Market Size of Methanol Industry
| 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 |
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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 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.
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Methanol Market Size Summary
The methanol market is poised for significant growth over the forecast period, driven by the recovery of the chemical and petrochemical industries post-pandemic. The resurgence in demand for chemicals across various end-user sectors is a key factor propelling market expansion. The Asia-Pacific region, particularly China, is a dominant force in the methanol market, with substantial demand stemming from its expanding petrochemical sector and the increasing use of methanol-based fuels. The region's dominance is further bolstered by initiatives in countries like India and Japan, which are exploring methanol as a viable alternative to traditional fuels. Despite challenges such as the preference for ethanol and health concerns associated with methanol, the market is expected to benefit from the growing industrial shift towards renewable methanol and its application in energy-related sectors.
Methanol's versatility as a precursor for various chemical processes and its role in enhancing fuel quality are pivotal to its market appeal. The substance is integral in producing methyl tertiary-butyl ether (MTBE) and dimethyl ether (DME), both of which are crucial for improving fuel efficiency and reducing emissions. Additionally, methanol's application in biodiesel production underscores its importance in the renewable energy sector. The market's fragmented nature, with key players like SABIC, Proman, and Methanex Corporation, highlights the competitive landscape. Recent developments, such as the establishment of carbon dioxide-to-methanol plants and joint ventures aimed at sustainable production, reflect ongoing efforts to innovate and expand methanol's market presence. These factors collectively suggest a robust growth trajectory for the methanol market in the coming years.
Methanol Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Drivers
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1.1.1 Expanding Petrochemical Sector in China, United States, and Other Asia-Pacific Countries
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1.1.2 Rising Demand for Methanol-based Fuel
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1.1.3 Increasing Utilization of Methanol in the Production of Olefins
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1.2 Restraints
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1.2.1 Usage of Ethanol Fuel or Bioethanol in Comparison to Methanol
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1.2.2 Hazardous Impacts on Health
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1.3 Industry Value Chain Analysis
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1.4 Porter's Five Forces Analysis
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1.4.1 Bargaining Power of Suppliers
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1.4.2 Bargaining Power of Buyers
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1.4.3 Threat of New Entrants
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1.4.4 Threat of Substitute Products and Services
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1.4.5 Degree of Competition
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1.5 Global Methanol Production Capacity by Key Feedstock
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1.6 Technological Snapshot
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1.7 Trade Analysis
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1.8 Price Trends
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2. MARKET SEGMENTATION (Market Size in Volume)
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2.1 Application
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2.1.1 Traditional Chemical
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2.1.1.1 Formaldehyde
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2.1.1.2 Acetic Acid
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2.1.1.3 Solvent
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2.1.1.4 Methylamine
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2.1.1.5 Other Traditional Chemicals
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2.1.2 Energy Related
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2.1.2.1 Methanol-to-olefin (MTO)
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2.1.2.2 Methyl Tert-butyl Ether (MTBE)
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2.1.2.3 Gasoline Blending
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2.1.2.4 Dimethyl Ether (DME)
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2.1.2.5 Biodiesel
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2.2 Geography
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2.2.1 Asia-Pacific
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2.2.1.1 China
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2.2.1.2 India
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2.2.1.3 Japan
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2.2.1.4 South Korea
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2.2.1.5 Vietnam
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2.2.1.6 Thailand
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2.2.1.7 Indonesia
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2.2.1.8 Malaysia
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2.2.1.9 Rest of Asia-Pacific
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2.2.2 North America
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2.2.2.1 United States
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2.2.2.2 Canada
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2.2.2.3 Mexico
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2.2.3 Europe
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2.2.3.1 Germany
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2.2.3.2 United Kingdom
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2.2.3.3 Italy
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2.2.3.4 France
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2.2.3.5 Turkey
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2.2.3.6 Russia
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2.2.3.7 NORDIC
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2.2.3.8 Spain
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2.2.3.9 Rest of Europe
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2.2.4 South America
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2.2.4.1 Brazil
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2.2.4.2 Argentina
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2.2.4.3 Colombia
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2.2.4.4 Rest of South America
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2.2.5 Middle East and Africa
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2.2.5.1 Saudi Arabia
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2.2.5.2 South Africa
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2.2.5.3 Nigeria
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2.2.5.4 Qatar
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2.2.5.5 Egypt
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2.2.5.6 United Arab Emirates
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2.2.5.7 Rest of Middle East and Africa
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Methanol Market Size 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.
