Key Market Overview:
N-Methyl-2-Pyrrolidone (NMP) Market size was valued at USD 643 Million in 2022, registering a CAGR of 6.6% during the forecast period (2023-2030), and the market is projected to be worth USD 1140 Million by 2030.
N-methyl-2-pyrrolidone (NMP) is a colorless to light yellow, high boiling, and high-polarity solvent with excellent solvency power for a wide range of organic and inorganic compounds. N-methyl-2-pyrrolidone is a versatile solvent and is used in various industries such as pharmaceuticals, petrochemicals, electronics, and coatings. In the pharmaceutical industry, they are used as a solvent in the production of active pharmaceutical ingredients (APIs) and drug delivery systems. Additionally, in the electronics industry, N-methyl-2-pyrrolidone is used as a cleaning agent for electronic components and in the production of lithium-ion batteries. For instance, BASF SE provides NMP that is likely to be used in a variety of applications including peptide synthesis in the pharmaceutical industry and Lithium-ion battery production.
Moreover, Asia Pacific is the largest market for NMP, The growth in the region is mainly attributed to the increasing demand for NMP from the electronics and automotive industries.
Furthermore, the major players operating in the NMP market are BASF SE, LyondellBasell Industries Holdings B.V., Mitsubishi Chemical Corporation, Eastman Chemical Company, and Ashland Inc.
Increasing demand from the pharmaceutical industry for NMP as a solvent in drug formulations and active pharmaceutical ingredient (API) manufacturing is accelerating the demand for the n-methyl-2-pyrrolidone market. Moreover, the growing demand for NMP in the electronics industry as a solvent for cleaning and stripping electronic components is also boosting market growth. Additionally, in the oil & gas industry, NMPs are used in the process of oil exaction, serving as one of the major drivers.
For instance, Eastman Chemical Company offers n-methyl-2-pyrrolidone for a wide range of applications such as electronics, pharmaceutical, and industrial & household cleaning.
Stringent government regulations on the use of NMP due to its potential environmental and health hazards hinder market growth. For instance, in Europe, NMP has been included in the REACH (Registration, Evaluation, Authorization, and Restriction of Chemicals) regulation, which requires companies to register their use of NMP and provide evidence of its safety.
Furthermore, growing concerns about the toxicity of NMP and its impact on human health are likely to decline in demand for the product. NMP is a reproductive toxicant (damaging the unborn child), it causes serious skin and eye irritation and it is likely to cause respiratory irritation.
NMP is used as a solvent in the production of a number of pharmaceutical drugs, including antibiotics, antifungals, and anti-inflammatory drugs. The pharmaceutical industry is constantly evolving and developing new drugs to treat a variety of diseases and conditions. As new drugs are developed and approved, the demand for NMP as a solvent in drug manufacturing is likely to offer lucrative opportunities to the n-methyl-2-pyrrolidone market.
N-Methyl-2-Pyrrolidone (NMP) Report Coverage:
|Report Attributes||Report Details|
|Market Size in 2030 (USD Million)||1140 Million|
|CAGR (2022-2030)||6.6 %|
|By Grade||Pharmaceutical Grade, Food Grade, Industrial Grade, and Electronics Grade|
|By Application||Solvent, Surface Treatment, Drug Solubilizer, Paint & Coating Removal, Petrochemical Processing, and Others|
|By End Use Industry||Electronics, Oil & Gas, Agrochemicals, Pharmaceuticals, Paints and Coatings, Industrial Cleaners, Food & Beverages, and Others|
|By Geography||North America, Europe, Asia Pacific, Latin America, and Middle East & Africa|
|Key Players||BASF SE, Tianjin Zhongxin Chemtech Co., Ltd., Eastman Chemical Company, Mitsubishi Chemical Corporation, Ashland Inc., Lyondellbasell, Hefei TNJ Chemical Industry Co. Ltd., Balaji Amines Ltd., Santa Cruz Biotechnology, Inc., and Tokyo Chemical Industry Co., Ltd.|
By Grade Type
On the basis of grade type, the market is segmented into industrial grade, pharmaceutical grade, electronics grade, and food grade. The industrial grade segments contributed the largest share of the market in terms of revenue. This is due to the extensive usage of NMP in various industries, including petrochemicals, paints and coatings, agrochemicals, and pharmaceuticals. Industrial Grade NMP is commonly used as a solvent in these industries, helping to improve the solubility of various substances and enhance the quality of end products.
Additionally, the electronics grade segment is anticipated to register a significant growth rate in the NMP market over the forecast period. This is attributed to the fact that electronic-grade NMP is used in the manufacturing of semiconductors, printed circuit boards, and other electronic components. The growing electrical and electronic sector is further increasing the demand for electronics grade NMP.
On the basis of application, the market is categorized into the solvent, surface treatment, drug solubilizer, paint & coating removal, petrochemical processing, and others. The solvent segment is dominating the market in terms of value in 2022. This is attributed to the fact that NMP is widely used as a solvent in various industries such as pharmaceuticals, electronics, agrochemicals, and paints & coatings, making it one of the dominant applications of N-methyl-2-pyrrolidone. N-methyl-2-pyrrolidone is an effective solvent that dissolves a wide range of organic and inorganic compounds, making it an essential ingredient in many chemical formulations.
Additionally, the drug solubilizer is expected to witness a significant growth rate in terms of CAGR over the forecast period. This is due to the fact that NMP improves the solubility of poorly soluble drugs, thus improving their efficacy and bioavailability. This has led to an increased demand for N-methyl-2-pyrrolidone in the pharmaceutical industry.
By End Use Industry
Based on the end-use industry segment, the market is divided into electronics, oil & gas, agrochemicals, pharmaceuticals, paints and coatings, industrial cleaners, food & beverages, and others. The electronics segment dominated the n-methyl-2-pyrrolidone (NMP) market in terms of revenue in 2022. NMP is used as a solvent in the production of semiconductors, electronic components, and displays, which are essential in the electronics industry. The increasing demand for consumer electronics such as smartphones, tablets, and laptops is increasing the demand for NMP.
For instance, Hefei TNJ Chemical Industry Co., Ltd. provides NMP for a wide variety of applications in the electronic industry such as photoresist strippers, electric insulants, and lithium-ion battery
Moreover, the pharmaceutical segment is anticipated to witness a significant growth rate in the n-methyl-2-pyrrolidone (NMP) market over the forecast period. This is attributed to the fact that NMP is used as a solvent in the production of various drugs and pharmaceuticals, and is also used in the manufacturing of pharmaceutical intermediates. For instance, Ashlands offers NMP that is used as a penetration enhancer and drug solubilizer in human and animal parenteral dosage forms.
According to region, the n-methyl-2-pyrrolidone (NMP) market is segmented into North America, Europe, Asia-Pacific, Middle East & Africa, and Latin America. The Asia Pacific held the largest share of the n-methyl-2-pyrrolidone (NMP) market in 2022 owing to the high demand in various industries, including pharmaceutical, oil & gas, and electronics. The region comprises a large population, and a rapidly developing economy, leading to increased demand for n-methyl-2-pyrrolidone across various applications.
Furthermore, North America is expected to witness significant growth over the forecast period. This is attributed to a strong focus on research and development activities in the region, leading to the development of new and innovative applications for NMP. For instance, in 2020, researchers at the University of California, Santa Barbara developed a new method to use n-methyl-2-pyrrolidone (NMP) as a solvent to recycle mixed plastic waste.
N-Methyl-2-Pyrrolidone (NMP) Market Competitive Landscape:
The n-methyl-2-pyrrolidone (NMP) market is highly competitive comprising numerous players operating in the industry. The players are focusing on strategic initiatives, such as mergers and acquisitions, partnerships, collaborations, new product launches, and capacity expansions to strengthen their market position and expand their global presence.
The following are the major key players operating in the n-methyl-2-pyrrolidone (NMP) market:
- BASF SE
- Tianjin Zhongxin Chemtech Co., Ltd.
- Eastman Chemical Company
- Mitsubishi Chemical Corporation
- Ashland Inc.
- Hefei TNJ Chemical Industry Co. Ltd.
- Balaji Amines Ltd.
- Santa Cruz Biotechnology, Inc.
- Tokyo Chemical Industry Co., Ltd.
- In February 2020, Lyondell Basell Industries N.V. revealed its intention to construct a new production facility for propylene oxide (PO) and tertiary butyl alcohol (TBA). LyondellBasell Industries employs PO as a feedstock to manufacture butanediol, which is subsequently used in the production of N-methyl-2-pyrrolidone (NMP).
- In February 2021, Suli Co., Ltd., a chemical manufacturer based in China, revealed its intention to invest over RMB3 Million in the production of a diverse range of fine chemical products. This investment is expected to significantly increase the company’s manufacturing capabilities and expand its product offerings
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