Syngas Market by Application, Feedstock and Geography- Forecast and Analysis 2023-2027

Syngas Market Forecast 2023-2027

The syngas market size is estimated to grow at a CAGR of 6.2% between 2022 and 2027. The market size is forecast to increase by USD 14.91 billion. The growth of the market depends on several factors, such as the rising application, increasing investments in sustainable energy, and feedstock flexibility for production. The market is experiencing strong expansion, driven by its growing utilization across diverse sectors, including chemicals, petrochemicals, refining, and fertilizers. With its adaptable energy properties, syngas is widely employed in electricity generation and acts as a fuel for gas engines owing to its combustibility. Additionally, syngas hold significant importance in the manufacturing of industrial gases and act as a foundation for numerous chemical synthesis procedures.

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

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Segmentation

This market report extensively covers market segmentation by application (chemical, fuel, and electricity), feedstock (coal, natural gas, petroleum byproducts, biomass/waste, and others), and geography (APAC, Europe, North America, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

By Application

The chemical segment is estimated to witness significant growth during the forecast period. the chemical segment is omnipresent in modern society with the increase in the use of plastics, rubber, and synthetic textiles. The chemical segment often improves other bulk materials, including metal and timber, by providing protective (varnish) or decorative (paint) coatings.

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The chemical segment was the largest segment and was valued at USD 21.21 billion in 2017. Additionally, there is increasing adoption of this segment across agriculture industries in the form of fertilizers and other agrochemicals to maintain output levels. Even though the fertilizer segment has reached its maturity, there is an increasing demand for plastics and other chemicals which is significantly fuelling the growth of the demand. They are synthetic gas generated from a mixture of carbon monoxide and hydrogen. The main generation is through a gasification process which is an eco-friendly process of converting raw materials like coal into chemicals. As a result, there is increasing adoption of gasification processes across countries such as China and South Africa which are leading consumers of chemicals such as polyvinyl chloride and polyolefins. Hence, such factors are expected to fuel the growth of this segment which in turn will drive the market growth during the forecast period.

By Regions

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APAC is estimated to contribute 53% 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. Some of the main countries which are significantly contributing to the growth of the global market in APAC are India and China which depend extensively on coal to meet their energy demand. There is an increasing demand for clean energy across several countries in APAC, which is fuelling the production.

For example, in May 2020, Air Products and Chemicals signed a contract to build, own, and operate a coal-to-methanol production plant in Bengalon, Indonesia. The establishment of the plant has helped the country to meet the increasing demand for affordable, high-quality, locally sourced, and safe liquid transportation fuels. As a result, the syngas generated from coal have enabled Indonesia to meet the country's energy demand, mainly with respect to liquid fuels, thus simultaneously minimizing the country's dependence on imports. Hence, such factors are expected to drive market growth in the region during the forecast period.

Market Dynamics and Customer Landscape

The market is witnessing significant growth driven by the increasing demand for alternative energy sources such as synthetic natural gas (SNG), liquefied natural gas (LNG), and compressed natural gas (CNG). Utilizing various feedstocks, including plastic waste, biomass, and petroleum coke, syngas production involves processes like underground coal gasification (UCG), steam reforming, and partial oxidation in gasifiers such as fixed bed and entrained bed systems. Leading companies like Air Liquide and Air Products Syngas Solutions offer expertise in syngas purification and chemical synthesis, facilitating the production of fuels like methanol and biomethane. With advancements in carbon capture and utilization technology, syngas market players like Storengy drive innovation in methane upgrading and carbon capture to mitigate environmental impacts and promote sustainable energy solutions. 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

The market is witnessing robust growth, propelled by its increasing applications across various industries such as chemicals, petrochemicals, refining, and fertilizers. As a versatile energy source, syngas finds extensive use in electricity generation and serves as fuel for gas engines due to its combustible nature. Furthermore, syngas plays a crucial role in the production of industrial gases and serves as a precursor for various chemical synthesis processes. With the aid of technologies like carbon capture and utilization and processes like Fischer-Tropsch, syngas can be converted into methanol, ammonia, and other valuable chemical products, driving market demand amidst evolving energy needs and environmental concerns.

Significant Market Trends

A key factor shaping the market growth is the rising demand for bio-based feedstock. One of the main trends in the global market is the increasing use of bio-based feedstock in production. There is an increasing focus on the development of renewable chemicals for syngas production to achieve sustainability.

Moreover, the increasing demand for renewable sources fuels the use of bio-based feedstock to generate syngas. The increasing focus by several market players to achieve cost-effectiveness and sustainability through the development of bio-based feedstock will positively impact the market. Hence, such factors are expected to drive market growth during the forecast period.

Major Market Challenge

Complex quality requirements are one of the key challenges hindering market growth. Syngas, also referred to as synthesis gas or producer gas, can be generated using different materials, known as feedstock, which constitute carbon. Some of these materials include coal, biomass (wood gas), plastics, municipal waste, or similar materials.

Moreover, it is mainly generated by the gasification or pyrolysis of such materials. Efficient coal gasification and the utilization of the resultant product need to fulfill several criteria and critical technical aspects. However, such factors increase the complexities and costs associated with engine design and the overall gasification process, which is negatively affecting the market. Hence, it is expected to hinder market growth during the forecast period.

Market 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.

Global Market Customer Landscape

Who are the Major Syngas 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.

Air Liquide SA: The company offers syngas such as Air Liquide Advanced Separations syngas membranes

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

• Air Products and Chemicals Inc.
• BASF SE
• BP Plc
• Chevron Corp.
• Chiyoda Corp.
• ENERKEM Inc.
• General Electric Co.
• IHI Aerospace Co. Ltd.
• John Wood Group PLC
• Linde Plc
• McDermott International Ltd.
• Methanex Corp.
• Mitsubishi Heavy Industries Ltd.
• Sasol Ltd.
• Shell plc
• Siemens AG
• Synthesis Energy Systems Inc.
• TechnipFMC plc
• thyssenkrupp AG
• Topsoes AS

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.

Segment Overview

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

• Application Outlook 
  • Chemical
  • Fuel
  • Electricity
• Feedstock Outlook 
  • Coal
  • Natural gas
  • Petroleum byproducts
  • Biomass/waste
  • Others
• Geography Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The 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 Analyst Overview

The market is witnessing substantial growth, fueled by the demand for versatile energy sources like synthetic natural gas (SNG), liquefied natural gas (LNG), and compressed natural gas (CNG). With gas engines driving industrial processes, technologies like underground coal gasification (UCG) and steam reforming facilitate the conversion of feedstocks like plastic waste and petroleum coke into valuable industrial gases. Key players like Air Products Syngas Solutions, Synthesis Energy Systems (SES), and Australian Future Energy Pty Ltd (AFE) are innovating in chemical synthesis and gasification technologies, meeting the rising demand for renewable fuels and hydrogen while advancing carbon capture and utilization. As the nitrogen industry explores synthetic pathways for ammonium nitrates and polyurethanes, investments in renewable energy sources and carbon capture drive the expansion of the facilities worldwide.

The market is witnessing significant growth fueled by the increasing demand for renewable fuel use and advancements in carbon capture and utilization technology. Syngas, produced through partial oxidation or gasification in fixed bed or entrained bed gasifiers, serves as a versatile feedstock in various industries, including the electricity industry and chemical production. With a rising hydrogen demand, facilities incorporate air separation units and syngas purification for optimal production. Pilot plants, such as those operated by Storengy, explore innovative methods like underground coal gasification and methane upgrading to utilize diverse feedstocks like waste wood and biomethane. Carbon capture technologies ensure sustainable utilization of CO2 from flue-gas capture, driving the market forward.

In an era where carbon dioxide emissions and sustainable practices dominate global discussions, innovative technologies are emerging as pivotal solutions. Among these, Underground Coal Gasification (UCG) stands out as a promising avenue, offering a unique approach to energy production while mitigating environmental impacts. With growing funding and investments, UCG is poised to revolutionize various industries, serving as a building block for essential products and processes. UCG technology harnesses the energy potential of coal deposits deep beneath the Earth's surface, converting coal into syngas through controlled combustion reactions. This syngas, comprising carbon dioxide, hydrogen, and other components, serves as a versatile building block for numerous applications across diverse sectors. One significant beneficiary of syngas is the production of nitrogen fertilizers, essential for agricultural productivity. Through processes involving acrylonitrile, acrylic fibers, hexamethylenediamine, and nylon 66, syngas plays a crucial role in manufacturing the key components of nitrogen-based fertilizers, ensuring global food security.

Moreover, syngas serves as a precursor for caprolactam, the primary raw material in the production of nylon 6, a widely-used synthetic polymer. The versatility of syngas extends further into the realm of isocyanates, hydrazine, amines, and nitriles, essential in various industrial processes ranging from plastics manufacturing to pharmaceuticals production. To realize the full potential of UCG technology, substantial investments are being directed toward the development of advanced facilities and plants equipped with state-of-the-art infrastructure. These facilities include Air Separation Units (ASU) crucial for separating and purifying gases obtained from UCG processes, ensuring the production of high-quality syngas.

Furthermore, the utilization of solid recovered fuel derived from UCG processes presents an environmentally sustainable alternative to traditional fossil fuels, reducing reliance on non-renewable resources and minimizing carbon emissions. As governments, industries, and investors recognize the value of UCG technology in fostering sustainable development, funding initiatives continue to accelerate its research, development, and deployment. By harnessing the power of underground coal resources, coupled with advancements in carbon capture and utilization, UCG offers a promising pathway toward a more sustainable and energy-efficient future.

Syngas Market Scope
Report Coverage	Details
Page number	170
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 6.2%
Market growth 2023-2027	USD 14.92 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	5.57
Regional analysis	APAC, Europe, North America, Middle East and Africa, and South America
Performing market contribution	APAC at 53%
Key countries	US, China, India, Germany, and the UK
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	Air Liquide SA, Air Products and Chemicals Inc., BASF SE, BP Plc, Chevron Corp., Chiyoda Corp., ENERKEM Inc., General Electric Co., IHI Aerospace Co. Ltd., John Wood Group PLC, Linde Plc, McDermott International Ltd., Methanex Corp., Mitsubishi Heavy Industries Ltd., Sasol Ltd., Shell plc, Siemens AG, Synthesis Energy Systems Inc., TechnipFMC plc, thyssenkrupp AG, and Topsoes AS
Market dynamics	Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period.
Customization purview	If our 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 of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about vendors
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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