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North America Adipic Acid Market is Expected to Reach $1.7 Billion in 2018 - New Report by MicroMarket Monitor

(PRWEB) July 23, 2014

Adipic acid is an intermediate chemical for polyamide 66, which is mainly a high-performance plastic, often referred to as engineering thermoplastics. These involve an extensive range of materials, depending on the monomers employed. Due to the high production growth rate in the automotive industry and the increasing number of developing countries, the Asia-Pacific region has the maximum adipic acid market share, followed by Europe and North America. Adipic acid in polyamide 66 is used widely in many applications such as automotive, consumer goods, electrical/electronics, energy, textile, and industrial coatings, among others.

Crude oil-based polyamide manufacturers are also focusing on bio-based methods. Thus, conventional adipic acid producers are also focusing on bio-based methods which are accepted by the automotive and consumer goods industry to produce bio polyamide 66 based parts.
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The bio-based polyamide market has enormous potential and opportunity, with many obstacles to be overcome by the petroleum-based polyamides. In order to gain acceptance from more customers, the bio-based polyamide is expected to be more cost and performance-effective than the petro-based polyamides. The global adipic acid application market is expected to grow at a CAGR of 4% from 2014 to 2019, and is projected to reach a market value of $7.5 billion by 2019.

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In North America, the demand will increase over the next several years as a consequence of the growing demand for engineering resins and improving fiber sales. Currently, many start up companies such as Rennovia, Verdezyne, BioAmber, and Genomatica, among others, are developing bio-based routes for adipic acid plants having competitive properties with those of the conventional adipic acid. The growing use of polyamide 66, polyurethane, and esters/plasticizers are supporting the demand for adipic acid in the North American market.

In addition, the stringent government regulations against nitrous oxide (Nox) emissions in many countries in North America are supporting the adoption of new technologies to eliminate or reduce the emissions in adipic acid production. The U.S. is the world’s largest producer of adipic acid, with more than one-fourth share of the global demand.

Browse through the market data tables, figures and detailed ToC on the “North America Adipic Acid Market”.

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Europe Adipic Acid Market
Amidst slow growth economic forecasts, the polyamide market in Europe is expected to be steady in the coming years. The special emphasis on lightweight automotive and emission control regulations is expected to be the important driver of this market. Since the last two decades, the percentage of engineering plastic and resins in automobile sector is constantly increasing. The reason for this growth is specific properties of engineering plastics. These are lightweight, strong, and are easy to process. As of 2013, the chemical industry has been included in the European emissions trading scheme, as a consequence of which, companies producing adipic acid will have to pay for the emissions of nitrous oxide into the atmosphere. These regulations are expected to drive the demand for bio-based adipic acid in the European region, thus, shifting the focus of the conventional adipic acid manufacturers. The shift of focus is indeed a threat for the conventional adipic acid market, but this step will help the manufacturers to control the nitrous oxide emission in the atmosphere.

Germany’s current position in producing bio-based polyamide is limited to a few manufacturers. However, new developments and investments, with further advancements in the field of high-value fine chemicals, are foreseen.

Asia-Pacific Adipic Acid Market
The Asia-Pacific region is the fastest-growing market for building & construction industry. It emerged from the global financial crisis as a growth driver and anchor of stability of the global economy. In APAC, polyurethane holds a major share in the total adipic acid market, followed by polyamide 66 where adipic acid is used as precursor to produce engineering plastics and fibers for various applications. China contributes to more than half of the total adipic acid production in the Asia-Pacific market, as of 2012. The growth in the Chinese market is driven by foreign investment, due to low-cost labor along with accessible raw materials, thus boosting the country’s production. The government's proposals to improve public infrastructure and rising automotive sector, helped in increasing the demand for adipic acid in their end-user markets.

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