Global Methanol Market – Industry Trends and Forecast to 2030

Global Methanol Market, By Type (Natural Gas, Coal, Others), Derivatives (Formaldehyde, Acetic Acid, MTBE, MMA, Gasoline Blending, Biodiesel, DME, TAME, DMT, MTO/MTP, Others), Sub-Derivatives (Gasoline additives, Olefins, UF/PF resins, VAM, Polyacetals, MDI, PTA, Acetate Esters, Acetic anhydride, Fuels, Others), End-User Industry (Construction, Automotive, Electrical and Electronics, Pharmaceuticals, Packaging, Paints and Coatings, Agriculture, Others) – Industry Trends and Forecast to 2030.

Methanol Market Analysis and Size

Methanol, also known as methyl alcohol or wood alcohol, is a colourless, volatile liquid that is used primarily as a feedstock in the production of various chemicals and fuels. The global methanol market has experienced significant growth in recent years due to its versatile applications across different industries such as chemical industries, energy sector, and others. It is important to note that the global methanol market is influenced by factors such as raw material availability, technological advancements, government regulations, and environmental concerns. Price fluctuations of natural gas, coal, or biomass (common feedstock for methanol production) can also impact the market dynamics.

Data Bridge Market Research analyses that the methanol market which was USD 30.50 billion in 2022, would rocket up to USD 44.43 billion by 2030, and is expected to undergo a CAGR of 4.8% during the forecast period. “Coal” dominates the type segment of the methanol market owing to the lower prices of coal and presence of vast coal reserves have increased the demand for use of coal as a feedstock. In addition to the insights on market scenarios such as market value, growth rate, segmentation, geographical coverage, and major players, the market reports curated by the Data Bridge Market Research also include depth expert analysis, patient epidemiology, pipeline analysis, pricing analysis, and regulatory framework.

Methanol Market Scope and Segmentation

Market Definition

Methanol is a colourless, volatile liquid and is the most basic member of the alcohol family of chemical molecules. It is now made by mixing carbon monoxide gas with hydrogen directly in the presence of a catalyst. Traditionally, it was made by distilling wood in a harmful manner. It has wide range of applications in industrial sector where methanol is used as an industrial fuel, solvent, and others. Also, it is largely used in paints & coatings, automotive, packaging pharmaceutical, electronics, and insulation industry.

Methanol Market Dynamics

Drivers

• High Demand for Methanol

Methanol is utilized in large-scale petrochemical manufacturing. The global methanol market is being driven by the rising demand for petrochemicals. The primary driver for this industry is the usage of petrochemicals in end-use sectors such as automotive and construction. Methanol, ethylene, propylene, butadiene, benzene, toluene, and xylenes are the organic chemicals with the highest production volume in the petrochemical industry. Olefins are made up of ethylene, propylene, butadiene, and butylene. Methanol, often known as primary petrochemical, is a precursor to a wide range of chemical compounds. Its generation of olefins is expected to be a main driver of methanol growth in the petrochemical industry. MTO/MTP is the methanol market's third-largest and fastest-growing derivative sector. In China, there are a number of MTO factories that use coal as a main feedstock. The high demand for plastics such as polyethylene and polypropylene in end-use industries is fuelling the fast expansion of MTO plants. As a result, the development in MTO plants across the globe, the massive production of olefins from methanol, are the primary drivers of the methanol market.

• Increased Demand of Clean-Burning Fuels

The growing interest in clean-burning fuels and regulatory changes are driving new applications for methanol as a fuel to emit lower emissions. Methanol is gaining popularity as a maritime fuel because of its environmental benefits, global availability, economic competitiveness, and successful and safe use. Sulfur oxides (SOx), nitrogen oxides (NOx), and particulate matter emissions are all reduced by methanol. In China, the strict air quality emission restrictions in regions such as Shandong and Beijing are causing a phase-out of coal-fuelled industrial boilers and kilns in favour of cleaner fuels, creating a developing market for methanol as an alternative fuel.

Furthermore, the methanol has a low cost of production and, as a liquid fuel, requires just a small amount of infrastructure, which will further propel the growth rate of methanol market. In addition, the increasing demand for natural gas as a feedstock from end-use industries will also drive market value growth. The expansion of the automotive industry is projected to boost the market growth.

Opportunities

• Expansion of Production Capabilities and Inclination towards Low-emission Fuels

Furthermore, the key manufacturers are focusing on expanding their production capabilities to meet growing market demand and extend profitable opportunities for the market players in 2023 to 2030. Additionally, the increasing interest in low-emission fuels may further expand the future growth of the global methanol market. 

Restraints/Challenges

• Growing Use of Ethanol as an Alternative

For many years, alcohol-based fuels have been employed in automobile applications. Alcohols are hydrocarbon fuels that emit fewer pollutants than other fuels. Ethanol and methanol are two forms of alcohols that are utilized as fuels. Methanol is more dangerous to handle than ethanol because of its strong corrosiveness when it comes into touch with metals and requires an entirely new fuel delivery system. Ethanol is less harmful chemically than methanol and has a higher energy density per gallon. It has around 75% of the energy of gasoline per gallon, compared to 67% for methanol. It has a higher energy density than methanol while remaining a liquid, making it a viable option. The increased use for ethanol may further hamper the demand for methanol. As a result, this factor is projected to restrain the market growth.

This methanol market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, and technological innovations in the market. To gain more info on the methanol market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.

Recent Development

• In November 2022, Petronas moved forward with construction of a new methanol facility, which is slated to add 1.75 million tons of production capacity to the company’s already operational 2.4 million tons of methanol production capacity. The project, which is set to complete in March 2023, is located in Bintulu Sarawak, Malaysia
• In February 2022, Linde announced the expansion of its existing agreement with Celanese Corporation to supply carbon dioxide and hydrogen to the Celanese manufacturing facility in Clear Lake, Texas, to produce methanol. This agreement will help the company to reduce its carbon footprint during its operation, which may contribute to the preservation of the environment, helping the company strengthen its business portfolio
• In March 2021, Fairway Methanol LLC, which was formed through a 50-50 partnership between Mitsui & Co., Ltd and Mitsui & Co., Ltd, has decided to expand its facilities in order to increase methanol production (up to 130,000 tons per year) by purchasing and effectively utilizing CO2 emitted from nearby plants (up to 180,000 tons per year)
• In July 2021, Methanex Corporation and Mitsui O.S.K. Lines (MOL) announced that they have reached an agreement on Key Commercial Terms for the purchase and sale of an equity holding in Methanex's Waterfront Shipping (WFS) subsidiary and the formation of a strategic partnership. For USD145 million, MOL will purchase a 40% minority stake in WFS. WFS will continue to operate as a significant component of Methanex's worldwide supply chain capabilities, with Methanex holding the remaining 60% majority stake

Global Methanol Market Scope

The methanol market is segmented on the basis of type, derivatives, sub-derivate, and end-user industry. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Type

• Natural Gas
• Coal
• Others

Derivatives

• Formaldehyde
• Acetic Acid
• MTBE
• MMA
• Gasoline Blending, Biodiesel
• DME
• TAME
• DMT
• MTO/MTP
• Others

Sub-Derivatives

• Gasoline additives
• Olefins
• UF/PF resins
• VAM, Polyacetals
• MDI
• PTA
• Acetate Esters
• Acetic anhydride
• Fuels
• Others

End-Use Industry

• Construction
• Automotive
• Electrical & Electronics
• Pharmaceuticals
• Packaging
• Paints and Coatings
• Agriculture
• Others

Methanol Market Regional Analysis/Insights

The methanol market is analysed and market size insights and trends are provided by country, type, derivatives, sub-derivatives and end-user industry as referenced above.

The countries covered in the methanol market report are U.S., Canada, Mexico, Brazil, Argentina, Rest of South America, Germany, France, Italy, U.K., Belgium, Spain, Russia, Turkey, Netherlands, Switzerland, Rest of Europe, Japan, China, India, South Korea, Australia, Singapore, Malaysia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific, U.A.E, Saudi Arabia, Egypt, South Africa, Israel, Rest of Middle East and Africa.

North America dominates the market in terms of market share and market revenue and will continue to flourish its dominance during the forecast period of 2023-2030. The market growth in this region is attributed to the presence of key manufacturers within the region.

On the other hand, Asia-Pacific is estimated to show lucrative growth over the forecast period of 2023-2030, due to the shift of consumer preference toward sustainable fuels in the region.

The country section of the report also provides individual market impacting factors and changes in regulation in the market domestically that impacts the current and future trends of the market. Data points like down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.   

Competitive Landscape and Methanol Market Share Analysis

The methanol market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to methanol market.

Some of the major players operating in the methanol market are:

• Novartis ethanex Corporation (Canada)
• Proman (Switzerland)
• SABIC (Saudi Arabia)
• Yanzhou Coal Mining Company Limited (China)
• ZPCIR (Iran)
• Celanese Corporation (Texas)
• BASF SE (Germany)
• Petroliam Nasional Berhad (PETRONAS) (Malaysia)
• Mitsubishi Gas Chemical Company Inc. (Japan)
• Mitsui & Co., Ltd. (Japan)
• LyondellBasell Industries B.V. (U.S)
• OCI N.V. (Netherlands)
• Metafrax Group (Russia)
• SIPCHEM Company (Saudi Arabia)