N-Methyl-2-Pyrrolidone (NMP) Market

N-Methyl-2-Pyrrolidone (NMP) Market: Improved Safety to Become Top Priority in Various Application Areas: Global Industry Analysis 2013 - 2017 and Opportunity Assessment 2018 - 2028

  • 2018-03-21
  • REP-GB-625
  • 262 pages
  • PDF PPT EXCEL
N-Methyl-2-Pyrrolidone (NMP) Market

An Incisive, In-depth Analysis on the N Methyl Pyrrolidone Market

This study offers a comprehensive, 360 degree analysis on the N Methyl Pyrrolidone market, bringing to fore insights that can help stakeholders identify the opportunities as well as challenges. It tracks the global N Methyl Pyrrolidone market across key regions, and offers in-depth commentary and accurate quantitative insights. The study also includes incisive competitive landscape analysis, and provides key recommendations to market players on winning imperatives and successful strategies.

Relative non-reactivity and high solvency to make N-Methyl-2-Pyrrolidone widely applicable worldwide

N-Methyl-2-Pyrrolidone is highly soluble in lower ketones, lower alcohols, ethyl acetate, chloroform, benzene, ether and is moderately soluble in aliphatic hydrocarbons. It is biodegradable and recyclable by distillation and has versatile properties and finds applications in industrial and automotive cleaning, photoresist stripping, graffiti removal and water borne coatings. NMP, owing to its relative non-reactivity and high solvency, finds wide applicability as an extraction solvent in lube oil processing as well as in natural and synthetic gas purification. These properties also makes NMP widely applicable as an extraction solvent in lube oil processing as well as in natural and synthetic gas purification. NMP is used in water borne paints as a coalescing solvent and also in solvent-borne coatings. It finds significant usage in wire coatings made from PAI and PI. It is also used in the production of magnetic wire coatings. Among all the major application areas, electronics is expected to dominate the global market, with its market value expected to reach over US$ 250 Mn by the end of 2028, growing at a CAGR of 5.2% during the forecast period. Industrial cleaners may also turn out to be another lucrative application area of NMP with a high market value estimated during the forecast period.

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Increasing production of electronics to boost the application of NMP and fuel market revenue growth

Demand for NMP is anticipated to increase in some end use applications such as electronics during the forecast period. There is no direct exposure to NMP in the electronics industry as most processes are conducted in isolated clean rooms. Over the last few years, the electronic goods market in Europe has been growing steadily with a higher growth rate than the global industry production. The Li-ion battery market is also anticipated to expand at a strong rate during the forecast period, which in turn will trigger the growth of the NMP market worldwide. However, within Europe, Germany is the largest producer of electronic goods. The production growth rate of the electronics industry in Germany has been above the European average. Approximately 40% of the electronic products manufactured in Germany are exported. The German electronics industry is recognised as one of the strongest and is also the most research and development intensive, thereby making it the most lucrative regional market for NMP.

Introduction of product substitutes in the global NMP market may lead to a decline in revenue growth

The price of NMP ranges from US$ 2000 per ton to over US$ 2800 per ton. This is a result of low production volume and extreme care is required during the manufacturing process involving the use of NMP. This makes the production cost higher than that of regular grades. The use of NMP is limited to certain high cost, speciality and niche applications that necessitate significantly higher levels of purity and performance characteristics. For the same reason, the overall NMP market is significantly smaller as compared to other industrial solvents. Companies are now looking for substitutes of NMP due to its high cost, delicate nature, and also due to concerns pertaining to health safety. Mature markets in the Asia Pacific region are anticipated to show moderate growth of green products. The trend in Asia Pacific is to produce products that are environment-friendly and cause no harm to human health. These factors may lead to a decline in the growth of the global NMP market in the coming years.

Global Chemicals and Materials Industry Outlook

Recycle and reuse practices are impacting the sales of virgin materials, resulting into lesser dependency on volume-driven growth. New materials are showcasing potential for driving value-based growth, but chemical companies are still some time away from achieving voluminous production, while maintaining high quality at the same time. Barring few exceptions, a majority of players are still prioritizing short-term volume growth over long-term value growth. Pressure on improving bottom-line is influencing manufacturers to improve efficiency and reduce operational costs. The impact of value-driven growth may not be visible in the short-term, but long-term outlook remains in favor of a balanced approach between value and volume.

Manufacturers are under increasing pressure to incorporate digital solutions in their offerings. Forward-thinking manufacturers are investing in technology to reduce human interference and streamline key operational aspects such as ordering and shipping. Resonating its influence over every industry, Internet of Things (IoT) has the potential to transform and disrupt the chemical sector. Connectivity through IoT devices is gaining traction, whereas product-level sensors on dispensing equipment and barrels are helping manufacturers track their consignments digitally. Through assessment of long-term benefits, chemical companies are capitalizing on digitization by adopting digital platforms & processes that eliminate human error in profit-associated operations.

Manufacturers continue seeking low-priced feedstock in a bid to marginally reduce pre-production costs. Industry leaders are joining forces to replace fossil fuel-derived feedstock with bio-based alternatives. However, concerns related to producing affordable and sustainable feedstock at mass scale remains a challenge. Access to quality and affordable feedstock will continue to remain a focus area for manufacturers. Chemical manufacturing processes are running on limited energy, while volume of feedstock is getting stranded at ports as disapproval from import authorities keeps disrupting supply chains in sectors, such as oleochemicals and petrochemicals industries.

Chemical manufacturers have promised support and adherence to governments & regional authorities that are committing towards green, sustainable initiatives. Development of bio-alternatives is gaining momentum. Research & academic institutes are teaming up with manufacturers to formulate sustainable substitutes for commonly-used chemical substrates. Many companies are keeping a close eye on advancements in “green chemistry.” Shift towards eco-friendly chemicals will gain momentum in the future on the back of government regulations and end-user preference. Rising costs of fossil fuels will also instrument the upsurge for sustainable chemicals manufacturing.

List of factors tracked in the Chemicals and Materials Market Report

  • Chemical Industry Value Add

  • Chemical Sales

  • Per Capita Consumption

  • Standard Capacity Factors

  • Plastics Consumption Outlook

  • Glass Consumption Outlook

  • Policies and Regulations

  • Historical growth of top players

  • Growth in associated markets

  • Net trade scenario

  • Apparent production capacity

Data Collection

FMI collects data from secondary sources including company annual reports, association publications, industry presentations, white papers, and company press releases apart from these we leverage over paid database subscriptions and industry magazines to collect market information and developments in exhaustive manner. After being done with desk research, detailed questionnaire and discussion guide is formulated to initiate primary research with key industry personnel; the discussion aims at collecting key insights, growth perspectives, prevalent market trends and quantitative insights including market size and competition developments. Both of these research approaches help us in arriving at base year numbers and market hypothesis.

Data Validation

In this phase, FMI validates the data using macro and micro economic factors. For instance, growth in electricity consumption, industry value added, other industry factors, economic performance, growth of top players and sector performance is closely studied to arrive at precise estimates and refine anomalies if any.

Target Audience

  • Production Companies

  • Suppliers

  • Channel Partners

  • Marketing Authorities

  • Subject Matter Experts

  • Research Institutions

  • Financial Institutions

  • Market Consultants

  • Government Authorities

Key Questions Answered

  • How the market has performed over the past few years?

  • What have been the challenges for market participants and how did they overcome them?

  • How has the technology landscape evolved over the past years?

  • How the competitors have performed and what have been their growth strategies?

  • What is the market potential expected to look like in near future across the globe?

  • How to sustain and grow market share?

  • What should be the future course of action?

  • Where do I currently stand?

  • Which are the segments, factors, regions offering promising growth potential?

  • What are the trends in the market and am I ready for them?

Market Taxonomy

By Application

By Region

  • Petrochemical

  • processing

  • Paints & Coatings

  • Industrial Cleaners

  • Electronics

  • Agrochemicals

  • Pharmaceutical

  • Others

  • North America

  • Latin America

  • Western Europe

  • Eastern Europe

  • SEA & Pacific

  • Japan

  • MEA

  • China

N-Methyl-2-Pyrrolidone (NMP) Market Reports - Table of Contents

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Harish Tiwari

Harish Tiwari

Global Head - Business Development

Pranay Mhaisekar

Pranay Mhaisekar

Business Development

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