Caprolactone Market Trends
Growth Drivers
- Growing Medical Sector – One of caprolactone's most significant uses in the medical sector is the production of biodegradable sutures. Therefore, On account of the increasing healthcare awareness across the globe, the market is expected to expand more in the upcoming years. In the UK, healthcare spending increased by over 15% in 2020.
- Rising Demand for Biodegradable Polymers – Caprolactone is used as a raw material for the production of biodegradable polymers, as a result, is estimated to drive market growth. Between 2018 and 2023, the global demand for biodegradable plastics was anticipated to rise by over 8% annually.
- Increasing Construction Sector – On the account of rising urbanization and growing household income in emerging economies, the market is expected to expand more in the upcoming years. According to the most recent expenditure data, in India, construction spending was anticipated to rise by over 10% in 2022.
- Surging Demand for Electrical Appliances – It is expected that the rising population across the globe has led to an increase in the demand for electrical appliances. Further, polyurethane-based foams, which are utilized for thermal and acoustic insulation in a variety of electronic applications, are made from basic materials including caprolactone, which is anticipated to drive market growth. It was discovered that consumer electronics sales in India increased by more than 8% in 2022.
Challenges
- Toxic Nature of Caprolactone - The increasing concern amongst individuals for the high toxicity of caprolactone is one of the major factors predicted to slow down the market growth. For instance, caprolactone can cause skin irritation, and allergic reactions, if inhaled or ingested.
- Fluctuating Prices of Raw Materials such as Cyclohexanone and Hydrogen
- Availability of Alternative Materials
Caprolactone Market: Key Insights
The chemical industry is a major component of the economy. According to the U.S. Bureau of Economic Analysis, in 2020, for the U.S., the value added by chemical products as a percentage of GDP was around 1.9%. Additionally, according to the World Bank, Chemical industry in the U.S. accounted for 16.43% to manufacturing value-added in 2018. With the growing demand from end-users, the market for chemical products is expected to grow in future. According to UNEP (United Nations Environment Program), the sales of chemicals are projected to almost double from 2017 to 2030. In the current scenario, Asia Pacific is the largest chemical producing and consuming region. China has the world’s largest chemical industry, that accounted for annual sales of approximately more than USD 1.5 trillion, or about more than one-third of global sales, in recent years. Additionally, a vast consumer base and favorable government policies have boosted investment in China’s chemical industry. Easy availability of low-cost raw material & labor as well as government subsidies and relaxed environmental norms have served as a production base for key vendors globally. On the other hand, according to the FICCI (Federation of Indian Chambers of Commerce & Industry), the chemical industry in India was valued at 163 billion in 2019 and it contributed 3.4% to the global chemical industry. It ranks 6th in global chemical production. This statistic shows the lucrative opportunity for the investment in businesses in Asia Pacific countries in the upcoming years.
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
6.7% |
|
Base Year Market Size (2024) |
USD 296.87 million |
|
Forecast Year Market Size (2037) |
USD 689.77 million |
|
Regional Scope |
|
