Methanol Catalyst Market Expected to Reach $8 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Methanol Catalyst Market," The methanol catalyst market was valued at $6.0 billion in 2022, and is estimated to reach $8.0 billion by 2032, growing at a CAGR of 3.2% from 2023 to 2032.

A methanol catalyst is a substance that accelerates the reaction of methanol with other molecules, such as oxygen, carbon dioxide, or other hydrocarbons. These are essential components in numerous industrial processes and applications, facilitating chemical reactions and boosting productivity. Depending on the application and the desired results, such as increasing yield, lowering byproducts, or cutting emissions, the design and choice of catalysts differ.

Methanol catalysts are a useful tool for industrial processes and applications due to their many benefits including high selectivity, less environmental impact, and increased efficiency. The employment of catalysts is projected to become more crucial as the demand for methanol and other clean fuels rises, helping to increase efficiency and lessen environmental impact.

The utilization of methanol in various sectors including electronics and polymer industries boosted the methanol catalyst market. The electronics business is expanding quickly because of several reasons, including technological developments, a growth in consumer demand for electronic devices, and the spread of internet access and mobile computing leading to the increase in demand for methanol. Electronic parts and circuit boards are cleaned with methanol in the electronics sector.

Methanol functions well as a solvent to clean impurities such flux remnants, oils, and grease off electronic parts. A broad variety of electrical equipment, such as computers, mobile phones, and televisions, employ printed circuit boards (PCBs), which can be cleaned using methanol. Cleaning agents with a methanol base are frequently employed in electronic manufacturing and maintenance facilities. The cleaning solutions, which are used to remove impurities from the surface of the components or circuit boards, are commonly sprayed using spray equipment or immersion tanks.

A benefit of utilizing methanol as a cleaning agent is that it evaporates fast and leaves no residue, making it appropriate for use in situations where residue can affect how an electronic equipment function. It is a popular alternative for usage in large-scale electronic manufacturing processes, since it is also very affordable and easily accessible.

The use of methanol in polymer industry has increased significantly during the past few decades. Advances in polymer technology, growing consumer demand for plastic products, more awareness of sustainability and recycling, and other factors all contribute to the growth of the polymer sector leading to the utilization of methanol. It is used as a feedstock in the polymer industry for manufacturing various polymers, including polyesters, polyurethanes, and formaldehyde-based resins.

The production of formaldehyde-based resins, such as urea- and phenol-based resins (UF and PF), is one of the principal uses of methanol in the polymer industry. It is transformed into formaldehyde through the oxidation process, which is subsequently used as a reactant in the generation of these resins. Polyester resins, which are utilized in a range of applications, including as packaging, textiles, and automotive parts, are also made using methanol. It involves the reaction of terephthalic acid or dimethyl terephthalate with methanol to produce dimethyl terephthalate, which is subsequently polymerized to produce polyethylene terephthalate (PET) resin.

The manufacturing of polyurethane (PU) foams, which are used in a variety of applications, including insulation, cushioning, and packaging, is another usage of methanol in the polymer sector. Methanol and diisocyanates are combined in this procedure to produce polyurethane foam. Owing to these diverse applications of methanol in electronics and polymer industries, the market for methanol catalyst increased tremendously during the forecast period.

In recent years, the market for methanol catalysts has seen a major increase in investments in research and development leading to the growth of the market. Companies are investing in research and development to increase the effectiveness and performance of methanol catalysts and develop new, more efficient, and effective catalysts.

For instance, research and development investments are being made by companies like BASF SE, Clariant, Haldor Topsoe A/S, Johnson Matthey, and Mitsubishi Chemical Corporation to develop new catalyst technologies, enhance the effectiveness and performance of current catalysts, and lower costs.

Additionally, a lot of these companies are working together with universities and research groups to accelerate the development of novel catalyst technologies. Scientists are examining new catalytic materials such carbon nanotubes, metal-organic frameworks, and nanomaterials to develop catalysts that are more effective and efficient.

Researchers are developing more environment friendly catalysts that employ renewable energy sources to increase sustainability. Owing to these surges in research and development activities for methanol catalysts, the market will grow at a significant rate during the forecast period.

The volatility in the price of methanol restrains the growth of the methanol catalyst market. The fluctuations in the raw material cost used to produce methanol, instability in the supply and demand chain, and environmental regulations affect the price of methanol. Natural gas, coal, or biomass are used for methanol production, so variations in the cost of these inputs can impact methanol prices. The cost of raw materials for the manufacturing of methanol can be affected by the price of energy, including oil and gas.

Additionally, the manufacturing of formaldehyde, acetic acid, and methyl tertiary butyl ether (MTBE), among other products, is a major driver of the need for methanol in many different sectors. The price of methanol is susceptible to changes in both the demand for these products as well as the state of the world economy. Furthermore, methanol production and consumption may be impacted by laws about carbon emissions and climate change.

For instance, rules that limit carbon emissions may result in a decrease in the demand for methanol as an input while policies that encourage the use of low-carbon fuels may result in an increase in the demand for methanol as a fuel. Owing to these reasons, the fluctuations in the methanol price hinder the market growth.

Mitigation of CO2 is a fantastic opportunity for the methanol catalyst market as there is an increased awareness regarding greenhouse gas emissions and environmental concerns. The potential for using CO2 in energy carriers and other materials is enormous, but there are many challenges to be addressed. A practical approach to reduce greenhouse gas emissions has been proposed, and it involves lowering CO2 levels, moving to renewable fuels, and using valuable chemicals.

A significant amount of the CO2 that has been obtained will be used up in the conversion of CO2 into fuels like methanol, and methanol has a potentially enormous market. Additionally, as it may be used in place of fossil fuels, generated methanol helps to expand the market for CO2 utilization while reducing dependency on fossil fuels. Owing to these factors, mitigation of CO2 emissions is an excellent opportunity for the methanol catalyst market.

The methanol catalyst market is classified on the basis of type, application and region. Depending on type, the market is segmented into copper-based catalysts, zinc-based catalysts, and others. On the basis of application, the market is divided into industrial field, automobile field and others. Region wise, the market is analyzed across North America, Europe, Asia-Pacific and LAMEA.

On the basis of type, the copper-based catalyst segment dominated the global methanol catalyst market, both in terms of value in 2022. Copper-based catalysts are highly efficient and selective throughout the methanol synthesis process, enabling rapid and high-yield conversion of synthesis gas into methanol. As a result, they are a preferred option for the manufacturing of methanol.

On the basis of application, the industrial field segment dominated the global methanol catalyst market, both in terms of value in 2022. Methanol is widely used in various industrial fields including petrochemical, refining, and chemical industries making it the dominant segment.

On the basis of region, Europe has a dominant share in the market and is anticipated to experience rapid growth in the methanol catalyst market. The technological advancements, rise in research and development activities, growing investments in this region increased the usage of methanol catalysts owing to the growth of the market.

The key players operating in the global methanol catalyst market are Air Liquide Engineering & Construction, BASF SE, Casale SA, CLARIANT, Johnson Matthey, MITSUBISHI GAS CHEMICAL COMPANY, INC., Sinopec Catalyst CO., LTD., Smart Catalyst, Süd-Chemie India Pvt. Ltd. and Topsoe. These players have adopted various key strategies including agreement, collaboration, expansion, and partnership to increase their market shares.

Key finding of the study

• Asia-Pacific is projected to grow at the highest CAGR of approximately 3.5%, in terms of revenue, during the forecast period.
• By type, the zinc-based catalysts segment is anticipated to grow with CAGR 3.4%, in terms of revenue, during the forecast period.
• By application, the industrial field segment is anticipated to grow with CAGR 3.3%, in terms of revenue, during the forecast period.