Propane Market to Reflect Impressive Growth Rate by 2027

Priyanka Thakare

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N-Methyl-2-Pyrrolidone Market: Key Highlights

The N-methyl-2-pyrrolidone (NMP) market was valued at ~US$ 1.1 Bn in 2018, and is anticipated to expand at a CAGR of ~6.0% from 2019 to 2027.
The global N-methyl-2-pyrrolidone market is driven by the rise in the demand for N-methyl-2-pyrrolidone from the electronics industry.
In terms of value, the N-methyl-2-pyrrolidone market in Asia Pacific is expected to expand at a CAGR of ~8% during the forecast period. China is a major producer of N-methyl-2-pyrrolidone in Asia Pacific.

Major Drivers of N-Methyl-2-Pyrrolidone Market

The demand for N-methyl-2-pyrrolidone has been increasing due to the implementation of stringent regulations on fossil fuel-based vehicles. Rise in the production of electric vehicles can be attributed to the increase in regulations on the emission of carbon dioxide.
The NMP market is also driven by the increase in initiatives to boost the sales of electric vehicles, which is anticipated to fuel the demand for N-methyl-2-pyrrolidone. Electric vehicles operate on lithium-ion batteries that use N-methyl-2-pyrrolidone.

High Demand in Electronics Surging N-Methyl-2-Pyrrolidone Market Growth

N-methyl-2-pyrrolidone is extensively used as a solvent in the manufacturing of flexible polyimide copper clad board (FCCL), polyamide or polyimide wire enamels, epoxy, and polyurethane coatings in the electronics sector. It is also used as a stripper in defluxing, degreasing, and cleaning agents. Electrodes of lithium-ion batteries are primarily produced by mixing active Li-ion, a conductive material, along with polyvinylidene fluoride (PVDF) and N-Methyl-2-pyrrolidone.
Other applications of NMP in the electronics sector include removal of excess burr at the time of the production of various electronic parts. Photoresists are used in the production of printing plates, printed circuit boards, flat panel liquid crystal displays, magnetic recording heads, micro electromechanical systems (MEMS), and integrated circuit (IC) devices, including microprocessors and computer memory chips.
These factors are expected to boost the growth of the N-methyl-2-pyrrolidone market over the period of forecast.

Restrictions on Usage of NMP to Hamper Global Market

The usage of N-methyl-2-pyrrolidone is associated with health problems such as headache, stomach pain, vomiting, and nausea. Thus, N-methyl-2-pyrrolidone is on the Special Health Hazard Substance List, and is banned in Europe for its use in new processes.
N-methyl-2-pyrrolidone also causes reproductive hazards. This is likely to hamper its usage in the near future. Currently, there are stringent regulations in Europe and North America on its usage; however, no such regulations have been implemented in Asia Pacific.

Asia Pacific to Dominate Global N-Methyl-2-Pyrrolidone Market

Based on region, the global NMP market has been divided into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. In terms of production, Asia Pacific holds a major share of the global N-methyl-2-pyrrolidone market, due to its consumption in countries such as China, India, and Japan, in the region.
China is the leading producer and consumer of N-methyl-2-pyrrolidone in Asia Pacific. Based on application, the electronics segment held a prominent share of the NMP market in China in 2018.
The rapid growth of economies such as India and China is estimated to create lucrative opportunities for the N-methyl-2-pyrrolidone market in Asia Pacific in the near future.

Significant Share Held by Top Three Players in 2018

Major players operating in the global N-methyl-2-pyrrolidone market are focusing on product development and acquisitions. These include LyondellBasell Industries N.V., BASF SE, Ashland Global Holdings Inc, and Eastman Chemical Company. These players accounted for significant shares of the global NMP market in 2018.
BASF SE led the global N-methyl-2-pyrrolidone market in 2018. However, LyondellBasell Industries N.V. is expected to dominate the global N-methyl-2-pyrrolidone market in the near future. Moreover, Ashland Global Holdings Inc and Eastman Chemical Company are expected to gain market share in the NMP market during the forecast period.