Methanol Market Analysis APAC, Europe, North America, Middle East and Africa, South America - US, China, South Korea, Japan, India - Size and Forecast 2023-2027

Methanol Market Forecast 2023-2027

The methanol market size is forecast to increase by USD 6.13 billion at a CAGR of 3.34% between 2022 and 2027. The market is experiencing significant growth driven by the escalating demand for formaldehyde and its derivatives across various industries. The adoption of Methanol-to-Olefins (MTO) technology is witnessing a surge, particularly in regions like APAC, where there's a robust demand for chemicals. With the rising emphasis on sustainability and energy efficiency, methanol emerges as a versatile chemical feedstock, fueling its demand globally. This market research and growth report also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

What will be the size of the Methanol Market During the Forecast Period?

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The methanol market plays a significant role in the global chemicals industry. Changes in natural gas prices and increasing demand for methanol in various industries have influenced the market dynamics. It is produced through the methanol process, which converts natural gas or coal into methanol. The major consumers of methanol are the chemical industry, fuel sector, and the production of formaldehyde and acetic acid. The demand for methanol is increasing due to its extensive use in the production of various chemicals and as a fuel. The market for methanol is global in nature, with major producers being China, the US, and the Middle East. The supply and demand dynamics are influenced by various factors, including raw material prices, production capacity, and demand from end-use industries. The market is expected to grow at a steady pace in the coming years due to increasing demand from various industries and the ongoing shift towards cleaner fuels.

Market Dynamics and Customer Landscape

The market is witnessing significant growth, driven by expanding methanol refueling infrastructure and increasing demand for clean-burning fuels like biodiesel and fuel-grade ethanol. Assumptions about energy density and regulatory changes also impact market dynamics. Despite political and environmental challenges, the market benefits from abundant natural gas reserves and the efforts of organizations like MMSA and the Methanol Institute. Methanol pricing, analyzed on a global scale, fluctuates based on spot and contract basis, influencing supply and demand dynamics. Its versatile applications in marine and gas chemical industries further contribute to market expansion and analysis. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Market Driver

One of the key factors driving the market growth is the rising demand for formaldehyde and its derivatives. The main downstream application of methanol is formaldehyde and it is extensively used in different industries which is significantly contributing to the market growth. Some of the formaldehyde-based resins include urea-formaldehyde and phenol-formaldehyde resins which are widely used in wood-based products such as particleboard, plywood, and medium-density fiberboard (MDF). 

Moreover, several industries such as construction and furniture industries heavily depend on these materials, resulting in a constant demand for formaldehyde which in turn fuels its demand. Furthermore, other industries that utilize formaldehyde-based resins are the automotive and aerospace industries for the production of composite materials for lightweight and high-strength components. Hence, such factors are expected to drive market growth during the forecast period.

Significant Market Trends

A key factor shaping the market growth is the increasing demand for methanol in the chemical industry. It is one of the crucial components in the chemical industry as it is widely used for the production of various chemicals such as formaldehyde, acetic acid, and MTBE. These chemicals have various applications in the manufacturing of plastics, adhesives, resins, solvents, and other essential products. 

Additionally, there is a growing popularity of MTO technology as a mechanism to manufacture olefins such as ethylene and propylene from methanol. These olefins are a crucial component in the production of plastics. Furthermore, there is a significant application of formaldehyde as resins, adhesives, and disinfectants in different industries such as construction, automotive, and healthcare. Hence, such factors are expected to drive market growth during the forecast period.

Major Market Challenge

Fluctuating methanol prices is one of the key challenges hindering the market growth during the forecast period. It is primarily derived from natural gas or coal feedstocks, and its price is closely associated with the fluctuations in the prices of these feedstocks. Several fluctuations in natural gas and coal prices can result in unpredictable changes in methanol production costs, impacting the overall methanol price.

Additionally, factors such as supply disruptions, natural disasters, or unplanned plant shutdowns, can significantly influence methanol availability and prices. Furthermore, there is a rise in stringent regulation as well as an increasing focus on carbon reduction which is expected to impact the methanol prices and thereby hinder the market growth during the forecast period.

Customer Landscape

The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Customer Landscape

Who are the Major Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

BASF SE: The company offers methanol as biofuels the main applications are MTBE, DME and biodiesel production and gasoline blending.

This market analysis and report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:

• 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.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Market Segmentation

This market report extensively covers market segmentation by derivative type (formaldehyde, gasoline, acetic acid, DME, and MTO/MTP and others), end-user (automotive, construction, paints and coatings, electronics, and others), and geography (APAC, Europe, North America, Middle East and Africa, and South America). The Methanol Market analysis reveals a significant demand for methanol, primarily driven by its derivatives, including formaldehyde. Methanol Supply and Demand are influenced by key players such as Methanex Corporation, ZPCIR, Celanese, BASF SE, Petroliam Nasional Berhad, Gas Chemical Company, OCI, Metafrax Group, and Sipchem Company. These corporations utilize it to produce formaldehyde-based resins, like urea-formaldehyde, phenol-formaldehyde, and melamine-formaldehyde. Applications of these resins span across industries, including wood and furniture, construction, and automotive. In the wood industry, formaldehyde-based resins are used for manufacturing engineered wood products like plywood, particleboard, and fiberboards. The construction sector employs these resins for insulation foam, laminates, and fiberboards. In the automotive sector, formaldehyde-based resins are used for producing interior components. Major production facilities are located in Clear Lake, Texas, and Bintulu Sarawak, Malaysia. Production processes involve oxidizing methanol to formaldehyde, using Carbon Dioxide and Hydrogen as feedstocks. Strategic partnerships, equity holdings, and key commercial terms between these corporations contribute to the Market Scope. Key players include Mitsui, WFS, Fairway Methanol, and others.

By Derivative Type

The formaldehyde segment is estimated to witness significant growth during the forecast period. This segment is a crucial derivative of methanol and is manufactured by oxidizing methanol. The main application of formaldehyde is in the manufacturing of resins and adhesives. There is an increasing adoption of formaldehyde-based resins including urea-formaldehyde, phenol-formaldehyde, and melamine-formaldehyde which are extensively used in the wood and furniture industry for manufacturing plywood, particleboard, and other engineered wood products. 

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The formaldehyde segment was the largest segment and was valued at USD 9.17 billion in 2017. Additionally, there is wide use of formaldehyde-based resins across the construction industry for producing building materials like insulation foam, laminates, and fiberboards. Furthermore, some of the key applications of these resins in the automotive industry include manufacturing interior components, such as dashboards, door panels, and other trim parts. Other applications of this segment in liquid forms are as a disinfectant and preservative in various applications, such as embalming, medical equipment sterilization, and the cosmetics industry.

The market study projects APAC's continued dominance through the forecast period, driven by the construction, automotive, textile, and furniture industries' rising demand for methanol and its derivatives. China, a key APAC country, leads with high demand for methanol-gasoline blends as transportation fuels. Methanol's applications include methanol refueling infrastructure, MTBE, biodiesel, formaldehyde in building materials, fuel-grade ethanol, marine applications, and clean-burning fuels. Regulatory changes and natural gas reserves influence methanol pricing. Key industry players include Methanex Corporation and BASF SE. Methanol derivatives serve various end-use industries, such as electronics, solvents, pharmaceuticals, appliances, packaging, insulation, formaldehyde segment, and construction sector, where methanol's adhesive qualities, high strength, resistance to water, heat, and chemicals are valued. The Methanol Institute monitors global methanol pricing.

Key Regions

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APAC is estimated to contribute 74% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. One of the main factors which are significantly contributing to the global market in APAC is the increasing demand for methanol and its derivatives from the construction, automotive, textile, and furniture industries. The leading countries which there is high demand for methanol and its derivatives is China due to the rising demand for methanol-gasoline blends, which are extensively used as transportation fuels.

Additionally, there is a shift toward the APAC market due to the developing market and intense competition among APAC countries. Furthermore, there is an increasing demand for the chemical industry in APAC due to the rise in chemical products across different sectors. Hence, such factors are expected to drive market growth in the region during the forecast period.

Market Analyst Overview

The market is a significant segment of the global chemicals industry. Formaldehyde and acetic acid are major by-products of methanol production, making it a crucial feedstock in various industries. The refining process of methanol involves the conversion of natural gas or coal into syngas, followed by methanol synthesis. The study of market trends reveals an increasing demand for this versatile chemical due to its extensive applications. It is used as a fuel in the transportation sector, particularly in the maritime industry. It is also used as a solvent, particularly in the production of formaldehyde and acetic anhydride. Furthermore, methanol is a vital component in the production of various other chemicals, such as methyl tert-butyl ether (MTBE), dimethyl ether (DME), and methylamine.

The market is driven by the growing demand for its derivatives, particularly in the Asia Pacific region. China is the largest consumer and producer of methanol, followed by the United States and Europe. The increasing use of it as a fuel and the growing demand for formaldehyde and acetic anhydride is expected to boost the growth of the market in the coming years. In conclusion, the market is a dynamic and growing industry, driven by the increasing demand for its derivatives and applications in various sectors. The production process of methanol involves the conversion of natural gas or coal into syngas, followed by methanol synthesis. The market is expected to grow significantly in the coming years due to the increasing demand for methanol and its derivatives, particularly in the Asia Pacific region.

The market faces various challenges amid political and environmental challenges while navigating through assumptions about future trends. Despite this, the market continues to grow due to the increasing demand for energy density in various industries. The Methanol Supply/Demand dynamics are influenced by factors such as market conditions, which are often determined on a spot and contract basis. Major players in the industry, like MMSA, play a crucial role in shaping the global methanol industry, particularly in the Methanol Gas Chemical sector. Despite challenges, the market's resilience and adaptability ensure a steady flow of methanol to meet diverse industrial needs.

Segment Overview

The market forecast report predicts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. 

• Derivative Type Outlook 
  • Formaldehyde
  • Gasoline
  • Acetic acid
  • DME
  • MTO/MTP
  • Others
• End-user Outlook 
  • Automotive
  • Construction
  • Paints and coatings
  • Electronics
  • Others
• Geography Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Argentina
    • Brazil
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

 

Market Scope
Report Coverage	Details
Page number	184
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 3.34%
Market growth 2023-2027	USD 6.13 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	3.11
Regional analysis	APAC, Europe, North America, Middle East and Africa, and South America
Performing market contribution	APAC at 74%
Key countries	US, China, South Korea, Japan, and India
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	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., and ENERKEM Inc.
Market dynamics	Market trends and analysis, Market growth and trends inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period.
Customization purview	If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2023 and 2027
• Precise estimation of the market size and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Market growth analysis across APAC, Europe, North America, Middle East and Africa, and South America
• A thorough analysis of the market’s competitive landscape and detailed information about companies
• Market forecasting of factors that will challenge the growth of market companies

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