Methanol is widely used in various industries directly or as a feedstock for the production of liquid fuels, chemicals, and plastics. Introduction of new regulations and policies to control emission of harmful gases has resulted in the increased demand for biofuels. This has also led to the research of the innovative methods that are energy-efficient, eco-friendly and low-cost. For instance, researchers at Tufts University have found a less expensive and efficient way of converting methane to methanol by using molecular oxygen and carbon monoxide. Similarly, more research projects are being carried on across the globe.
Technology to use methanol as a substitute for diesel is also being commercialized in various countries. Political issues are also changing trade flows for methanol. With sanctions levied against Iran, the country has limited all the exports to Chinese and Indian markets. Hence, there is an ongoing development of new markets for methanol such as direct blending of methanol into gasoline, methanol to olefins, etc.
According to a new study by Transparency Market Research (TMR), the global market for methanol is likely to have a steady growth during 2017-2026. The market is anticipated to register CAGR of 5.4%. By 2026 end, the global market for methanol is estimated to bring in US$ 131,344.3 million revenue.
Natural Gas to Emerge as the Primary Feedstock for Methanol
Natural gas is estimated to account for over half of the revenue share by 2017 end. Natural gas is likely to gain market volume more than 77,700 KT by 2026 end. Natural gas is one of the primary feedstock for methanol. Regions such as the Middle East, Africa, North America and Latin America with access to low-cost natural gas are seeing an increase in methanol capacity. Cheap and unconventional supply of natural gas is leading towards the use of natural gas as feedstock for methanol.
Formaldehyde to Gain Maximum Traction in the Global Market for Methanol
Formaldehyde is likely to account for the highest growth in terms of volume. By 2026 end, the formaldehyde is estimated to be account for market volume more than 37,200 KT. Formaldehyde is widely used in industries such as construction, furniture, textiles, automotive, paints and coatings, and pesticides and fertilizers. Formaldehyde is used in the production of amino resins. These resins made using formaldehyde have a phenomenal adhesive strength and moisture resistance. One of the biggest factor contributing to the growth of formaldehyde is its use in the fuel production as it is a cheaper substitute for oil.
APEJ to Emerge as the Largest Region in the Global Market for Methanol
Asia Pacific Excluding Japan (APEJ) is likely to emerge as one of the biggest regions in the global market for methanol during 2017-2026. Methanol is being largely being used in China to produce olefins. The process is known as Methanol-to-Olefins (MTO). Meanwhile, coal gasification is one of the largely used production processes in order to manufacture methanol in China, with maximum plants in operation and more under the planning and construction. The government in China has also implemented fuel-blending standards and various programs to promote the use of methanol as a fuel. Meanwhile, in order to reduce pollution and fuel cost, India is also moving towards blending methanol with petrol.
Some of the countries in Europe are also moving towards using gasoline blended with the small quantity of methanol. Meanwhile, other countries such as Israel and Australia have already completed commercialization activities in order to support methanol fuels.
Celanese Corporation, Methanex Corporation, SABIC, BASF SE, Mitsui Chemicals, Inc., and Mitsubishi Chemical Holdings Corporation, are some of the key companies currently operating in the global market for methanol.
Global Methanol Market- Overview
Methanol also known as wood alcohol has some of the similar characteristics of conventional fuels. Hence, methanol is emerging as a perfect replacement for fuels such as diesel and petrol. There has also been an increase in the use of methanol also filling stations. Various combinations of methanol such as M3 to M85 are being used on a large scale. The demand for alternative transportation fuel is also rising with the depleting crude oil reserves. Exceptional blending properties is also one of the reasons for the increasing demand for methanol.
Governing bodies across the globe are coming up with new regulations on decreasing emissions of harmful gases such as nitrogen oxides and sulphur oxides. Methanol, due to its clean burning qualities can help in reducing or eliminating these emissions. Hence, the use of methanol is growing globally as a vehicle fuel and as a marine fuel. Meanwhile, there is ongoing research to come up with some new methods or technology to produce methanol in a more eco-friendly way.
Global Methanol Market- Research Methodology
The report on the global methanol market offers key insights on all the major factors that will impact the methanol market during the forecast period 2017-2026. Meanwhile, the report also focuses on the future trends and opportunities in the global methanol market.
The report also examines historical trends and long-term forecasts for production, supply/demand, capacity, and trade of the global methanol market. Quantitative and qualitative data is also provided in the report. The report provides information on various market segments and regions that will impact the growth of the methanol market in the coming years.
The research report also provides in-depth analysis of the market dynamics including trends, opportunities, drivers, and challenges. The report also offers an estimation of revenue, market size, market share, year-on-year growth, and CAGR. Additionally, the report also provides analysis on market attractiveness, along with Porter’s five force analysis, and SWOT analysis. Detailed profiles of the leading companies operating in the methanol market are also given in the report. Financial overview, company overview, product portfolio, key strategies, and new product development of each of the given companies is provided in the report. The primary and secondary research was also done to provide useful information on the market.
Global Methanol Market- Market Segmentation
The global methanol market is segmented into feedstock type, end use, and region. On the basis of feedstock type, the market is divided into natural gas, coal, and other feedstock types. On the basis of end use, the market is segmented into formaldehyde, acetic acid, MTBE, MMA, gasoline blending, biodiesel, dimethyl ether, MTO/MTP, and others. This segmentation also includes country-wise analysis based on all the key parameters in the global methanol market.
Region-wise, the market is segmented into Latin America, Japan, North America, Europe, the Middle East and Africa (MEA), and Asia Pacific Excluding Japan (APEJ).
Global Methanol Market- Competitive Landscape
The report includes company profiles and key strategies adopted by the leading market players in the global methanol market such as SABIC, Mitsubishi Chemical Holdings Corporation, Mitsui Chemicals, Inc., Methanex Corporation, BASF SE, and Celanese Corporation. The companies are evaluated on various parameters such as product portfolio, company overview, latest product development, financial overview, and key business strategies.