Methanol Market (Updated Version Available)

Key Market Overview:

The methanol market is anticipated to grow at a CAGR of 3.7% from 2023-2030, with a market size valued at USD 31.74 billion in 2022. By 2030, the market is projected to reach USD 42.45 billion. This growth can be attributed to the increasing demand for methanol as a feedstock in the production of formaldehyde, acetic acid, and methyl tertiary-butyl ether (MTBE), as well as in the production of biodiesel and gasoline blending.

Methanol, also known as wood alcohol or methyl alcohol, is a chemical building block and the simplest alcohol which is a water-soluble and readily biodegradable fuel in aerobic and aquatic environments. The chemical formula of methanol is CH3OH, comprising four parts hydrogen, one part oxygen, and one part carbon. The chemical is primarily made from natural gas, biomass, and coal. Later, methanol is utilized to form acetic acid and formaldehyde, and is combined with other substances to form derivatives such as ethylene and propylene.

Further, methanol is applied as an energy resource in the marine, automotive, and electricity sectors, for instance, cars, ships, trucks, buses, boilers, fuel cells, and cookstoves. In addition, the volatile nature of methanol in terms of high stimulation as a polar liquid at room temperature and normal atmospheric pressure also results in the requirement for controlled management of the chemical. Such management is required due to the extremely toxic and flammable properties of methanol, which is also considered a carcinogen.

Derivatives are segmented into MTO (Methanol to Olefins), MTP (Methanol to Propylene), MTH (Methanol to Hydrocarbons), and MTG (Methanol to Gasoline). Additionally, it is an essential component in a wide range of pharmaceuticals, electronics, automotive, construction, agricultural chemicals, and other products. Hence, they are designed to meet specific requirements for reliability, performance, and safety, as well as compliance with health and safety standards and regulations.

Methanol Report Coverage:

Report Attributes	Report Details
Study Timeline	2017-2030
Market Size in 2030 (USD Billion)	42.45
CAGR (2023-2030)	3.7 %
Base Year	2022
By Feedstock Type	Natural gas, Coal and Biomass
By Derivative Type	Formaldehyde, Methanol-to-Hydrocarbons (MTH), Methanol to Gasoline (MTG), Methanol to Olefins (MTO), Methanol to Propylene (MTP), and Others.
By End use industry	Pharmaceuticals, Electronics, Automotive, Construction, Agricultural Chemicals, and Others.
By Geography	Asia-Pacific [China, Southeast Asia, India, Japan, Korea, Western Asia] Europe [Germany, UK, France, Italy, Russia, Spain, Netherlands, Turkey] North America [United States, Canada, Mexico] Middle East & Africa [GCC, North Africa, South Africa] South America [Brazil, Argentina, Columbia, Chile, Peru]
Key Players	Mitsubishi Gas Chemical Company Inc, Eastman Chemical Company, Lyondell Basell Industries Holdings B.V., BASF SE, Honeywell International Inc., Ineos Group AG, Methanex Corporation, Vinati Organics, Celanese Corporation, Metafrax Chemicals

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Market Dynamics:

Driver:

The increasing demand for methanol is due to the usage of methanol as a primary chemical for synthesizing chemicals is due to the growing production of petrochemicals, which drives the market growth. Further, the rising prevalence of pharmaceuticals, electronics, automotive, and other industries is driving the market. Thus, the demand for methanol is growing alongside the demand for pharmaceuticals, agricultural, and industrial chemicals. As a result, the need for highly efficient, reliable, safe, and quality methanol is highly demanded.
Furthermore, Methanol-to-Olefins (MTO) are the base products required for manufacturing plastics which presents a significant opportunity for methanol manufacturers to innovate and develop advanced chemicals to meet the evolving needs of the industry. Moreover, manufacturers gain a competitive advantage with a boost in production from various countries and position themselves for long-term growth in the methanol market.

Restraint:

The development and manufacturing costs of methanol keep on fluctuating. Secondly, some of the methanol products are hazardous in nature, and being exposed to them increases the risk of visual impairment and damage to the peripheral nervous system. Also, chronic or recurring exposure to methanol results in skin irritation, inflammation, and recurrent headaches. Therefore, the above-mentioned factor hinders the growth of the market and makes it difficult for manufacturers to develop innovative and safe products.

Opportunities:

One of the opportunities present in the methanol market is the emerging adoption of methanol in the recycling process, for breaking down a wide variety of waste polyesters. For instance, Eastman chemical company uses methanol in making sustainable packaging polymers. Thereby, creating ample opportunities for the market over the forecast period.

Methanol Market Competitive Landscape:

The market is highly competitive, with a large number of players operating at the global and regional levels. The players compete on various parameters such as price, quality, innovation, and customer service. Such market players are constantly investing in research and development to improve their products and expand their business market share. Mergers, acquisitions, and partnerships are also common strategies employed by companies to improve their market position and expand their product portfolio. Key players in the market include-

• Mitsubishi Gas Chemical Company, Inc.
• Eastman Chemical Company
• BASF SE
• Honeywell International Inc.
• Ineos Group AG
• Methanex Corporation
• Vinati Organics Limited
• Celanese Corporation
• Metafrax Chemicals

Recent Developments:

• In June 2022, MGC and Tokuyama Corporation began a Joint Study on the Social Deployment of Circular Carbon Methanol Utilizing CO2, the First of its kind in Japan.

• In January 2020, Eastman Chemical Company demonstrated how they have reinvented material production processes and replaced fossil fuels with waste plastic as feedstock. Making sustainable solutions in the packaging industry. During the recycling process, methanol is used to break down a wide variety of waste polyesters.

Methanol Market Segmentation:



By Feedstock Type

The feedstock type segment of the methanol market is divided into natural gas, coal, and biomass. Methanol is highly produced by steam-reforming natural gas to create synthesis gas by being the common source of production that requires a higher level of availability and enables widespread adoption of methanol as a transportation fuel.
However, the coal feedstock segment is expected to witness the fastest growth in the development of methanol as a solvent or to develop products. Methanol is produced by the pyrolysis of biomass. Formerly, methanol was produced by the destructive distillation of wood. The chemical mainly arises from the methoxyl groups of uronic acid and the breakdown of methyl esters and/or ethers from the decomposition of plant materials. Biomass energy can be a non-renewable source of energy.

By Derivatives types

This segment of the Methanol market is divided into Formaldehyde
Methanol-to-Hydrocarbons (MTH), Methanol-to-Gasoline (MTG), Methanol-to-Olefins (MTO), Methanol-to-Propylene (MTP), and Others. The formaldehyde segment holds the largest market share in the year 2022. This is attributed to their common usage in glues and resins, dyes, textiles, disinfectants, building materials, and automobile parts that require a higher level of volatility, cost-effectiveness, and good fixation properties.
However, the Methanol-to-Hydrocarbons (MTH) segment is expected to witness the fastest CAGR over the forecast period. This process is used to convert methanol to products such as olefins and gasoline. The fastest growth of this segment is due to their typical usage in research, industries, and others applications.

By End User Industry

Based on industry, the methanol market is bifurcated into pharmaceuticals, electronics, automotive, construction, agricultural chemicals, and others. Pharmaceuticals hold the largest market share in the year 2022 due to the development in the manufacturing of pharmaceutical ingredients and products such as streptomycin, vitamins, hormones, and cholesterol.
However, the automotive segment is expected to witness the fastest CAGR over the forecast period. The usage of methanol as a fuel for vehicles and boats attributes to the growth in the automotive sector. Furthermore, gasoline is blended with methanol to produce an efficient fuel and biodiesel.

By Region

The regional segment is categorized into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. Asia Pacific holds the largest market share in the year 2022. This is due to the rapid growth in the consumption of formaldehyde and acetic acid in automotive, industrial manufacturing, electronics, pharmaceuticals, and others. Methanol to olefins plants are growing in the Asia Pacific region, which is driving the market growth in the region. Thereby, the region is witnessing significant developments in the production of methanol and its derivatives.



However, North America is expected to witness the fastest CAGR over the forecast period. Growing consumption of methanol in countries such as the U.S. and Canada direct the market growth in the region. Moreover, several companies in the region are focusing on improving their chemical products and providing access to various solvents for development in the pharmaceuticals, automotive, and other industries which is further driving the demand for methanol. Consequently, the demand for methanol is growing rapidly in the region.