Gamma Butyrolactone Market Size, Share & Trends Analysis Report, By Purity, By Application (Agrochemicals, Pharmaceuticals), By Region, And Segment Forecasts, 2023 - 2030

Gamma-butyrolactone or GBL is the simplest 4-cabon aliphatic lactone. It is used in manufacturing various chemicals such as tetrahydrofuran (THF), methylpyrrolidone (NMP), N-ethylpyrrolidone (NEP), 2-pyrrolidinone, polyvinylpyrrolidone (PVP), and many more. The compound is used as a viscosity modifier for plant growth regulators, rubber additive, polyurethanes, and as a solvent for paint stripping and finds applications in a range of end-use industries including pharmaceuticals, agrochemicals, food & beverages, petroleum, electrical, and others.

Gamma butyrolactone is used as a solvent in electronic industry to manufacture semiconductors used in television, computers, digital cameras, refrigerators, washing machines, and LEDs due to its high solubility. According to European Semiconductor Industry Association, the global semiconductor market is expected to reach USD 527 billion in 2021. Asia Pacific is forecasted to grow at the fastest rate of 23.5%, followed by Europe at 21.7%, and the Americas at 11.1%. The same source suggested that in 2022, the market is anticipated to reach USD 573 billion growing at a rate of 8.8%. This growth is attributed to strong demand for electronic devices due to changing technology coupled with increasing demand for compact consumer electronics thus, driving the demand for the product market.

Additionally, semiconductors are used in electric vehicles to control powertrain and battery and in a variety of touchscreens installed in car dashboards. The growing demand for electric vehicles worldwide is expected to surge the demand for semiconductors, which, in turn, is expected to fuel the demand for the product. According to the International Council on Clean Transportation Factbook, Europe held the second-largest share in the electric vehicle market followed by North America in 2019. By the end of 2019, the market share of electric vehicles stood at around 1.8 million units. Thus, growing electric vehicle sales would subsequently surge the demand for product over the forecast period.

Majority of the industry participants in the market are focusing on differentiating themselves from others as the market is highly competitive. Manufacturers are continuously engaged with the third-party distributors to reach out to potential customers of the product. Companies such as Mitsubishi Chemical Corporation and BASF SE are investing more in research & development activities to develop innovative products to widen their product portfolio designed to customize the product to meet the specific requirements of the customers. Some of the prominent players in the industry include BASF SE, Sipchem, Ashland, Mitsubishi Chemical Corporation, and Lyon