The global N-Methyl-2-Pyrrolidone (NMP) market was valued at $1.12 billion in 2016 and is forecast to grow at a steady CAGR of 5.7% between 2017 and 2024, culminating in 2024 global revenue of $1.71 billion.
The unique properties exhibited by NMP is manifesting it valuable solvent in Petroleum & Petrochemical, agrochemicals, pharmaceuticals, electronics, paints & coatings and many more.
Key Product Categories & Technologies
NMP is an Organic solvent, which is colorless in its pure form with high solvency and belongs to polar aprotic solvent group. Having an advantage over other solvents, NMP is widely used in Petrochemical and Petroleum Industries. The major uses of NMP are in the extraction of pure hydrocarbons and desulphurization of gases. It is also used as an extraction solvent in lube oil processing and reaction medium for polymers. Though there is instability in the petroleum market, Petrochemical sector is emerging and the NMP market revenue is expected grow to 170 million USD by 2024. To this growth Contribution of North America and Asia Pacific region together is expected to be 62%
In electronic industry NMP is used for manufacturing of Printed Circuit boards (making PCB holes conductive), used as a photoresist stripper and degreasing and coating polyamides. Due to the overall growth of electronic industry, demand of NMP is automatically increased and it is expected to contribute 26% to the market revenue by 2024.
In Agriculture Industry NMP is used as a solvent or co-solvent for insecticides and pesticides and also used as a reaction medium for active ingredient or compound synthesis. Wide varieties of sector application is driving the growth in production of NMP, pharmaceutical, agrichemical & paints and coating industries are expected to demand 56000, 51000 and 56000 tons of NMP by 2020.
NMP is produced by ester to amide conversion by treating Butyrolactone. There is a need for new technologies or optimization of existing technology to serve the demand. Johnson Matthey have developed a novel DAVY process which is non catalytic, low cost, optimized heat integrated process for producing n-methyl-2-pyrrolidone (NMP) from methylamine and gamma Butyrolactone. To overcome Environmental and health hazards, new processes using biomass is getting bright recommendation. Pacific Northwest National Lab (PNNL) has developed a simple multi-step process involving both catalytic and non-catalytic events which efficiently converts succinic acid into NMP.
Top Players & Company Share
Global NMP market is driven by major key players like BASF, Dupont, Mitsubishi Chemical, LyondellBasell, Nanjing Jinlong, Balaji Amines, Eastman Chemical Company, Ashland Inc, Abtonsmart Chemical (Group) Co. Ltd. Among the total market, top 5 companies are sharing more than 60% of the market share
Growth Drivers & Restraints, Major Trends and Issues
The growth of the end user industries are expected to increase in forecast year and which will drive the growth of NMP market. In addition, huge demand from developing countries, especially from those in Asia Pacific region, is expected to boost the growth of global NMP market between 2015 and 2024. Consumer electronics industry is expected to stimulate the demand for NMP in order to meet the electronics production requirement on a global level. However, N-Methyl-2-Pyrrolidone has been identified developmental toxin by environmental regulatory bodies across the globe, especially in Europe and North America. NMP in applications such as paints & coatings and industrial cleaners can have strict regulations in the future, especially in Europe and North America. This is likely to slower the growth of NMP market in few applications.
Competitive Dynamics & End market mix
UCB AND DuPont have signed a letter of intent to manufacture and market n-methyl 2-pyrrolidone (NMP) at UCB’s site in Ghent, Belgium. The 50:50 joint ventures will build a 10 000 tons/year plant. The venture, which will have sales of 28 million USD, will market NMP worldwide, focusing on Europe. BASF is building ultrapure NMP plant in Japan and existing NMP production plants at Ludwigshafen in Germany (18 000 tons/year capacity) and Geismar, Louisiana (25 000 tons/year). Lyondellbasell is available geographically in Africa-Middle East, Asia-Pacific, Australia and New Zealand, Europe, North America
Asia Pacific accounted for the largest share of N-Methyl-2-Pyrrolidone in the market worldwide. It accounted for more than 40% share of global N-Methyl-2-Pyrrolidone market at 7.5% CAGR. Europe and North America on other side are expected to slower growth as regards consumption of NMP registering CAGR (2015-2024) of 3.4% and 4.05% respectively in terms of market value. This report provides factors about current markets trends, technologies, and market drivers. Provides market and technology projections for the upcoming years including the present technology and trends
- Market growth drivers
- Top players
- Global regional insights
- Technology outlook
- North America
- Asia Pacific
- Middle East and Africa
- Oil and Gas, Petrochemicals