Polyamides Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

Polyamides Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

The polyamides market is projected to register a CAGR of more than 4% during the forecast period.

• COVID-19 negatively impacted the market in 2020. However, the market reached pre-pandemic levels in 2022 and is expected to grow steadily in the future.
• The increasing demand from the automotive and packaging industry is expected to drive the growth of the market growth during the forecast period. On the other hand, stringent government regulations and competition from elastomer-based alternatives are expected to hinder the market's growth.
• The increasing popularity of bio-based polyamides is expected to be an opportunity in the future. The Asia-Pacific region dominates the global market, with the largest consumption from countries such as China, India, and Japan.

• The use of plastics makes vehicles lighter, safer, and more economical. Plastics are used for making interiors, structural elements, propulsion engineering, and technical parts. Polyamide is used in producing glass-reinforced plastics-based structural parts, air intake manifolds, engine covers, rocker valve covers, airbag containers, and various other interior and exterior automotive parts.
• For a car's powertrain, manufacturers are promoting plastic chain tensioner guides made of PA 4, 6 since PA 6, 4 offers better wear performance than high molecular weight PA 6, 6, and PA 6, 6. It also enhances safety and reduces noise generation. PA 6, 6 has found its way into automotive cooling systems, allowing the consolidation of various components that were once made of aluminum and plastics. PA 6, 6 is also used in headlamp bezels.
• India witnessed a significant increase in the sales of passenger vehicles and commercial vehicles. For instance, the domestic sales of passenger vehicles were 3,069,499 for 2021-2022, representing an increase of 13% compared to 2020-21.
• Furthermore, the country witnessed a significant increase in the production of passenger vehicles. For instance, according to the latest data published by the Society of Indian Automobile Manufacturers (SIAM), the production of passenger vehicles reached 3,650,698 for 2021-2022, representing an increase of 19% compared to FY 2020-21, supporting the market growth.
• Moreover, the expansion of the automotive segment in China is anticipated to benefit the demand for polyamides. According to the China Association of Automobile Manufacturing (CAAM), the country's production of new electric vehicles (NEVs) witnessed a year-on-year increase of 96.9% in December 2022. This, in turn, is expected to increase the demand for polyamides in the country.
• Thus, with expanding automotive industry, the demand for polyamides subsequently increases during the forecast period.

• Asia-Pacific accounted for the largest polyamide market in the past few years. The growing automotive industry, defense sector, electronics sector, etc., in various countries in the Asia-Pacific region, is driving the market studied. The automotive industry is the largest consumer of polyamides. The demand for polyamides from the automotive sector is increasing at a moderately high rate.
• Rapid population expansion and increased disposable income are two major reasons driving vehicle demand in the region. According to the International Organization of Motor Vehicle Manufacturers (French: Organisation Internationale des Constructeurs d'Automobiles) (OICA), China is the largest producer of automobiles. The country alone produced 2,60,82,220 units of vehicles in 2021.
• Moreover, China is witnessing growth in the defense sector, and the country has the largest defense spending in the world. The government of China has proposed a USD 230 billion defense budget for 2022, representing an increase of 7.1% year-on-year, supporting the market's growth significantly.
• Furthermore, according to Japan Electronics and Information Technology Industries Association, the overall production value of the Japan electronics sector increased by almost 10% to around USD 100 billion in 2021, increasing the demand for polyamides in the region during the forecast period.
• Hence, due to the above-mentioned reasons, Asia-Pacific is anticipated to dominate the market studied during the forecast period.

The polyamide market is partially fragmented in nature. Some of the major players in the market include Arkema, BASF SE, DuPont, DSM, and Kuraray Co. Ltd., among others.

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support