Polycaprolactone Market Size, Share & Trends Analysis Report By Form (Pallets, NanoSphere, Microsphere), By Production Method (Ring-opening polymerization, Polycondensation of Carboxylic acid), By Application (Coating and Thermoplastic Polyurethane, Healthcare, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Market Overview

The global polycaprolactone market size was valued at USD 808.54 million in 2022. It is estimated to reach USD 2,085.1 million by 2031, growing at a CAGR of 11.10% during the forecast period (2023–2031). The favorable use of polycaprolactone in the formulation of thermoplastic polyurethane and the surge in the adoption of polycaprolactone in the healthcare industry stimulate market growth.

Polycaprolactone is one of the first hydrophobic biodegradable polymers. It is crystalline and is produced by the ring-opening polymerization of e-caprolactone. It is highly biocompatible, exhibits enhanced toughness, and is cost-effective compared to other bio-based polymers. One of the most common uses of polycaprolactone includes the production of thermoplastic polyurethane. It is used as an additive in resin to improve its processing characteristics and enhance its end-user applications. Polycaprolactone degrades slower than other biodegradable polyester in physiological conditions, thus finding its major application in the healthcare industry.

Market Dynamics

Global Polycaprolactone Market Drivers

Favorable Use of Polycaprolactone in the Formulation of Thermoplastic Polyurethane

Polycaprolactone is a biodegradable polyester used as raw material to produce thermoplastic polyurethane (TPU). It imparts enhanced properties to polyurethane products, such as superior water, oil, solvent, and chlorine resistance. The biodegradable nature of polycaprolactone itself promotes its use in the production of thermoplastic polyurethane to curb the use of carbon-based raw materials in the plastic value chain. Automotive, construction, healthcare, and packaging sectors increasingly use thermoplastic polyurethane as raw material. Polycaprolactone improved TPU's elasticity, transparency, and resistance to oil, grease, and abrasion, making it the most popular engineering plastic in these applications.

Thus, polycaprolactone demand is rising as end-use industries embrace TPU. The car sector is also using TPU to build interiors for comfort. It makes door handles, cup holders, instrument panels, and body sight molding. It is also scratch-, abrasion-, and color-resistant.

Surge in Adoption of Polycaprolactone in the Healthcare Industry

Polycaprolactone has excellent biocompatibility, biodegradability, and nontoxicity. It melts with other chemicals and has low viscosity. These qualities have made polycaprolactone popular in healthcare. Polycaprolactone may be used in tissue engineering and medical implants. It is cost-effective and flexible, making it ideal for tissue engineering. Polycaprolactone is also utilized to replace hard tissues in the body, which recover slowly due to its long disintegration period. It also replaces human tissue.

Thus, tissue replacement and skin grafting trends provide market development potential. Apart from these applications, polycaprolactone is used in medical implants, orthopedics, drug delivery, and wound management. The surge in the adoption of bioresorbable polymers has resulted in the growing use of polycaprolactone in orthopedic implants.

Global Polycaprolactone Market Restraint

Increase in Adoption of Polyol Family Chemicals

Polycaprolactone and polycaprolactone polyols are chemicals in similar categories in the biodegradable polymer family. Both chemicals exhibit more or less similar properties. Polycaprolactone is mainly used in polyurethane and healthcare applications, whereas polycaprolactone polyols are primarily used in coating applications. However, polycaprolactone is developing its application in the coating segment, whereas polyols already have an established consumer base.

In addition, polyol family chemicals have relatively lower prices than polycaprolactone. Therefore, adopting polyols in the coating segment is hampering the use of polycaprolactone. Thus, an increase in the adoption of polyol family chemicals in coating applications is anticipated to restrain the growth of this market

Global Polycaprolactone Market Opportunities

Rise in Use in Osteobotics

The use of biodegradable materials to create temporary architectural structures is developing. In 2015, a student from the Architectural Association DRL created a framework for temporary pavilions or installations using polycaprolactone, a biodegradable polyester. The material used to build this framework can stretch when heated and exhibited enhanced compressive strength when cooled. The overall project was done with the help of the robotic arm. When polycaprolactone melts at 60°, robotic arms stretch melted soft and pliable polycaprolactone. At the same time, another robotic hand is used to cool stretched material through a cooling spray. Once the process is completed, the material produces a plastic structure resembling bone.

Hence, polycaprolactone is developing to create a plastic bone-like structure in osteolytic. This is expected to be a cost-effective solution to create an architectural structure that can be used in various commercial applications in the construction industry. The commercial feasibility study on this concept is still underway and is in the final stage by various regulatory bodies. Therefore, the commercial application of polycaprolactone in osteolytics is expected to be seen in the next 2-3 years, which is expected to offer new growth opportunities to this market.

Regional Analysis

Based on region, the global polycaprolactone market is bifurcated into North America, Europe, Asia-Pacific, and LAMEA.

Asia-Pacific Dominates the Global Market

Asia-Pacific is the most significant global polycaprolactone market shareholder and will likely grow at a CAGR of 10.9% over the forecast period. Factors such as the presence of huge chemical industries, an increase in industrialization, and the adoption of advanced production techniques propel the market growth in the region. In addition, a significant increase in investment in biomedical industries is expected to offer a potential scope of utilization for polycaprolactone in this region. China acquired the major share in the Asia-Pacific polycaprolactone market, owing to the presence of established mainstream industries such as automotive, construction, furniture, and consumer goods. The significant need for polyurethane in these industries is anticipated to offer remunerative growth opportunities for the market. Governments across this region focus on providing easily affordable and accessible healthcare policies such as free healthcare services and health insurance to the below-poverty-level population. Significant investments are being made in line with this vision, and few are underway. Therefore, the polycaprolactone market in this region is anticipated to possess high growth potential during the forecast period.

The North American polycaprolactone market is projected to grow steadily during the forecast period, owing to a wide consumer base for synthetic plastic. Moreover, biodegradable polymers are gradually gaining popularity in the region, which fuels the market's growth. Furthermore, the major driving factors of the market are the presence of leading companies in the region, an increase in demand for economic alternatives such as polycaprolactone in chemical manufacturing, and an increase in investment in healthcare infrastructure. In addition, technological advancements in the healthcare sector in this region are projected to fuel the market's growth. In response to the established hectare infrastructure, the U.S. holds the major share of the North American polycaprolactone market.

Europe serves as the second-largest market for polycaprolactone. Well-developed technology, an increase in demand for sustainable materials, and the provision of funds for research and development by the European Government are the prominent factors contributing to the growth of this region. Many European countries support manufacturers in intensifying research and development activities to develop new product formulations. As a result, the European region is reporting the demand for biodegradable polymers faster than other regions. Furthermore, many regulatory bodies in the European Union have led to the formulation of policies favorable to renewable materials to build a sustainable eco-system. In line with this, European manufacturers are expanding their production capacities to meet the ongoing and projected demand for biodegradable polyesters.

LAMEA accounted for around 10% of the market share in 2018, the least among other regions. Brazil, South Africa, and Saudi Arabia are some of the major revenue contributors in LAMEA. However, an increase in demand for polycaprolactone in the healthcare industry is anticipated to fuel the market growth in this region. The availability of low-cost healthcare policies and an increase in investment to provide access to basic healthcare policies in African countries are expected to boost the development of the healthcare industry in the region, which, in turn, will drive the demand for polycaprolactone. However, in the polyurethane segment, the LAMEA region is witnessing poor growth owing to limited development in the manufacturing sector and slow economic performance in a few economies across LAMEA.

Segmental Analysis

The global polycaprolactone market is segmented into form, production method, and application.

Based on form, the global market is divided into pellets, nano-sphere, and microsphere.

The pellets segment dominates the global market and will likely exhibit a CAGR of 8% over the forecast period. Pellets are small particles that are made by compressing polycaprolactone material. They are used as raw materials for the production of thermoplastic polyurethane. Therefore, the demand for polycaprolactone pellets is growing with the growth in polyurethane production activities. Polycaprolactone pellets help to get the desired film thickness and solution concentration. Moreover, polycaprolactone in pellets is immediately available, which is impossible with other forms. These factors collectively boost the demand for pellets, likely boosting the market growth during the forecast period.

Based on the production method, the global polycaprolactone market is bifurcated into ring-opening polymerization and polycondensation of carboxylic acid.

The ring opening polymerization owns the global market and will likely exhibit a CAGR of 11% over the forecast period. Ring-opening polymerization is the most suitable method for the production of polycaprolactone. One of the important reasons for the increased adoption of ring-opening polymerization is that no small molecule is eliminated as a waste, which results in a 100% yield with no by-product formation. This has further reduced the need for several reactors to be used in the production process of polycaprolactone in ring-opening polymerization. As a result, ring-opening polymerization is becoming a preferred choice for most of the polycaprolactone manufacturers across the globe. Thus, the ring-opening polymerization segment accounts for the highest revenue in the market. Biodegradable polymers are relatively costlier than synthetic polymers. Therefore, manufacturers are seeking organic ways to reduce the cost of biodegradable polymers. The ring-opening polymerization method helps attain a 100% yield, meaning the desired product quantity is manufactured with available raw material without generating waste. This scenario is rarely observed in chemical manufacturing. Therefore, less waste generation helps control additional costs incurred on the final products.

Depending on the application, the global market is classified into coating and thermoplastic polyurethane, healthcare, and others.

The healthcare sector is the most significant contributor to the market and is estimated to exhibit a CAGR of 8.6% during the forecast period. Polycaprolactone is one of the earliest commercially available biodegradable polymers in thermoplastic polyurethane. Therefore, thermoplastic polyurethane (TPU) is the primary application area for polycaprolactone. It imparts oil, fuel, and solvent resistance properties to TPU, along with improved flexibility and toughness. Due to its compatibility with several thermoplastic compounds, it is gaining significant popularity as a plasticizer. Hence, the demand for polycaprolactone is directly proportional to the demand for TPU.

As TPU is a basic polymer used in mainstream industries, its demand is witnessing a significant rise across the globe, thereby offering potential growth opportunities for market expansion. The increase in the trend of using biodegradable plastic is a key factor that drives the consumption rate of thermoplastic polyurethane, which, in turn, augments the need for polycaprolactone. Moreover, thermoplastic polyurethane is prominently applicable across various industries such as construction, automotive, furniture, and packaging, which boosts its adoption across the globe, thereby driving the market's growth.

Recent Developments

• May 2023- BASF said that its new PCL plant in China had begun making products. The plant can make up to 50,000 metric tons of PCL per year, which will meet the growing demand in Asia.

• June 2023- Sabic said that it and Teijin had signed a statement of understanding to work together on making new PCL-based products. Both companies will work together to make PCL-based materials for various uses, such as cars, gadgets, and medical equipment.