2-Amino-2-Methylpropane Nitrile Market - Forecast(2023 - 2028)

2-Amino-2-Methylpropane Nitrile Market Overview

The 2-Amino-2-Methylpropane Nitrile Market size is forecast to reach US$2 billion by 2027, after growing at a CAGR of 5.1% during the forecast period (2022-2027). 2-amino-2-methylpropane nitriles are primarily used in applications such as chemical reagents which include phosphines, pyridines, dichloromethane, and other reagents along with pharmaceutical intermediates. According to Institute for Healthcare Informatics, the overall volume of medicines used across the globe reached around 4.5 trillion doses in 2020 with an approximate cost of around US$1.4 trillion. An increase in demand for medical drugs and medicines along with the development of new pharmaceutical manufacturing facilities acts as the major driver for the market. On the other hand, health hazards associated with the use of 2-amino-2-methylpropane nitriles may act as a major constraint for the market.

COVID-19 Impact

There is no doubt that the COVID-19 lockdown had impacted the 2-amino-2-methylpropane nitrile industry. Strict lockdowns all over the world interrupted the entire supply and trade of raw materials from manufacturing hubs. This, in turn, resulted in slow developments and manufacturing of drugs along with severely affecting multiple companies that primarily depended on outsourcing. However, the 2-amino-2-methylpropane nitrile industry started gaining momentum at the end of 2020, owing to an increase in demand for medical drugs and vaccines used during COVID-19. For instance, according to recent insights published on PLOS medicine, the cumulative volume of antibiotics that were sold in 2020 was about 16,290 million doses. Likewise, Gilead Sciences reported that its total revenue increased by 17% after incorporating the sales of coronavirus treatment Remdesivir. Hence, the increasing demand for medical drugs and vaccines to be manufactured in bulk in many countries across the world during COVID-19 resulted in the growth of the 2-Amino-2-Methylpropane Nitrile Market as it is primarily used in pharmaceutical intermediate in the production of various types of drugs in bulk quantity. This indicates a steady recovery of the market in the upcoming years.

Report Coverage

The report: “2-Amino-2-Methylpropane Nitrile Market Report– Forecast (2022-2027)”, by IndustryARC covers an in-depth analysis of the following segments of the Global 2-Amino-2-Methylpropane Nitrile Industry.

Key Takeaways

• The purity 98% segment held a significant share in the 2-Amino-2-Methylpropane Nitrile Market in 2021, owing to its increasing demand for the production of chemical reagents used in chemical plants and facilities across the world.  In January 2021, Sandpiper Chemicals LLC invested US$ 1 billion in the development of a new chemical plant in the U.S. The development of the chemical plant is scheduled to begin in November 2022 and be completed by October 2024.
• Chemical reagents held the largest share in the 2-Amino-2-Methylpropane Nitrile Market in 2021, owing to the increasing demand for amino methylpropane nitrile as a raw material for the production of chemical reagents which include phosphines, pyridines, dichloromethane, and other reagents.
• North America dominated the 2-Amino-2-Methylpropane Nitrile Market in 2021, owing to the increasing demand for amino methylpropane nitrile from the chemical sector of the region. In March 2022, ExxonMobil began the development of its new chemical manufacturing plant in the U.S. The plant will have a total production capacity of 350,000 metric tons per year and it is scheduled to be fully operational in mid-2023.

2-Amino-2-Methylpropane Nitrile Market Segment Analysis – By Purity

The purity 98% segment held a significant share in the 2-Amino-2-Methylpropane Nitrile Market in 2021, owing to its increasing demand for the production of chemical reagents used in chemical plants and facilities across the world. For instance, in July 2020, SABIC began the development of its new chemical production plant in Spain. The plant will be run on renewable power and it is scheduled to be fully operational in 2024. Furthermore, in June 2021, Chevron Phillips Chemical commenced the construction of its chemical plant in Houston, U.S. The plant is scheduled for operations in 2023 with a total production capacity of 266,000 tons per year. Thus, such development of new chemical production plants is expected to increase the use of chemical reagents for various types of chemical analysis, during the preparation and production of chemicals. This, in turn, is expected to increase the demand for 2-amino-2-methylpropane nitrile with 98% purity for the production of chemical reagents used in such manufacturing plants, thus, leading to the growth of the market during the forecast period.

2-Amino-2-Methylpropane Nitrile Market Segment Analysis – By Application

The chemical reagents held the largest share in the 2-Amino-2-Methylpropane Nitrile Market in 2021 and it is expected to grow at a CAGR of 5.2% between 2022 and 2027, owing to its increasing demand for the production of chemicals across the world. For instance, in February 2022, Toyo Engineering Corporation began the development of its new chemical plant in Nantong, China with the aim of increasing the company’s production capacity. The development of the new chemical plant is expected to be completed by 2024. The production capacity of the plant will be 90,000 tons per year. Furthermore, in February 2022, Lake Charles Methanol LLC invested US$ 2.5 billion for the development of its new chemical plant in Louisiana, U.S. The development of the new plant is expected to be completed in mid-2024.

Chemical reagents are primarily used in such chemical manufacturing plants for various types of chemical analysis, during the preparation and production of chemicals. Thus, such increasing development of new chemical manufacturing plants is expected to increase the demand for 2-amino-2-methylpropane nitrile for the production of chemical reagents used in such manufacturing plants. This is expected to drive the growth of the market during the forecast period.

Hence, all of these properties are driving its demand over other types of packaging for food products, thus, boosting the market growth during the forecast period.

2-Amino-2-Methylpropane Nitrile Market Segment Analysis – By Geography

North America held the largest share in the 2-Amino-2-Methylpropane Nitrile Market in 2021 up to 35%. The consumption of amino methylpropane nitrile is particularly high in this region due to its increasing demand from the chemical sector. For instance, LyondellBasell Industries invested US$ 175 million for the development of a new chemical plant in Texas, U.S. The new plant is expected to increase the production capacity to 550 million tons of Ethylene per year. The development work for the new plant is scheduled to begin in 2023 and be completed by the end of 2025. Likewise, in November 2021, Celanese Corporation invested US$ 850 million for the development of a new chemical production unit in Texas, the U.S with the aim of increasing the company’s production capacity to 1.3 million metric tons per year. The new production unit is scheduled to be operational by 2024.

In this way, such increasing chemical production is expected to increase the demand for amino methylpropane nitrile for the production of chemical reagents used in such chemical manufacturing facilities. This is expected to accelerate the growth of the market during the forecast period.

2-Amino-2-Methylpropane Nitrile Market – Drivers

An increase in demand for medical drugs and medicines is most likely to increase demand for the product

2-amino-2-methylpropane nitrile is primarily used in pharmaceutical intermediate in the production of various types of medical drugs in bulk quantity. According to the data on therapeutic drug use in the U.S. published by National Centre for Health Statistics, the number of drugs that were ordered and provided through physician office visits reached around 2.9 billion, and the number of drugs that were given or prescribed through hospital emergency department visits reached around 336 million in 2020. As the demand for drugs in the pharmaceutical sectors across the globe increases, the demand for the use of amino methylpropane nitrile required during the production of these medicines is also expected to increase significantly. This is expected to accelerate the growth of the 2-Amino-2-Methylpropane Nitrile Market in the upcoming years.

An increase in the development of new pharmaceutical manufacturing facilities is most likely to increase demand for the product

The demand for 2-amino-2-methylpropane nitrile has been increasing rapidly as it is primarily used in pharmaceutical manufacturing facilities as pharmaceutical intermediates during the production of medical drugs and medicines. For instance, in January 2020, Eli Lilly invested around US$ 474 million to build a new pharmaceutical manufacturing facility in North Carolina, U.S. The facility is anticipated to be operational by the end of 2023. Furthermore, in May 2021, BD (Becton, Dickinson, and Company) announced its plan to build a new pharmaceutical manufacturing facility in Spain to strengthen its drug delivery business. The overall cost of building the new facility was valued at around EUR 165 million (US$ 200 million). The development of the facility is scheduled to be completed by 2030.

In this way, such new development of pharmaceutical manufacturing plants is expected to increase the demand for 2-amino-2-methylpropane nitrile as a pharmaceutical intermediate during the drug manufacturing process. This is expected to drive the growth of the market in the upcoming years.

2-Amino-2-Methylpropane Nitrile Market – Challenges

Health hazards associated with the use of 2-amino-2-methylpropane nitriles may cause an obstruction to the market growth

2-Amino-2-Methylpropane Nitrile is considered to be hazardous by the 2012 OSHA Hazard Communication Standard (29 CFR 1910.1200). It is known to be very toxic by inhalation, while its contact with acids releases very toxic gas. Furthermore, inhalation of vapors or fumes generated by the material during the course of normal handling may produce severely toxic effects which may be fatal. In case of contact with the eye, it may produce discomfort characterized by tearing or conjunctival redness. In addition to this, severe cough, headache, nausea, and shortness of breath are some of the common systems associated with exposure to 2-amino-2-methylpropane nitrile. In severe cases, it may cause convulsions, spasms, paralysis, coma, and irregular heartbeat. Thus, such health hazards associated with the use of 2-amino-2-methylpropane nitrile may confine the growth of the market.

Global 2-Amino-2-Methylpropane Nitrile Industry Outlook

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the 2-Amino-2-Methylpropane Nitrile Market. Global 2-Amino-2-Methylpropane Nitrile top 10 companies are:

1. Toronto Research Chemicals
2. 3B Scientific Corporation
3. Waterstone Technology
4. Taizhou Yongfeng Chemical Industry
5. Creasyn Finechem
6. J & K Scientific
7. Nanjing Chemlin Chemical
8. XiaoGan ShenYuan ChemPharm
9. Biosynth Carbosynth
10. Manus Aktteva Biopharma LLP

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