Methanol Market - Forecast(2024 - 2030)

 

The Methanol Market Size was valued at USD 17.35 billion. It is expected that the market will increase from USD 18.30 billion in 2022 to USD 26.63 billion by 2030. This growth represents a compound annual growth rate (CAGR) of 5.50% over the forecast period from 2022 to 2030. Methanol serves as a crucial feedstock in the production of various chemicals, including formaldehyde, acetic acid, olefins, and methyl tert-butyl ether (MTBE). The increasing demand for these chemical products, driven by industries such as construction, automotive, and consumer goods, is fueling the growth of the methanol market. Additionally, methanol is increasingly being utilized in the production of renewable chemicals and biofuels, further expanding its application scope and driving market demand. Methanol is gaining traction as a promising alternative fuel and energy carrier, particularly in the transportation sector. With its lower emissions profile compared to conventional fuels like gasoline and diesel, methanol is being explored as a cleaner-burning fuel for vehicles, marine vessels, and power generation. The increasing focus on reducing greenhouse gas emissions and achieving carbon neutrality goals is driving the adoption of methanol as a sustainable energy solution. Additionally, methanol can be produced from a variety of feedstocks, including natural gas, coal, biomass, and even carbon dioxide (CO2), offering flexibility and potential for renewable methanol production pathways. 

 

 

The report: “Methanol Market– Forecast (2024-2030)”, by IndustryARC, covers an in-depth analysis of the following segments of the Methanol Market.

 

By Derivative: Fuels (Gasoline and Biodiesel), Formaldehyde, Acetic Acid (Vinyl Acetate Monomer and Others), Methyl Tertiary Butyl Ether, Dimethyl Ether, Dimethyl Terephthalate, Methane Thiol, Methylamine, Methyl Methacrylate, Methanol to Olefins/Propylene (Olefins and Propylene) and Others

 

By Feedstock: Coal, Natural Gas and others

 

By Application: Resins, Adhesives and Sealants, Detergents, Pesticides, Gasoline Blending, Fuel Cells, Surfactants and Others 

 

By End-use Industry: Automotive (Passenger Vehicle, light Commercial Vehicle and Heavy Commercial Vehicle), Electrical and Electronics, Building and Construction (Residential, Commercial and Industrial and Infrastructural), Marine (Passenger, Cargo, Naval and Others), Agriculture, Water Treatments and Others 

 

By Geography: North America (the USA, Canada and Mexico), Europe (UK, Germany, France, Italy, Netherlands, Spain, Belgium and Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia and New Zealand, Indonesia, Taiwan, Malaysia and Rest of APAC), South America (Brazil, Argentina, Colombia, Chile and Rest of South America), Rest of the World (the Middle East and Africa)

 

 

• Asia-Pacific dominates the methanol market, owing to the increasing production and demand for chemical products in Asia-Pacific. This increase in production and demand can be attributed to the increasing urbanization, growing per capita income and population in Asia-Pacific countries.

 

• The major feedstock of methanol is coal which is expected to provide significant growth opportunities in coming years. According to International Energy Agency (IEA), China is the largest coal producer in the world with 3,685 million tons in 2021, followed by India with 771 million tons, the United States with 539 million tons and Indonesia with 545 million tons in 2021.

 

• Growing demand of methanol in automotive is the key factor accelerating market growth as it is used as blending components in fuels and it is also used in fuel cells.

 

 

The natural gas segment held the largest methanol Market share in 2023 and is estimated to grow at a CAGR of 5.9% during the forecast period 2024-2030. Natural gas is less expensive than coal. Furthermore, if natural gas is burnt in ideal combustion conditions, the light will be blue and there will be few to no hazardous chemicals. As a result of its cleaner combustion, natural gas is the most environmentally friendly fossil fuel. Thus, because of these advantages, methanol is frequently produced from natural gas by reforming the gas with steam and then converting and distilling the resulting synthetic gas mixture to achieve pure methanol. Hence, a transparent, liquid organic compound methanol is manufactured that is water-soluble and biodegradable. Therefore, biodegradability, less cost and other factors are key determinants driving the segmental growth of the market in Asia. The natural gas derivative segment in the methanol market shows growth across the globe as growth in the construction, automotive and electrical and electronics industries. Thus, the growth in the end-use industry with the use of natural gas derivatives is boosting the growth and is expected to account for significant methanol market share.

 

 

Asia-Pacific held the largest methanol market share in 2023 up to 43.1%. This growth is mainly attributed to the presence of numerous end-use industries such as agriculture, pharmaceutical, building and construction, automotive and others. Growth in urbanization and increase in disposable income in this region has further boosted the industrial growth in this region. Methanol is extensively used in the production of various derivatives which are further utilized in several end-use industries. Also, Asia Pacific is one of the major regions in automotive production which provides substantial growth opportunities for the companies in the region. For instance, according to Organization International des Constructers automobiles, China accounted for around 33% of the world's automotive production whereas Japan and India accounted for 10% and 5% respectively in the global automotive production. Thus, the significant growth in several end-use industries in this region also boosts the growth of methanol market.

 

            

 

 

 

Aluminum metaphosphate is also named wood alcohol and methyl alcohol widely used in the production of automotive and construction which are further used in the production of different end-use industries. In the automotive industry, methanol is majorly used as blended fuel and internal combustion engine fuel in automotive. For instance, as per Organisation Internationale des Constructeurs d'Automobiles (OICA), all vehicle production reached 100 million units in 2023, up 77.7 million units from 2020. It is expected that after 2024, automotive production will grow in double-digit due to a correction in the demand for semiconductor and chip production. According to NITI Aaayog of India has mapped out a plan to use methanol alone to replace 10% of crude imports by 2030, to achieve this goal methanol in the amount of 30 MT is required. Thus, the global growth in demand for automotive is propelling the growth and is expected to account for a significant share of the methanol market size.

 

 

The Growth in petrochemical demand is driving the methanol market. Methanol is one of the most important chemicals in the petrochemical industry. Petrochemicals are chemical products derived from petroleum products and the same petrochemical compounds are also obtained from other fossil fuels such as coal and natural gas or from renewable sources. Methanol can be used in many different applications and it is also known as wood alcohol and methyl alcohol. It is used in the energy sector in its pure form or blended with other fuels. Methanol is also used as a reagent to form formaldehyde and methyl esters as well as antifreeze for automobiles and aircraft. 

 

According to the India Brand Equity Foundation (IBEF), an investment of US $107.4 billion is estimated in the Indian chemicals and petrochemical sector by 2025. According to the 2050 Carbon Neutral Strategy of South Korea, petrochemical processes could use collected carbon dioxide and hydrogen as reactive materials for methanol synthesis instead of the thermal cracking of naphtha to create olefin products. Thus, growth in the petrochemical market is boosting the growth of the methanol industry.

 

 

 

The methanol industry faces challenges related to fluctuations in feedstock prices and human health concerns. Rising oil prices already put pressure on chemical industry margins and also the Russia and Ukraine conflict has negatively impacted the supply of upstream crude as well as the downstream market, which continues to affect the entire petrochemical and refinery value chain. Environmental and health protection laws and regulations related to the use of methanol can be stricter, lowering the demand in the methanol market. According to the Australian National Pollutant Inventory, direct contact with methanol may irritate the skin, face & eyes and inhaling methanol may result in scratching and coughing. Thus, the adverse impact of the methanol industry may hamper the market growth.

 

 

The top 10 companies in the Methanol market are -

 

1. Sabic

2. BASF

3. Methanex Corporation

4. Helm AG

5. Mitsubishi Gas

6. Petronas

7. Mitsui & Co.

8. Celanese Corporation

9. LyondellBasell

10. OCI N.V.

 

 

November 2022: Petronas moved forward with the construction of a new methanol facility, which is slated to add 1.75 million tons of production capacity to the company's already operational 2.4 million tons of methanol production capacity. The project, which is set to complete in March 2023, is located in Bintulu Sarawak, Malaysia

 

February 2022: Linde announced the expansion of its existing agreement with Celanese Corporation to supply carbon dioxide and hydrogen to the Celanese manufacturing facility in Clear Lake, Texas, to produce methanol. This agreement will help the company to reduce its carbon footprint during its operation, which will contribute to the preservation of the environment, helping the company strengthen its business portfolio.