Global N-Methyl-2-Pyrrolidone market was valued at US$ 1054.1 Mn in 2022, exhibiting a CAGR of 5.8% in terms of revenue, over the forecast period (2023 to 2030) to reach US$ 1654.3 Mn by 2030. N-Methyl-2-Pyrrolidone is a chemical compound with a high boiling point and excellent solvency for a wide range of organic and inorganic chemical compounds. It has high thermal and chemical stability, which makes it ideal for use in coating resins and engineering polymers application. It is also used as a cleaning and paint-stripping solvent agent due to its low surface tension. N-Methyl-2-Pyrrolidone can be used in the formulation and synthesis of various electronic products, polymers, paints, and coatings. Petrochemical, agrochemicals, and wire wrappers are some of the other applications of N-Methyl-2-Pyrrolidone.
Global Thermal Insulation Materials Market- Impact of Coronavirus (Covid-19) Pandemic
The covid-19 has had a negative impact on global N-Methyl-2-Pyrrolidone market. Some of the elements Some of the factors that are impacted, such as supply chain interruptions, are listed below The pandemic has led to widespread disruptions in global supply chains due to lockdowns, travel restrictions, and reduced manufacturing activities. These disruptions could have impacted the production and availability o N-Methyl-2-Pyrrolidone (NMP), affecting its global market. Moreover, manufacturing slowdown is also a factor which is impacted by the pandemic. Many industries experienced a significant slowdown or temporary shutdown of manufacturing facilities during the pandemic. This reduced demand for NMP as end industries scaled back their production or faced supply chain challenges.
Figure 1. Global Thermal Insulation Materials Market, By Material Type, in 2022
Global N-Methyl-2-Pyrrolidone Market - Drivers
Growing demand for N-Methyl-2-Pyrrolidone from the electronic industry is expected to propel the market growth. The growth of the N-Methyl-2-Pyrrolidone market is also attributed to growth in the electronic industry due to the increasing production of consumer electronic products. Moreover, increasing per capita income of the consumer due to economic growth is further expected to accelerate the market growth of N-Methyl-2-Pyrrolidone over the forecast period. For instance, according to the National Invest Production and Facilitation Agency, the global market for consumer electronics was estimated to be worth US$ 1.10 trillion in 2021 and is estimated to grow to about US$ 1.70 trillion by 2028.
Rising demand for N-Methyl-2-Pyrrolidone from the automotive industry in terms of electronic inputs to vehicles is projected to augment market growth. Moreover, increasing industrialization coupled with the growth of rising demand for NMP from the pharmaceutical industry is again expected to accelerate the market growth of N-Methyl-2-Pyrrolidone over the forecast period. For instance, India's Automotive Industry is worth more than US$222 Bn, contributes 8% of the country's total export and accounts for 7.1% of India's Gross Domestic Product (GDP), and is set to become the 3rd largest in the world by 2030.
N-Methyl-2-Pyrrolidone Market Report Coverage
|Base Year:||2022||Market Size in 2022:||US$ 1054.1 Mn|
|Historical Data for:||2017 to 2021||Forecast Period:||2023 to 2030|
|Forecast Period 2023 to 2030 CAGR:||5.8%||2030 Value Projection:||US$ 1654.3 Mn|
BASF SE, LyondellBasell Industries N.V., Ashland Inc., Shandong Qingyun Changxin Chemical Science-Tech Co., Ltd., Hefei TNJ Chemical Industry Co., Ltd., Puyang Guangming Chemicals Co., Ltd., Zhejiang Realsun Chemical Industry Co., Ltd., Abtonsmart Chemical Co. Ltd., and Balaji Amines Limited.
|Restraints & Challenges:||
Global N-Methyl-2-Pyrrolidone Market- Restraints
Side effects associated with prolonged exposure to NMP are projected to restrict the use of the product which in turn will hamper the market growth. Prolonged exposure to NMP may cause skin, eye irritation, and other health issues which are expected to limit the use of N-Methyl-2-Pyrrolidone. Moreover, the increasing focus of manufacturers on conducting various R&D activities in order to develop an ideal substitute for NMP with toxicity is expected to hamper the market growth over the forecast period.
Global N-Methyl-2-Pyrrolidone Market - Segmentation
On the basis of application, electronics dominated the global n-methyl-2-pyrrolidone market in 2022 with around 31.30% of market share in terms of revenue, followed by paints & coatings and pharmaceuticals, petrochemical & processing, agrochemicals, industrial cleaners, and others respectively. In electronics applications, NMP is used for degreasing and cleaning, and as a photoresist stripper. NMP is also used as a solvent in the production of conformal coatings (epoxy and polyurethane coatings) in printed circuit boards (PCB).
Global N-Methyl-2-Pyrrolidone Market - Opportunities
The rising demand for N-Methyl-2-Pyrrolidone from the pharmaceutical industry is expected to propel market growth over the forecast timeframe. Increasing demand for industrial cleaners is expected to turn out to be a potential application area for N-Methyl-2-Pyrrolidone. The rising use of NMP as a coalescing solvent in waterborne paints and solvent-borne coatings is further expected to augment the market growth of NMP in the near future.
Increasing application of NMP in the manufacturing of magnetic wire coatings is expected to propel the market growth. Growing demand for Li-ion batteries for various electronic products is also expected to augment the market growth of N-Methyl-2-Pyrrolidone. Moreover, the flourishing chemical industry is another major factor offering lucrative opportunities to the market of N-Methyl-2-Pyrrolidone over the forecast period.
Figure 2. Global Thermal Insulation Materials Market, By Region, 2022
Global N-Methyl-2-Pyrrolidone Market - Trends
Growth in the refinery projects coupled with the economic development across emerging countries, such as China and India is expected to augment the market growth of N-Methyl-2-Pyrrolidone over the forecast period. Moreover, the low cost of production of NMP and various companies are adopting smart strategies such as marketing their product offering in the market is further expected to accelerate the market growth of NMP over the forecast period.
Regional as well as global expansion is another major step undertaken by manufacturers in order to meet the rising demand for NMP among consumers. The various manufacturers are also establishing new production plants in order to increase the production capacities of the NMP. These moves by major players will favor the market growth global N-Methyl-2-Pyrrolidone over the forecast period.
Regionally, Asia Pacific dominated the global N-methyl-2-pyrrolidone market in 2022, reporting 42.40% market share in terms of revenue, followed by North America and Europe, Middle East & Africa and Latin America respectively. In Asia-Pacific the N-methyl-2-pyrrolidone market will continue to flourish its dominance during the forecast period due to the large-scale growth of different industries, such as agrochemicals, pharmaceuticals, and lithium-ion battery production.
Europe and North America will continue to project the highest CAGR for this period because of the highly stringent regulatory measures regarding specific N-methyl-2-pyrrolidone applications.
Global N-Methyl-2-Pyrrolidone Market- Recent Developments
Global N-Methyl-2-Pyrrolidone Market - Key Players
Key players operating in the global N-methyl-2-pyrrolidone market are BASF SE, LyondellBasell Industries N.V., Ashland Inc., Shandong Qingyun Changxin Chemical Science-Tech Co., Ltd., Hefei TNJ Chemical Industry Co., Ltd., Puyang Guangming Chemicals Co., Ltd., Zhejiang Realsun Chemical Industry Co., Ltd., Abtonsmart Chemical Co. Ltd., and Balaji Amines Limited.
Definition: N-Methyl-2-pyrrolidone (NMP) is an organic compound consisting of a 5-membered lactam. It is a colorless liquid, although impure samples can appear yellow. It is miscible with water and with the most common organic solvents. It also belongs to the class of dipolar aprotic solvents such as dimethyl-form amide and dimethyl sulfoxide. It is used in the petrochemical, polymer, and battery industries as a solvent, exploiting its non-volatility and ability to dissolve diverse materials.
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