Methanol Market Overview:
Methanol Market size was valued at USD 29.2 Billion in 2021, registering a CAGR of 4.6% during the forecast period (2022-2030), and the market is projected to be worth USD 43.7 Billion by 2030.
Methanol, also referred to as methyl alcohol, is a flammable and colorless fluid with different odors. This chemical is soluble in water and easily biodegradable which makes it ideal for several varieties of everyday commodities which includes paints, plastics, fuels, and cosmetics. If we search for a prevailing and reasonably priced solution, then methanol, also referred to as methyl alcohol is the preferable option. It is a great multipurpose chemical and its usefulness as a transporter of energy has created it even more widespread as a fuel in industrial plants and the production of electricity. This highly prospective chemical operates as an eco-friendly fuel resource throughout the world, and hence its demand is escalating globally as a beneficial resource for a new age of clean energy. From fuel to water purification, methanol has multiple uses. It is generally used in industries such as the automotive sector, wastewater treatment centers, power generation facilities, and in vehicles as fuel.
Asia Pacific is the dominating region for the market of methanol as it occupies 46% of the total market share globally. China is a global player in the market of methanol as it is the highest producer of coatings and paints across the world.
- Methanol is frequently used as an alternative to gasoline-based fuels as it has a low cost of production and minimal risk of combustion.
- The primary driver of the global methanol market is the synthesis of chemicals. Methanol is used in the chemical industry to market acetic acid, olefins, methyl methacrylate, formaldehyde, silicone, and others.
- The growing applications of methanol as fuel blending substances in automotive and construction industries boost the market growth during the forecast period.
- The enhanced demand for plastic, textiles insulation materials, and adhesives accelerate the high usage of methanol as it is the base compound used in the manufacturing of these materials.
- Owing to its high corrosiveness while in contact with metals, it is difficult to handle methanol. It also requires completely different fuel delivery systems in automobiles.
- The presence of attractive alternatives like ethanol in the market impacts the demand for methanol as ethanol is comparatively less toxic than methanol.
- Exposure to this chemical poses risks of severe health damage like blindness, kidney failure, and seizures.
The outbreak of the global pandemic COVID-19 severely affected the global market of methanol. The market has witnessed a decline of 2.2% in the demand for methanol in the year 2020. There was a significant effect owing to the slowdown of manufacturing facilities. The shutdown of the manufacturing industry has declined the demand for paints and adhesives. Also, the decline in the consumption of biodiesel and other fuels has cut down the demand for methanol. However, the situation is projected to improve as manufacturing and other industries have restarted their activities.
Methanol Report Coverage:
|Report Attributes||Report Details|
|Market Size in 2030 (USD Billion)||43.7 Billion|
|By Feedstock||Natural gas and Coal|
|By Derivatives||Formaldehyde, Acetic Acid, MTO, MTP, Gasoline Blending|
|By Application||Construction, Automotive, and Electronics|
|By Geography||North America, Europe, Asia Pacific, Latin America, the Middle East, and Africa|
|Key Players||Zagros Petrochemical Company; BASF; Mitsui & Co., Ltd; Celanese Corporation; Saudi Arabia Basic Industries Corporation (SABIC); Valero Marketing & Supply Company; Methanex Corporation Qatar Fuel Additives Company Limited; and Mitsubishi Gas Chemical Co., Inc.|
On the basis of feedstock, the market is segmented into natural gas and coal. The natural gas sub-segment dominated the global market of methanol in the year 2021. The fabrication of methanol from natural gas as a feedstock is a simple manner and the preferred purity of methanol can be attained. Furthermore, the utilization of natural gas as a feedstock is safer compared to gasoline fuels which have a high risk of flammability. Methanol derived from natural gas has an efficiency of around 55-65% which is expected to grow the methanol market size in the forecasting period. The coal sub-segment is expected to have lucrative growth in the forecasting years as there is an increase in the usage of coal to obtain methyl alcohol in the territories abundant with coal reserves.
The derivatives have been segmented into formaldehyde, acetic acid, methanol to olefine (MTO), methanol to propylene (MTP), and gasoline blending. The formaldehyde derivative is projected for a huge share of the market in the year 2020. The resins produced using formaldehyde are enormously used in the production of glues which are used in furniture production, plywood chipboard, and the construction sector in developing economies. The MTP & MTO segment is expected to grow in the forecast period. The thermoplastics are produced from methyl alcohol which is significantly used in the automotive and construction industry owing to its beneficial properties.
The application segment is separated into construction, automotive, and electronics. The automotive industry is the largest shareholder in the methanol market. As methanol is extendedly used as a source of fuel owing to its high-octane content that enriches the efficiency of the vehicle by increasing its speed and power. Methanol has multiple properties which make it preferable to transport fuel. Moreover, the construction sector holds the second largest market share of methanol as there is a variety of commodities produced using methanol like adhesives, plastics, foams, and plywood subfloors. These commodities have large applications in the industry of construction.
The regional segment includes Asia Pacific, Europe, North America, the Middle East, and Africa, Latin America. The market is dominated by the Asia-Pacific region occupying the largest share of the market in the forecast period. A developing nation like China owns 40% of the market share as it uses methanol as a clean fuel in transportation. With the rising demand for green fuels and fuel blending in North America, the methanol market is being intensified. The surge in the petrochemical industry in this region will support the growth of the market. The growth in the automotive industry of the European region is another factor propelling the market. Latin America and the middle east & Africa are increasing construction and industrialization activities which will further progress the market.
Methanol Market Competitive Landscape:
The competitive landscape of the market has been analyzed in the report, along with the detailed profiles of the major players operating in the industry. Further, the surge in Research and Development (R&D), product innovation, various business strategies, and Application launches have accelerated the growth of the Sample Preparation market. Key players in the market include-
- Zagros Petrochemical Company
- Mitsui & Co., Ltd
- Celanese Corporation
- Saudi Arabia Basic Industries Corporation (SABIC)
- Valero Marketing & Supply Company
- Methanex Corporation Qatar Fuel Additives Company Limited
- Mitsubishi Gas Chemical Co., Inc.
- In April 2019, Celanese Corporation has extended its manufacturing capacity in facility located in Texas, the United States. The capacity is increased to 125% from the prior capacity.
- In March 2021, Fairway Methanol LLC, formed by the partnership between Mitsui & Co., Ltd and Mitsui & Co. has decided to rise there production to 130000 tonnes per year.
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