Caprolactam is a crystalline cyclic amide that is soluble in water. It is an organic compound, which is basically is clear to a milky white chemical solution and is a lactam of caproic acid. Caprolactam is used in the manufacturing of synthetic fibers and the production of textiles stiffeners, sportswear film coatings, synthetic leather, plastics, and vehicle paints, among others.
Products manufactured from caprolactam exhibit excellent properties, such as elasticity, strength, chemical resistance, abrasion resistance, and thermal resistance, among others. Ongoing research and development that results in technological breakthroughs and improvement in the properties of caprolactam, making it more cost-effective drives the market growth.
Today, the world is experiencing changes more rapidly than ever before, mainly due to technological advances and the use of artificial intelligence and big data that is aiding in research and development and launching of new materials and technologies. There has been a strong demand from the economies in transition, especially in India and China for textiles, chemicals, and automobiles.
Debouching end-user trends and favorable policies are creating upswings for specialty products. There has been a growing demand for high-quality textiles that are used in the manufacturing of clothing, sports wears, and carpets, among other things. Caprolactam is used extensively in the textile industry due to its high tensile strength and superior abrasion and chemical resistance. Changing consumer trends and growing demand from various end-user industries will further propel the market growth for caprolactam during the assessment period.
The global construction industry is poised to grow at a significant rate. Though the recent Covid-19 pandemic has plummeted demand and put a temporary stop to most of the projects all around the world, the long terms forecast for the construction industry looks optimistic and is expected to grow above the global Gross Domestic Product (GDP) in the coming years. According to the Oxford Economics data, the world construction industry is expected to grow by around 85.3 percent to reach a value of approximately USD 15.3 trillion by 2030, and the countries such as the U.S, India, Indonesia, and China, leading the form the front.
The world construction industry has been experiencing moderate growth even though the global economy has been showing signs of slow growth due to the ongoing pandemic. The easing out of restriction and announcement of various economic aid package infusions by governments and international organizations, such as IMF and World Bank, is likely to boost the investor sentiment and is likely to jumpstart the industry once again.
The various factors there augmenting the growth of the construction sector in the long term are the demand in construction activities in economies in transition, such as India Indonesia, and China, and up-gradation of old infrastructure in developed nations, and increasing investments in telecom and renewable energy sector.
Countries like India have rolled out ambitious plans, such as providing housing for all under the Pradhan Mantri Aawas Yojana by the year 2020. This is likely to create upswings for construction activities in India. The construction industry employs a large number of machines, textiles, and carpets, among other things that are derived from caprolactam, wing to its superior qualities of strength, abrasion resistance, and thermal resistance, among other things.
North America has been at the forefront in the field of technological development. Today, North America is one of the important manufacturers and consumers of caprolactam. As per the International Monetary Fund World Economic, North America tops the in the world in terms of nominal Gross Domestic Product and stands second in terms of purchasing power parity (PPP) in the year 2018.
The region's nominal GDP accounted for approximately USD 19.41 trillion in the year 2017 and is expected to touch around USD 24.55 trillion by the year 2023. Furthermore, North America is the leading region globally in terms of per capita income and the region has a vast landscape of established chemical, automobile, and textile industry, which is favorable for the growth of caprolactam.
The automobile sector in the U.S. is one of the largest in the world. According to the data released by the International Trade Administration (ITA), the U.S. Department of Commerce, the total sales of vehicles in the U.S. was around 17.2 million units in the year 2018. Additionally, the total foreign direct investment (FDI) in the automotive sector reached USD 115.4 billion in the year 2018. And this was compounded by investment in research and development activities that amounted to around USD 105 billion.
It is a well-known fact that the lower the total weight of the vehicle, the more is the fuel efficacy. The world moving towards cleaner fuels that are increasing the competition between electric and conventional vehicles. Conventionally running vehicles must exhibit higher fuel economy to keep their consumers interested. Caprolactam is used extensively in the automobile industry to manufacture various automobile parts, such as bumpers, dashboards, and engine parts, among other things.
Caprolactam is also used in the manufacturing of high-quality textiles that are used in the interiors of cars and trucks. All these factors present a favorable ground for the growth of the caprolactam market. Furthermore, the increasing space programs by government entities like NASA and private players, such as SpaceX, are likely to create upswings for the market in this region during the assessment period.