Methanol, which is also known as methyl alcohol consists of the methyl group (CH3), coupled with a hydroxyl group (OH). Methanol is light flammable liquid, majorly produced by coal, natural gas and renewable resources which makes it safest and eco-friendly product as compare to other competing products like gasoline, diesel fuel, and crude oil in the market. As it is biodegradable in nature hence it is more often used to produce biodiesel which contributes to less air pollution.
The methanol market is anticipated to record a CAGR of around 7% over the forecast period i.e. 2020-2028. Growing concern for the environment along with the stringent regulations taken by regulatory bodies to reduce air pollution are some of the factors that are promoting the increase in the utilization of energy sources that contribute to a greener environment. Methanol is primarily used as a fuel source across several end user industries and applications. As it has the properties that contribute to less air pollution, it is widely accepted worldwide, which is one of the major factors anticipated to contribute towards the growth of the global methanol market.
The market is segmented by feedstock, by derivative, by end user & by region. Based on feedstock, the market is segmented into natural gas and coal, out of which, the natural gas segment is anticipated to hold the largest share in the methanol market on account of growing demand for natural gas. According to the statistics by the U.S. Energy Information Administration (EIA), total consumption of natural gas in the United States increased from 24086797 MMcf in the year 2010 to 31014345 MMcf in the year 2019. CLICK TO DOWNLOAD SAMPLE REPORT
On the basis of Derivative segment, the market is segmented into formaldehyde, acetic acid, gasoline, methanol-to-olefins/methanol-to-propylene (MTO/MTP), biodiesel and others (methyl tert-butyl ether (MTBE), dimethyl ether (DME), and methyl methacrylate (MMA)), out of which the market for biodiesel and formaldehyde is anticipated to hold the largest share in the methanol market on account of growing demand of pollution free fuel. Based on end user, the market is segmented into Construction, Transportation, Electronics & electrical, Paints & coatings, Pharmaceuticals and Others. However, the market for construction is estimated to witness the highest growth of the market on account of rising population and increasing demand of homes, roads and many more construction activities.
The increasing demand for methanol from the transportation industry, backed by the growing number of vehicles around the globe, along with the involvement of the government in the promotion for the greater utilization of methanol on the back of the fact that methanol produces less pollution in the atmosphere in comparison to other conventional fuel sources are some of the factors anticipated to drive the growth of the global methanol market.
In the pharmaceutical industry methanol is used to produce chemicals which are further used to produce polyester, acrylic plastics, pesticides, textile solvents and windshield wiper fluid. It is also used to produce pharmaceuticals such as cholesterol, streptomycin, vitamins, hormones, and others. Increasing usage of methanol in this industry is anticipated to drive the growth of the global methanol market.
In addition, increasing demand for petrochemical (crude oil and natural gas) in the construction and electrical industry on account of improving efficiency and performance of the engine is also estimated to drive the growth of the global methanol market over the forecast period.
The major factor which restrains the methanol market is the conversion cost. The conversion of methane into liquids form for the usage is very high as compare to other fuels in the market. On the other hand, hazardous impact on health as a conclusion of exposure to methanol is also expected to hamper the growth of the market.
Our in-depth analysis of the methanol market includes the following segments:
Based on region, the methanol market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region.
Asia-Pacific region is likely to be the fastest growing market by growing at a significant CAGR over the forecast period, backed by the presence of nations, such as China, India and Japan, where there are several end user industries that use methanol. On the other hand, the market in North America is anticipated to increase at a significant CAGR on account of increasing use of methanol in water treatment services, which in turn increase the demand of this market in North America region.
In European region, the methanol market is also expected to grow at a robust rate on the back of the increasing healthcare industry with rising expenditure on healthcare.
The Latin American market is expected to witness immense growth on account of rising cosmetics and personal care industry, particularly in Brazil and Mexico.
The market in the Middle East & Africa is expected to witness huge growth during the forecast period on the back of growing end-use industries such as automotive, building and construction, packaging and many more.
The methanol market is further classified on the basis of region as follows:
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