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The syngas market market size is forecast to increase by USD 17.43 billion, at a CAGR of 6.78% between 2023 and 2028. The report includes historic market data from 2018 - 2022. The market is experiencing significant growth driven by several key trends. There is a rising demand for bio-based feedstock as industries seek sustainable alternatives to traditional raw materials. Additionally, the adoption of (UCG) underground coal gasification is gaining traction as a cleaner and more efficient method for extracting energy from coal through mining. This process reduces environmental impact and enhances resource utilization. Furthermore, the market is witnessing an increase in strategic partnerships and alliances, as companies collaborate to leverage shared resources, expertise, and technology.
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A key factor shaping the market growth is the rising demand for bio-based platform 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.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
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 22.17 billion in 2018. 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.
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APAC is estimated to contribute 57% 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.
The market is primarily driven by the increasing demand for cleaner and renewable energy sources. Syngas, also known as synthesis gas, is a mixture of H2, CO, CO2, and other gases produced from the gasification of various feedstocks, including biomass and waste biomasses. The Fischer-Tropsch process is widely used to convert Syngas into liquid fuels such as methanol, diesel fuel, and biodiesel. Landfills and biomass are significant sources of feedstocks for Syngas production. Natural Gas and carbonaceous feedstocks like heavy crude oil and tar sand bitumen are also used. The production process involves the gasification of feedstocks, which results in the separation of CO, H2, and other gases from the produced syngas. The market is segmented into applications such as power generation, chemical production, and transportation fuels. The market thrives on diverse hydrogen production processes like steam-methane-reforming and thermochemical reactions using biomass-derived syngas fermentation. It involves fluidized-bed gasifiers and the water-gas shift reaction to produce syngas from carbon dioxide and nitrogen.
Further, hydrogen fuel cells, molten carbonate fuel cells, and solid polymer fuel cells are used to convert Syngas into electricity. Methane, ethane, ethylene, acetylene, and other hydrocarbons are produced from Syngas through various processes. However, the production of Syngas from biomass-derived fermentation is gaining popularity due to its lower carbon footprint. Water vapor and sulfur containing compounds are the by-products of Syngas production, which need to be addressed to make the process more environmentally friendly. Particulate matter is also a concern in fixed-bed gasifiers used for Syngas production. Overall, the market is expected to grow due to the increasing demand for cleaner and renewable energy sources and the versatility of Syngas as a feedstock for various applications. Our researchers analyzed the market research and growth data with 2023 as the base year, along with the key market growth analysis, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help companies refine their marketing strategies to gain a competitive advantage.
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.
Moreover, 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.
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 fulfil 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.
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
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 Key companies, including:
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.
Syngas, a mixture of H2, CO, CO2, and other light hydrocarbons, is produced through various processes such as steam methane reforming reaction, coal gasification, and biomass gasification. The primary feedstocks for syngas production include natural gas, coal, bioenergy and biomass, including waste biomasses. Biomass gasification converts lignocellulosic materials, such as wood, agricultural waste, and lignin, into syngas through thermochemical processes. The syngas market is driven by the increasing demand for cleaner and renewable energy sources. Hydrogen produced from syngas is used as a fuel for fuel cells, particularly hydrogen fuel cells and solid polymer fuel cells (SPFCs), to generate electricity. Syngas is also used in the production of chemicals such as methanol, formaldehyde, and acetic acid. In the transportation sector, syngas is used as a feedstock for the production of biodiesel and methanol-to-gasoline processes.
Also, It is used as a substitute for fuel oil and natural gas in power generation. CO2 removal is an essential process in syngas production to reduce greenhouse gas emissions. The syngas market is expected to grow due to the increasing demand for hydrogen as a clean energy source. The use of syngas in the production of hydrogen fuel cells, methanol, and biodiesel is expected to drive market growth. Additionally, the use of syngas in the production of chemicals and as a substitute for fossil fuels in power generation is also expected to contribute to the market growth. Syngas production processes include Fischer-Tropsch process, steam methane reforming reaction, coal gasification processes, and biomass gasification. The use of oxygen and air as oxidants in the gasification process is common. The syngas market is expected to witness significant growth in the coming years due to the increasing demand for clean energy and the availability of abundant feedstocks such as biomass and coal.
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Market Scope |
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Report Coverage |
Details |
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Page number |
177 |
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Base year |
2023 |
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Historic period |
2017 - 2021 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 6.78% |
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Market growth 2024-2028 |
USD 17426.9 million |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
6.23 |
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Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
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Performing market contribution |
APAC at 57% |
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Key countries |
China, US, India, Germany, and UK |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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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 Corp., 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 |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID --19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
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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. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Feedstock
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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