N-METHYL DIETHANOLAMINE (MDEA) MARKET ANALYSIS

The global N-methyl diethanolamine (MDEA) market was valued at US$ 635.7 Mn in 2022 and is expected to register a CAGR of 5.65% in terms of revenue over the forecast period (2023-2030), to reach US$ 987.1 Mn by 2030.

N-Methyl Diethanolamine is also known as Methyl Diethanolamine or MDEA with the chemical formula CH₃N (C₂H₄OH) ₂. MDEA is a colorless yellow liquid with an ammonia odor. It is used as a decarbonizer and sweetening agent in gas synthesis, oil refineries, chemicals, and natural gas.

The N-Methyl Diethanolamine (MDEA) market is projected to grow substantially over the forecast period attributed to increasing demand for carbon capture and sequestration (CCS) coupled with growing demand for MDEA from the oil & gas industry. Greenhouse gas (GHG) emission is increasing globally, owing to increasing urbanization. For instance, according to the U.S. Environmental Protection Agency, Carbon dioxide emissions in the U.S. from 1975-2021.

Energy consumption in the United States produced 4.92 billion metric tons of carbon dioxide (GtCO₂) in 2021 - an increase of seven percent from 2020 levels. Carbon Capture and Sequestration (CCS) provides a sustainable solution for reducing GHG emissions. CO2 emission is controlled in the CCS process by first collecting/absorbing CO2 from industrial process streams, which is then stored underground, by which CO2 will not be released into the atmosphere. MDEA efficiently absorbs CO2 and therefore, it is considered a potential absorbent in the carbon capture process in CCS.

Global N-Methyl Diethanolamine (MDEA) Market - Impact of Coronavirus (Covid-19) Pandemic

The COVID-19 pandemic has had a mixed impact on the global N-Methyl Diethanolamine MEDA market. On the one hand, the pandemic has led to a decrease in demand for natural gas, which has in turn affected the demand for MEDA. Many industrial commercial activities were halted or slowed down during the pandemic, reducing the need for energy and natural gas consumption. This decline in demand for natural gas and MEDA has caused some MDEA manufacturers to reduce their production or shut down their facilities temporarily. On the other hand, the pandemic has also caused disruptions in global supply chains, which have impacted the availability of MDEA and other chemicals. The restrictions on travel and transportation have led to delays in the shipment of MEDA, as well as shortages of raw materials needed to manufacture it. This has led to an increase in the price of MDEA in some regions. Overall, the impact of the COVID-19 pandemic has a mixed impact on the MDEA market.

Global N-Methyl Diethanolamine (MDEA) Market  – Drivers

• Growing Demand from the Pharmaceutical Industry

N-Methyl Diethanolamine MDEA is used in the production of various pharmaceutical products, including anti-malarial drugs. The increasing demand for these drugs due to the rising prevalence of malaria in some regions is driving the growth of the MDEA market. For instance, MDEA is used in the synthesis of several anti-cancer drugs such as dasatinib, which is used to treat chronic myeloid leukemia (CML) and acute lymphoblastic Leukemia (ALL). This factor may propel the growth of the Global N-Methyl Diethanolamine (MDEA) Market for the forecast period.

• Increasing Demand for Natural Gas

N-Methyl Diethanolamine MDEA is used in gas sweetening, which is the process of removing impurities such as carbon dioxide and hydrogen sulphide from natural gas. The growing demand for natural gas for power generation and industrial use is driving the factor growth of the MDEA market. For instance, according to the International Energy Agency (IEA), global natural gas demand is expected to increase by 1.7% per year from 2020 to 2025.

• Stringent Environmental Regulations

The increasing focus on reducing greenhouse gas emissions and the adoption of clean energy sources is driving the growth of N-Methyl Diethanolamine MDEA market. For instance, MDEA is used in carbon capture and storage (CCS) technology, which helps to reduce carbon dioxide emissions from industrial processes.

Global N-Methyl Diethanolamine (MDEA) Market – Restraints

• Fluctuations in Oil and Gas Prices

The demand for MDEA is largely driven by the oil and gas industry, where it is used for gas sweetening. When oil and gas pieces are low, demand for MDEA can decrease as oil and gas companies reduce their operations and investments. For instance, the COVID-19 pandemic led to a significant drop in oil prices, which impacted the demand for MDEA. This factor may hinder the growth of the global Global N-Methyl Diethanolamine (MDEA) Market in forecast period.

Figure 1. Global N Methyl Diethanolamine (MDEA) Market, By End User, 2022

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Based on end user, in 2022, oil and gas segment held the largest share in the global N-methyl diethanolamine (MDEA) market. In 2022, the segment contributed over 55.70% of the total revenue share in the global N-methyl diethanolamine (MDEA) market. In the oil & gas industry, MDEA is used in a process called amine scrubbing or gas sweetening, wherein an aqueous solution of MDEA is used to remove hydrogen sulphide (H2S) and carbon dioxide (CO2) from gas streams to avoid damage caused by these compounds such as corrosion and other environmental hazards. Demand for MDEA is increasing in oil & gas industries, owing to increasing oil drilling activities across the globe to meet the rising demand for energy & fuel. For instance, according to the report, ‘2017 OPEC World Oil Outlook’ published by the Organization of the Petroleum Exporting Countries (OPEC) in October 2017, the total world primary energy demand was 276.0 million barrels of oil equivalent per day (mboe/d) in 2015, and is expected to reach 371.6 mboe/d by 2040, of which largest share is expected to be accounted by oil fuel, which is expected to reach 100.7 mboe/d and that of gas fuel is expected to reach 93.2 mboe/d by 2040. Therefore, the growing oil & gas industry is expected to propel the growth of the N-Methyl Diethanolamine (MDEA) market.

Global N-Methyl Diethanolamine (MDEA) Market – Regional Insights

Asia Pacific accounted for the largest revenue share of 35.50% in the global N-methyl diethanolamine (MDEA) market in 2022. The region is also projected to record the fastest growth during the forecast period. This is attributed to the rapid expansion of end use industries such as textile and oil & gas, especially in emerging economies such as China and India.

The growing textile industry in the Asia pacific region is expected to drive the growth of the N-Methyl Diethanolamine (MDEA) market in the region. According to India Brand Equity Foundation, the domestic textiles and apparel industry stood at US$ 152.2 Bn in 2021, growing at a CAGR of 12% to reach US$ 225.4 Bn by 2025.

Europe accounted for the second largest revenue share of 29.30% in the global N-methyl diethanolamine (MDEA) market in 2022. The presence of major chemical manufacturers coupled with easy access to raw materials is likely to support regional market growth over the forecast period.

North America emerged as the third-largest consumer due to its high consumption levels coupled with the growing oil & gas industry across countries such as Canada.

Figure 2. Global N-Methyl Diethanolamine (MDEA) Market, By Region, 2022

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Global N-Methyl Diethanolamine (MDEA) Market - Recent Developments

• In 2019, Dow chemicals introduced a new MDEA-based product called PURIFYTM amine, which is designed to help natural gas producers meet stringent environmental regulations while improving efficiency and reducing costs. The Dow Chemical Company (Dow) is a producer and supplier of raw materials for products in a wide variety of industries, including appliance, automotive, agricultural, chemical processing, electronics, oil and gas, and processed foods.
• In 2020, BASF launched a new MDEA-based product called ChiraSoft SW, which is a softener for use in fabric care and personal care products. is a European multinational chemical company and the largest chemical producer in the world. Its headquarters are located in Ludwigshafen, Germany.
• In 2020, Huntsman Launched a new MDEA product called JEFFTREAT 783, which is designed for use in gas-treating applications. This product is claimed to have a high degree of selectivity and stability, which can help reduce operating costs and increase efficiency in gas processing plants. Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2021 revenues of approximately $8 billion.
• In 2019, a company named Arkema launched a new MDEA product called Alkamine MHD. This product is designed for use in various industrial applications, including agrochemicals, personal care, and pharmaceuticals. According to Arkema, Alkamine MHD is a high-performance solvent that can provide superior performance and environmental benefits compared to other similar products in the market.

Global N-Methyl Diethanolamine (MDEA) Market – Key Players

Major players operating in the global N-methyl diethanolamine (MDEA) market include DowDuPont Inc., BASF SE, Eastman Chemical Company, Huntsman Corporation, Ineos Group Limited, Amines & Plasticizers Ltd., Sintez OKA Group, Advance Petrochemicals Ltd., Maoming Yunlong Industrial Development Co. Ltd., Nippon Nyukazai Co., Ltd., and Jiangsu Taihu New Materials Holding (Yancheng) Co., Ltd.

Definition: Methyl diethanolamine, also known as N-methyl diethanolamine and more commonly as MDEA, is an organic compound with the formula CH3N (C2H4OH) 2. It is a colorless liquid with an ammonia odor. It is miscible with water, ethanol, and benzene. A tertiary amine, it is widely used as a sweetening agent in chemical, oil refineries, syngas production, and natural gas.