Cyclohexanone Market Report Scope & Overview:

The Cyclohexanone Market size was valued at USD 8.8 Billion in 2023. It is expected to grow to USD 12.6 Billion by 2032 and grow at a CAGR of 4.1% over the forecast period of 2024-2032.

Cyclohexanone demand is being rapidly fueled by the rising consumption of polyurethanes and plastics. Cyclohexanone is an important feedstock for the production of adipic acid, a key intermediate for producing polyurethanes. Polyurethanes are established materials with broader usage as high-performance parts where elastomer properties enable various products in the automotive, construction, and footwear industries. The automotive industry is growing and the rising demand for lightweight, energy-efficient vehicles is forcing the automotive industry to depend on polyurethane-based automobile components for insulation applications, seating, coatings, etc.

According to the U.S. Bureau of Economic Analysis (BEA), the U.S. automotive sector alone contributed over USD 400 billion to the economy in 2021. This growth is supported by the increasing demand for lightweight materials, including polyurethanes, to improve vehicle fuel efficiency.

One of the major factors boosting the growth of cyclohexanone market is the increasing demand for nylon production, as cyclohexanone is an important precursor for Nylon 6 and Nylon 66. Both types of nylon are used in several industries like automotive, textiles, and electronics because of their strength, durability, and versatility. Automotive Nylon is used to create lightweight high-strength nylon automotive parts (engine components, fuel lines, and interior materials) that boost fuel economy and enhance overall vehicle performance. Nylon is used in the textile industry to produce strong and useful fabrics that are used in clothing, sportswear, and outdoor gear. In electronics, nylon also plays a crucial role in manufacturing components like wires, cables, and connectors because of its insulating properties and resistance to wear.

The U.S. Bureau of Labor Statistics reports that the U.S. textile industry generated over USD 80 billion in 2021. Nylon is a critical material used in both consumer and industrial textiles. The increasing demand for durable, high-performance fabrics in apparel, sportswear, and outdoor gear has made nylon one of the most widely used synthetic fibers.

Drivers

• Technological advancements in manufacturing, drive the market growth.

The development of production technologies, innovations in catalytic processes, and synthesis l have enabled cyclohexanone production on a more scalable and cost-effective basis. These advances help manufacturers increase production yields, decrease energy waste, and reduce environmental impact, creating a more sustainable process. In addition, by combining the automation and digitalization of manufacturing plants, the processes get far more efficient, which enables easy monitoring of quality and reduced costs in operational expenditure. This efficiency, coupled with reduced production costs, not only enables cyclohexanone to be produced at a lower price, but also caters to the escalating demand from industries like automotive, textiles, and pharmaceuticals. The technological advancement in cyclohexanone for manufacturing is a significant aspect leading to market growth.

The International Energy Agency (IEA) highlights those technological innovations in manufacturing, such as advanced catalysts and process improvements, have enabled companies to reduce the energy intensity of chemical production by up to 30% in some sectors. These advancements are crucial for meeting both economic and environmental goals and are fostering increased production capacities in industries reliant on chemical intermediates like cyclohexanone.

Restraint

• High cost of raw materials and production hamper the market growth.

The factor that is widely limiting the growth of the market is the high cost of raw materials and production itself. The main commercial route of cyclohexanone production is through the oxidation of cyclohexane, a process that requires specialized apparatus, high-energy inputs, and expensive raw materials. Because these raw materials, especially cyclohexane, are based on petroleum, the production prices may change greatly. Moreover, the manufacturing process is energy-intensive, which also contributes to high costs, making cyclohexanone production costly. Hence, this incurs a high cost which trickles down to the end consumers, especially in cost-sensitive sectors such as textiles, automotive, and chemicals, where cost plays a crucial factor in decision-making.

Segment Analysis  

By Grade

The technical grade system held the largest market share around 75% in 2023.  This is owing to the widespread industrial applications. As chemicals have many uses in many industries, cyclohexanone in its technical grade form finds wide uses in adipic acid, nylon, and polyurethanes manufacturing needed in different sectors, including automotive, textiles, and construction. The low cost and its versatility make it the manufacturer's choice for high volume low-cost applications. Technical grade cyclohexanone is used in many processes such as solvent extraction, coatings, and adhesives with less stringent purity requirements than pharmaceutical or food grade applications. The dominant share of cyclohexanone in the market is primarily attributed to the wide application of cyclohexanone in the production of bulk quantities in the aforementioned industries.

By Application

Caprolactam held the largest market share around 48% in 2023. This is owing to it being an important intermediate in the production of nylon 6, which finds a wide range of applications in automotive, textiles, industrial end-use products. Cyclohexanone is an indispensable intermediate for caprolactam, and hence the market demand for caprolactam is directly related to the increasing usage of nylon 6 in lightweight, durable, and performance material-demanding segments. Caprolactam demand has been propelled by the heavy use of nylon 6 in automotive parts for weight savings & fuel efficiency and in textiles for high-high tensile strength fabrics. Furthermore, the growing industrial sectors in the developing economies which provide the regional market with a broader outlook are propelling the use of nylon-based products which in turn is validating the key segment. Due to this firm alignment of the caprolactam production and the downstream demand, the cyclohexanone market is expected to maintain extensive dominance over the forecast period.

Regional Analysis

Asia Pacific held the largest market share around 54% in 2023. This is owing to strong demand from its major end-use industries. The region is one of the leading textiles, automotive, and construction manufacturing areas across the globe, and those materials are among the most prominent users of cyclohexanone-based products like nylon 6 and polyurethanes. From China, India, and Japan there is an increasing demand for sheet metal fabrication because of strong government initiatives to promote industrial and infrastructural growth. A good example of this is the increasing global manufacturing of automotive components (China is striving to become the largest automotive production nation in the world, while India is expanding its textiles export sector), both have contributed tremendously to cyclohexanone consumption. In addition, the availability of raw materials and low-cost manufacturing makes it a favorable market for cyclohexanone production. North America will also emerge as a leading region in the cyclohexanone market due to well-established retail sectors and consistent growth in consumer spending, while the Asia Pacific will benefit from rapid urbanization and increasing demand for plastics, packaging, and durable goods.

Key Players

• GrafTech International (Ultra-Pure Cyclohexanone, High-Quality Cyclohexanone)

• BASF SE (Cyclohexanone for Adhesives, Cyclohexanone for Coatings)

• ExxonMobil Chemical (Cyclohexanone for Nylon Production, Cyclohexanone for Solvents)

• LG Chem Ltd. (Cyclohexanone for Industrial Applications, Cyclohexanone for Paints and Coatings)

• Honeywell International Inc. (Cyclohexanone for Pharmaceuticals, Cyclohexanone for Chemical Synthesis)

• Mitsubishi Chemical Corporation (Cyclohexanone for Polyester Resins, Cyclohexanone for Rubber Chemicals)

• Royal Dutch Shell plc (Cyclohexanone for Industrial Solvents, Cyclohexanone for Nylon Production)

• Reliance Industries Limited (Cyclohexanone for Plastics, Cyclohexanone for Automotive Coatings)

• China National Petroleum Corporation (CNPC) (Cyclohexanone for Pharmaceuticals, Cyclohexanone for Agrochemicals)

• INEOS Group (Cyclohexanone for Textile Fibers, Cyclohexanone for Coatings)

• SABIC (Cyclohexanone for Synthetic Rubber, Cyclohexanone for Paints)

• Huntsman Corporation (Cyclohexanone for Epoxy Resins, Cyclohexanone for Industrial Adhesives)

• Kraton Polymers (Cyclohexanone for Polymer Products, Cyclohexanone for Rubber Processing)

• Mitsui Chemicals, Inc. (Cyclohexanone for Nylon 6, Cyclohexanone for Plasticizers)

• LyondellBasell Industries (Cyclohexanone for Solvents, Cyclohexanone for Additives)

• Formosa Plastics Corporation (Cyclohexanone for Chemicals, Cyclohexanone for Coating Products)

• Shandong Haili Chemical Industry Co., Ltd. (Cyclohexanone for Agrochemical Production, Cyclohexanone for Rubber Chemicals)

• Zhejiang Materials Industry Group Co., Ltd. (Cyclohexanone for Nylon Production, Cyclohexanone for Industrial Solvents)

• Eastman Chemical Company (Cyclohexanone for Plasticizers, Cyclohexanone for Coatings and Adhesives)

• Fushun Petrochemical Company (Cyclohexanone for Synthetic Fibers, Cyclohexanone for Paints)

Recent Development:

• In 2023- BASF announced advancements in its catalyst technology, improving the efficiency and sustainability of cyclohexanone production. The company is focusing on reducing carbon emissions in its production processes to align with global sustainability goals.

• In 2023- Ube Industries unveiled a new high-purity cyclohexanone product targeting pharmaceutical applications, showcasing its commitment to diversifying its product offerings.

• In 2023- DOMO Chemicals invested in a new sustainability-focused production facility in Europe to enhance its nylon production capacity, emphasizing the importance of cyclohexanone as a critical intermediate.

• In 2022 - AdvanSix expanded its Nylon 6 production capacity, driven by the rising demand for nylon-based products. This expansion required increased cyclohexanone utilization as a key raw material, strengthening its supply chain capabilities