According to LookWhole Insight, the global N-methyl-pyrrolidone (NMP) market is projected to reach USD 3.71 Billion in 2024. It is expected to grow to USD 6.26 Billion by 2033, registering a compound annual growth rate (CAGR) of 6.26% during the forecast period (2025–2033). - LookWhole Insight
Source: LookWhole Insight, 2025
N-methyl-pyrrolidone (NMP) Market Analysis
N-Methyl-2-pyrrolidone (NMP) is a colorless to slightly yellow liquid characterized by a high boiling point, low viscosity, and excellent solvency power, making it suitable for dissolving a wide range of organic and inorganic compounds. NMP is synthesized from gamma-butyrolactone and methylamine and is known for its stability, low volatility, and high chemical resistance. Its strong solvating abilities enable broad usage across industries such as electronics, petrochemicals, pharmaceuticals, and paints and coatings.
In 2024, the total market size for N-Methyl-2-pyrrolidone (NMP) was $3,709.98 million, and it is expected to expand at a CAGR of 6.26% from 2025 to 2033, reaching $6,264.63 million by 2033.
Between 2020 and 2025, global NMP production showed significant fluctuations, primarily influenced by the electric vehicle (EV) battery industry. In 2020, production was 1.24 million tons, depressed by the sharp drop in demand due to the pandemic. However, in 2021, the market surged, driven by a rapid increase in lithium-ion battery production, with output growing 22% to 1.52 million tons. That year, power battery production soared 182.5%, leading to a 283.6% increase in NMP consumption. The upward momentum continued in 2022, albeit at a slower pace, with production growing 11% to 1.68 million tons. This growth benefited from rapid capacity expansion in China, adding 530,000 tons of synthetic NMP capacity and 380,000 tons of recycled NMP capacity.
Global NMP Production Statistics and Forecast 2020-2025
Year | Global Production (tons) | YoY Change | Key Drivers | Regional/Technical Features |
2020 | 1,238,906 | / | Pandemic-induced demand slump | Asia-dominated (China: 60% of global capacity) |
2021 | 1,516,636 | 22% | Lithium battery boom | EV battery output ↑182.5% → NMP consumption ↑283.59% |
2022 | 1,680,585 | 11% | Initial capacity expansion | China added 530k tons synthetic + 380k tons recycled capacity |
2023 | 1,741,006 | 4% | Slower battery growth | Recycling tech penetration (80% of new demand met by recycled NMP) |
2024 | 1,906,861 | 10% | Surge in recycling capacity | China’s recycled capacity: 2.49M tons/year → severe oversupply |
2025 | 2,013,931 | 6% | Overcapacity suppressing output | Asia: >50% of global demand; China: 70% of global capacity |
Source: LookWhole Insight, 2025
Key Development Trends
Source: Secondary Sources and LOOKWHOLE INSIGHT,2025
Global N-methyl-pyrrolidone (NMP) Market: Competitive Landscape
According to LookWhole Insight, in 2024 the industry exhibited moderate fragmentation, with the top five manufacturers accounting for about 23.44% of the global NMP market. The relatively low HHI value indicates intense market competition. This index remains well below the concentration threshold, confirming that the global NMP market is not dominated by a few companies but is characterized by decentralization and regional diversity. The slight increase in 2024 may reflect BASF’s declining market share and corresponding growth of Chinese producers. Key market players include Changxin Chemical, Chongqing Zhongrun Chemical Co., Ltd., China Pingmei Shenma Group, BASF, Yuneng Chemical, Ganzhou Zhongneng Industrial Co., Ltd, Shandong Hualu-Hengsheng Chemical, Guangming Chemicals, Mitsubishi Chemical, Wanhua Chemical Group, Zhucheng Taisheng Chemical, Anhui Shengjie New Energy Technology Co., Ltd., Ashland Global Holdings Inc, Londellbasell, MYJ CHEMICAL, Kenli County Xinxin Chemical Co., Ltd., Ruian Chemical, Balaji Amines Ltd., Crystal Clear Electronic Material Co., Ltd., Taizhou Yanling Fine Chemical Co., Ltd., Zhejiang Realsun Chemical Co., Ltd., Eastman, and others.
Overall, entering the NMP industry chain at present is not favorable, especially amid falling prices, underutilized production capacity, oversupply, and weak downstream demand.
Market Report Coverage & Segmentation
ATTRIBUTE | Details | |
Time Coverage | Historical Year: 2020– 2024 Base Year: 2024 Estimated Year: 2025 Forecast Year: 2025 - 2033 | |
Market Segmentation | ||
By Type | l Electronics Grade NMP l Pharmaceutical Grade NMP l Industrial Grade NMP | |
By Application | l Electronics l Pharmaceuticals l Paints and Coatings l Battery Production l Agrochemicals l Petrochemical Processing l Others | |
By Company | l Changxin Chemical l Chongqing Zhongrun Chemical Co., Ltd. l China Pingmei Shenma Group l BASF l Yuneng Chemical l Ganzhou Zhongneng Industrial Co., Ltd l Shandong Hualu-Hengsheng Chemical l Guangming Chemicals l Mitsubishi Chemical l Wanhua Chemical Group l Zhucheng Taisheng Chemical l Anhui Shengjie New Energy Technology Co., Ltd. l Ashland Global Holdings Inc l Londellbasell l MYJ CHEMICAL l Kenli County Xinxin Chemical Co., Ltd. l Ruian Chemical l Balaji Amines Ltd. l Crystal Clear Electronic Material Co.,Ltd. l Taizhou Yanling Fine Chemical Co., Ltd. l Zhejiang Realsun Chemical Co., Ltd. l Eastman | |
By Region | North America | |
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