1 Global GBL and NMP Market Insight Analysis
The global GBL and NMP market size is expected to be USD 2,925.1 million in 2024, with a CAGR of 10.05% from 2024 to 2033.
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.
Figure Global GBL and NMP Market Size (M USD) and CAGR (2024-2033)
2 GBL and NMP Market Growth Drivers and Restraints
Downstream industry development drives demand growth: The lithium battery industry plays a key role in driving the demand for GBL and NMP. In lithium battery production, NMP is used to dissolve/swell PVDF (polyvinylidene fluoride) and dilute slurry, which directly affects the quality and environmental protection requirements of lithium batteries. With the continuous expansion of the market size of lithium batteries, especially energy storage batteries and power batteries, the market demand for NMP and GBL has also increased. The wide application of lithium batteries in portable electronic products, electric vehicles, energy storage and other fields has made its market prospects broad, which in turn has driven the continued expansion of the GBL and NMP markets.
Adequate supply of raw materials: The main raw materials BDO (1,4-butanediol) and methylamine required for the production of GBL and NMP are in sufficient supply. The increasingly mature technology of the BDO industry and the continuous improvement of production capacity have provided stable supply chain support for the GBL and NMP industries, effectively promoted the development of the industry, ensured the smooth progress of production, and avoided production restrictions caused by raw material shortages.
Impact of raw material price fluctuations: Fluctuations in upstream raw material prices have brought great challenges to the GBL and NMP industries. As the main raw material, the price fluctuation of BDO directly affects the sales price of GBL and NMP products and the working capital investment of enterprises. In the future, the instability of BDO prices will lead to price fluctuations of GBL and NMP products, which will in turn affect the profitability of the industry and increase the operating risks of enterprises.
Pressure brought by the competitive landscape of the industry: From the perspective of the global NMP market, industry-leading companies such as BASF of Germany and Mitsubishi Chemical of Japan have a long history in R&D and production, and have advantages in scientific research, scale, capital, market and brand. These companies have occupied a large market share with their strong competitiveness, making it difficult for new entrants to compete with them in a short period of time, limiting the development space of new companies, and having a certain inhibitory effect on the overall competitive vitality and innovative development of the market.
3 Technological Innovations in the GBL and NMP Market
NMP preparation technology continues to develop: NMP preparation methods are diverse, and the current mainstream method is the mixed amine method, which has the advantages of low cost and good product quality. In addition, catalyst-free synthesis methods and continuous production processes are also developing. The catalyst-free synthesis of NMP processes adopted by BASF in Germany and Mitsubishi Chemical in Japan have different raw material GBL production routes, but they have promoted technological progress in the industry. BASF has also developed a new process for continuous production of NMP, which improves the raw material conversion rate and selectivity, and reduces investment costs and raw material consumption.
Product purity improvement has become a research and development focus: lithium batteries have extremely high requirements for NMP purity, especially water content. Therefore, ultra-clean and high-purity reagents have become the future research and development direction of the industry. At present, the commonly used preparation technologies in the world include high-efficiency continuous distillation technology, low-temperature gas distillation and absorption technology, ion exchange technology, membrane treatment technology, etc. These technologies help to improve the purity of NMP and meet the ever-increasing needs of downstream industries.
Enterprise mergers and acquisitions: Sichuan Shengjie New Energy Technology Co., Ltd. signed a contract with Jiang’an County Government to build an annual production of 250,000 tons of N-methylpyrrolidone (NMP) and 25,000 tons of composite conductive slurry. The project will be built in three phases and will expand the company’s production scale and enhance its market competitiveness.
Through the implementation of such projects, companies can integrate resources, optimize production layout, improve production efficiency, further consolidate and expand market share, and occupy a more advantageous position in the fierce market competition. At the same time, it will also help promote the scale and intensive development of the industry, promote the rational allocation of resources, and improve the economic benefits and market influence of the entire industry.
4 Global GBL and NMP Market Size by Type
NMP is anticipated to dominate the market in 2024, with a revenue of $2,562.6 million USD. This represents approximately 87.61% of the total market revenue. NMP’s dominance is attributed to its widespread use in various industries, particularly in the production of lithium-ion batteries. As a polar solvent with high solubility and stability, NMP is essential for dissolving and processing materials in battery manufacturing, making it a critical component in the rapidly growing electric vehicle and energy storage sectors. Additionally, NMP finds applications in the pharmaceutical industry as a solvent and extraction medium, further contributing to its significant market share.
GBL, on the other hand, is projected to generate a revenue of $362.5 million USD in 2024, accounting for 12.39% of the total market revenue. GBL is a versatile chemical intermediate used in the synthesis of various compounds, including NMP. Its applications span across multiple industries, such as pharmaceuticals, where it serves as a precursor for drug intermediates, and in the chemical industry for the production of solvents and resins. GBL is also used in the electronics industry as a solvent for photoresists and in the production of supercapacitors. Despite its lower market share compared to NMP, GBL’s importance in these critical applications ensures its continued relevance and demand.
Table Global GBL and NMP Market Size and Share by Type in 2024
Type | Market Size (M USD) 2024 | Market Share 2024 |
|---|---|---|
N-Methyl-2-pyrrolidone (NMP) | 2562.6 | 87.61% |
Gamma Butyrolactone (GBL) | 362.5 | 12.39% |
5 Global GBL and NMP Market Size by Application
The market revenue for the battery application was 1971.7 million USD, accounting for a significant share of 67.41%. This high revenue and share are mainly due to the rapid development of the lithium – battery market. Lithium – ion batteries, widely used in portable electronic devices, electric vehicles, and energy storage systems, have a high demand for NMP as it is used in the production process to dissolve or swell PVDF and dilute the slurry.
The spices application ranked second. It generated a market revenue of 358.7 million USD, holding a share of 12.26%. Although the share was relatively smaller compared to the battery industry, it still contributed substantially to the overall market.
The pharmaceutical application had a market revenue of 258.2 million USD, with a share of 8.83%. In the pharmaceutical industry, GBL and NMP are used in some chemical synthesis processes or as solvents in certain drug formulations.
The chemical application brought in a revenue of 187.5 million USD, accounting for 6.41% of the market share. These products are utilized in various chemical reactions and processes as important chemical raw materials or solvents.
Table Global GBL and NMP Market Size and Share by Application in 2024
Application | Market Size (M USD) 2024 | Market Share 2024 |
|---|---|---|
Battery | 1971.7 | 67.41% |
Spices | 358.7 | 12.26% |
Pharmaceutical | 258.2 | 8.83% |
Chemical | 187.5 | 6.41% |
Other | 149.1 | 5.10% |
6 Global GBL and NMP Market Size by Region
In the USA, the GBL and NMP market is projected to reach a revenue of $335.8 million USD in 2024. This represents a substantial increase from the previous years, indicating a robust growth trajectory. The USA has been a key market for GBL and NMP due to its large-scale industrial operations and technological advancements. The country’s focus on innovation and research and development (R&D) in the chemical sector is a significant driver of this growth. Additionally, the USA’s stringent environmental regulations and the need for high-performance chemicals in various applications further boost the demand for GBL and NMP.
Europe is another significant market for GBL and NMP, with an expected revenue of $209.3 million USD in 2024. The region has shown a steady increase in market size over the past few years, reflecting the growing demand for these chemicals in various industrial sectors. Europe’s strong pharmaceutical and automotive industries are major consumers of GBL and NMP, utilizing them in manufacturing processes and as solvents. The region’s commitment to sustainability and the development of green technologies also contributes to the increasing demand for high-quality chemicals like GBL and NMP.
China stands out as the largest market among the three, with an expected revenue of $1,947.4 million USD in 2024. This dominant position is driven by China’s rapid industrialization and the government’s focus on expanding its chemical industry. China’s large-scale production facilities and increasing demand from domestic industries, particularly in the electronics and pharmaceutical sectors, are key factors contributing to this growth. Moreover, China’s strategic initiatives to boost domestic production and reduce reliance on imports further enhance the market size for GBL and NMP.
Figure Global GBL and NMP Market Size (M USD) by Region in 2024
7 Global GBL and NMP Market Analysis by Major Players
Anhui Shengjie New Energy
Company Profile: Anhui Shengjie New Energy, established in 2016, is a prominent player in the GBL and NMP market. Headquartered in China, the company primarily serves the Asian market. Known for its commitment to quality and innovation, Anhui Shengjie has established itself as a reliable supplier in the chemical industry.
Business Overview: Anhui Shengjie New Energy specializes in the production of high-quality environmentally friendly solvents essential for various industries, including lithium batteries, semiconductors, and coatings. The company’s broad market prospect is driven by the increasing demand for lithium-ion batteries, particularly in the electric vehicle and energy storage sectors.
Product Offered: The company’s main product, NMP, is recognized for its low toxicity, low corrosion, high boiling point, and low volatility. It is widely used in applications such as pesticide additives, industrial cleaning agents, and electronic insulating materials.
2023 Financial Summary: In 2023, Anhui Shengjie New Energy reported a revenue of $421.4 million USD and a gross margin of 27.70%, reflecting its strong market position and effective cost management.
Shandong Changxin Chemical
Company Profile: Shandong Changxin Chemical, founded in 2009, is a leading chemical company specializing in the production and operation of N-methylpyrrolidone (NMP), γ-butyrolactone (GBL), and α-pyrrolidone (α-P) series products. Headquartered in China, the company serves mainly the Asian market.
Business Overview: Shandong Changxin Chemical operates on a large scale, focusing on the production of NMP, GBL, and α-P. The company’s products are widely used across various industries, including microelectronics, batteries, and industrial cleaning agents.
Product Offered: Shandong Changxin Chemical offers NMP and GBL, which are used in high-end microelectronics, electronic grade applications, and battery production. The products are known for their strong hygroscopicity and solubility in water and various solvents.
2023 Financial Summary: In 2023, Shandong Changxin Chemical achieved a revenue of $426.2 million USD and a gross margin of 25.83%, indicating its robust operational efficiency and market penetration.
BASF
Company Profile: BASF, established in 1865, is a global chemical company headquartered in Germany. With a worldwide sales reach, BASF is a leading player in the chemical industry, known for its diverse product portfolio and commitment to sustainability.
Business Overview: BASF operates in various sectors, including chemicals, plastics, crop protection products, and performance products. The company serves industries ranging from construction and agriculture to electronics and automotive, offering a broad range of products from solvents and adhesives to pigments and paints.
Product Offered: BASF’s product line in the GBL and NMP sector includes high-quality solvents used in pharmaceuticals, coatings, and lithium-ion battery production. The company emphasizes the development of sustainable and high-performance chemicals.
2023 Financial Summary: For the year 2023, BASF reported a revenue of $323.8 million USD in the GBL and NMP sector, with a gross margin of 27.97%. This reflects BASF’s strong market presence and effective management of its chemical operations.