Long Chain Dicarboxylic Acid Market Size Forecast to Reach $231.6 Million by 2027

Long Chain Dicarboxylic Acid Market Size Forecast to Reach $231.6 Million by 2027

“Long Chain Dicarboxylic Acid Market | IndustryARC”
The Development of Bio-based Products From Renewable Resources Is a Key Driver for the Long Chain Dicarboxylic Acid Market.

Long chain dicarboxylic acid market size is forecast to reach US$231.6 million by 2027 after growing at a CAGR of 6.8% during the forecast period 2022-2027. Long chain dicarboxylic acids are versatile chemical intermediates used as building blocks for the production of polymers, lubricants, or adhesives. Long chain dicarboxylic acids are organic compounds of industrial importance. For instance, one of the most essential dicarboxylic acids is adipic acid, which is used as a monomer for the production of nylon-6,6. The majority of industrial long chain dicarboxylic acids are produced from petrochemical resources. But they are chemically complex to synthesize. Alternatively, long chain dicarboxylic acids can be produced biotechnologically. The use of bio-based products as feedstocks also helps to avoid an increased demand for non-renewable petrochemical resources as chemical feedstocks. Major factors driving the long chain dicarboxylic acid market are the increasing demand from the powder coatings segment and growing demand from the nylon and other polyamides segment.

COVID-19 Impact

The COVID-19 pandemic has impacted every industry worldwide in one way or another. The core industries such as chemical, automotive, and construction industries are highly impacted. Due to social distancing policy, most of the manufacturing plants were shut down, which resulted in a decline in production. In addition, border closures and travel bans caused major hurdles such as supply chain disruptions due to raw material delays or non-arrival, and disrupted financial flows, resulting in lower demand and consumption of long chain dicarboxylic acid in 2020. According to a report from Eurostat, Europe’s chemicals output was 4.4% lower year on year in the first nine months of 2020 compared to 2019. The widespread nature of restrictions on movement and on retail, alongside the continued impact of the virus on air travel, second and third waves, the emergence of new variants, all have severely impacted the chemical industry and thereby, the long chain dicarboxylic acid market too.

Long Chain Dicarboxylic Acid Market Segment Analysis – By Application

The nylon and other polyamides segment held the largest share of more than 25% in the long chain dicarboxylic acid market in 2021. Nylon is used in the production of films and fibers, and also molding compounds. It can be synthesized in different ways. One way to synthesize nylon is by the reaction of diamine acid with adipic acid. This type of polymer is commonly known as polyamide 6,6, and it was the first type of polymer to be used for nylon. The properties of nylon such as good chemical and thermal resistance high strength, impact resistance, and durability make nylon a good choice for applications in textiles, carpets, packaging films, and tire cords among others Nylon is often used as a substitute for low-strength metals. It is the plastic of choice for components in the engine compartment of vehicles because of its strength, temperature resilience, and chemical compatibility. It is used as a replacement for bronze, brass, aluminum, steel, and other metals, as well as other plastics, wood, etc. due to its lightweight. According to the American Chemical Society, nylon comprises 20% of the world’s manufactured fiber production, worldwide, 8 billion pounds of nylon are produced each year. This in turn increases the demand for long chain dicarboxylic acids and fuels the market growth.

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Long Chain Dicarboxylic Acid Market Segment Analysis – By End-Use Industry

The automotive segment held the largest share in the long chain dicarboxylic acid market and is expected to rise at a CAGR of 6.5% during the forecast period. Long chain dicarboxylic acid is used as an important bio-based product for manufacturing and has various applications such as lubricants, polyamides, adhesives, powder coatings, and corrosion inhibitors The growing demand for eco-friendly chemicals and acids majorly in the automotive industry is increasing the demand for long chain dicarboxylic acids. Nylon finds applications in engine covers, airbags, air intake manifolds, tyre cords, and exterior automotive parts such as door and tailgate handles, exterior mirrors, front-end grilles, fuel caps and lids, and wheel covers and trim. Being lightweight makes it a favorable automotive material. According to the United States Environment Protection Agency, for every 100 pounds taken out of the vehicle, the fuel economy is increased by 1-2%. Therefore, the increase in the use of nylon also propels the growth of long chain dicarboxylic acids. Lubricants are used to reduce friction and to maintain thermal stability. Thus, the increased demand for lubricants increases the demand for long chain dicarboxylic acids. Therefore, the automotive segment is set to dominate the long chain dicarboxylic acid market during the forecast period.

Long Chain Dicarboxylic Acid Market Segment Analysis – By Geography

The Asia-Pacific region held the largest share in the long chain dicarboxylic acid market in 2021 up to 40%, owing to the number of chemical industries in the region. After the recession of 2008, many chemical industries have come up in Asia making the region an attractive chemical hub. Asian countries hold a monopoly over the chemical market and most of the chemical manufactures come from this region especially from China, Japan, India, and South Korea. According to Invest India, the market size of the Chemicals & Petrochemicals sector in India is currently around $178 billion and is expected to grow to $300 billion by 2025. Powder coatings are used to coat aluminum extrusion frames which are used to manufacture windows and door frames that are used in the building and construction industry. The Chinese government has several policies to attract investments in the building & construction sector and thereby driving industry growth. According to an article by the International Finance Corporation, China constitutes 20% of all the construction investments globally and China is expected to spend approximately $13 trillion on buildings by 2030. Thus, the Asia Pacific region is set to dominate the long chain dicarboxylic acid market during the forecast period.

Long Chain Dicarboxylic Acid Market Drivers

Increasing Demand from the Powder Coatings Segment

Long chain dicarboxylic acid finds application scope in the production of clear powder coatings. Powder coating is a dry finishing process. Companies specify powder coatings for a high-quality, durable finish, allowing for maximized production, improved efficiencies, and environmental compliance. Powder coating is a high-quality finish found on various products. It protects machinery as well as household items. It provides a more durable finish compared to liquid paints. Powder coating makes the products more resistant to moisture, chemicals, and UV light. This reduces the risk of scratches and corrosion, and other wear and tear issues. Apart from being durable it is also eco-friendly. Hence, the increasing demand for powder coatings from the automotive and building and construction industry is expected to drive the long chain dicarboxylic acid market growth.

Development of Bio-Based Products

Due to growing environ mental concerns, there is an ongoing green trend to formulate and develop products that do not depend on non-renewable resources and are bio-based. This makes the products eco-friendly and also a safer alternative to their conventional counterparts. Industrial biotechnology is an alternative solution to replace fossil fuel-based products with a greener synthesis. Among various applications, the biotransformation of dicarboxylic acid is of interest. Long chain dicarboxylic acids are value-added organic compounds used as raw materials for polyamides, polyesters, lubricants, and powder coatings. For example, dodecanedioic acid serves as a precursor for polyamide 612 (nylon 6, 12) synthesis. Elevance Renewable Sciences, a high-growth specialty chemicals company, produced octadecanedioic acid using microbial fermentation pathway and by another method utilizing natural plant oils. Some noteworthy products using octadecanedioic acid are polyesterification products and polyamides. Thus, the development of bio-based products from renewable resources is a key driver for the long chain dicarboxylic acid market.

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Long Chain Dicarboxylic Acid Market Challenges

Raw Material PricesLong chain dicarboxylic acid is traditionally synthesized from petrochemical feedstocks. This method is not only chemically complex but also expensive and dependent on crude oil prices. One such raw material used is paraffin hydrocarbons. Paraffin hydrocarbons are a major constituent of natural gas and petroleum. Hence, volatility or shortage of crude oil dampens the long chain dicarboxylic acid market and acts as a challenge. Raw materials cost is a large contributor to the overall production cost. This could be minimized by renewable synthesis. The use of low-cost fermentation medium components for the growth and maintenance of biocatalysts. Further opportunities for reduction of raw materials costs were identified in the use of low-cost fatty acid substrates. The cost of fatty acid substrates is dependent on their source and composition. Pure fatty acid substrates are generally priced higher, approximately at $8-15/kg. However, mixed fatty acids as derived directly from plant or animal sources are significantly cheaper. For example, tallow fatty acid sells for less than $6/kg. Hence, using bio-based feedstock could overcome the challenge of high raw material cost.

Long Chain Dicarboxylic Acid Market Landscape

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the long chain dicarboxylic acid market. Long chain dicarboxylic acid market top companies are:

Cathay Industrial Biotech
Evonik Industries
Aecochem
Invista
Henan Junheng Industrial Group Biotechnology
Zibo Guangtong Chemical
Shandong Hilead Biotechnology
Hangzhou Dayangchem
Corvay Specialty Chemicals
Capot Chemical Co., Ltd.

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