering the market's expansion. Both Russia and Ukraine are key suppliers of raw materials like crude oil required for Polyamide 12 production. The war has disrupted oil exports from the Black Sea region, pushing up commodity prices worldwide. Rising input costs are posing a major challenge for Polyamide 12 manufacturers.
Polyamide 12 demand also depends on the performance of key end-use sectors like automotive, electrical & electronics, and industrial machinery. Slowdowns in these industries due to geo-economic uncertainties are negatively affecting the market. Meanwhile, trade restrictions and sanction on Russia by Western nations are limiting business opportunities for players in the region. To ensure long-term growth, companies must diversify their supplier networks, pursue local sourcing strategies and focus on developing cost-effective and sustainable production technologies that can withstand supply shocks. New applications development in fast-growing markets like 3D printing can also help reduce dependencies.
In terms of value, the North American region currently dominates the Polyamide 12 market and is expected to maintain its lead through 2030. Major factors contributing to the prominence of North America include the large automotive, electronics and machinery industries, focus on developing latest technologies and relatively stable economic and political environment. Going forward, sustained investment in R&D, electric vehicles and renewable energy sectors are likely to sustain demand growth.
The Asia Pacific region is poised to witness the fastest expansion in the Polyamide 12 market over the forecast period. Presence of developing economies like India and China with their massive population and rising industrial activities is driving consumption. In addition, supportive government policies focused on accelerating domestic manufacturing offer lucrative opportunities. Local players are strengthening their product portfolios to cater to the fast-growing end-use industries which will further aid the APAC market.
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