Methanol Market Research, 2030
The global methanol market was valued at $35.3 billion in 2021, and is projected to reach $54.6 billion by 2030, growing at a CAGR of 5.06% from 2022 to 2030.
The methanol market is segmented into Feedstock and End-use Industry.
Methanol also known as methyl hydrate or methyl alcohol is a colorless, volatile light chemical with distinctive alcoholic odor. Methanol has extensive application across packaging, pharmaceuticals, paints & coatings, automotive, electronics, and insulation industries. Also, it is used for the manufacturing of medical equipment such as hood cap, apron, masks, medical gowns, gloves, disinfectants, pharmaceutical drugs, and others. Additionally, methanol is also used in wastewater treatment facilities for cleaning water. This process is known as denitrification in which excess nitrate from wastewater is converted into nitrogen gas and released in the atmosphere.
The use of methanol as a transportation fuel and in marine sector is gaining significant popularity. This is because methanol is an affordable and a versatile transportation fuel compared to gasoline-based fuel. Owing to these properties, methanol can act as a substitute for gasoline-based fuel such as diesel. In the chemical industry, methanol is used for the production of acetic acid, olefins, methyl methacrylate, silicone, formaldehyde, and others. These chemicals have various end-use applications across adhesives, plastics, paints, sealants, medical equipment, automotive manufacturing, lubricants, and others.
The global methanol market is segmented on the basis of feedstock and end-use industry. By feedstock, the market is segmented into coal, natural gas, and others. By end-use industry, the market is classified into automotive, construction, electronics, appliances, paints and coatings, insulation, pharmaceutical, packaging, and others. By region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The key players profiled in this report include Celanese Corporation, BASF SE, Methanex Corporation, SABIC, Petroliam Nasional Berhad (PETRONAS), Mitsubishi Gas Chemical Company, Inc., Valero, Mitsui & Co., Ltd., Zagros Petrochemical Co., and Methanol Holdings (Trinidad) Limited.
By region, Asia-Pacific dominated the global methanol market in 2021 and is projected to remain the fastest-growing segment during the forecast period. The methanol demand in countries namely China and India is growing rapidly as it is a clean fuel and alternative to gasoline-based fuels. For instance, in September 2021, India launched its first pilot plant to convert high ash coal to methanol in Hyderabad to boost the transition towards clean technology. This will also reduce the Indian crude oil imports and the adoption of methanol as a transportation fuel. These factors are estimated to boost the Asia-Pacific methanol market share during the projected timeframe.
Global Methanol Market, by Feedstock
By feedstock, the natural gas sub-segment dominated the global methanol market in 2021, and coal sub-segment is projected to remain the fastest-growing segment during the forecast period. This is because the production of methanol from natural gas as a feedstock is a simple process and desired purity of methanol can be achieved. Also, the use of natural gas as a feedstock is safe compared to gasoline fuels that have high risk of flammability. The methanol produced from natural gas has an efficiency of around 50-60% which is anticipated to boost the methanol market size during the forecast period.
Global Methanol Market, by End-use Industry
By end-use industry, the automotive sub-segment dominated the global methanol market in 2021, and appliances sub-segment is projected to remain the fastest growing during the forecast period. This growth is majorly owing to the use of methanol for manufacturing of automotive components. For instance, methanol is widely used for the manufacturing of automotive body panels, automotive paints, thermoset bumper & energy absorber, safety glass laminate, tire core adhesives, light lens, acetyl thermoplastics, polyurethane dashboard foam, and others.
IMPACT OF COVID-19 ON THE GLOBAL METHANOL MARKET
- Sales of methanol are directly proportional to the demand from end-use industries namely automotive, chemicals, appliances, packaging, and others. However, the demand for methanol in chemicals industry was greatly affected owing to import-export restrictions, closed borders, and supply chain disruptions.
- COVID-19 has negatively impacted various industries such as automotive that has led to drastic decline in automotive sales. As methanol is widely used in automotive manufacturing, there was significant reduction experienced by the global methanol industry.
- Furthermore, China is the leading producer and exporter of raw materials such as feedstock required for methanol production. However, China being the epicenter of the coronavirus pandemic, its export was affected, leading to a decline in methanol production.
- Economic slowdown has affected the setup of new methanol projects across the world as majority of government fundings were diverted towards healthcare sector owing to rapid spread of the COVID-19 virus.
Key Benefits For Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the methanol market analysis from 2021 to 2030 to identify the prevailing methanol market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the methanol market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global methanol market trends, key players, market segments, application areas, and market growth strategies.
Methanol Market Report Highlights
| Aspects | Details |
 By Feedstock |
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 By End-use Industry |
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 By Region |
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 Key Market Players | Mitsubishi Gas Chemical Company, Inc., Petroliam Nasional Berhad (PETRONAS), Methanol Holdings (Trinidad) Limited, Celanese Corporation, Mitsui & Co., Ltd., Methanex Corporation, BASF SE, Zagros Petrochemical Co., SABIC, Valero Energy Corporation |
Analyst Review
According to the CXOs of the leading companies, the global methanol market possesses a substantial scope for growth in the future. Extensive use in chemicals sector for the production of paints, fleece, lubricants, sealants, polypropylene, plywood, adhesives, medium-density fibreboards, and others is estimated to drive the methanol market growth. However, formaldehyde emissions that can be carcinogenic and can lead to skin infections is predicted to restrain the methanol market share. Wide applications in medical sector for the production of medical equipment such as apron, hoop, cap, disinfectants, medical gowns will drive the global methanol market demand. According to the CXOs, Asia-Pacific is projected to register significant growth as compared to North American and European markets.
Growing application of methanol for the production of green hydrogen and in wastewater treatment facilities is anticipated to boost the methanol market demand in the upcoming years.
Some of the leading applications of methanol include its use in automotive, insulation, packaging, paints & coatings, construction, and other sectors.
Asia-Pacific is the largest regional market for methanol.
Automotive industry leaders, chemicals manufacturers are the major the major customers of global methanol market.
Celanese Corporation, BASF SE, and Methanex Corporation to hold the significant market share in methanol market.
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