N-Methyl Pyrrolidone Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 1.03 Billion |
| Market Size (2029) | USD 1.27 Billion |
| CAGR (2024 - 2029) | > 4.00 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Asia Pacific |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
N-Methyl Pyrrolidone Market Analysis
The N-Methyl Pyrrolidone Market size is estimated at USD 1.03 billion in 2024, and is expected to reach USD 1.27 billion by 2029, growing at a CAGR of greater than 4% during the forecast period (2024-2029).
- The growing demand for NMP in the electronics industry and increasing usage in the pharmaceutical industry are expected to drive the market. Oil and gas, pharmaceuticals, and electronics industries are the major consumers of n-methyl pyrrolidone.
- However, health issues due to excess usage and government regulations are expected to hinder the market's growth during the forecast period.
- The rising usage of N-methyl pyrrolidone in new applications and new methods of manufacturing creates an opportunity in the market.
- Asia-Pacific dominates the market with the largest consumption from countries such as China, India, Japan, and South Korea.
N-Methyl Pyrrolidone Market Trends
Increasing Demand from Electronics Segment
- N-methyl pyrrolidone is an organic compound that is produced industrially by ester-to-amide conversion. It consists of 5-membered lactam and is a colorless liquid that is miscible with water and with most common organic solvents.
- The application of n-methyl pyrrolidone in the electronics industry is increasing owing to its usage in the production of lithium-ion batteries for electric vehicles, semiconductor device fabrication, and wire enamel coating. It is also used for the removal of excess burr at the time of production of various electronic parts.
- N-methyl pyrrolidone is widely used as a solvent in the production of conformal coatings such as epoxy and polyurethane coatings in printed circuit boards (PCB). It is also used for degreasing, cleaning, and as a photoresist stripper.
- The production by the global electronics and IT industry was estimated at USD 3,436.8 billion in 2022, registering a growth rate of 1% year on year, compared to USD 3,415.9 billion in 2021.
- In North America, the United States launched the CHIPS and Science Act in August 2022 to support domestic production and innovation in the semiconductor industry.
- According to the German Electrical and Electronic Manufacturers Association (ZVEI), the global electro and digital industry reached EUR 239 billion (USD 261.41 billion) in 2023, an increase of 6.6% compared to the previous year. Furthermore, the production revenue of the same industry increased by 0.4% in 2023 compared to 2022. This is likely to raise the demand for n-methyl pyrrolidone owing to the rising electronics industry in Germany.
- In the Asia-Pacific, India launched a comprehensive program for the development of semiconductors and display manufacturing ecosystems in the country. The government announced an outlay of INR 76,000 crore (~USD 10 billion). Fiscal support of 50% of the project cost is provided by the government to set up display fabs and semiconductor fabs, and fiscal support of 50% of capital expenditure for compound semiconductors fab.
- According to the Japan Electronics and Information Technology Industries Association (JEITA), the production by the global electronics and IT industries in the year 2024 is expected to achieve 9% growth after an estimated decline of 3% in the year 2023
- All such factors are expected to drive the market for n-methyl pyrrolidone over the forecast period.
Asia-Pacific to Dominate the Market
- Asia-Pacific is expected to dominate the market for n-methyl pyrrolidone during the forecast period. In countries like China, Japan, and India, the demand for n-methyl pyrrolidone is increasing owing to significant growth in various end-user industries, such as oil and gas, pharmaceutical, and electronics industries.
- The usage of n-methyl pyrrolidone in the oil and gas industry is increasing as it is used as an extraction medium in several applications, like BTX extraction, lube oil purification, and butadiene recovery. There are nearly 825 operational crude oil refineries worldwide and 190 planned refineries as of 2023. According to the International Energy Agency’s (IEA) oil market report of June 2022, net global refining capacity expanded by 1.0 million b/d in 2022 and is expected to expand by an additional 4.4 million b/d by 2028.
- In the electronics industry, n-methyl pyrrolidone is used as a solvent in the production of flexible polyimide copper clad board (FCCL) and in the production of photoresists, which are used in the production of printed circuit boards, flat panel liquid crystal displays, micro electro mechanical systems (MEMs), and integrated circuit (IC) devices including microprocessors and memory chips.
- China dominates electronics production in the global market. The country's electronics production, which has steadily increased over the years, has recently suffered from deceleration owing to the ongoing trade war between China and the United States, forcing various electronics producers to shift their base from China to other countries in Asia-Pacific.
- According to the World Semiconductor Trade Statistics (WSTS), as of November 2023, China is the largest market in Asia, accounting for 55% of the region’s market and 31% of the total global market. However, as of January 2024, according to the General Administration of Customs of the People's Republic of China, the country saw semiconductor import value drop in 2023, signaling the US export curbs, China's indigenization efforts, and a low demand for electronics.
- In the pharmaceutical sector, China’s growing population and healthcare industry drive the demand for NMP as a solvent and carrier for pharmaceutical formulations, as well as drug delivery systems. China is one of the largest markets for pharmaceutical products. In 2026, according to the AstraZeneca report, the estimated pharmaceutical sales in the country are expected to be worth USD 189 billion.
- In India, the domestic electronics manufacturing sector has been expanding steadily, owing to favorable government policies, such as 100% foreign direct investment (FDI), no requirement for an industrial license, and the technological transformation from manual to automatic production processes. New incentives, such as the Modified Incentive Special Package Scheme (M-SIPS) and Electronics Development Fund (EDF), were started in India in August 2023 with a budget of USD 114 million for domestic electronics manufacturing.
- According to the data released by the Japanese Electronics and Information Technology Industries Association (JEITA), in 2023, the total production value of the electronics industry in Japan accounted for around JPY 10.7 trillion. The industry encompasses consumer electronic equipment, industrial electronic equipment, as well as electronic components and devices.
- All aforementioned factors, coupled with government support, are contributing to the increasing demand for n-methyl pyrrolidone.
N-Methyl Pyrrolidone Market Overview
The n-methyl pyrrolidone market is partly consolidated, with top players accounting for a major share of the market. Major companies in the market include (not in particular order) Mitsubishi Chemical Corporation, LyondellBasell Industries Holdings BV, Eastman Chemical Company, Balaji Amines, and BASF SE, among others.
N-Methyl Pyrrolidone Market Leaders
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Eastman Chemical Company
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Mitsubishi Chemical Corporation
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LyondellBasell Industries Holdings B.V.
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BASF SE
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Balaji Amines
*Disclaimer: Major Players sorted in no particular order
N-Methyl Pyrrolidone Market News
- March 2024: Ganzhou Municipal Administration for Industry and Commerce announced the planned acceptance of the environmental impact assessment file for Ganzhou Zhongneng Industrial Co. Ltd, including the planned 150,000-ton NMP, 30,000-ton GBL, and 20,000-ton 2P expansion project. The company is expected to build a 50,000-ton NMP synthetic production line and a 50,000-ton NMP recovery refining production line.
- August 2022: BASF SE announced the production of more specialty pyrrolidones in North America owing to the growing demand for digital inks, coatings, automotive, and agricultural products.
N-Methyl Pyrrolidone Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.1.1 Growing Demand From the Electronics Industry
4.1.2 Increasing Usage in the Pharmaceutical Industry
4.2 Market Restraints
4.2.1 N-methyl Pyrrolidone Hazards and Its Greener Alternatives
4.3 Industry Value Chain Analysis
4.4 Porters Five Force Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Consumers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products and Services
4.4.5 Degree of Competition
5. MARKET SEGMENTATION
5.1 By Application
5.1.1 Oil and Gas
5.1.2 Pharmaceuticals
5.1.3 Paints and Coatings
5.1.4 Electronics
5.1.5 Agrochemicals
5.1.6 Other Applications
5.2 By Geography
5.2.1 Asia-Pacific
5.2.1.1 China
5.2.1.2 India
5.2.1.3 Japan
5.2.1.4 South Korea
5.2.1.5 Malaysia
5.2.1.6 Thailand
5.2.1.7 Indonesia
5.2.1.8 Vietnam
5.2.1.9 Rest of Asia-Pacific
5.2.2 North America
5.2.2.1 United States
5.2.2.2 Canada
5.2.2.3 Mexico
5.2.3 Europe
5.2.3.1 Germany
5.2.3.2 United Kingdom
5.2.3.3 Italy
5.2.3.4 France
5.2.3.5 Spain
5.2.3.6 Nordic Countries
5.2.3.7 Turkey
5.2.3.8 Russia
5.2.3.9 Rest of Europe
5.2.4 South America
5.2.4.1 Brazil
5.2.4.2 Argentina
5.2.4.3 Colombia
5.2.4.4 Rest of South America
5.2.5 Middle East and Africa
5.2.5.1 Saudi Arabia
5.2.5.2 Qatar
5.2.5.3 United Arab Emirates (UAE)
5.2.5.4 Nigeria
5.2.5.5 Egypt
5.2.5.6 South Africa
5.2.5.7 Rest of Middle East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Market Ranking Analysis
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Ashland
6.3.2 BALAJI AMINES
6.3.3 BASF SE
6.3.4 Binzhou City Zhanhua District Ruian Chemical Co. Ltd
6.3.5 BYN Chemical Co. Ltd
6.3.6 Eastman Chemical Company
6.3.7 Ganzhou Zhongneng Industrial Co. Ltd
6.3.8 Hefei TNJ Chemical Industry Co. Ltd
6.3.9 LyondellBasell Industries Holdings BV
6.3.10 Mitsubishi Chemical Corporation
6.3.11 Prasol Chemicals Limited
6.3.12 Puyang Guangming Chemical Co. Ltd
6.3.13 Santa Cruz Biotechnology Inc.
6.3.14 Shandong Qingyun Changxin Chemical Science-Tech Co. Ltd
6.3.15 Tokyo Chemical Industry Co. Ltd
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 New Applications and Production Methods of NMP
7.2 Other Opportunities
N-Methyl Pyrrolidone Industry Segmentation
N-methyl pyrrolidone is a polar solvent that is highly miscible with most organic solvents. It is widely used in various industries and applications, such as petrochemical processing, agricultural chemicals, electronic cleaning, paint and coating removal, and industrial/domestic cleaning. N-methyl pyrrolidone is increasingly being used to refine lubricating oil. In addition, it helps in improving the viscosity index and oil performance.
The market is segmented by application and geography. By application, the market is segmented into oil and gas, pharmaceuticals, paints and coatings, electronics, agrochemicals, and other applications. The report also covers the market size and forecasts for the n-methyl pyrrolidone market in 28 countries across major regions. For each segment, the market sizing and forecasts have been done based on revenue (USD).
| By Application | |
| Oil and Gas | |
| Pharmaceuticals | |
| Paints and Coatings | |
| Electronics | |
| Agrochemicals | |
| Other Applications |
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N-Methyl Pyrrolidone Market Research FAQs
How big is the N-Methyl Pyrrolidone Market?
The N-Methyl Pyrrolidone Market size is expected to reach USD 1.03 billion in 2024 and grow at a CAGR of greater than 4% to reach USD 1.27 billion by 2029.
What is the current N-Methyl Pyrrolidone Market size?
In 2024, the N-Methyl Pyrrolidone Market size is expected to reach USD 1.03 billion.
Who are the key players in N-Methyl Pyrrolidone Market?
Eastman Chemical Company, Mitsubishi Chemical Corporation, LyondellBasell Industries Holdings B.V., BASF SE and Balaji Amines are the major companies operating in the N-Methyl Pyrrolidone Market.
Which is the fastest growing region in N-Methyl Pyrrolidone Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in N-Methyl Pyrrolidone Market?
In 2024, the Asia Pacific accounts for the largest market share in N-Methyl Pyrrolidone Market.
What years does this N-Methyl Pyrrolidone Market cover, and what was the market size in 2023?
In 2023, the N-Methyl Pyrrolidone Market size was estimated at USD 0.99 billion. The report covers the N-Methyl Pyrrolidone Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the N-Methyl Pyrrolidone Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
N Methyl Pyrrolidone Industry Report
Statistics for the 2024 N Methyl Pyrrolidone market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. N Methyl Pyrrolidone analysis includes a market forecast outlook 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
N Methyl Pyrrolidone Market Report Snapshots
