Applications of N-Methyl-2-pyrrolidone (NMP): Market Forecast & Outlook

N-Methyl-2-pyrrolidone (NMP) is an organic compound, belonging to the class of dipolar aprotic solvents. Its miscibility with water makes it a useful compound for petrochemical processing and coating certain solvents in the electronics industry. In this article, we will take a look at the numerous applications of N-Methyl-2-pyrrolidone (NMP) and their market size.

Electronics

NMP is widely used as a photoresist stripper in the electronics industry, however, it has steadily gained acceptance in other applications, such as degreasing and coating polyamides. The electronics industry accounts for bulk of the demand for NMP globally. It is expected that the market revenue of NMP from electronics sector will be nearly US$ 232 Mn by 2020.

Petrochemical Processing

In the petrochemical industry, NMP is used in the extraction of pure hydrocarbons and desulphurisation of gases. It is also used as an extraction solvent in lube oil processing and reaction medium for polymers. Use of NMP in petrochemical processing is anticipated to witness steady growth in the future, owing to its advantages over other compounds. The expected market revenue of NMP through petrochemicals processing is anticipated to reach US$ 115.3 Mn by 2020.

Agriculture

 NMP is used in the agriculture sector as a solvent/co-solvent for insecticides and pesticides. It is also used as a reaction medium for active ingredient/compound synthesis. The use of NMP in agriculture is anticipated to witness increased demand in the future, with the total volume expected to reach 49.9 thousand tons by the end of 2020.

Pharmaceuticals

NMP’s solvency properties make it an excellent compound for use in the pharmaceutical sector. NMP is widely used in the manufacture of transdermal drug patches and topical drug gels. Demand for NMP from the pharmaceutical segment is anticipated to reach 53 thousand tons by 2020.

Paints and Coatings

NMP is used in the paint and coatings industry as a solvent for polyurethane paints, acrylic and epoxy resins, and enamels in wire and non-wire coatings. Demand for NMP from the paints and coatings sector is slated to reach 53.9 thousand tons by the end of 2020.

Industrial Cleaner

NMP’s use in floor cleaning and paint stripping make it a sought-after product for manufacturers. The use of NMP for industrial cleaning is anticipated to witness moderate growth in the future, reaching 35.4 thousand by 2020. Restrictions about the use of NMP in the US, owing to the recent regulations by Environmental Protection Agency (EPA).

Key Trends Affecting Demand for NMP

Although NMP presents a cost-effective opportunity for manufacturers, concerns about the potential impact on the environment has led to increased regulation on its use. Along with the EPA, the ECHA (Europe) has also raised concerns about the use of NMP. It is expected that more countries will follow suit and the restriction on using NMP might increase. These regulations can impede the demand for NMP in the near future. Manufacturers in developed countries have started using substitutes of NMP in a bid to ensure they are not on the wrong side of the law.

Electronics industry accounts for the bulk of the demand for NMP and as there is no direct exposure to NMP in this industry, it is expected that regulations will not play a major role in this market.

North America and Asia Pacific are the largest markets for NMP and the status quo is expected to remain unchanged in the future. These two regions collectively account for a share of over 65%, while Europe accounts for 21% market share.

Related Market Research Report: N-Methyl-2-Pyrrolidone (NMP) Market: Global Industry Analysis and Opportunity Assessment 2014 - 2020