Global Methanol Market By Feedstock (Natural Gas, Coal, and Biomass & Renewables), By Derivative (Formaldehyde, Acetic Acid, MTBE, DME, Gasoline Blending, Biodiesel, MTO/MTP, Solvent, and Others), By Application (Construction, Automotive, Electronics, and Others), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032
- Published date: Oct 2023
- Report ID: 12806
- Number of Pages: 384
In 2022, the Global Methanol Market was valued at USD 39.2 billion. Between 2023 and 2032, this market is estimated to register the highest CAGR of 5.83%. It is expected to reach USD 66.2 billion in the forecast year of 2023-2032.
Methanol, also called methyl alcohol or even methyl hydrate, is the simplest alcohol; it is colorless, light, and volatile, with a distinctive alcoholic smell. The Methanol market has been growing in popularity because it is an alternative to ethanol.
Methanol can be used in many industrial sectors as a solvent or industrial fuel. It is also used extensively in paints and coatings, automotive, packaging pharmaceuticals, electronics, insulation, and other industries.
It can be made from different feedstocks, such as coal and natural gas which led Methanol to be able to meet domestic fuel needs. Methanol is cheaper to produce and has a lower risk of inflammability than gasoline-based fuels.
To replace harmful octane boosters, Methanol can be mixed with gasoline. Methanol can be mixed with gasoline to improve the performance of automobiles and reduce flammability. As it is a clean, efficient, and cost-effective source of electricity generation hydrogen fuel cells are gaining popularity.
Methanol is a key growth driver, as it is an excellent hydrogen carrier fuel. These are the factors that boost the growth of the methanol industry in the forecasted period. Chemical synthesis is a crucial process that uses pure methanol.
Its derivatives can be used in large quantities to build up many compounds, including important synthetic dyestuffs and resins, pharmaceuticals, perfumes, and other chemicals.
Methanol can also be used as a substitute for gasoline in automobiles. It is a clean-burning, high-octane fuel. Methanol from wood is used primarily to make industrial ethyl alcohol ineligible for drinking.
- Market Size: The world market for methanol is predicted to be worth a massive amount in the range of USD 66.2 billion before 2032 which is a significant annual growth of 5.8%.
- Feedstock Analysis: In this Segment Natural Gas Segment Holds the largest market share.
- Derivative Analyses: MTO/MTP are Expected to be the main driver of growth in the Methanol Market.
- Analysis of Applications: The Construction Segment holds the largest market share.
- Market Drivers: The aging older population across the globe requires Methanol’s use in diverse applications, with a focus on controlling chronic illnesses effectively.
- Limitations on Market Access: Low distribution of products in countries that are developing due to limitations in the availability of healthcare services and affordability is a major constraint in the Methanol market.
- New Market Trends: Emerging Markets A trend toward increasing the prominence of online shopping is noteworthy, driven by the desire of consumers for convenience and the digital world, which ultimately boosts the sales of methanol.
- Opportunities: The increase in metabolic conditions and the consequences of COVID-19 have significantly increased the demand for methanol-based medical nutritional products. They also present a huge potential for market growth.
- The dominance of the regional market (2022): The methanol sector within North America is experiencing robust growth that is primarily due to the growing demands for fuel-related applications. It also includes the creation of green fuel as well as the mixing of it with other fuels which is a key factor to the growth of the industry within the region.
Rising Demand from the Automobile and Construction Industries Drives the Growth of the Market
The rising demand for methyl alcohol from the construction and automotive industries is expected to drive up the market globally. Methyl alcohol is a precursor for many chemicals and compounds, such as adhesives, plastics, textiles, and insulation materials.
Plastics are an important part of automobiles; they reduce the vehicle’s overall weight and improve the vehicle’s fuel efficiency. Plastics are used in construction for everything from pipes to crane ropes. The market will be supported by the increasing demand for adhesives in the furniture and consumer goods sectors.
The market will also see an increase in methanol consumption for fuel blending applications during the forecast period. Methanol is being used more as a fuel for mixed vehicles due to environmental concerns. This has led to a rise in the market.
The Methanol Market will grow during the forecast period due to rising demand for methanol to produce dimethyl ether and Methyl tert-butyl ether (MTBE) and increased use of methanol in vehicles as a fuel. Government efforts to reduce the global carbon footprint and improve engine performance are driving the Methanol Market. Market growth is expected to be driven by government initiatives to reduce the global carbon footprint.
Harmful Effect Due to the Exposure to Methanol Hamper the Growth of the Market.
Alcohol-based fuels have been used in automotive applications for a long time. Alcoholic beverages are hydrocarbon fuels with lower pollution emissions than other fuels. Two kinds of alcohols are used as fuels: ethanol and methanol. Methanol requires a completely different fuel delivery system than ethanol and is more hazardous to handle due to its severe metal corrosiveness.
Chemically, ethanol is less hazardous than methanol, yet it has more energy per gallon. In comparison to 67% for methanol, it has roughly 75.5% of the energy of gasoline per gallon. Ethanol is a good alternative because it has a higher energy density than methanol while still being a liquid. The need for methanol will be further hampered by the rising usage of ethanol.
In This Segment, Natural Gas Segment Holds the Largest Market Share.
On the basis of feedstock, the market is segmented into coal, natural gas, and biomass & renewables. The natural gas segment held the largest market share in 2022. The production process of natural gas involves the conversion of the natural gas to syngas by partial oxidation or steam reforming, which can be done to obtain methanol.
This segment is dominating the market due to the low production cost and high output. Due to the increase in the usage of coal to produce methyl alcohol, some countries have banned the production of coal, and the coal segment is expected to grow at a substantial CAGR over the forecast period.
MTO/MTP is Expected to Drive the Growth of the Methanol Market.
This market can be segmented on derivatives into acetic acid, formaldehyde, DME, MTBE, biodiesel, gasoline blending, solvent, MTO/MTP, and others. MTO/MTP is expected to grow at the highest rate of CAGR over the forecast period.
Because of their versatility and other benefits, these thermoplastics are popular in many industries, including construction and automotive. Methyl alcohol is used to make polyolefins, polyethylene, and polypropylene thermoplastics.
This market will be driven by the increasing demand from many end-use industries for polyolefins. It is an important component of the production process for adhesives, mold materials, and pesticides. The market’s largest segment in terms of volume is expected to be formaldehyde. It is in high demand by industries such as construction, automotive, and textile. This is responsible for the overall market growth.
The Construction Segment Holds the Largest Market Share.
The market can be divided into three segments: automobile, electronics, and construction. In terms of Application, the largest share of methanol in the market is expected to be held by the construction segment during the forecast period.
Methanol is used in a variety of products, including adhesives, foams, plywood subfloors, plastics, and adhesives. These products are widely used in construction, and the demand for them is expected to rise. Due to the rising demand for plastics and blended methanol fuels, the automotive segment will see significant growth over the forecast period.
Key Market Segments
Based on Feedstock
- Natural Gas
- Biomass & Renewables
Based on Derivative
- Acetic Acid
- Gasoline Blending
Based on Application
Biodiesel is made from Methanol. Biodiesel, a renewable fuel made from animal fats and plant oils, is widely used. Biodiesel is produced by using methanol as a catalyst. Methanol is also used to manufacture plastic products to produce light olefins, which are the building blocks of plastic manufacturing.
Methanol-to-olefins is the process of making olefins out of methanol. Methanol can also be used to fuel boats, cars, trucks, and other vehicles. Methanol is a clean, sustainable fuel, and due to its clean-burning properties, it is a net carbon-neutral fuel, which results in lower greenhouse gas emissions.
The Fuel Industry Adopting the Cleaner Fuel is The Prominent Trend.
Heavy fuels like diesel and gasoline, are the contributors to environmental pollution global in the majority and have led to many climate changes and changes in global warming. Low toxic emissions and the blends with gasoline, minimize harmful effects are the benefits of using methyl alcohol for transportation.
The use of the product globally will reduce carbon dioxide emissions for transportation. If the fuel industry shifts to methanol or fuels that are blended with methanol, the effects of climate change will be significantly reduced. The replacement of heavy fuel oils in its marine sector will drive the growth of the market globally.
APAC drives the market growth of the Methanol Market. The market will grow due to the expansion of the construction and automotive industries in China and India. China is a major consumer and manufacturer of derivatives, which has been an important factor in the market’s growth.
North America is seeing strong growth in the methanol industry. This is due to the demand for fueling applications such as green fuel production and fuel blending.
The market is also supported by the growing petrochemical sector. This will result in a rise in demand for European automobiles and a growing preference for sustainable products. Industrialization and increased construction activity are expected to cause growth in the Middle East, Africa, and Latin America. Indian officials are pushing for methanol use in automobiles and cooking fuel.
This will promote sustainable development, as it is an environmentally friendly option. To convert approximately 3,60,000 tonnes of waste into green Methanol, the Netherlands made a capital investment of 46 million U.S. dollars. This initiative will provide opportunities for growth in the European methanol market.
Key Regions and Countries
- North America
- The US
- The UK
- Russia & CIS
- Rest of Europe
- South Korea
- Rest of APAC
- Latin America
- Rest of Latin America
- Middle East & Africa
- South Africa
- Rest of MEA
Key Players Analysis
There is a lot of competition in the market as many companies are trying to enter the market. Manufacturers are focusing more on increasing renewable methanol production capacity to meet rising demand from end-use industries.
They are constantly engaged in R&D to develop a range of high-quality products. Numerous manufacturers are seeking to increase their production capacity. For example, Maersk collaborated in March 2022 with six companies to increase the global production of green methanol. The goal is to source at least 730,000 tonnes/year by 2025.
Market Key Players
- Methanex Corporation
- HELM AG
- Southern Chemical Corporation
- Mitsubishi Gas Chemical Company, Inc.
- Zagros Petroleum
- Mitsui & Co., Ltd.
- Celanese Corporation
- BASF SE
- Simalin Chemical Industries Pvt. Ltd.
- Other Key Players
- Fairway Methanol LLC was established in March 2021 through a 50-50 partnership with Mitsui & Co., Ltd. Fairway Methanol LLC purchased and efficiently used CO2 emitted by nearby plants (up to 180,000 tonnes annually) and has since expanded its facilities.
- Methanex Corporation and Mitsui O.S.K. Lines (MOL), announced that they reached a Key Commercial Terms agreement for the purchase and sale of an equity holding in Methanex’s Waterfront Shipping subsidiary (WFS). This will also allow the formation of a strategic partner. MOL will buy a 40% minority share in WFS for USD 145 million. WFS will remain a key component of Methanex’s global supply chain capabilities. Methanex will hold the remaining 60% stake.
Report Features Description Market Value (2022) US$ 39.2 Bn Forecast Revenue (2032) US$ 66.2 Bn CAGR (2023-2032) 5.83% Base Year for Estimation 2022 Historic Period 2016-2022 Forecast Period 2023-2032 Report Coverage Revenue Forecast, Market Dynamics, Competitive Landscape, Recent Developments Segments Covered By Feedstock: Natural Gas, Coal, Biomass & Renewables; By Derivative: Formaldehyde, Acetic Acid, MTBE, DME, Gasoline Blending, Biodiesel, MTO/MTP, Solvent, and Others; By Application: Construction, Automotive, Electronics, and Others. Regional Analysis North America – The US, Canada Europe – Germany, France, The UK, Spain, Italy, Russia & CIS, Rest of Europe APAC- China, Japan, South Korea, India, ASEAN, Rest of APAC Latin America – Brazil, Mexico, Rest of Latin America Middle East & Africa – GCC, South Africa, Rest of MEA Competitive Landscape Methanex Corporation, HELM AG, Southern Chemical Corporation, SABIC, Mitsubishi Gas Chemical Company, Inc., Zagros Petroleum, PETRONAS, Mitsui & Co., Ltd., Celanese Corporation, BASF SE, Simalin Chemical Industries Pvt. Ltd., Other Key Players. Customization Scope Customization for segments, region/country-level will be provided. Moreover, additional customization can be done based on the requirements. Purchase Options We have three licenses to opt for: Single User License, Multi-User License (Up to 5 Users), Corporate Use License (Unlimited User and Printable PDF)
Frequently Asked Questions (FAQ)What is driving the growth of the global methanol market?
The global methanol market is being driven by a combination of factors, including increasing demand for methanol in the production of chemicals and fuel, as well as the growing use of methanol in renewable energy applications. Additionally, the development of new and innovative production technologies is also expected to contribute to the growth of the market.What are the major challenges facing the methanol market?
One of the major challenges facing the methanol market is the volatility of methanol prices, which can be affected by factors such as supply and demand imbalances, geopolitical tensions, and changes in regulatory policies. Additionally, concerns over the environmental impact of methanol production and use may also pose challenges for the industry.Which regions are the major players in the methanol market?
The major players in the global methanol market include North America, Europe, Asia Pacific, and Middle East & Africa. Among these regions, Asia Pacific is expected to dominate the market in terms of both production and consumption, due to the rapid industrialization and economic growth in countries such as China and India.What are the most common applications for methanol?
Methanol is commonly used as a feedstock in the production of formaldehyde, which is used in the manufacturing of various products, including plastics, textiles, and pharmaceuticals. It is also used in the production of acetic acid, which is used in the manufacturing of paints, adhesives, and other products. In addition, methanol is used as a fuel in various applications, such as in the transportation and power generation sectors.What is the outlook for the future of the methanol market?
The future of the methanol market is expected to be positive, with increasing demand for methanol in the production of various chemicals and fuel, as well as the growing use of methanol in renewable energy applications. Additionally, the development of new and innovative production technologies is also expected to contribute to the growth of the market. However, the market may also face challenges related to pricing volatility and environmental concerns.
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