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N-Methyl 2-Pyrrolidone Market Segmented By Electronics, Petrochemical processing, Agrochemicals, Pharmaceuticals, Paints and coatings, Industrial cleaners
Widely applicable in a range of industrial verticals, including petrochemical, electronics, pharmaceuticals, agrochemicals, industrial cleaning, and paints and coatings, N-Methyl-2-Pyrrolidone is especially characterized on the basis of higher flame point and lower volatility. This colorless, organic, polar aprotic solvent is also known as N-Methylpyrrolidone (NMP). NMP forms a sizeable market in the global chemicals industry.
Industrial applications will continue to drive the Driven by wide application in the electronics industry, the global n-methyl-2-pyrrolidone market is projected to expand at a healthy pace by the end of 2028. The escalating demand for lithium-ion batteries is paving the way for the use of n-methyl-2-pyrrolidone and creating new revenue prospects for the market players. Industrial cleaners are expected to emerge as the major revenue-generating end-use application during the forecast period.
The COVID-19 pandemic has halted the production of these batteries and cleaners, creating a challenge ahead of the market. However, this phase is expected to last soon with the upsurge in general business and industrial activities. The market in Europe is expected to exhibit a high growth rate in the coming years on the back of the flourishing electronics industry. Germany is expected to emerge as a global leader in the market with high rates of manufacturing and export of electronic products.
The market players are exploring growth prospects in the growing regions. They are strengthening their foothold in the electronics industry to enhance their market presence. Established players in the global market include Zhejiang Realsun Chemical Industry Co., LyondellBasell Industries N.V., Balaji Amines Limited (BAL), Puyang Guangming Chemicals Co., Ltd., and Ltd. and Hefei TNJ Chemical Industry Co., Ltd.market for N-Methylpyrrolidone over the next few years.
The global N-Methyl-2-Pyrrolidone market is likely to register a moderate CAGR of 5.4% over 2015-2020. The market is anticipated to attain the revenues worth US$ 985.3 Mn by the end of 2020.
Burgeoning applications of N-Methyl-2-Pyrrolidone by a variety of end-use industries will remain the most prominent factor bolstering the growth of the global NMP market. Exploding consumer electronics industry is expected to fuel the demand for N-Methylpyrrolidone in order to meet the electronics production requirement on a global level.
Similarly, growing demand for agrochemicals will continue to create a market for NMP during the aforementioned forecast period. Flourishing pharmaceuticals industry is another key factor that is projected to sustain the demand for NMP over the next four years. Moreover, rising demand from developing economies, especially based in the Asia Pacific region, will remain one of the primary boosters to the market growth.
However, several regulatory bodies across the world – especially in North America and Europe, will continue to label N-Methyl-2-Pyrrolidone as a reproductive, developmental toxin. This will remain a long-term challenge to the growth of the global N-Methylpyrrolidone market. In addition, the market has been witnessing a decline in terms of applications in the industrial cleaning, and paints and coatings industry, which will continue during the forecast period, resulting in limited adoption of NMP in these end-user industries.
The global N-Methylpyrrolidone market can be segmented on the basis of application, into seven key segments viz. electronics, petrochemical processing, agrochemicals, pharmaceuticals, paints and coatings, industrial cleaners, and others. Among these, the electronics application segment is expected to witness the largest market with over 23% market value share by the end of 2020.
This segment is likely to exhibit a promising CAGR of 6.7% over 2015-2020. The next major segment i.e. pharmaceuticals, registered the revenues of US$ 122.7 Mn in 2015, which are expected to grow at a CAGR of 6.3% by 2020. This segment will account for over 15% share of the entire market value by 2020 end.
On the basis of regional analysis, the global N-Methyl-2-Pyrrolidone market is classified as North America, Europe, Asia Pacific (APAC), and Middle East & Africa (MEA). The NMP market will however witness the highest growth in APAC, registering a healthy CAGR of 7.5% during 2015-2020.
This regional is anticipated to record the maximum consumption of NMP globally, dominating the market with almost 40% revenue share. This growth is primarily driven by the rising rate of industrialization, urbanization, and infrastructure development in emerging economies within the Asia Pacific region, followed by relatively lower production costs.
The NMP market in North America will remain the second largest market with over 28% market share in 2020; however, the CAGR will remain as sluggish as 3.9% over 2015-2020. Europe will also remain a mature market, witnessing gradual growth throughout the forecast period. The key factor restraining the growth of market in these two regions is likely to be the stringent regulatory measures regarding specific NMP applications, which demand prolonged human exposure to hazardous chemicals.
Some of the most prominent companies operating in the global N-Methyl-2-Pyrrolidone market, include BASF SE, Ashland Inc., LyondellBasell Industries N.V., Abtonsmart Chemical (Group) Co. Ltd., Shandong Qingyun Changxin Chemical Science-Tech Co., Ltd., Puyang Guangming Chemicals Co., Ltd., Hefei TNJ Chemical Industry Co., Ltd., Zhejiang Realsun Chemical Industry Co., Ltd., and Balaji Amines Limited.
global N-Methyl-2-Pyrrolidone market has been segmented into following seven key segments:
The global NMP market is segmented into four key regions: