Authored By: Sarah
04 Jul 2024

 Methanol Market to grow by USD 6.13 billion between 2023-2027

According to a research report “ Methanol Market” by Derivative Type (Formaldehyde, Gasoline, Acetic acid, DME, MTO/MTP and others) End-user (Automotive, Construction, Paints and coatings, Electronics, Others) Geography (APAC, Europe, North America, Middle East and Africa, South America)- Global Forecast to 2027 published by Technavio, the market size is estimated to grow by USD 6.13 billion at a CAGR of over 3.34% during the forecast period. Methanol serves as a vital feedstock for the production of formaldehyde, a key ingredient in various industrial applications. In particular, formaldehyde-based resins, including urea-formaldehyde and phenol-formaldehyde, are extensively utilized in manufacturing wood-based products like particleboard, plywood, and medium-density fiberboard (MDF). The construction and furniture industries' reliance on these materials generates a steady demand for formaldehyde and, subsequently, methanhol. Moreover, the automotive and aerospace sectors employ formaldehyde-based resins in the production of composite materials for lightweight and robust components. As these industries advance, the demand for these advanced materials is projected to increase, thereby boosting the requirement for methanol..

Browse market data tables, figures, and in-depth TOC on “Methanol Market” by Derivative Type (Formaldehyde, Gasoline, Acetic acid, DME, MTO/MTP and others) End-user (Automotive, Construction, Paints and coatings, Electronics, Others) Geography (APAC, Europe, North America, Middle East and Africa, South America) Global Forecast to 2027.

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By Derivative Type, the Formaldehyde segment is projected to dominate the market size in 2024.

In the global fuel market, methanol emerges as a versatile and eco-friendly solution, serving various applications. As a fuel additive or alternative, methanol boosts gasoline performance through derivatives like Methyl Tertiary Butyl Ether (MTBE), enhancing octane ratings. Methanol-gasoline blends are prevalent in racing and motorsports. In the clean energy sector, methanol fuels fuel cells and reduces harmful emissions, including particulate matter, nitrogen oxides (NOx), and volatile organic compounds (VOCs). Its low carbon footprint makes methanol a desirable choice for reducing greenhouse gas emissions. Additionally, methanol is a crucial component in windshield washer fluids for automotive use.

By End-user, Automotive  segment is expected to hold the largest market size for the year 2024.

In the methanol market, formaldehyde serves as a significant derivative and is generated through the oxidation process of methanol. The primary business application of formaldehyde lies in the production of resins and adhesives. These include urea-formaldehyde, phenol-formaldehyde, and melamine-formaldehyde, extensively used in the wood and furniture industry for manufacturing engineered products like plywood, particleboard, and laminates. Additionally, formaldehyde-based resins find extensive use in the construction sector for insulation foam, laminates, and fiberboards, and in the automotive industry for interior components such as dashboards and door panels.

APAC is forecasted to hold the largest market size by region in 2024.

The APAC region led the global methanol market in 2022, driven by robust demand growth. Key industries such as construction, automotive, textile, and furniture fuel this expansion. China, a major player in APAC, is a significant contributor, with its energy and petrochemical sectors driving the demand for methanol and its derivatives. Notably, China's high demand for methanol-gasoline blends as transportation fuels further bolsters the region's market dominance.

The Methanol Market t growth and forecasting report also includes detailed analyses of the competitive landscape of the market growth and forecasting and information about 20 market companies, including:

  • BASF SE
  • Celanese Corp.
  • Coogee
  • Eni SpA
  • GNFC Ltd.
  • INEOS Group Holdings SA
  • LyondellBasell Industries N.V.
  • Methanex Corp.
  • Mitsubishi Gas Chemical Co. Inc.
  • MITSUI and CO. LTD.
  • Oberon Fuels Inc.
  • OCI NV
  • PETRONAS Chemicals Group Berhad
  • Proman GmbH
  • Saudi Arabian Oil Co.
  • Simalin Chemical Industries Pvt. Ltd.
  • Thermo Fisher Scientific Inc.
  • Zagros Petrochemical Co.
  • Chevron Corp.
  • ENERKEM Inc.
.

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Research Analysis Overview

The Methanol market is a significant sector in the global energy industry, with methanol pricing playing a crucial role in its dynamics. Methanol, a versatile chemical compound, is derived from natural gas reserves and is used in various applications. Its clean-burning properties make it an attractive alternative fuel for marine applications and as a component in fuel-grade ethanol. Methanol's energy density is comparable to that of gasoline, making it a viable option for the transportation sector. In the chemical industry, methanol is used as a building block for producing formaldehyde, biodiesel, and MTBE (Methyl-tert-butyl ether). Regulatory changes and market trends have influenced methanol pricing, with the Methanol Market and Shippers Association (MMSA) playing a key role in monitoring and reporting market data. The global methanol pricing is influenced by supply and demand factors, including natural gas prices and production costs. Methanol's role as a clean-burning fuel and its applications in various industries make it an essential commodity in the energy market. Its versatility and potential to reduce greenhouse gas emissions make it an attractive option for the future.

Market Research Overview

The Methanol Market encompasses the production, consumption, and pricing of Methanol, a versatile chemical compound. This facility utilizes Hydrogen, Carbon Dioxide, and natural gas as feedstocks. Methanol is a crucial derivative in various industries, including WFS (Waterborne Freight Systems), OCI (Ocean Cargo Industries), and the Construction Sector. Methanol is employed as a solvent, resin monomer, and chemical building block in numerous applications. Its high heat resistance to water, strength, and adhesive qualities make it an essential component in insulation, packaging, appliances, pharmaceuticals, electronics, and biodiesel production. Methanol's price is influenced by global market trends, natural gas reserves, and regulatory changes. As a clean-burning fuel, methanol is increasingly used as a marine application and fuel-grade ethanol. Its energy density makes it a viable alternative to traditional fossil fuels. Methanol's production process involves the conversion of natural gas into methanol. Natural gas reserves serve as the primary feedstock for this process. However, regulatory changes and the availability of alternative feedstocks, such as biomass, can impact the market dynamics. Methanol's derivatives, including MTBE (Methyl-tert-butyl ether), are used in the production of formaldehyde, insulation materials, and methanol refuelling infrastructure. Overall, the Methanol Market is a dynamic and evolving industry that plays a significant role in various sectors.

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Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/

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