Vinyl Cyclohexane Market Size

Vinyl Cyclohexane Market Size

Vinyl cyclohexane market size was USD 54.4 million in 2020 and will grow at a CAGR of 5.2% from 2021 to 2027. The rising product demand in laboratory research applications in chemical and polymer industries will fuel the market growth.

Vinyl cyclohexane is primarily used in the chemical and polymer industry due to its unique set of properties. For instance, vinyl cyclohexane-based polymers with isotactic configuration has a high melting point and are excellent in heat resistance, which can be prepared by polymerizing vinyl cyclohexane in the presence of a Ziegler-Natta catalyst.

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The market is expected to grow moderately due to rising research & development expenditure in the chemical industry. Market players have set out to tap the growth opportunities of the Asian markets over the past decade. Driven by robust growth visibility and emerging opportunities, chemical companies have accelerated their R&D activities. The integration within the supply chain along with a custom synthesis service has gained momentum in the past few years. Currently, the vinyl cyclohexane market growth is aligned with the growing research expenditures in chemical and polymer industries.

The chemical industry is going through profound changes. The dynamics are shifting and changing the status quo of the industry. However, they are also creating tremendous opportunities for the market players. A rise in research activities by end-user industries will drive the vinyl cyclohexane market trends. For instance, in the past three years, top 20 chemical companies have spent an average of 3.3% of their sales revenue on research. The percentage rose from 2.7% to 3.3% as companies started investing in product innovations and research studies.

Researchers in the polymer industry are constantly searching for a new compound or derivative that has superior properties compared to traditional polymers; thus, there are a number of studies with vinyl cyclohexane-based polymers. Vinyl cyclohexane-based polymers have a low birefringence and high heat deflection temperature thus can be used for optical applications (optical data storage media and lenses). Furthermore, the growth of research activities in the polymer industry along with potential commercialization of vinyl cyclohexane-based polymers will propel the vinyl cyclohexane market share.

The vinyl cyclohexane market growth is heavily tied with research & development activities in major end-user industries such as chemicals & polymers. Increasing research and development studies regarding the derivatives of the product may increase market opportunities for market participants. Many polymer manufacturers are continuously trying to improve the characteristics of the common polymers and expand their application scope.

New copolymers are manufactured with improved operational capabilities and superior working efficiency. Vinyl cyclohexane-based polymers have shown significant promise in various applications. Rising development of new types of polymers and copolymers to overcome the flaws of traditional polymers will propel the product demand.

The vinyl cyclohexane market is in its primary stage as most of the demand is motivated by the ongoing research program and studies regarding the product. It is pull market as manufacturers only produce the product once the end consumer raises the demand. The product has gained interest among chemical & polymer manufacturers. The industry will witness growth in the long-term; however, market participants face challenges such as the toxic and hazardous nature of the product.

Vinyl cyclohexane has been classified as a hazardous material by various regulating bodies such as the ECHA and Globally Harmonized System of Classification and Labelling of Chemicals (GHS). The flammable nature of the product makes it difficult to handle logistics and distribution operations. Furthermore, higher product prices will also pose a significant threat to industry growth.

The COVID-19 pandemic has caused a disruption in the supply chain of the global vinyl cyclohexane market. It can be majorly attributed to the shortage of raw materials. The chemical industry has felt an enormous impact of the COVID-19 pandemic at every stage of the value chain. Product demand fell due to uncertainties in the global economy and capital markets. Value chain disruptions are likely to continue in the foreseeable future as many countries are under the second or third phase of lockdown.