Market Trends of N-Methyl Pyrrolidone Industry
This section covers the major market trends shaping the N-Methyl Pyrrolidone Market according to our research experts:
Increasing Demand from Electronics Segment
- N-methyl pyrrolidone is an organic compound which is produced industrially by ester-to-amide conversion. It consists of 5 membered lactam and is a colorless liquid which is miscible with water and with most common organic solvents.
- The application of n-methyl pyrrolidone in electronics industry is increasing owing to the 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.
- According to Zentralverband Elektrotechnik- und Elektronikindustrie e.V. (ZVEI), the German Electrical and Electronic Manufacturers' Association, the global electric production was at EUR 4.2 trillion in 2017, which increased by EUR 4.4 trillion in 2018 and was further estimated to reach EUR 4.5 trillion in 2019. However, the industry declined to EUR 4.4 trillion by 2020 end (estimated), severely impacted by the COVID-19 pandemic. In 2019, the industry registered a growth rate of more than 2% which declined to -3% in 2020, but is expected to recover and reach to more than 6% in 2021.
- All such factors are expected to drive the market for n-methyl pyrrolidone over the forecast period.
Understand The Key Trends Shaping This Market
Download Sample
Asia-Pacific Region to Dominate the Market
- Asia-Pacific region is expected to dominate the market for n-methyl pyrrolidone during the forecast period. In countries like China, Japan, and India owing to significant growth in various end-user industries namely oil and gas, pharmaceutical, and electronics industry, the demand for n-methyl pyrrolidone has been increasing in the region.
- 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. According to International Energy Agency, after a 4% drop in 2020, natural gas demand is expected to progressively recover in 2021 as consumption level returns close to its pre-crisis level in mature markets, while emerging markets benefit from an economic rebound and lower natural gas prices, thus affecting the n-methyl pyrrolidone market positively.
- 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 the electronics production in the global market. The country's electronics production which was steadily increasing through the years, has recently suffered from deceleration owing to the ongoing trade war between China and United States, forcing various electronics producers to shift their base from China to other countries in Asia-Pacific region.
- Moreover, China is forecasted to produce over 10 million electric vehicles by 2022, which would increase the demand of lithium-ion batteries, consequently, surge the demand of n-methyl pyrrolidone, which is likely to drive its market in the region during the forecast period.
- The increasing drilling activities in India, in response to the increasing demand for oil and gas, may drive the growth of the domestic oil and gas industry. The Government of India announced plans to raise the share of natural gas in the country's energy mix from 6% in 2016 to 15% by 2022.
- The Indian electronics industry is one of the fastest-growing industries globally. The domestic electronics manufacturing sector has been expanding at a steady rate, owing to favorable government policies, such as 100% foreign direct investment (FDI), no industrial license requirement, and the technological transformation from manual to automatic production processes. New incentives, such as Modified Incentive Special Package Scheme (M-SIPS) and Electronic Development Fund (EDF), have been started in the country, with a budget of USD 114 million, to support the domestic manufacturing of electronics in India.
- All such aforementioned factors, coupled with government support, are contributing to the increasing demand for n-methyl pyrrolidone during the forecast period.
Get Analysis on Important Geographic Markets
Download Sample
