Methanol Market Size
| Study Period | 2024 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR (2024 - 2029) | 3.50 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Asia Pacific |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Methanol Market Analysis
The Methanol Market size is estimated at 99.03 Million tons in 2024, and is expected to reach 118.81 Million tons by 2029, growing at a CAGR of greater than 3.5% during the forecast period (2024-2029).
The COVID-19 pandemic drastically curtailed industrial activities due to imposed government bans and restrictions in 2020 and the first half of 2021, limiting the growth of the methanol market. The chemical industry was struggling due to scarce raw material supply, limited working hours/labor strength, reduced demand, and constrained financials. However, the chemical and petrochemical industries have been on track for recovery since the retraction of the pandemic in mid-2021. The exponential rise in demand for chemicals across various end-user industries is expected to contribute to the growth of the methanol market.
- Over the medium term, the expanding petrochemical sector in China, the United States, and other Asia-Pacific countries and the rising demand for methanol-based fuels are the major driving factors augmenting the growth of the market studied. Furthermore, the growing utilization of methanol in producing olefins using MTO propels increased offtakes in the chemical industries.
- On the other side, the higher preference for ethanol fuel or bioethanol over methanol and the health hazardous impacts associated with it are anticipated to restrain the growth of the target industry over the forecast period.
- Nevertheless, the use of methanol in new and expanding fuel applications and the growing industrial inclination toward renewable methanol are expected to create lucrative growth opportunities for the market soon.
- The Asia-Pacific emerged as the largest market for methanol. It is expected to witness the highest CAGR during the forecast period. The dominance of the Asia-Pacific region is attributed to the high demand for methanol in China, Japan, and other Southeast Asian countries, expanding chemical and other application sectors.
Methanol Market Trends
Energy-related Applications to Dominate the Market
- The use of methanol in energy-related applications has increased significantly in the past few years. Methanol is widely used in methanol-to-olefins (MTO) transformation reactions, which provides a chance to produce basic petrochemicals (such as ethene, propene, butene, and butadiene) from non-oil resources like coal and natural gas.
- Methanol is a precursor for producing methyl tertiary-butyl ether (MTBE), which is added to gasoline to enhance the octane number by increasing the oxygen content. MTBE leads to the complete combustion of gasoline and, thus, lowers the exhaust of harmful gases, like carbon monoxide and other emissions from vehicles, reducing air pollution.
- Methanol has been successfully used to extend gasoline supplies in many gasoline markets worldwide. Adding methanol to the gasoline supply provides non-petroleum alternative energy and a clean-burning, high-octane fuel. According to the Methanol Institute, unlike other alcohols, methanol blending in gasoline has been economical without government subsidies or fuel-blending mandates.
- Moreover, the demand for oil products such as gasoline is expected to increase year-on-year. For instance, the global demand for gasoline is anticipated to reach 28.2 million barrels per day in 2030, registering a 9.7% increase over 25.7 million barrels per day in 2021, according to the Organization of the Petroleum Exporting Countries (OPEC).
- Methanol is also used to produce dimethyl ether, which registers significant usage as a fuel substitute due to its good ignition quality and high cetane number. DME in diesel engines burns very cleanly with no soot. It can be used in diesel engines as a substitute for conventional diesel fuel.
- Methanol is a crucial starting material for the production of biodiesel, which is viewed as an alternative renewable fuel for crude oil-derived diesel. Methanol is preferred over ethanol for the transesterification reaction due to its superior reactivity with triglycerides and high alkaline dissolution properties.
- Biodiesel is a clean burning fuel that increases energy security and leads to a lower carbon footprint. It exhibits a higher flash point (100°C minimum) and can be blended with diesel fuel at any proportion; both fuels can be mixed during the fuel supply to vehicles. The environmental benefits of biodiesel have spurred the continued increase in biodiesel production in the historical years, except for 2020, when the pandemic was at large.
- According to the Organisation for Economic Co-operation and Development (OECD), the global consumption of biofuels, including biodiesel, is expected to register a growth of 13.1% to reach 210.7 billion liters in 2029 compared to 186.35 billion liters in 2022. The increasing production and consumption trend in biofuels such as biodiesel is likely to increase the share of methanol consumption in biodiesel production during the forecast period.
- Considering all the abovementioned factors, the use and demand of methanol for energy-related applications are expected to grow in the forecast period.
Asia-Pacific Region to Dominate the Market
- The Asia-Pacific region dominated the worldwide market with a significant market share. It is projected to maintain its dominance during the forecast period. China alone is the largest producer and consumer of over 60% of the world's methanol, making the country the world leader. In Anyang, Henan Province, China, a 'cutting-edge' carbon dioxide-to-methanol plant has begun production, becoming the world's first commercial-scale facility to manufacture methanol from captured waste carbon dioxide and hydrogen gases.
- According to the Methanol Institute, methanol powers up to 7 million automobiles in China, contributing to more than 5% of the country's fuel pool. Methanol emits 26% less carbon dioxide than conventional gasoline-powered automobiles, even when generated primarily using coal-based techniques. The Chinese Ministry of Industry and Information Technology announced plans to "increase the popularity of methanol automobiles" and study the 'green methanol + methanol cars' concept.
- In India, NITI Aaayog designed a strategy to replace 10% of crude imports with methanol alone by 2030. This takes about 30 MT of methanol. Methanol and DME are significantly less expensive than petrol and diesel; India expects to lower its fuel expense by 30% by 2030.
- Japan is home to some major automotive producers, including Kawasaki, Yamaha, Toyota, Honda, Nissan, and Suzuki, who are planning to develop vehicles that use methanol as fuel. The National Energy Strategy of Japan focuses on reducing petrol dependency from 50% to 40% by 2030, improving energy efficiency by 30%, and replacing 20% of transport fuel with an alternative fuel, such as methanol, enhancing the demand in the market studied.
- Singapore is the most recent country to join the ongoing efforts to establish a worldwide infrastructure for producing and distributing methanol as a marine fuel. Singapore, which is already recognized as the world's largest bunkering center for the shipping sector, is set to become the first green e-methanol facility in Southeast Asia, a collaboration between the shipping and fuel industries.
- All the abovementioned factors are expected to fuel the growth of the methanol market in the Asia-Pacific region over the forecast period.
Methanol Industry Overview
The methanol market is fragmented, with top players holding insignificant shares in order to affect market demand individually. Some major players in the market (in no particular order) include SABIC, Proman, Ningxia Baofeng Energy Group Co. Ltd, Methanex Corporation, and ZPCIR, among others.
Methanol Market Leaders
-
SABIC
-
Proman
-
Ningxia Baofeng Energy Group Co., Ltd.
-
Methanex Corporation
-
ZPCIR
*Disclaimer: Major Players sorted in no particular order
Methanol Market News
- January 2024: Enerkem announced that it will be retiring its Enerkem Alberta Biofuels (EAB) plant in Edmonton. The facility achieved its main objective of completing the commercial scale-up of Enerkem’s industry-leading technology with more than 15,000 hours of operation producing ethanol and methanol.
- January 2024: Fairway Methanol is a 50-50 joint venture between Mitsui & Co. and Celanese Corporation that began the production of methanol by using carbon dioxide emitted from plants surrounding the venture’s facility.
- January 2024: BASF SE and Envision Energy announced they would jointly develop technology to convert green hydrogen and CO2 into sustainable methanol. Envision Energy will develop its own process using BASF SE's catalyst technology and will then license it to its customers so that they can build larger, sustainable methanol or e-methanol plants.
- July 2023: A joint venture between Enerkem and Dimeta announced that it would initiate feasibility studies for the development of two large-scale projects that would convert waste into renewable and recycled carbon dimethyl ether (DME).
- November 2022: Petronas moved forward with the construction of a new methanol facility, which is slated to add 1.75 million tons of production capacity to the company's already operational 2.4 million tons of methanol production capacity. The project, which was set to be completed in March 2023, is located in Bintulu Sarawak, Malaysia.
- February 2022: Linde announced the expansion of its existing agreement with Celanese Corporation to supply carbon dioxide and hydrogen to the Celanese manufacturing facility in Clear Lake, Texas, to produce methanol. This agreement would help the company reduce its carbon footprint during its operation, contributing to the preservation of the environment and helping the company strengthen its business portfolio.
Methanol Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
-
4.1 Drivers
- 4.1.1 Expanding Petrochemical Sector in China, United States, and Other Asia-Pacific Countries
- 4.1.2 Rising Demand for Methanol-based Fuel
- 4.1.3 Increasing Utilization of Methanol in the Production of Olefins
-
4.2 Restraints
- 4.2.1 Usage of Ethanol Fuel or Bioethanol in Comparison to Methanol
- 4.2.2 Hazardous Impacts on Health
- 4.3 Industry Value Chain Analysis
-
4.4 Porter's Five Forces Analysis
- 4.4.1 Bargaining Power of Suppliers
- 4.4.2 Bargaining Power of Buyers
- 4.4.3 Threat of New Entrants
- 4.4.4 Threat of Substitute Products and Services
- 4.4.5 Degree of Competition
- 4.5 Global Methanol Production Capacity by Key Feedstock
- 4.6 Technological Snapshot
- 4.7 Trade Analysis
- 4.8 Price Trends
5. MARKET SEGMENTATION (Market Size in Volume)
-
5.1 Application
- 5.1.1 Traditional Chemical
- 5.1.1.1 Formaldehyde
- 5.1.1.2 Acetic Acid
- 5.1.1.3 Solvent
- 5.1.1.4 Methylamine
- 5.1.1.5 Other Traditional Chemicals
- 5.1.2 Energy Related
- 5.1.2.1 Methanol-to-olefin (MTO)
- 5.1.2.2 Methyl Tert-butyl Ether (MTBE)
- 5.1.2.3 Gasoline Blending
- 5.1.2.4 Dimethyl Ether (DME)
- 5.1.2.5 Biodiesel
-
5.2 Geography
- 5.2.1 Asia-Pacific
- 5.2.1.1 China
- 5.2.1.2 India
- 5.2.1.3 Japan
- 5.2.1.4 South Korea
- 5.2.1.5 Vietnam
- 5.2.1.6 Thailand
- 5.2.1.7 Indonesia
- 5.2.1.8 Malaysia
- 5.2.1.9 Rest of Asia-Pacific
- 5.2.2 North America
- 5.2.2.1 United States
- 5.2.2.2 Canada
- 5.2.2.3 Mexico
- 5.2.3 Europe
- 5.2.3.1 Germany
- 5.2.3.2 United Kingdom
- 5.2.3.3 Italy
- 5.2.3.4 France
- 5.2.3.5 Turkey
- 5.2.3.6 Russia
- 5.2.3.7 NORDIC
- 5.2.3.8 Spain
- 5.2.3.9 Rest of Europe
- 5.2.4 South America
- 5.2.4.1 Brazil
- 5.2.4.2 Argentina
- 5.2.4.3 Colombia
- 5.2.4.4 Rest of South America
- 5.2.5 Middle East and Africa
- 5.2.5.1 Saudi Arabia
- 5.2.5.2 South Africa
- 5.2.5.3 Nigeria
- 5.2.5.4 Qatar
- 5.2.5.5 Egypt
- 5.2.5.6 United Arab Emirates
- 5.2.5.7 Rest of Middle East and Africa
6. COMPETITIVE LANDSCAPE
- 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
- 6.2 Market Share (%)**/Ranking Analysis
- 6.3 Strategies Adopted by Leading Players
-
6.4 Company Profiles
- 6.4.1 Atlantic Methanol
- 6.4.2 BASF SE
- 6.4.3 Celanese Corporation
- 6.4.4 Coogee
- 6.4.5 Enerkem
- 6.4.6 Eni SpA
- 6.4.7 Gujarat State Fertilizers & Chemicals Limited (GSFC)
- 6.4.8 Ineos
- 6.4.9 Kingboard Holdings Limited
- 6.4.10 Lyondellbasell Industries Holdings BV
- 6.4.11 Methanex Corporation
- 6.4.12 Mitsubishi Gas Chemical Company Inc.
- 6.4.13 Mitsui & Co. Ltd
- 6.4.14 Ningxia Baofeng Energy Group Co. Ltd
- 6.4.15 OCI NV
- 6.4.16 Petroliam Nasional Berhad
- 6.4.17 Proman
- 6.4.18 SABIC
- 6.4.19 ZPCIR
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
- 7.1 Use of Methanol in New and Expanding Fuel Applications
- 7.2 Growing Trends Toward Renewable Methanol
Methanol Industry Segmentation
Methanol is a clear liquid chemical used in numerous products, including plastics, paints, cosmetics, and fuels. It is also an energy resource used in the marine, automotive, and electricity sectors. It is an emerging renewable energy resource with environmental and economic advantages that make it an effective alternative fuel for powering vehicles and ships, cooking food, and heating homes.
The methanol market is segmented by application (traditional chemical (formaldehyde, acetic acid, solvent, methylamine, other traditional chemicals (methyl tertiary butyl ether (MTBE))), energy related (methanol-to-olefin (MTO), methyl tert-butyl ether (MTBE), gasoline blending, dimethyl ether (DME), biodiesel), and geography (Asia-Pacific, North America, Europe, South America, and Middle East and Africa). The report offers the market size in value terms in USD for all the abovementioned segments.
| Application | Traditional Chemical | Formaldehyde |
| Acetic Acid | ||
| Solvent | ||
| Methylamine | ||
| Other Traditional Chemicals | ||
| Application | Energy Related | Methanol-to-olefin (MTO) |
| Methyl Tert-butyl Ether (MTBE) | ||
| Gasoline Blending | ||
| Dimethyl Ether (DME) | ||
| Biodiesel | ||
| Geography | Asia-Pacific | China |
| India | ||
| Japan | ||
| South Korea | ||
| Vietnam | ||
| Thailand | ||
| Indonesia | ||
| Malaysia | ||
| Rest of Asia-Pacific | ||
| Geography | North America | United States |
| Canada | ||
| Mexico | ||
| Geography | Europe | Germany |
| United Kingdom | ||
| Italy | ||
| France | ||
| Turkey | ||
| Russia | ||
| NORDIC | ||
| Spain | ||
| Rest of Europe | ||
| Geography | South America | Brazil |
| Argentina | ||
| Colombia | ||
| Rest of South America | ||
| Geography | Middle East and Africa | Saudi Arabia |
| South Africa | ||
| Nigeria | ||
| Qatar | ||
| Egypt | ||
| United Arab Emirates | ||
| Rest of Middle East and Africa |
Methanol Market Research FAQs
How big is the Methanol Market?
The Methanol Market size is expected to reach 99.03 million tons in 2024 and grow at a CAGR of greater than 3.5% to reach 118.81 million tons by 2029.
What is the current Methanol Market size?
In 2024, the Methanol Market size is expected to reach 99.03 million tons.
Who are the key players in Methanol Market?
SABIC, Proman, Ningxia Baofeng Energy Group Co., Ltd., Methanex Corporation and ZPCIR are the major companies operating in the Methanol Market.
Which is the fastest growing region in Methanol Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Methanol Market?
In 2024, the Asia Pacific accounts for the largest market share in Methanol Market.
What years does this Methanol Market cover, and what was the market size in 2023?
In 2023, the Methanol Market size was estimated at 95.56 million tons. The report covers the Methanol Market historical market size for years: . The report also forecasts the Methanol Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the long-term growth prospects for the Methanol Market?
The long-term growth prospects for the Methanol Market are a) Growth is expected in energy-related applications like biofuels and clean transportation b) Stringent environmental regulations could favor methanol over traditional fuels c) Technological advancements might increase production efficiency and cost-effectiveness
What are the major investment trends in the Methanol Market?
The major investment trends in the Methanol Market are a) Investments in renewable methanol production facilities b) Research and development on methanol-powered vehicles and ships c) Expansion of methanol refueling infrastructure
Methanol Industry Report
The global methanol market is projected to experience significant growth, primarily driven by the rising demand for methanol in automotive applications across various countries. Influenced by government regulations on fuel standards and emissions, and the availability of methanol refuelling infrastructure, the demand for methanol in the automotive industry is increasing. The methanol market is also witnessing growth due to the increasing demand from the automotive and construction industries, with methanol demonstrating similar efficiency when used in vehicle and aircraft engines compared to other fuels. However, the methanol industry faces challenges from the use of fuel-grade ethanol, which offers various advantages such as low toxicity and a higher octane number. Opportunities for the methanol market lie in the use of methanol as an alternative fuel in marine and manufacturing industries, due to its non-cryogenic nature and lower emissions. The methanol industry is also influenced by the capital-intensive nature of methanol production, with political and environmental challenges posing obstacles to market growth. The Asia-Pacific region dominates the methanol market due to the rapidly increasing consumption of methanol in the construction, automotive, and electronics industries. This market analysis, including methanol market share, size, and revenue growth rate, is provided by Mordor Intelligence™ Industry Reports. The methanol analysis includes a market forecast outlook and a historical overview. A sample of this industry analysis is available as a free report PDF download.
