Global Methanol Market Trends, Applications, Analysis, Growth, and Forecast: 2017 to 2027

Methanol Market Overview:       

The Methanol Market was valued at $32.8 billion in 2022 & is projected to reach $38 billion by 2027. It is expected to grow at a 4.3% CAGR between 2022 and 2027.

Methanol (CH3OH), known as wood alcohol, is primarily used as an alternative fuel source in the transportation industry owing to its high octane rating and good blending properties. In addition, methanol reduces greenhouse gases and as methanol biodegrades easily, it can be considered a safer alternative for its competing products like gasoline, crude oil, and diesel fuel.

The Methanol Market report has been segmented on the basis of feedstock, derivative, end-use industries, and region. Methanol is colorless and volatile liquid alcohol that is the primary manufacturer by oxidizing methane. Methanol is produced using oil, coal, natural gas, or renewable resources including landfill and biomass gas as feedstock.

Methanol Market Dynamics:

Increasing demand for methanol across various end-use industries such as transportation and building & construction is a major factor estimated to drive the growth of the global market over the next 10 years.

In addition, the increasing adoption of methanol in paint, coating, and pharmaceuticals industries is another factor projected to drive the growth of the global market over the next 10 years.

In addition, increasing demand for petrochemicals in various developing regions and rapid growth in construction, electronics, and electrical end-use industries are other factors estimated to drive the growth of the target market over the forecast period.

Increasing adoption of methanol as a fuel in the automobile industry due to enhanced engine performance and improved fuel efficiency is another major factor expected to drive the global market growth.

However, the high processing cost of conversion of methane into a liquid coupled with the lack of technology is a major factor expected to hamper the growth of the target market to a certain extent.

Methanol Market Segmental Analysis:

On the basis of feedstock, the coal segment is expected to dominate the global methanol market. The coal segment revenue is anticipated to register the highest CAGR over the forecast.

On the basis of derivatives, the methanol-to-olefins/methanol-to-propylene (MTO/MTP) segment is expected to dominate the global methanol market. The MTO/MTP segment revenue is projected to register the highest CAGR over the forecast.

On the basis of end-use industries, the automotive segment is expected to account for a significant share in terms of revenue in the global market, owing to the increasing demand for lightweight vehicles in order to reduce carbon emissions. The automotive segment revenue is also projected to register the highest CAGR over the forecast.

Growing consumption of methanol in the construction industry where formaldehyde-based resins are utilized to make engineered wood and composites products. And increasing commercial and residential construction activities coupled with rising per capita income and improving standards of living are among other key factors expected to drive the growth of the methanol market.

Methanol Market Regional Analysis:

Asia Pacific methanol market is estimated to account for a significant share in terms of revenue in the global market. Asia Pacific market is also projected to register the fastest growth in terms of revenue over the next 10 years, owing to rapid growth in end-use verticals, availability of labor, and increased consumers demand.

In addition, increasing investment in construction sectors and rising disposable income in countries in this region are other factors expected to drive the growth of the global market over the forecast period.

Global methanol market segmentation:

Segmentation by feedstock:

• Natural Gas
• Coal
• Others

Segmentation by derivative:

• Formaldehyde
• Acetic Acid
• Gasoline
• Methanol-to-Olefins/Methanol-to-Propylene (MTO/MTP)
• Biodiesel
• Others (Methyl Tert-Butyl Ether (MTBE), Dimethyl Ether (DME), and Methyl Methacrylate (MMA))

Segmentation by end-use industries:

• Construction
• Automotive and Transportation
• Electronics and Electrical
• Paints & Coatings
• Pharmaceuticals
• Others (Packaging and Water Treatment)

Segmentation by region:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa