Methanol Market By Derivative (Fuels (Gasoline & Biodiesel), Formaldehyde, Acetic Acid (Vinyl Acetate Monomer & Others), Methyl Tertiary Butyl Ether, Dimethyl Ether, Dimethyl Terephthalate, Methane Thiol, Methylamine, Methyl Methacrylate, Methanol to Olefins/Propylene (Olefins & Propylene) & Others), By Feedstock (Coal, Natural Gas & others), By Application (Resins, Adhesives & Sealants, Detergents, Pesticides, Gasoline Blending, Fuel Cells, Surfactants & Others), By End-use Industry (Automotive (Passenger Vehicle, light Commercial Vehicle & Heavy Commercial Vehicle), Electrical & Electronics, Building & Construction (Residential, Commercial & Industrial & Infrastructural), Marine (Passenger, Cargo, Naval & Others), Agriculture, Water Treatments & Others), By Geography - Global Opportunity Analysis & Industry Forecast, 2022-2027

Report Code: CMR 1167 Report Format: PDF + Excel

Methanol Market Overview

The Methanol Market size is estimated to reach US$37.1 billion by 2027, after growing at a CAGR of 3.5% during the forecast period 2022-2027. Methanol is also known as methyl alcohol, wood alcohol, or wood spirit. Methanol is an organic chemical and the simplest form of an alcohol group. The major feedstocks of methanol are coal, gas and renewable energy. Major energy sources available in the world are coal, natural gas & oil and CO2 emission from these sources is the major concern for the greenhouse effect. COcan either be used directly or as feedstock to produce material and chemicals. Synthetic methanol is produced by the conversion of CO2. Methanol is majorly used as a solvent and reactant in the chemical industry. According to International Renewable Energy Agency (IRENA), the direct use of methanol as a fuel has seen tremendous growth. In the year 2000, the total share of methanol as fuel was less than 1% and it increased to 14% in 2021. Furthermore, According to Organisation Internationale des Constructeurs d'Automobiles, the global automotive market showed 3.1% growth in 2021 as compared to 2020

Report Coverage

The “Methanol Report – Forecast (2022-2027)” by IndustryARC, covers an in-depth analysis of the following segments in the Methanol industry.

By Derivative: Fuels (Gasoline and Biodiesel), Formaldehyde, Acetic Acid (Vinyl Acetate Monomer and Others), Methyl Tertiary Butyl Ether, Dimethyl Ether, Dimethyl Terephthalate, Methane Thiol, Methylamine, Methyl Methacrylate, Methanol to Olefins/Propylene (Olefins and Propylene) and Others
By Feedstock: Coal, Natural Gas and others
By Application: Resins, Adhesives and Sealants, Detergents, Pesticides, Gasoline Blending, Fuel Cells, Surfactants and Others 
By End-use Industry: Automotive (Passenger Vehicle, light Commercial Vehicle and Heavy Commercial Vehicle), Electrical and Electronics, Building and Construction (Residential, Commercial and Industrial and Infrastructural), Marine (Passenger, Cargo, Naval and Others), Agriculture, Water Treatments and Others 
By Geography: North America (the USA, Canada and Mexico), Europe (UK, Germany, France, Italy, Netherlands, Spain, Belgium and Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia and New Zealand, Indonesia, Taiwan, Malaysia and Rest of APAC), South America (Brazil, Argentina, Colombia, Chile and Rest of South America), Rest of the World (the Middle East and Africa)

Key Takeaways

  • Asia-Pacific dominates the methanol market, owing to the increasing production and demand for chemical products in Asia-Pacific. This increase in production and demand can be attributed to the increasing urbanization, growing per capita income and population in Asia-Pacific countries.
  • The major feedstock of methanol is coal which is expected to provide significant growth opportunities in coming years. According to International Energy Agency (IEA), China is the largest coal producer in the world with 3,685 million tonnes in 2021, followed by India with 771 million tonnes, the United States with 539 million tonnes and Indonesia with 545 million tonnes in 2021.
  • Growing demand of methanol in automotive is the key factor accelerating market growth as it is used as blending components in fuels and it is also used in fuel cells.

Figure: Methanol Market Revenue Share, By Geography, 2021 (%)

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Methanol Market Segment Analysis – by Feedstock

The natural gas segment held the largest methanol Market share in 2021 and is estimated to grow at a CAGR of 4.1% during the forecast period 2022-2027. Natural gas is less expensive than coal. Furthermore, if natural gas is burnt in ideal combustion conditions, the light will be blue and there will be few to no hazardous chemicals. As a result of its cleaner combustion, natural gas is the most environmentally friendly fossil fuel. Thus, because of these advantages, methanol is frequently produced from natural gas by reforming the gas with steam and then converting and distilling the resulting synthetic gas mixture to achieve pure methanol. Hence, a transparent, liquid organic compound methanol is manufactured that is water-soluble and biodegradable. Therefore, biodegradability, less cost and other factors are key determinants driving the segmental growth of the market in Asia. The natural gas derivative segment in the methanol market shows growth across the globe as growth in the construction, automotive and electrical and electronics industries. Thus, the growth in the end-use industry with the use of natural gas derivatives is boosting the growth and is expected to account for significant methanol market share.

Methanol Market Segment Analysis – by Geography

Asia-Pacific held the largest methanol market share in 2021 up to 56.1%. This growth is mainly attributed to the presence of numerous end-use industries such as agriculture, pharmaceutical, building and construction, automotive and others. Growth in urbanization and increase in disposable income in this region has further boosted the industrial growth in this region. Methanol is extensively used in the production of various derivatives which are further utilized in several end-use industries. Also, Asia Pacific is one of the major regions in automotive production which provides substantial growth opportunities for the companies in the region. For instance, according to Organisation Internationale des Constructeurs d'Automobiles, China accounted for around 33% of the world's automotive production whereas Japan and India accounted for 10% and 5% respectively in the global automotive production. Thus, the significant growth in several end-use industries in this region also boosts the growth of methanol market.

Methanol Market Drivers

Increasing demand from Automotive Industry:

Aluminum metaphosphate is also named wood alcohol and methyl alcohol widely used in the production of automotive and construction which are further used in the production of different end-use industries. In the automotive industry, methanol is majorly used as blended fuel and internal combustion engine fuel in automotive. For instance, as per Organisation Internationale des Constructeurs d'Automobiles (OICA), all vehicle production reached 80 million units in 2021, up 77.7 million units from 2020. It is expected that after 2024, automotive production will grow in double-digit due to a correction in the demand for semiconductor and chip production. According to NITI Aaayog of India has mapped out a plan to use methanol alone to replace 10% of crude imports by 2030, to achieve this goal methanol in the amount of 30 MT is required. Thus, the global growth in demand for automotive is propelling the growth and is expected to account for a significant share of the methanol market size.

Growth in Petrochemical:

The Growth in petrochemical demand is driving the methanol market. Methanol is one of the most important chemicals in the petrochemical industry. Petrochemicals are chemical products derived from petroleum products and the same petrochemical compounds are also obtained from other fossil fuels such as coal and natural gas or from renewable sources. Methanol can be used in many different applications and it is also known as wood alcohol and methyl alcohol. It is used in the energy sector in its pure form or blended with other fuels. Methanol is also used as a reagent to form formaldehyde and methyl esters as well as antifreeze for automobiles and aircraft. According to the India Brand Equity Foundation (IBEF), an investment of US $107.4 billion is estimated in the Indian chemicals and petrochemical sector by 2025. According to the 2050 Carbon Neutral Strategy of South Korea, petrochemical processes could use collected carbon dioxide and hydrogen as reactive materials for methanol synthesis instead of the thermal cracking of naphtha to create olefin products. Thus, growth in the petrochemical market is boosting the growth of the methanol industry.

Methanol Market Challenge

Fluctuations in Feedstock prices and Health Concerns

The methanol industry faces challenges related to fluctuations in feedstock prices and human health concerns. Rising oil prices already put pressure on chemical industry margins and also the Russia and Ukraine conflict has negatively impacted the supply of upstream crude as well as the downstream market, which continues to affect the entire petrochemical and refinery value chain. According to the Energy Information and Administration, in 2014, the crude oil price in the US was US$87.4 per barrel, in 2016 the price was US$38.3, in 2018, the price was US$61.4 and in 2021, the price was US$65.8 per barrel. Environmental and health protection laws and regulations related to the use of methanol can be stricter, lowering the demand in the methanol market. According to the Australian National Pollutant Inventory, direct contact with methanol may irritate the skin, face & eyes and inhaling methanol may result in scratching and coughing. Thus, the adverse impact of the methanol industry may hamper the market growth.

Methanol Industry Outlook

The top 10 companies in the Methanol market are -

  1. Sabic
  2. BASF
  3. Methanex Corporation
  4. Helm AG
  5. Mitsubishi Gas
  6. Petronas
  7. Mitsui & Co.
  8. Celanese Corporation
  9. LyondellBasell
  10. OCI N.V.

Recent Developments

  • In December 2021, OCI N.V. enters into an agreement With ADQ and Alpha Dhabi Holding through the Placement Of 15% Of Methanol Group Vf. This agreement will help to expand the clean methanol as a fuel for the future with hydrogen as the primary feedstock.
  • In March 2021, Celanese Corporation expanded methanol production from recycled carbon dioxide. This expansion uses the by-product of carbon dioxide as a feedstock in the production of methanol. 
  • In May 2019, BASF develops a production process for environmental-friendly methanol. With the help of BASF OASE® proven treatment technology, no carbon dioxide should be emitted in the methanol production process.

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1. Methanol Market - Market Overview
    1.1 Definitions and Scope
2. Methanol Market - Executive Summary
    2.1 Key Trends by Derivative
    2.2 Key Trends by Feedstock
    2.3 Key Trends by Application
    2.4 Key Trends by End-use Industry
    2.5 Key Trends by Geography
3. Methanol Market – Comparative analysis
    3.1 Market Share Analysis - Major Companies
    3.2 Product Benchmarking - Major Companies
    3.3 Top 5 Financials Analysis
    3.4 Patent Analysis - Major Companies
    3.5 Pricing Analysis (ASPs will be provided)
4. Methanol Market - Startup companies Scenario Premium Premium
    4.1 Major startup company analysis:
        4.1.1 Investment
        4.1.2 Revenue
        4.1.3 Product portfolio
        4.1.4 Venture Capital and Funding Scenario
5. Methanol Market – Industry Market Entry Scenario PremiumPremium
    5.1 Regulatory Framework Overview
    5.2 New Business and Ease of Doing Business Index
    5.3 Successful Venture Profiles
    5.4 Customer Analysis – Major companies
6. Methanol Market- Market Forces
    6.1 Market Drivers
    6.2 Market Constraints
    6.3 Porter's Five Force Model
        6.3.1 Bargaining Power of Suppliers
        6.3.2 Bargaining Powers of Buyers
        6.3.3 Threat of New Entrants
        6.3.4 Competitive Rivalry
        6.3.5 Threat of Substitutes
7. Methanol Market – Strategic Analysis
    7.1 Value/Supply Chain Analysis
    7.2 Opportunity Analysis
    7.3 Product/Market Life Cycle
    7.4 Distributor Analysis – Major Companies
8. Methanol Market – by Feedstock (Market Size - US$Million/Billion)
    8.1 Natural Gas
    8.2 Coal
    8.3 Others 
9. Methanol Market – by Derivative (Market Size - US$Million/Billion)
    9.1 Fuels
        9.1.1 Gasoline
        9.1.2 Biodiesel
    9.2 Formaldehyde
    9.3 Acetic Acid
        9.3.1 Vinyl Acetate Monomer
        9.3.2 Acetic Anhydride
        9.3.3 Others
    9.4 Methyl Tertiary Butyl Ether
    9.5 Dimethyl Ether
    9.6 Dimethyl Terephthalate
    9.7 Methane Thiol
    9.8 Methylamines
    9.9 Methyl Methacrylate
    9.10 Methanol to Olefins/Propylene
        9.10.1 Olefins
        9.10.2 Propylene
    9.11 Others
10. Methanol Market – by Application (Market Size - US$Million/Billion)
    10.1 Resins
    10.2 Adhesives and Sealant
    10.3 Detergents
    10.4 Pesticides
    10.5 Gasoline Blending
    10.6 Fuel Cells
    10.7 Surfactants
    10.8 Others
11. Methanol Market – by End-use Industry(Market Size - US$Million/Billion)
    11.1 Automotive
        11.1.1 Passenger Vehicle
        11.1.2 Light Commercial Vehicle
        11.1.3 Heavy Commercial Vehicle 
    11.2 Electrical and Electronics
    11.3 Building and Construction
        11.3.1 Residential
        11.3.2 Commercial
        11.3.3 Industrial and Infrastructural
    11.4 Medical and Healthcare
        11.4.1 Pharmaceutical
        11.4.2 Medical Equipment
        11.4.3 Others
    11.5 Agriculture
    11.6 Water Treatments
    11.7 Marine 
        11.7.1 Passenger
        11.7.2 Cargo
        11.7.3 Naval
        11.7.4 Others
    11.8 Others
12. Methanol Market - by Geography (Market Size - US$Million/Billion)
    12.1 North America
        12.1.1 the USA
        12.1.2 Canada
        12.1.3 Mexico
    12.2 Europe
        12.2.1 the UK
        12.2.2 Germany
        12.2.3 France
        12.2.4 Italy
        12.2.5 the Netherlands
        12.2.6 Spain
        12.2.7 Belgium
        12.2.8 Rest of Europe
    12.3 Asia-Pacific
        12.3.1 China
        12.3.2 Japan
        12.3.3 India
        12.3.4 South Korea
        12.3.5 Australia and New Zeeland
        12.3.6 Indonesia
        12.3.7 Taiwan
        12.3.8 Malaysia
        12.3.9 Rest of APAC
    12.4 South America
        12.4.1 Brazil
        12.4.2 Argentina
        12.4.3 Colombia
        12.4.4 Chile
        12.4.5 Rest of South America
    12.5 Rest of the World
        12.5.1 the Middle East
        12.5.2 Africa
13. Methanol Market – Entropy
    13.1 New Product Launches
    13.2 M&As, Collaborations, JVs and Partnerships
14. Methanol Market–Industry/Competition Segment Analysis Premium
    14.1 Company Benchmarking Matrix – Major Companies
    14.2 Market Share at Global Level - Major companies
    14.3 Market Share by Key Region - Major companies
    14.4 Market Share by Key Country - Major companies
    14.5 Market Share by Key Product Type/Product category - Major companies
15. Methanol Market – Key Company List by Country Premium Premium
16. Methanol Market Company Analysis - Business Overview, Product Portfolio, Financials and Developments
    16.1 Company 1
    16.2 Company 2
    16.3 Company 3
    16.4 Company 4
    16.5 Company 5
    16.6 Company 6
    16.7 Company 7
    16.8 Company 8
    16.9 Company 9
    16.10 Company 10 and more
* "Financials would be provided to private companies on best-efforts basis."
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