Methanol Market Size was valued at USD 19.31 billion in 2023. The methanol industry is projected to grow from USD 20.37 Billion in 2024 to USD 31.26 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.50% during the forecast period (2024 - 2032). Methanol consumption will expand due to increased demand from sectors like the construction and automotive industries, which will act as a significant market driver during the projected period.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Manufacturing composite and engineered wood goods, such as countertops, moldings, shelving, stair systems, flooring, wall sheathing, and support beams, uses methanol derivatives, such as formaldehyde-based resins. Additionally, formaldehyde is used to develop glue adhesives for composite and engineered wood product applications. It is also a solvent in paint and varnish production due to its ability to dissolve various substances. Its derivatives are used widely in the manufacture of a variety of building materials. The need for its derivatives is anticipated to be fueled by the rapidly rising demand for construction materials in developing and developed nations. According to China's National Bureau of Statistics, the country's real estate development increased by 38.3% between January and April 2021 and the corresponding months in 2020. The US Department of Housing and Urban Development said that there are currently 1,702,000 housing unit construction projects underway in the country. Therefore, as it is widely utilized to produce various construction-related materials, the increase in building activity worldwide is driving its demand.
In the production of petrochemicals on a big scale, methanol is used. The growing need for petrochemicals is what is driving the industry. The use of petrochemicals in end-use industries like the automobile and construction industries is the main driver of the industry. The petrochemical sector produces the most methanol, ethylene, propylene, butadiene, benzene, toluene, and xylenes among organic compounds. Ethylene, propylene, butadiene, and butylene are the components of olefins. Methanol, also referred to as fundamental petrochemical, is a building block for many other chemical compounds. The petrochemical industry's anticipated primary driver of market growth is the production of olefins from methanol. Therefore, this factor has enhanced the market CAGR in recent years.
Furthermore, new applications for methanol as a fuel are being driven by a growing interest in clean-burning fuels and regulatory improvements, thanks to its lower emissions. Because of its favorable environmental effects, widespread availability, economic competitiveness, and effective and secure use, methanol is becoming increasingly popular as a marine fuel. Methanol reduces sulfur oxide (SOx), emissions In China, tight air quality emission regulations in locations like Shandong and Beijing are prompting a phase-out of coal-fueled industrial boilers and kilns in favor of cleaner fuels, creating a rising market as an alternative fuel.
Additionally, its use is anticipated to rise ly due to increased demand from sectors, including the construction and automobile industries. Methyl alcohol is a base for many other chemicals and substances, including those used to make textiles, plastics, adhesives, and insulation. Plastics play a significant role in enhancing the car's fuel efficiency by lowering the overall weight of the car and giving it qualities similar to those of metals. Plastic is used in construction for anything from pipework to crane ropes. Additionally, the demand for adhesives from the consumer goods and furniture industries will help the market's expansion. Additionally, it is anticipated that methanol usage will increase in applications involving fuel blending during the projection period. Thus, driving the growth of the methanol market revenue.
Based on feedstock, the methanol market segmentation includes Natural Gas, Oil and Coal. The natural gas segment held the majority share in 2021 regarding the methanol market revenue. Natural gas is transformed into syngas throughout the production process through partial oxidation or steam reforming, which is then used to create methanol. This market's domination results from the product having a big output at a relatively lower cost.
Based on derivatives, the methanol market segmentation includes Formaldehyde, Acetic Acid, Dimethyl Ether and Others. The formaldehyde segment dominated the market in 2021 and is projected to be the faster-growing segment during the forecast period, 2022-2030. On an industrial scale, it is catalytically oxidized to make formaldehyde. Formaldehyde is used in various industries to create resins, plastics, chemicals, artificial goods, and other items. It is a crucial component in the creation of formaldehyde. The synthesis of formaldehyde accounts for one-third of the need for methanol. Hence, it positively impacts market growth.
The methanol market data has been divided by end-use industry into Transportation, Building and Construction and Others. The building and construction category dominated the market. This is because many items, including foams, adhesives, plywood subfloors, and plastics, are produced using methanol. The construction industry uses these items extensively, and rising demand is predicted to increase consumption.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
By region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. The Asia Pacific Methanol market accounted for USD 38.85 billion in 2021 and is expected to exhibit a significant CAGR growth. The usage of methanol as a low-emission alternative fuel that aids in reaching low-carbon mobility drives the demand for it in the Asia-Pacific area. Currently, the capacity to produce methanol in India is 2 MT annually. However, the utilization of biomass, high ash coal, and stranded gas, according to NITI Aayog, the Indian government agency, can expand its production to 20 MT annually by 2025. India produces 500 million tonnes of biomass annually, has 125 billion tonnes of coal reserves, and a significant amount of stranded and flared gas.
Further, the major countries studied in the market report are: The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
North America methanol market accounts for the second-largest market share. Manufacturers are being forced to support fuel blending in the US by the expanding trends of sustainability and carbon neutrality. The nation has a sizable market for the manufacture of vehicles. The expanding population and a movement are driving the need for eco-friendly gasoline in consumer preferences toward a greener and cleaner environment. Methylic alcohol is becoming more popular because of its chemical and physical characteristics, allowing it to be used as fuel. Over the next few years, demand for methyl alcohol is anticipated to increase as the American automotive industry expands. Further, the US methanol market held the largest market share, and the Canada methanol market was the fastest-growing market in the European region
Europe America Methanol Market is expected to grow at the fastest CAGR from 2022 to 2030. The market in this region will expand due to Europe's growing desire for sustainable products and the automobile industry. Additionally, projects converting garbage to methanol will be launched by the European Union starting in 2019 to stop environmental degradation. For instance, the Netherlands has committed USD 246 million in capital to producing 270 million liters of green methanol from 360,000 tonnes of garbage. In turn, it is predicted that this will fuel the expansion of the methanol market in related European nations. Moreover, Germany methanol market held the largest market share, and the UK methanol market was the fastest-growing market in the North American region
Major market players are spending a lot on R&D to increase their product lines, which will help the methanol market grow even more. Market participants are also taking various strategic initiatives to grow their worldwide footprint, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the methanol industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.
One of the primary business strategies manufacturers adopt in the methanol industry to benefit clients and expand the market sector is manufacturing locally to reduce operating costs. In recent years, the methanol industry has provided medicine with some of the most significant benefits. The methanol market major player such as Celanese Corporation (Texas), SABIC (Saudi Arabia), BASF SE (Germany), PETRONAS (Malaysia), and Methanex Corporation (Canada).
SABIC is a publicly traded business with its headquarters in Riyadh, Saudi Arabia, and is one of the biggest producers of petrochemicals in the world. Among its active applications are petrochemicals, chemicals, industrial polymers, fertilizers, and metals. According to its Tadawul listing, it is the second-largest public business in the Middle East and Saudi Arabia. In March 2021, SABIC announced investments to boost the company's acetyl chain segment and increase production capacity through facility expansion. To meet the needs of consumers around the world, the company is growing its operations in Europe and Asia.
A technology and specialized materials firm with its corporate headquarters in Irving, Texas, Celanese Corporation was formerly known as Hoechst Celanese. With an annual production of 1.95 million tonnes or around 25% of the world's total, the corporation is the world's largest manufacturer of acetic acid. In April 2019, Celanese Corporation increased its production capacity. The production will grow by 125% to 1.7 million tonnes annually compared to the initial capacity.
March 2021: To boost its methanol production, Fairway Methanol LLC, a joint venture between Celanese Corporation and Mitsui & Co. Ltd, announced the expansion of its facilities.
May 2020: The Mitsubishi Gas Chemical Company, Inc. has been swiftly putting anti-pandemic measures into place and established a Crisis Response Headquarters. To guarantee the safety of its stakeholders, particularly its employees, their families and customers, it continues to improve the anti-pandemic measures in place at its factories and other workplaces tailored to particular operations on a workplace-by-workplace basis.
| Report Attribute/Metric | Details |
| Market Size 2023 | USD 19.31 billion |
| Market Size 2024 | USD 20.37 billion |
| Market Size 2032 | USD 31.26 billion |
| Compound Annual Growth Rate (CAGR) | 5.50% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2018 & 2020 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Feedstock, Type, End-User Industry, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and Rest of the World |
| Countries Covered | The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Celanese Corporation (Texas), SABIC (Saudi Arabia), BASF SE (Germany), PETRONAS (Malaysia) and Methanex Corporation (Canada) |
| Key Market Opportunities | Growing need for petrochemicals to boost market |
| Key Market Dynamics | Increased demand from construction industry Increased demand from from automotive industry |
Methanol Market Highlights:
Frequently Asked Questions (FAQ) :
The methanol market size was valued at USD 19.31 Billion in 2023.
The methanol market is projected to grow at a CAGR of 5.50% during the forecast period, 2024-2032.
Asia Pacific had the largest share of the methanol market
The key players in the methanol market are Celanese Corporation (Texas), SABIC (Saudi Arabia), BASF SE (Germany), PETRONAS (Malaysia) and Methanex Corporation (Canada).
The natural gas category dominated the methanol market in 2023.
The building & construction had the largest share in the methanol market.
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Team Lead - Research Anshula mandaokar holds an academic degree in chemical engineering and has been contributing to the field for more than 5 years. she has expertise in market research and business consulting and serves as a team lead for a reputed market research firm under the chemicals and materials domain spectrum. she has worked on multiple projects, generating explicit results in a quick turnaround time. her understanding of data interpretation justifies her role as a leader.
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