Methanol Market was Worth of USD 26.58 Billion in 2021 and it is Expected to Reach USD 34.05 Billion at the End of 2028 with CAGR of 3.60%.
Global Methanol Market: Global Size, Trends, Competitive, Historical & Forecast Analysis, 2021-2028: Increasing demand for methanol in the petrochemical industry, and growing demand for methanol in the construction & automotive industries are some of the major factors propelling the growth of the global methanol market.
Methanol, also known as methyl alcohol, among other names, is an organic chemical and the simplest alcohol, consisting of CH3OH (a methyl group attached to a hydroxyl group, often abbreviated as MeOH). It is a light, volatile, colorless, flammable liquid with a characteristic alcoholic odor like ethanol (potable alcohol). A polar solvent, methanol got its name as wood alcohol because it was once produced primarily by the destructive distillation of wood. Methanol has a methyl group attached to a polar hydroxyl group. Besides, with a production of over 20 million tons per year, it is a precursor to other commodity chemicals, including formaldehyde, acetic acid, methyl tert-butyl ether, methyl benzoate, anisole, peroxy acids, as well as more specialty chemicals.
The COVID-19 pandemic has negatively impacted the growth of the global methanol market. Import-export restrictions were imposed on major methanol-producing countries such as the US and China. For example, many countries-imposed sterilization on goods imported from China. Additionally, the construction and automotive sectors were the most affected in terms of sales and acquisitions of new projects, which significantly reduced the demand for methanol. Besides, many construction projects have been postponed or cancelled in the construction industry due to shortages of raw materials, labor, fear of contracting the COVID-19 virus among workers, and travel restrictions. However, the market has stabilised in 2021. The market is expected to grow for the forecast period after the pandemic.
The global methanol market is segmented on the feedstock, derivatives, sub-derivatives, end-user, region & country level. Based on feedstock, the global methanol market is segmented into biomass & renewables, coal, and natural gas. By derivatives, the global methanol market is segmented into MTO/MTP, formaldehyde, solvent, acetic acid, biodiesel, and others. By sub-derivatives, the global methanol market is segmented into gasoline additives, acetate esters, olefins, polyacetals, UF/PF resins, VAM, MDI, PTA, fuels, acetic anhydride, and others. By end-user, the global methanol market is segmented into construction, pharmaceuticals, electronics, paints & coatings, automotive, and others.
The regions covered in the global methanol market report are North America, Europe, Asia-Pacific, Latin America, and the rest of the World. Based on country level, the market of global methanol is sub divided into U.S., Mexico, Canada, U.K., France, Germany, China, Italy, India, Japan, Southeast Asia, Middle East Asia (Saudi Arabia, UAE, Egypt) GCC, Africa, etc.
One of the significant factors in the growth of the methanol market is the increasing demand for methanol in the petrochemical industry. Methanol is widely used in petrochemical production. The main driver of the methanol industry is the use of petrochemicals in end-use sectors such as automotives and construction. Methanol, ethylene, propylene, butadiene, benzene, toluene, and xylene are organic chemicals with the highest production volume in the petrochemical industry. Olefins are composed of ethylene, propylene, butadiene, and butylene. Methanol, often referred to as a primary petrochemical, is a precursor to a wide range of chemical compounds. Methanol production of olefins is expected to be the main driver of methanol growth in the petrochemical industry. About 6 million gasoline gallons of 100% methanol and blends of 85% methanol and 15% gasoline were used annually in alternative-fuel vehicles in the United States. And also, this demand is now increasing rapidly in many other countries every year. This leads to a huge demand for methanol.
In addition, the increasing potential for the development of methanol and rising demand for clean-burning fuels is boosting the growth of the methanol market. Methanol is gaining popularity as a marine fuel due to its environmental benefits, global availability, economic competitiveness, and successful and safe use. Emissions of sulphur oxides (SOx), nitrogen oxides (NOx), and particulate matter are all reduced by methanol. In China, strict restrictions on air quality emissions in regions such as Shandong and Beijing are shutting down coal-fired industrial boilers and furnaces in favour of cleaner fuels, creating a developing market for methanol as an alternative fuel. Due to such government decisions, the demand of methanol is increasing in the market.
Moreover, growing demand for methanol in the construction and automotive industries is also complementing the growth of the methanol market. Methyl alcohol is used to make textiles, adhesives, plastics, and insulation materials. Plastics play an important role in vehicles by reducing their weight, which helps in increasing the vehicle's fuel efficiency and giving it a metallic look. A third of the 30,000 or so parts in a vehicle are already made of plastic, and in 2021, nearly 80 million motor vehicles will be produced worldwide, Nexant reports. And this is predicted to continue to increase year after year. Thus, it helps to increase demand for methanol in the automotive industry.
However, the high cost associated with methanol may hinder the growth of the global methanol market. Furthermore, the use of plastics in the construction industry will increase over the forecast period. Despite this, increasing demand for bio-based products and advancements in technology for biorefining may create more opportunities in the global methanol market.
Geographically, Asia-Pacific holds a significant share of the global methanol market, rising investment in private organizations, and rising use of methanol-based fuel, all of which drive the market. Increasing construction activities are driving the growth of the market. For instance, the government of India launched the Smart City Mission on February 20th, 2021, with the goal of developing 100 smart cities across the country. Such ongoing developments by the Indian government are proving fruitful in increasing methanol market share. In addition, the rising investment in private organizations is another factor supplementing the market growth in this region. For instance, as per the news published on September 10th, 2019, Honeywell announced that Zhejiang Satellite Petrochemical Co. Ltd. is using Honeywell UOP's C3 Oleflex technology to put together 450,000 metric tons per year of polymer-grade propylene for a new petrochemicals complex in China. Therefore, many innovations and investments in petrochemical industries promote the growth of the methanol market in the Asia-Pacific region.
The European region is the fastest-growing region in the global methanol market due to the increasing petrochemical industry, rising demand for automobiles, and the presence of key major players; these factors boost the methanol market in the European region. For instance, as per the news published on October 25th, 2021; S&P Global Platts launched the first global suite of methanol bunker fuel price assessments. For instance, as per the news published on September 22nd, 2022, WasteFuel launched a new technology, ""Methanol Module,"" which will significantly accelerate the utilization of organic waste for green methanol production. Green methanol is critical to decarbonizing the supply chains of global shipping and the companies that depend on them. There is also a large market for green methanol in the petrochemical space. Thus, many innovations in petrochemicals are intensifying the growth of the methanol market. Thus, many innovations in petrochemical industries promote the growth of the methanol market in the Europe region.
On September 20th, 2022, WasteFuel, a California-based developer of bio-refineries focused on converting municipal solid waste into low-carbon fuels, launched the WasteFuel methanol module, A new technology that helps to significantly increase the utilization of organic waste to produce green methanol. Methanol has quickly emerged as the most cost-effective fossil fuel alternative for shipping companies worldwide. Major shipping companies like Maersk, CMA CGM, COSCO, Stena Line, and Proman have committed to using methanol to power their ships.
On June 20th, 2022; E-methanol is part of an emerging class of e-fuels (also called Power-to-X) that are produced entirely from renewable energy and CO2 extracted from the air. Others include e-methane (synthetic natural gas or renewable methane) and e-kerosene (for aviation fuel). A major benefit of working with e-fuels is carbon neutrality. The CO2 released when they are used is completely offset by the CO2 extracted from the air to produce them.
On May 2nd, 2022; Indian Oil Corp (IOC) introduced M15 petrol, a 15 percent blend of methanol in petrol on a trial basis in Assam's Tinsukia district. Union Minister of State for Petroleum and Natural Gas Rameshwar Teli launched the M15 Petrol in the presence of NITI Aayog member VK Saraswat and IOC Chairman SM Vaidya. Teli said blending the fuel with methanol would provide relief from rising prices.
|2015 - 2020
|2021 - 2028
|Market Size in 2021:
|USD 26.58 Billion
|Base year considered
|Forecast Period CAGR %:
|Market Size Expected in 2028:
|USD 34.05 Billion
|Tables, Charts & Figures:
|key players / Manufacturers
|BASF SE, Methanex Corporation, SABIC, Mitsubishi Gas Chemical Company, Inc., Valero, Mitsui & Co., Ltd., Zagros Petrochemical Co., Methanol Holdings (Trinidad) Limited, Celanese Corporation, Petroliam Nasional Berhad (PETRONAS), and others
|By By Feedstock, By Derivatives, By Sub-derivatives, By End-User
|North America, U.S., Mexico, Canada, Europe, UK, France, Germany, Italy, Asia Pacific, China, Japan, India, Southeast Asia, South America, Brazil, Argentina, Columbia, The Middle East and Africa, GCC, Africa, Rest of the Middle East and Africa
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