by The global N-Methyl-2-Pyrrolidone Market is estimated to be valued at US$ 1.12 Bn in 2023 and is expected to exhibit a CAGR of 5.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
N-Methyl-2-pyrrolidone (NMP) is an organic compound that is hygroscopic and colorless liquid in form. It is primarily used as a solvent in commercial and industrial applications. NMP has good compatibility with a wide range of organic and inorganic compounds owing to its properties like high solvency power, low volatility and viscosity. It is widely used in electronics, agrochemicals, pharmaceuticals and paints & coatings industries for removal of rosin flux from printed circuit boards and as extractant for organic synthesis processes. In paints & coatings industry, NMP is primarily used as a solvent for various resins and pigments. Its non-flammable nature makes it a preferred option for various paint formulations.
Market key trends:
Growing demand for paints and coatings from industries such as automotive, construction and aerospace is majorly driving the market growth. NMP plays an imperative role in formulations of various coatings and paints. Its desirable properties related to better pigment wetting, film formation and leveling make it suitable solvent for paints manufacturing. Additionally, stringent regulatory policies pertaining to use of volatile organic compounds (VOCs) is further propelling the replacement of conventional solvents with eco-friendly NMP solvent. Moreover, increasing applications of NMP in electronics manufacturing especially in semiconductor wafer cleaning processes is also contributing to the market growth. However, adverse health effects associated with exposure to NMP vapors coupled with availability of alternatives are some of the factors expected to hinder the market growth over the forecast period.
Porter’s Analysis
Threat of new entrants: Low capital requirements and no major economies of scale are barriers for new players to enter the market. However, the presence of established brands makes it difficult for new entrants.
Bargaining power of buyers: Large buyers have more bargaining power due to their bulk purchase. However, the availability of substitutes provides some balance in buyers’ negotiating power.
Bargaining power of suppliers: The availability of close substitutes limits the power of suppliers. Suppliers also have low bargaining power due to the commodity nature of NMP production.
Threat of new substitutes: The threat of new substitutes is moderate as there are substitutes available but NMP still maintains its importance due to performance advantages over substitutes.
Competitive rivalry: The market is mature with the presence of established brands. However, pricing competition is low due to product differentiation and costs of switching.
Key Takeaways
The global N-Methyl-2-Pyrrolidone market is expected to witness high growth, exhibiting CAGR of 5.8% over the forecast period, due to increasing demand from electronics and pharmaceuticals industry where NMP is used as a solvent.
Regionally, the Asia Pacific region dominates the global NMP market and is expected to continue its dominance during the forecast period. Key factors driving the growth include the presence of pharmaceutical and electronics manufacturing hubs in countries such as China, India, and South Korea.
Key players operating in the N-Methyl-2-Pyrrolidone market are BASF SE, LyondellBasell Industries N.V., Ashland Inc., Shandong Qingyun Changxin Chemical Science-Tech Co., Ltd., Hefei TNJ Chemical Industry Co., Ltd., Puyang Guangming Chemicals Co., Ltd., Zhejiang Realsun Chemical Industry Co., Ltd., Abtonsmart Chemical Co. Ltd., and Balaji Amines Limited. These players are focusing on capacity expansion plans to cater to the rising demand from end-use industries.
