Cyclohexane Market size is expected to witness commendable growth over 2023–2022, impelled by the escalating adoption of the compound as a raw material in producing nylon intermediates and its rising application scope across the textile industry.
Likewise, its emergence as an alternative to benzene and the increasing deployment in manufacturing cyclohexanone and cyclohexanol, which are used as precursors for caprolactam and adipic acid production, will drive industry share.
Cyclohexane, the cyclic form of hexane, refers to an alicyclic hydrocarbon consisting of a ring of six carbon atoms. It is a non-polar, flammable, colorless liquid with a detergent-like odor used in varied solvent applications and the production of cyclohexanone and cyclohexanol for solvent use.
Growing investments in nylon and cyclohexane facilities are among the key trends bolstering the cyclohexane market share over 2032–2032. Recently, the Department of Pharmaceuticals, India announced implementing a scheme under PLI for promotion of domestic manufacturing of crucial KSMs for nearly 21 projects. These have been commissioned with an actual investment of USD 107.8 million. One of these projects include the production of over 25,000 million tons of Para Aminophenol and over 4500 million tons of 1,1 Cyclohexane Diacetic Acid.
The Russia-Ukraine conflict has directly impacted the prices of natural gas and crude oil in Europe, forcing chemical producers to increase the selling prices. As a result, they are starting to lose ground to rivals in the US, Asia, and the Middle East. Due to the conflict in Ukraine, the cost of electricity and feedstock for chemical plants has also increased. Moreover, high freight charges and inflation brought on by rising fuel prices would further challenge the market landscape.
The cyclohexane market value from the automotive end-user segment will depict strong growth rate through 2032, driven by the high preference for personal mobility. Moreover, the shift from car-pool services or public transport to personal vehicles is likely to translate into increased vehicle sales and, in turn, stimulate industry dynamics due to the deployment of nylon-6 engineering resins in automotive components. As per OICA statistics, the global sales of passenger vehicles surpass 56 million units in 2021.
Latin America cyclohexane market is expected to account for an appreciable share of the global industry by 2032. This can be credited to the strong focus on restructuring and reassessment of supply chains by textile and apparel manufacturers in the region.
Global cyclohexane market key players include BASF, DSM, ExxonMobil, Sunoco Chemicals, Sinopec Limited (China Petrochemical Corporation), Chevron Philips, and Huntsman Corporation, among others. These firms are introducing new products and entering partnership and acquisition deals to reinforce their footprint across the global market.
In 2022, Par Pacific Holdings, Inc. acquired the 63,000 bpd Billings refinery and associated marketing and logistics assets (collectively, the “Billings Assets”) from ExxonMobil Corporation and two of its subsidiaries. With this acquisition, Par Pacific plans to enhance its scale and geographic diversification, underpinning the focus on pursuing strategic growth initiatives.