February 24, 2024

The Global N-Methyl Diethanolamine (MDEA) Market Driven By Rising Demand From Power Generation

N-Methyl Diethanolamine (MDEA) is a versatile amine product that finds wide applications across various end-use industries such as construction, personal care and detergent, power and chemical. It is primarily used as an absorbent in gas sweetening processes to remove acidic gases like carbon dioxide and hydrogen sulfide from natural gas and petroleum refining off-gases. As monoethanolamine deteriorates rapidly from oxidation and thermal degradation at higher temperatures, MDEA is increasingly being adopted in gas sweetening applications due to its better thermal stability. Recently, rising natural gas consumption for power generation has propelled the demand for gas sweetening, which in turn has been driving the consumption of MDEA globally.

The global N-Methyl Diethanolamine (MDEA) Market is estimated to be valued at US$ 671.62 Bn in 2023 and is expected to exhibit a CAGR of 10% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
Conventional MDEA is produced from non-renewable petroleum sources. However, growing environmental concerns and shift towards renewable resources has compelled manufacturers to develop bio-based alternatives. For instance, Huntsman Corporation developed a bio-based MDEA product under the brand name ‘BioAct’ which is produced from natural and abundant plant-based feedstocks. Such bio-based products have better sustainability credentials and are expected to gain increased acceptance in the coming years, especially in applications where emissions regulations are stringent. This is anticipated to open new growth avenues for players operating in the global MDEA market over the forecast period.

Porter’s Analysis
Threat of new entrants: Low capital requirements make the threat of new entrants higher in the N-Methyl Diethanolamine (MDEA) market. However, established brands and need for relationships with large suppliers act as a barrier.
Bargaining power of buyers: Large buyers in industries such as natural gas processing have significant bargaining power due to the fragmented nature of suppliers in the N-Methyl Diethanolamine (MDEA) market.
Bargaining power of suppliers: A few major manufacturers control the supply of raw materials for N-Methyl Diethanolamine (MDEA), giving them strong bargaining power over buyers.
Threat of new substitutes: Substitutes such as Methyldiethanolamine (MDEA) and Diisopropanolamine (DIPA) pose a moderate threat as they can be leveraged in natural gas processing and H2S removal applications.
Competitive rivalry: The global N-Methyl Diethanolamine (MDEA) market is consolidated with top players competing on production capacity and customer relationships.

Key Takeaways
The Global N-Methyl Diethanolamine (MDEA) Market Size is expected to witness high growth over the forecast period of 2023 to 2030. The global N-Methyl Diethanolamine (MDEA) Market is estimated to be valued at US$ 671.62 Bn in 2023 and is expected to exhibit a CAGR of 10.% over the forecast period 2023 to 2030.

Regional analysis: Asia Pacific dominates currently due to high demand from natural gas processing industries in China, India, and other South Asian countries. The region is expected to remain the largest and fastest growing market during the forecast period.

Key players operating in the N-Methyl Diethanolamine (MDEA) market are Dow, BASF SE, Eastman Chemical Company, Huntsman Corporation, Ineos Oxides, and Amines & Plasticizers Ltd. The global N-Methyl Diethanolamine (MDEA) market is dominated by Dow and BASF SE. Dow is a largest producer with significant production facilities across major markets. BASF SE also has a strong global footprint and focus on R&D for developing customized product grades. Eastman Chemical Company recently expanded its production capacity to cater to the rising demand from gas processing applications.

1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it