Methanol Market size was valued at USD 33.74 billion in 2023 and is expected to exceed USD 59.05 billion by 2036, registering over 4.4% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of methanol is assessed at USD 34.93 billion.
The growth of the methanol 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.
Growth Drivers
Challenges
|
Base Year |
2023 |
|
Forecast Year |
2024-2036 |
|
CAGR |
4.4% |
|
Base Year Market Size (2023) |
USD 33.74 billion |
|
Forecast Year Market Size (2036) |
USD 59.05 billion |
|
Regional Scope |
|
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 of 55.05% by the end of 2036. 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.
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 of USD 31.49% by the end of 2036. 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 share of USD 36.9 by the end of 2036. 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 of USD 37.8% by the end of 2036.
APAC Market Statistics
Regionally, the global methanol market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region. Asia Pacific is poised to hold highest industry share of 76% by 2036, attributed to 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 2036.
Author Credits: Rajrani Baghel
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