Impact Analysis of Covid-19
The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.
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 and low surface tension. N-Methyl-2-Pyrrolidone can be used in the formulation and synthesis of various electronic products, polymers, and paints and coatings. Petrochemical, agrochemicals, and wire wrappers are some of the other applications of N-Methyl-2-Pyrrolidone.
The global N-methyl-2-pyrrolidone market is projected to surpass US$ 1400 million by the end of 2027, in terms of revenue, growing at CAGR of 5.4% during the forecast period (2020 to 2027).
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.
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 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.
Regionally, Asia Pacific dominated the global N-methyl-2-pyrrolidone market in 2019, reporting 33% market share in terms of revenue, followed by North America and Europe, respectively.
Figure 1. Global N-Methyl-2-Pyrrolidone Market, Revenue Share (%), By Region, 2019
Side-effects associated with the prolonged exposure to NMP are projected to restrict the use of the product which in turn hampering 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
Increasing focus of manufacturers on conducting various R&D activities in order to develop an ideal substitute of NMP with toxicity is expected to accelerate the market growth over the forecast period.
The rising demand for N-Methyl-2-Pyrrolidone from pharmaceutical industry is expected to propel the 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. Rising use of NMP as coalescing solvent in waterborne paints and solvent-borne coatings is further expected to augment the market growth of the 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 N-Methyl-2-Pyrrolidone Market – Opportunity Analysis
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 which is further expected to accelerate the market growth of NMP over the forecast period.
Regional as well as the global expansion is another major step undertaken by the manufacturer in order to meet the rising demand for NMP among consumers. The various manufacturer is also establishing new production plants in order to increase the production capacities of the NMP. This moves by major players will favor the market growth N-Methyl-2-Pyrrolidone over the forecast period.
Figure 3. Global N-Methyl-2-Pyrrolidone Market, Revenue Share (%), By Application, In 2019
On the basis of application, electronics dominated the global n-methyl-2-pyrrolidone market in 2019 with around 23% of market share in terms of revenue, followed by paints & coatings and pharmaceuticals, respectively,
Key players are 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.