Syngas Market Analysis

Global Syngas Market Overview

Syngas Market Size was valued at USD 45.9 billion in 2021. The Syngas industry is projected to grow from USD 48.69 Billion in 2022 to USD 73.71 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 6.10% during the forecast period (2024 - 2032). The flexibility and easy availability of raw materials for the production of syngas are the key market drivers enhancing market growth.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Syngas Market Trends

• Increasing demand for syngas from the chemical industry to boost the market growth

One of the major factors behind the growth of the syngas market is the increasing demand for syngas from the chemical industry. This is due to the use of syngas in the production of synthetic natural gas (SNG), which is used in the form of liquefied natural gas (LNG) and compressed natural gas (CNG) in the rail, marine and road transport industries.

Further, the benefits associated with syngas, such as lower energy costs, increased stability, and use as a fuel for gas engines that provide electricity, have increased its demand. In addition, the development of the Underground Coal Gasification (UCG) process that enables the completion of an in situ gasification process that converts coal to syngas. This increases demand and provides significant cost advantages as feedstock does not need to be transported to the gasification plant.

Additionally, increasing environmental awareness and the implementation of strict government restrictions on the use of renewable fuels are particularly contributing to the growth of the industry. Additionally, syngas is important in reducing air waste emissions to landfills and greenhouse gases that are driving the growth of the syngas market. However, the factors restraining the market growth include high capital investment and long time required to introduce high-tech gasification technology and build the plant. Conversely, the development of underground coal gasification technology has enhanced the Syngas market CAGR across the globe in the recent years. However, to cater the demand there has been significant advancement and innovations is another factor driving the growth of the Syngas market revenue.

In 2024 Air Products released a new syngas production technology with improved efficiency and reduced carbon emissions.

In 2023 Linde introduced an advanced syngas generation system designed for enhanced performance in industrial applications.

Syngas Market Segment Insights

Syngas Feedback Insights

The  Syngas market segmentation, based on Feedstock, includes plastic waste, biomass, and petroleum coke. The biomass Syngas segment held the majority share in 2021 respect to the  Syngas market revenue. This is primarily owing to the biomass convenient and economical feasible method to remove tar and other impurities across the globe. Rising demand for biomass feedstock is expected to boost growth in this segment.

December 2022: IISc researchers developed an innovative technology to generate hydrogen from biomass.

Syngas Process Insights

The  Syngas market segmentation, based on process, includes steam reforming, and partial oxidation. The steam reforming segment dominated the market in 2021 and is projected to be the faster-growing segment during the forecast period, 2022-2030. This is due to the steam reforming produce the highest yield of hydrogen. Steam reforming method helps in producing hydrogen and carbon dioxide in the presence of water. Moreover, it is one of the most important industrial procedures for turning natural gas into synthesis gas. Hence, rapid adoption of steam reforming process for production in industries for Syngas positively impacts the market growth.

Syngas Gasifier Insights

The  Syngas market data has been bifurcated by Gasifier into fixed bed and entrained bed. The entrained bed segment dominated the market in 2021 and is projected to be the faster-growing segment during the forecast period, 2022-2030. Mainly any coal feedstock can be process by entrained-flow, it generates syngas that is tar-free and clean.

January 2023: U.S. Department of Energy awarded $118 million to 17 projects to accelerate the production of sustainable biofuels for America’s transportation and manufacturing needs which includes $2 million for entrained-flow biomass gasification with syngas fermentation for production. This investments has further broadened the growth opportunity for the Syngas industry.

Figure 2:  Syngas Market, by Gasifier, 2021 & 2030 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Additionally, Entrained-flow gasifier used for many purposes such as the commercial production of high-quality syngas from large coal gasification systems. It is largely operated at high temperatures, which helps in low tar yields, high oxygen demand, and a viscous slag flow. Rising potential benefits such as increasing demand for clean and sustainable gasifiers for syngas production are likely to drive sector growth throughout the projection period.

Syngas End User Insights

Based on Application, the  Syngas industry has been segmented into industrial gases and chemical synthesis. Chemical synthesis held the largest segment share in 2021, owing to the rapid adoption of advanced Syngas chemical products, and a wide range of chemicals such as fertilizers, fuels, solvents, and synthetic materials can be produced from syngas.

April 2021: UCLA, Rice and UC Santa Barbara researchers developed new method to produce vital syngas. It offers opportunity to react captured greenhouse gases, reducing carbon emissions to the atmosphere and also creating critical chemical feedstock using an inexpensive catalyst and renewable energy in the form of sunlight instead of using fossil fuels.

Syngas Regional Insights

By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. Asia-Pacific Syngas market accounted for USD 21.15 billion in 2021 and is expected to exhibit a significant CAGR growth of 46.10% during the study period. This is attributed to the increasing collaboration between foreign and domestic companies, increase in foreign direct investment (FDI) in the power sector, and a conducive environment for foreign manufacturers to build and operate power plants in the countries across the region. Moreover, China Syngas market held the largest market share, and the India Syngas market was the fastest-growing market in the Asia-Pacific region

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.

Figure 3:  SYNGAS MARKET SHARE BY REGION 2021 (%)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe Syngas market accounts for one of the largest market shares due to the increase in government investment to promote R&D and research to promote an efficient process of syngas production. An EU-Funded project such as UNIQUE was initiated to provide high purity syngasFurther, the Germany Syngas market held the largest market share, and the UK Syngas market was the fastest growing market in the European region.

The North America Syngas Market is expected to grow at the fastest CAGR from 2022 to 2030. This is due to the growing need for liquid fuel and power for domestic and commercial purposes and increasing demand for sustainable energy sources are key factors expected to contribute market growth in the region.

Syngas Key Market Players & Competitive Insights

Major market players are spending a lot of money on R&D to increase their product lines, which will help the Syngas market grow even more. Market participants are also taking a range of 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 Syngas industry must offer cost-effective solutions to expand and survive in an increasingly competitive and rising market environment.

One of the primary business strategies adopted by manufacturers in the  Syngas industry to benefit clients and expand the market sector is to manufacture locally to reduce operating costs. In recent years, Syngas industry has provided medicine with some of the most significant benefits. The Syngas market major player such as Shell (Netherlands), Synthesis Energy Systems Inc. (US), Yankuang Group (China), Air Products and Chemicals Inc (US), Air Liquide (France) and others are working to expand the market demand by investing in research and development activities.

Air Products Syngas Solutions offers complete turnkey gasification complexes under a sale of Gas model where Air Products builds, finances, owns and operates the syngas production facility. It provides a variety of highly reliable, low-cost syngas solutions tailored to convert hydrocarbon feedstock for process requirements. In October 2022, Air Products invested about $500 million to build a green hydrogen production facility in New York.

Also, Synthesis Energy Systems (SES) is a Houston-based technology company that focused on carrying cleaner and more efficient energy to developing countries from low-grade coal and biomass natural resources through its gasification technology. It enables larger fuel flexibility and effective small-scale operations close to fuel sources. Fuel sources such as low-rank, low-cost high ash, high moisture coals, which are significantly cheaper than higher grade coals, many coal waste products, and biomass feedstocks. In April 2019, Synthesis Energy Systems, Inc. announced that the company entered into a technology purchase option agreement with Australian Future Energy Pty Ltd (AFE) for the sale of its subsidiary company, Synthesis Energy Systems Technologies, LLC (SEST) which owns the SES Gasification Technology (SGT) and its related SGT  business undertakings.

Key Companies in the Syngas market include

• Air Products and Chemicals Inc (US)


• Air Liquide (France)


• The Linde Group (Germany)


• Sasol (South Africa)


• Shell (Netherlands)


• Synthesis Energy Systems Inc. (US)


• Yankuang Group (China)

Syngas Industry Developments

July 2022: Maire Tecnimont SpA announced that NextChem was awarded a contract by Storengy to study waste wood and solid recovered fuel conversion plant to produce biomethane in France. NextChem will provide technical services and cost estimates for syngas cleanup, methanation units, and methane upgrades.

June 2022: Shell PLC entered a decarbonization agreement with Osaka Gas Co. and Tokyo Gas Co. for the natural gas &  carbon capture, utilization, and sequestration (CCUS) projects. These Japanese companies could aim to replace 1% of the gas currently delivered with biomethane-based synthetic gas, or syngas by 2030.

May 2022: Pertamina collaborated with Air Liquide Indonesia in developing carbon capture and utilization technology at the Balikpapan refinery processing unit. Within the framework of this agreement, Pertamina and Air Liquide are anticipated to conduct a joint study on Flue-Gas capture and CO2 syngas technology use from hydrogen production.

Syngas Market Segmentation

Syngas Feedstock Outlook

• Plastic Waste


• Biomass


• Petroleum Coke

Syngas Process Outlook

• Steam Reforming


• Partial Oxidation

Syngas Gasifier Outlook

• Fixed Bed


• Entrained Bed

Syngas Application Outlook

• Industrial Gases


• Chemical Synthesis

Syngas Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America