Rising fuel consumption along with the need to reduce the global greenhouse gas emission can have a positive impact on the global methanol market. Decreasing fossil fuel reserves and increasing industrialization leading to a greater degree of environmental pollution has led the countries to adopt biofuel quotas that can favor the biofuel production. Today certain companies have started to produce and sell bio-methanol that uses glycerin as a feedstock and can prove to be beneficial for the countries looking to attain energy security. Low cost manufacturing of methanol providing a less expensive method of reducing the carbon footprints is an essential factor to the development of the methanol market in the near future. Today, methanol can be used as an alternative fuel for the combustion engines, either directly or in combination with gasoline. Methanol is chiefly produced from natural gas and biomass. Besides, being used as a fuel methanol can also be used in chemical industries for producing plastics, explosives and other useful materials.
The segmentation of the methanol market can be done on the basis of product type, technology, applications and geography. Methanol can be classified into fuel grade and industrial grade methanol. Fuel grade methanol, if prepared using feedstock such as syngas and glycerin forms bio-methanol. Today most of the methanol is produced using the natural gas. However, in some countries methanol is produced using coal. Today methanol is used as a fuel and in the manufacturing of other chemicals. Methanol is used as a fuel for the internal combustion engines and is used in monster trucks, champ cars and sprint cars. Usually, in order to optimize the engine performance a blend of methanol, ethanol and petroleum is used. Industrial grade methanol is mainly converted into formaldehyde that is used in production of plywood, plastics, explosives, paints and permanent press textiles. Derivative of methanol such as dimethyl ether is used as the acetic acid and aerosol spray propellant.
Major demand for fuel grade methanol is driven by the North American and European countries where it is mixed with ethanol and petroleum. The demand for pure fuel grade methanol is majorly driven by the United States where it is used in monster trucks, champ cars and sprint cars. The use of industrial grade methanol is driven by countries such as India, China and Japan in Asia Pacific; the United States in North America; Germany, France, Italy and Spain in Europe. The Rest of the World segment includes the countries from Middle East and Africa and Latin America.
Availability of natural gas, increasing demand from the industrial sector, low cost manufacturing is the major driver for the methanol market. Methanol is less flammable in comparison and hence it is easy to maintain the fire fighting protocols for methanol. More attention towards the use of fuel grade ethanol or bio ethanol in comparison to methanol has become one of the major restraints to the methanol market. Higher energy density and less toxic nature of ethanol make it a far more favorable fuel choice as compared to methanol. Government policies favoring the development of bio-fuels can provide an opportunity for the use of methanol in bio-methanol manufacturing.
Some of the key players in the methanol market include companies such as BASF SE, Eastman Chemical Company, Celanese Corporation (U.S.), Atlantic Methanol Production Company LLC, Methanex Chile Ltd., and JSC “METAFRAX.
This research report analyzes this market on the basis of its market segments, major geographies, and current market trends. Geographies analyzed under this research report include
- North America
- Asia Pacific
- Rest of the World
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- Market structure
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