N-Methyl-2-Pyrrolidone (NMP) Global Market Report 2024

The n-methyl-2-pyrrolidone (nmp) market size has grown strongly in recent years. It will grow from $1.04 billion in 2023 to $1.12 billion in 2024 at a compound annual growth rate (CAGR) of 7.2%. The expansion observed in the historical period can be attributed to an increased demand for lithium-ion batteries and a rise in the demand for electronic products.

The n-methyl-2-pyrrolidone (nmp) market size is expected to see strong growth in the next few years. It will grow to $1.47 billion in 2028 at a compound annual growth rate (CAGR) of 7.0%. The anticipated growth in the forecast period can be attributed to increasing demand from the pharmaceutical industry, a rising demand for electric vehicles, and rapid urbanization. Key trends projected for the forecast period include a continued increase in demand from the pharmaceutical industry, a growing demand for electric vehicles, and the ongoing trend of rapid urbanization.

The N-Methyl-2-Pyrrolidone (NMP) market is poised for growth, driven by increasing demand from the oil and gas industries. This sector, encompassing processes and systems for the production and distribution of oil and gas, relies on advanced technology and capital-intensive operations. NMP plays a crucial role in the industry, contributing to the re-refinement of lubricating oil. It enhances viscosity index, improves oil performance, and boosts efficiency in oil and solvent extraction. According to the International Energy Agency (IEA), a prominent intergovernmental organization based in France, global oil consumption is projected to rise to 104.1 million barrels per day (mb/d) by 2026, further fueling the demand for N-Methyl-2-Pyrrolidone (NMP).

The N-Methyl-2-Pyrrolidone (NMP) market is also set to benefit from the increasing adoption of electric vehicles (EVs). As electric vehicles utilize rechargeable batteries powered by one or more electric motors, the demand for NMP, a solvent with various industrial applications, is on the rise. The International Energy Agency reported exponential growth in the electric car market, with sales surpassing 10 million in 2022. Electric vehicles accounted for 14% of all new car sales in 2022, marking a substantial increase from around 9% in 2021 and less than 5% in 2020. This growing adoption of electric vehicles contributes significantly to the expansion of the N-Methyl-2-Pyrrolidone (NMP) market.

The pharmaceutical industry's increasing demand for N-Methyl-2-Pyrrolidone is expected to be a key driver in the market's growth. This compound serves as an intermediate and enhances the solubility of poorly soluble drugs in the pharmaceutical sector. With diverse applications across various industries, the pharmaceutical sector is anticipated to significantly contribute to the market's growth. According to Mint, an Indian business and financial daily newspaper, the Indian pharmaceutical industry recorded a compound annual growth rate (CAGR) of 6-8% during FY18 to FY23, driven by an 8% increase in exports and a 6% rise in the domestic market. This surge in demand from the pharmaceutical industry is expected to propel the N-Methyl-2-Pyrrolidone (NMP) market's growth.

Prominent companies within the n-methyl-2-pyrrolidone (NMP) market are strategically focusing on investment initiatives, particularly in the production of chemical intermediates. This strategic emphasis is aimed at meeting the increasing demand for versatile chemicals and ensuring a dependable global supply. The production of chemical intermediates involves the manufacturing of key components such as Hydroxyethyl)-2-Pyrrolidone (HEP) and N-Octyl-2-Pyrrolidone (NOP), catering to diverse applications in crop protection, electronics, coating, and detergent manufacturing. As an example, in August 2022, BASF SE, a leading Germany-based chemicals company, announced its plan to enhance the production of N-(2-Hydroxyethyl)-2-Pyrrolidone (HEP) and N-Octyl-2-Pyrrolidone (NOP) at its Geismar, Louisiana, Verbund site. The commencement of production was anticipated in the second half of 2022, reinforcing a robust global supply of HEP and NOP. The significance of HEP as a versatile chemical intermediate lies in its role as a co-solvent in the formulation of crop protection agents, electronic coatings, and inkjet formulations. Similarly, N-Octyl-2-Pyrrolidone (NOP), another versatile chemical intermediate, serves various purposes, functioning as a solvent and low-foaming surfactant. NOP finds applications as a solvent in the production of crop protection active components, a wetting agent in dishwashing detergents, and in diverse automotive applications.

In April 2022, Synthomer PLC, a UK-based chemicals company, acquired the adhesive resins business of Eastman Chemical Company for $1 billion. This acquisition aimed to strengthen Synthomer's leading positions in key end-markets such as building and construction, transportation, and consumables. Eastman Chemical Company is a US-based chemicals company.

Major companies operating in the n-methyl-2-pyrrolidone (nmp) market report are LyondellBasell Industries NV, Mitsubishi Chemical Group Corporation, BASF SE, Eastman Chemical Company, Ashland, Inc.,Balaji Amines Limited, Binzhou Yuneng Chemical Co Ltd., Zhejiang Realsun Chemical Industry Co Ltd., Hefei TNJ Chemical Industry Co., Ltd., Tokyo Chemical Industry Co., Ltd., RX Chemicals, Manas Petro Chem, Jaewon Industrial Co., Ltd., Shanghai Poochun Industry Co., Ltd., Shandong Hualu Hengsheng Group Co., Ltd., Hefei Tengchao Chemical Material Co., Ltd., Shandong Qingyun Changxin Chemical Science-tech Co., Ltd., Hammond Chemicals, VWR International, Dow Inc., Abtonsmart Chemicals Co., Ltd., Saudi Arabian Oil Group, Sharjah Chemical, Wego Chemical Group.

Asia-Pacific was the largest region in the n-methyl-2-pyrrolidone (NMP) market in 2023. The regions covered in the n-methyl-2-pyrrolidone (nmp) market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the n-methyl-2-pyrrolidone (nmp) market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

The primary types of N-methyl-2-pyrrolidone (NMP) include recycled and fresh variants. Recycled NMP serves as a non-hazardous solvent, particularly employed in the lithium-ion battery production system. The purity grades of NMP are classified into categories such as 99.9%, 99.5%, and others. It is utilized by various end-use industries, including paints and coatings, electronics, automotive, chemicals, pharmaceuticals, agrochemicals, and others.

The N-Methyl-2-pyrrolidone (NMP) market research report is one of a series of new reports that provides N-Methyl-2-pyrrolidone (NMP) market statistics, including N-Methyl-2-pyrrolidone (NMP) industry global market size, regional shares, competitors with an N-Methyl-2-pyrrolidone (NMP) market share, detailed N-Methyl-2-pyrrolidone (NMP) market segments, market trends and opportunities, and any further data you may need to thrive in the N-Methyl-2-pyrrolidone (NMP) industry. This N-Methyl-2-pyrrolidone (NMP) market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

N-Methyl-2-pyrrolidone (NMP) is frequently used in business and pharmaceutical settings. NMP is remarkably powerful in preserving the dispersions of different kinds of nanomaterials. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.