Global GBL and NMP Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

Global GBL and NMP Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

Gamma-Butyrolactone (GBL) is a hygroscopic colorless, water-miscible liquid with a weak characteristic odor. It is the simplest 4-carbon lactone. It is mainly used as an intermediate in the production of other chemicals, e.g. methyl-2-pyrrolidone.

N-Methyl-2-pyrrolidone (NMP) is an organic compound consisting of a 5-membered lactam. It is a colorless liquid, although impure samples can appear yellow. NMP (N-Methyl-2-Pyrrolidone) is a polar solvent with outstanding characteristics.

Market Overview:

The latest research study on the global GBL and NMP market finds that the global GBL and NMP market reached a value of USD 2805.9 million in 2022. It’s expected that the market will achieve USD 4371.4 million by 2028, exhibiting a CAGR of 7.67% during the forecast period.

The impact of the Russia-Ukraine war on the GBL and NMP Market

War is slowing economic recovery
Before the war, the world economy was recovering from the blow brought by COVID-19. Supply chain disruptions exacerbated by the conflict in Ukraine and shutdowns in China due to a zero-coronavirus policy have dealt a severe blow to the economic recovery. Growth in almost all economies will be significantly weaker than expected. Many of the worst-hit countries are in Europe, which is vulnerable to war due to energy imports and refugee flows. Countries around the world are being hit by rising commodity prices, which have added to inflationary pressures, dampening real income and spending, further dampening the economic recovery.

Inflationary pressure intensifies

The war has had a huge global impact on inflation, which has hit its highest level in 40 years in Germany, the UK and the US, new forecasts from the OECD show. A gradual easing of supply chain and commodity price pressures and the impact of higher interest rates should begin to materialize by 2023, but core inflation in many major economies is expected to remain at or above central bank targets by year-end.

Cost of living crisis will create hardship and risk famine

Russia and Ukraine are important suppliers to many commodity markets. Together, they account for 30 percent of global wheat exports, 20 percent of corn, mineral fertilizers and natural gas, and 11 percent of oil. After the war broke out, the prices of these commodities rose sharply. Without action, the risk of a food crisis is high. Supply disruptions are intensifying, threatening especially low-income countries that are highly dependent on Russia and Ukraine for basic staples. With public budgets stretched for two years by the COVID-19 pandemic, these countries may struggle to provide their people with food and energy at affordable prices, risking famine and social unrest.

The occurrence of the Russo-Ukraine war had a negative impact on most industries in the world, including the GBL and NMP industries. For example, rising energy prices have increased the industry's production and operating costs. In addition, part of the market demand for GBL and NMP comes from the battery industry, which are widely used in consumer electronics and new energy vehicles. Downside risks to the economy will reduce consumer demand for the above products, thereby affecting the GBL and NMP industries through the supply chain.

The development of downstream industries is driving the growth of the industry

In the production of lithium batteries, NMP is used to dissolve/swell POLYVINYLIDENE FLUORIDE (PVDF) and dilute the slurry. As one of the main raw materials in the manufacturing process of lithium-ion batteries, NMP directly affects the quality of slurry coating and environmental protection requirements of lithium-ion batteries. The market size and demand of NMP also grow with the growth of lithium-ion batteries, especially energy storage batteries and power batteries.

Lithium-ion battery is currently the most ideal secondary battery and is widely used in the field of portable electronic products. The traditional application fields of lithium-ion batteries mainly include consumer electronics industries such as mobile phones, notebook computers, and digital cameras. In recent years, with the rapid development of digital products such as smartphones and tablet computers, the demand for lithium-ion batteries has increased. In addition, the society has higher and higher requirements for environmental protection, energy saving and consumption reduction, and the advantages of long cycle life, environmental protection and energy saving of lithium-ion batteries are becoming more and more prominent. Especially after the cost of lithium-ion batteries has been continuously reduced and their safety performance has been improved, lithium-ion batteries have replaced other types of batteries in many fields.

Lithium-ion batteries have the advantages of high specific energy, long cycle life, fast charging and discharging, high energy efficiency, and environmental protection. The price of products will be reduced through the scale effect of production. Lithium-ion batteries will be used in many fields such as electric tools, electric bicycles, hybrid vehicles, energy storage power supplies, and energy storage power stations to replace nickel-metal hydride batteries and lead-acid batteries. Lithium-ion batteries are the most advantageous products in this field. Compared with lithium-ion batteries, lead-acid batteries in the field of energy storage have the advantages of low price and mature technology. As the industrial scale increases, the cost of lithium-ion batteries will gradually decrease. In terms of technology, through continuous technological innovation and repeated testing and testing, lithium-ion battery technology is becoming more and more mature. At present, lithium-ion batteries have been gradually put into large-scale use in power, energy storage and other fields, realizing the replacement of some lead-acid batteries, and their market share has increased significantly. Therefore, this will lead to a simultaneous surge in the market demand for NMP and GBL.

Adequate supply of raw materials

The main raw materials required for the production of NMP and GBL are BDO (1,4-Butanediol) and methylamine. As the technology of BDO industry matures day by day, the production capacity can grow and expand rapidly. This enables the industry development of NMP and GBL to have relatively complete supply chain support, which will play a positive role in promoting the development of the industry.

Region Overview:

In 2022, the share of the GBL and NMP market in China stood at 69.41%.

Company Overview:

Anhui Shengjie New Energy is one of the major players operating in the GBL and NMP market, holding a share of 15.85% in 2023.

Anhui Shengjie New Energy's main product NMP is a high-quality environmentally friendly solvent necessary for lithium batteries, semiconductors, liquid crystal displays, insulating materials, aramid fiber, polymer materials, coatings, medicine, veterinary drugs, petrochemicals, cleaning, inks, agrochemicals, etc., especially in lithium In the battery industry, as an excellent electrode auxiliary material for lithium-ion batteries, the market prospect is very broad.

Segmentation Overview:

By type, N-Methyl-2-pyrrolidone (NMP) segment accounted for the largest share of market in 2022.

Application Overview:

By application, the Battery segment occupied the biggest share from 2018 to 2022.

Key Companies in the global GBL and NMP market covered in Chapter 3:

Anhui Shengjie New Energy
Ashland
ZhongRun
Shandong Changxin Chemical
Mitsubishi Chemical Corporation
BYN Chemical
Lyondellbasell
MYJ Chemical
Crystal Clear
BASF
Eastman

In Chapter 4 and Chapter 14.2, on the basis of types, the GBL and NMP market from 2018 to 2029 is primarily split into:

N-Methyl-2-pyrrolidone (NMP)
Gamma Butyrolactone (GBL)

In Chapter 5 and Chapter 14.3, on the basis of Downstream Industry, the GBL and NMP market from 2018 to 2029 covers:

Battery
Spices
Pharmaceutical
Chemical
Other

Geographically, the detailed analysis of consumption, revenue, market share and growth rate, historic and forecast (2018-2029) of the following regions are covered in Chapter 8 to Chapter 14:

North America (United States, Canada)
Europe (Germany, UK, France, Italy, Spain, Russia, Netherlands, Turkey, Switzerland, Sweden)
Asia Pacific (China, Japan, South Korea, Australia, India, Indonesia, Philippines, Malaysia)
Latin America (Brazil, Mexico, Argentina)
Middle East & Africa (Saudi Arabia, UAE, Egypt, South Africa)