Global Methanol Market Highlights Over 2020 - 2030
The global methanol market garnered a revenue of USD 29007.9 Million in the year 2020 and is further expected to reach USD 55110.5 Million by the end of 2030 by growing with a CAGR of 5.2% during the forecast period, i.e., 2021-2030. The growth of the market can be attributed to the growing demand for methanol from end user industries, followed by the surge in demand for methanol-based fuel. Methanol is known to have varied industrial applications, ranging from dyes to biodiesel, and explosives to medicines. Moreover, for the presence of numerous favorable properties of methanol, it can be converted into various kinds of chemicals, one of them being formaldehyde dimethyl ether. In the paint industry, methanol is used to manufacture inks, resins, adhesives, and dyes. It is also used to manufacture plastics, and various press textiles. In the pharmaceutical industry, methanol is used widely as ingredients for manufacturing vitamins, hormones, cholesterol, and streptomycin. Besides this, the production of biodiesel requires methanol through a trans-esterification reaction. A derivative of methanol, known as dimethyl ether, is an alternative to diesel and is blended with liquefied petroleum gas (LPG) for home heating and cooking. According to the Alternative Fuels Data Center (AFDC) of the U.S. Dept. of Energy, in the 1990s, methanol was marketed as an alternative fuel for compatible vehicles. Moreover, in the U.S., nearly 6 Million gasoline gallon equivalents of 100% methanol and blends of 85% methanol and 15% gasoline were used as an alternative fuel in vehicles annually.
The one other area where methanol is used widely is in the petrochemicals industry. The production of petrochemicals over the past few years has grown massively, backed by the increasing demand for petrochemical products amongst the end users. Essential polymers, such as high-density polyethylene (HDPE), low-density polyethylene (LDPE), and polypropylene (PP), are produced from ethylene, propylene, and butene. These three chemicals are produced from methanol by a conversion process known as methanol to olefins (MTO). Apart from this, the market is anticipated to grow on account of the increasing production of methanol around the globe. According to the statistics by the Methanol Institute, there are over 90 methanol plants around the globe and the total combined production capacity of these plants was about 110 Million metric tons.
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Global Methanol Market Regional Synopsis
Regionally, the global methanol market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region. The market in the Asia Pacific is anticipated to hold the largest market share throughout the forecast period and further attain a market revenue of USD 42063.4 Million by the end of 2030, up from a revenue of USD 21362.7 Million in 2020. The market in the region is also anticipated to grow with the highest CAGR of 5.6% during the forecast period. The growth of the market in the region can primarily be attributed to the presence of numerous manufacturers of methanol in China, which is also the world’s largest producer of methanol. Progress in construction activities in the region, along with the rising focus of the government of nations to produce eco-friendly products, and stringent government norms regarding emission control, are some of the significant factors anticipated to drive the growth of the market in the region. The market in the region is segmented by countries into China, India, Japan, South Korea, Singapore, Australia, Vietnam, and Rest of Asia Pacific. Amongst these countries, the market in China is anticipated to hold the largest market share of 74.50% by the end of 2030 and further attain a revenue of USD 31337.3 Million in the same year.
The study further incorporates Y-O-Y Growth, market opportunities, demand & supply and forecast future opportunity in North America (United States, Canada, Mexico), South America, Europe (U.K., Germany, France, Italy, Spain, Hungary, BENELUX [Belgium, Netherlands, Luxembourg], NORDIC [Norway, Denmark, Sweden, Finland], Poland, Russia, Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Malaysia, Indonesia, Taiwan, Hong Kong, Australia, New Zealand, Rest of Asia-Pacific), Middle East and Africa (Israel, GCC [Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman], North Africa, South Africa, Rest of Middle East and Africa).
Growth Drivers and Challenges Impacting the Growth of the Global Methanol Market
Growth Drivers
- Growing Demand for Methanol from End User Industries
- Rise in Awareness for the Benefits of Methanol-based Fuel
Challenges
- Concern for Health Upon Exposure to Methanol
- Availability of Low-Cost Alternatives
Global Methanol Market Segmentation Synopsis
The global methanol market is segmented by feedstock into coal, natural gas, and others. Amongst these segments, the coal segment is anticipated to hold the largest market share and further attain a revenue of USD 32509.5 Million by the end of 2030, up from a revenue of USD 19017.2 Million in 2020. The natural gas segment, on the other hand, is anticipated to hold the second leading stance and further grow with a CAGR of 7% during the forecast period. The rise in demand for natural gas worldwide for different end use applications, is one of the major factors anticipated to drive the growth of the segment in the coming years. 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.
The market is further segmented by derivatives into formaldehyde, acetic acid, methyl tert-butyl ether (MTBE), methanol to olefins (MTO), gasoline, dimethyl ether (DME), and others. Amongst these segments, the methanol to olefins (MTO) segment is expected to hold the largest market share and further attain a revenue of USD 18607.2 Million by the end of 2030. The dimethyl ether (DME) segment, on the other hand, is expected to grow with the highest CAGR of 5.7% during the forecast period. On the basis of application, the market is segmented into transportation fuel, cooking fuel, wastewater treatment, chemical additive, and others. Out of these, the transportation fuel segment is anticipated to hold the largest revenue of USD 21797.5 Million by the end of 2030, up from USD 11219.4 Million in 2020. The market is also segmented by end use industry into paints & coatings, automotive, construction, pharmaceuticals, electronics, agriculture, and others, out of which, the automotive segment is anticipated to hold the largest market share and further attain a revenue of USD 22338.2 Million by the end of 2030.
Top Featured Companies Dominating The Market
Our report has covered detailed company profiling comprising company overview, business strategies, key product offerings, financial performance, key performance indicators, risk analysis, recent developments, regional presence, and SWOT analysis among other notable indicators for competitive positioning. Some of the prominent industry leaders in the global methanol market that are included in our report are Celanese Corporation, SABIC, Zagros Petrochemical Company, Petroliam Nasional Berhad (PETRONAS), Mitsui & Co., Ltd., BASF SE, Atlantic Methanol, LyondellBasell Industries Holdings B.V., Methanex Corporation, Mitsubishi Gas Chemical Company, Inc., and others.
