The petrochemical industry is expected to experience significant growth over the next decade, driving up the demand for N-methyl pyrrolidone (NMP). Additionally, the electronic sector is anticipated to see a surge in demand for chemicals, further contributing to this trend.
The flourishing electronics industry is largely fueled by the increasing production of consumer electronic goods. Moreover, rising discretionary incomes, resulting from economic growth, are likely to accelerate the demand for NMP.
The automotive sector is also expected to significantly boost NMP sales, as the need for electronic components in vehicles grows. Furthermore, industrialization and the rising demand for NMP as a drug solubilizer in the pharmaceutical sector are key factors propelling market growth.
Manufacturers of NMP should focus on producing electronic-grade N-methyl pyrrolidone, which is essential for lithium-ion batteries. This focus is expected to enhance revenue streams and open up important opportunities in the market.
However, the industry faces challenges, particularly due to the removal of NMP from production processes due to its toxicity. For example, in 2023, Leclanché developed low-cobalt lithium-ion cells with 20% greater energy density by eliminating the use of N-methyl pyrrolidone as a solvent.
Top Highlights from the FMI’s Analysis of the N-methyl Pyrrolidone Industry:
- N-methyl pyrrolidone (NMP) industry in the United States is estimated to account for 19.8% market share in 2023.
- In the Europe region, Germany and the United Kingdom are key markets for N-methyl pyrrolidone (NMP). Germany’s market is estimated to account for 4.2% market in 2023. Based on CAGR, the United Kingdom is anticipated to register a 2.9% CAGR over the estimated period.
- Asia Pacific region is predicted to showcase a healthy growth rate. For instance, India and China are forecasted to expand at 6.5% and 5.9% CAGR, respectively, over this decade.
- Based on grade, the standard segment is projected to account for 49.2% market share in 2023.
- In the application category, petrochemical processing is expected to account for 14.1% of the market share.
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Key Developments Taking Place in N-methyl Pyrrolidone Market
- In December 2020, BASF SE officially declared that the company is set to increase the prices of N-methyl pyrrolidone. The price change was announced for North America and Europe region. It came into effect from the 1st of January, 2021, or as per the existing contracts permit.
- In late 2020, Tesla’s CEO Elon Musk announced cutting down the costs of the extremely costly part of an EV by developing in-house batteries. The company faces a long process of enhancing its battery factory. This is further complicated by new plans to deploy innovative manufacturing technology known as dry electrode coating. This technique eventually lessens the mixing step and slurry preparation. It further reduces the drying period, and discards the toxic volatile fumes generated from N-methyl pyrrolidone, recycling systems, and solvent recovery.
Key Companies Profiled
- BASF SE
- LyondellBasell Industries NV
- Ashland Inc.
- Eastman Chemical Company
- Balaji Amines
- Mitsubishi Chemical Corporation
- Hefei TNJ Chemical Industry Co. Ltd.
- Shandong Qingyun Changxin Chemical Science-Tech Co., Ltd.
- Zhejiang Realsun Chemical Co. Ltd.
- Puyang Guangming Chemicals Co. Ltd.
- Binzhou Yuneng Chemical Co. Ltd.
- Binzhou City Zhanhua District Ruian Chemical Co. Ltd.
- Hefei Tengchao Chemical Material Co. Ltd.
- Shanghai Poochun Industry Co. Ltd.
N-methyl Pyrrolidone (NMP) Market by Category
NMP Industry by Grade:
- Standard
- Electronics
- Pharmaceutical
- Others
N-methyl Pyrrolidone (NMP) Market by Application:
- Petrochemical Processing
- Paints & Coatings
- Industrial Cleaners
- Electronics
- Agrochemicals
- Pharmaceuticals
- Others
NMP Industry by Region:
- North America
- Latin America
- Europe
- East Asia
- South Asia & Pacific
- The Middle East & Africa
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