Renewable Methanol Market - Forecast(2024 - 2030)

Report Code: CMR 29916 Report Format: PDF + Excel

Renewable Methanol Market Overview

The Renewable Methanol Market size is forecast to reach US$4.4 billion by 2027 after growing at a CAGR of 4.2% during 2022-2027. Renewable methanol is produced from feedstocks such as municipal solid waste, agricultural residue, Co2 emission, among others. The synthesis of renewable methanol involves fermentation or gasification of biomass (agricultural residue, forestry residues, others) into syngas which is further processed to obtain renewable methanol. The demand for renewable methanol is extensively driven by the automobile sector where it is implemented as fuel for the internal combustion engine, hybrid (fuel/electric) systems, and fuel cells, helping governing bodies globally to reduce greenhouse gas emissions from automobiles. The automobile industry globally is booming with increasing production and sales and this will further contribute to the growth of the market in the forecast period. For instance, as per the statistics by India Brand Equity Foundation, India became the fifth-largest auto market in 2020 with 3.49 million units sold combinedly in the commercial and passenger vehicles segment. Furthermore, renewable methanol finds its massive use in the chemical industry where it is utilized in the production of several chemicals such as formaldehyde, acetic acid, methyl tert-butyl ether, ethylene, etc. The chemical industry is expanding globally and this will drive the growth of the market in the forecast period. For instance, as per the 2020 Chemical Industry Outlook Report by BASF, global chemical production is projected to increase by 4.4% in 2021. The high production cost associated with renewable methanol might hamper the market’s growth in the forecast period. 

COVID-19 Impact 

The COVID-19 pandemic had a negative impact on the renewable methanol market. Supply chain disruption and procurement of raw material were the major challenges faced by the market during the pandemic. Market players had to modify their working strategies to maintain a stable business operation amid the pandemic. As per the April 2020 report by OCI N.V., the demand for methanol got hampered due to the slowdown of industrial activity. The stagnant growth in various end-use industries further restricted the growth of the market during the pandemic. Going forward, the market is projected to witness significant growth owing to the increasing demand for renewable methanol from end-use industries such as automobile, chemical, and power generation. 

Renewable Methanol Market Report Coverage 

The report: Renewable Methanol Market Forecast (2022-2027)”, by IndustryARC, covers an in-depth analysis of the following segments of the Renewable Methanol Industry.

By Feedstock: Co2 Emissions, Biomass, Agricultural Waste, Forestry Residues, Municipal Solid Waste, Renewable Hydrogen, Others.
By Application: Formaldehyde, Acetic Acid, Methyl Tert-Butyl Ether (MTBE), Dimethyl Ether (DME), Gasoline Blending, Methyl Methacrylate, Methyl Chloride, Biodiesel, Others.
By End Use Industry: Automotive, Passenger Vehicle, Commercial Vehicle, Light Commercial Vehicle, Heavy Commercial Vehicle, Marine, Power Generation, Industrial, Appliance, Construction, Chemical, Paint and Adhesives, Others.
By Geography: North America (USA, Canada, Mexico), Europe (UK, Germany, France, Italy, Netherlands, Spain, Russia, Belgium, Rest of Europe), Asia Pacific (China, Japan, India, South Korea, Australia, and New Zealand, Indonesia, Taiwan, Malaysia, Rest of Asia Pacific), South America (Brazil, Argentina, Colombia and Rest of South America), and RoW (Middle East and Africa). 

Key Takeaways: 

  • Co2 emission feedstock will witness the highest demand in the forecast period. This type of feedstock is available globally on a large scale compared to other feedstocks, making it a suitable choice in the market. 
  • The automotive industry will drive the growth of the market in the forecast period. According to the July 2021 stats by the European Automobile Manufacturers Association, passenger car registrations in the European region jumped by 25.2% in the first of 2021. 
  • The Asia-Pacific region will witness the highest demand in the forecast period owing to the booming automobile industry in the region. For instance, according to the August 2020 report by the China Association of Automobile Manufacturers, the Chinese automobile industry is anticipated to stay on a progressive track and the New Energy Vehicles segment is projected to witness the highest demand in the forecast period. 

Figure: Asia Pacific Renewable Methanol Market Revenue, 2021-2027 (US$ Billion)

Renewable Methanol Market

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Renewable Methanol Market - By Feedstock 

Co2 emission feedstock dominated the renewable methanol market in 2021. Co2 is captured either from the atmosphere or from industrial exhaust streams and reacted with renewable hydrogen to produce renewable methanol. This type of feedstock is used extensively for the production of renewable methanol owing to its higher availability compared to other feedstocks. As per the Innovation Outlook 2021 report by The International Renewable Energy Agency (IRENA), the highest potential for the production of renewable methanol remains with the hydrogeneration of Co2 to methanol. Renewable methanol production from Co2 emission does not involve the feedstock availability limitations which happens in the case of biomass feedstocks. The biomass segment involves gasification of forestry residues or agricultural residues to produce a syngas which gets further processing to obtain renewable methanol. The biomass segment is projected to witness significant demand in the forecast period. municipal solid waste will have decent demand for the production of renewable methanol in the forecast period.

Renewable Methanol Market - By End Use Industry 

The automobile industry dominated the renewable methanol market in 2021. Renewable methanol is utilized in the automobile industry as fuel in internal combustion engines, modified diesel engines, and advanced hybrid and fuel cells. The automotive industry is booming globally and this will contribute to the growth of the market in the forecast period. For instance, according to the July 2021 stats by the European Automobile Manufacturers Association, passenger car registration surged by 10.4% in June 2021 compared to the same month in 2020. Similarly, as per the data by India Brand Equity Foundation, the electric vehicle market is expected to become a US$ 7.09 billion market opportunity by 2025. Such a high boost in the automobile industry globally will increase the implementation of renewable methanol as fuel in various automobiles and this will contribute to the growth of the market in the forecast period. The chemical industry will drive the growth of the market significantly in the forecast period. 

Renewable Methanol Market - By Geography 

The Asia-Pacific region held the largest market share in the renewable methanol market in 2021 with a market share of up to 34%. The high demand for renewable methanol is attributed to the region’s growing automobile industry. For instance, as per the stats by the China Association of Automobile Manufacturers, in September 2021, the production of Chinese commercial vehicles reached 310000 units, jumping 35.5% month on month. Similarly, as per the CEIC data report, in 2020, 3481193 units of diesel vehicles were sold in China which was 2,805,966 units in 2019. Such massive growth in the region’s automobile sector will augment the higher utilization of renewable methanol in the forecast period. The North American region will witness significant demand for renewable methanol owing to the expanding chemical industry in the region. 

Renewable Methanol Market Drivers 

Expanding chemical industry will drive the growth of the market 

Renewable methanol is an integral element in the chemical industry where it is implemented as a feedstock in a large quantity for the production of several chemicals. The chemical industry is expanding globally with increasing production and this will stimulate the growth of the market in the forecast period. For instance, according to the June 2021 Mid-Year US Chemical Industry Outlook report, chemical volumes and shipments in the US are anticipated to surge by 3.2% and 8.2% respectively in 2022. Similarly, according to the report by India Brand Equity Foundation, the domestic chemical sector's small and medium enterprises are anticipated to display 18-23% revenue growth in the fiscal year 2022. Such expansion in the chemical industry will augment the higher uses of renewable methanol in the production of various chemicals, ultimately contributing to the growth of the market in the forecast period. 

Booming automobile sector will drive the growth of the market 

Renewable methanol finds its extensive use in the automobile sector as it is used in various automobiles as fuel. The automobile industry globally is booming and this will drive the growth of the market in the forecast period. For instance, according to the data by European Automobile Manufacturers Association, sales in the petrol car segment surged by 11.9% in 2019 compared to the fourth quarter in the previous year. Similarly, according to the September 2020 data by the International Energy Agency, the production and sales of Chinese diesel vehicles stood at 368,000 units and 366,000 units respectively, surging 13% year-on-year. Such massive growth in the automobile industry globally will amplify the higher implementation of renewable methanol as fuel in various automobiles, thereby contributing to the growth of the market in the forecast period. 

Renewable Methanol Market Challenges 

High cost of renewable methanol might hamper the growth of the market 

The production of renewable methanol involves a high cost which has been a challenge in the market for many years and this might affect the growth of the market in the forecast period. The expensive nature of the production process restricts the scaling up of renewable methanol. As per the Innovation Outlook 2021 report by The International Renewable Energy Agency, the production of renewable methanol remains more expensive than fossil methanol. This expensive production process associated with renewable methanol might affect the growth of the market in the forecast period. 

Renewable Methanol Industry Outlook 

Investment in R&D activities, acquisitions, product and technology launches are key strategies adopted by players in the market. Renewable Methanol top 10 companies include: 

  • BASF SE
  • Carbon Recycling International
  • Enerkem
  • Fraunhofer
  • Nordic Green
  • OCI N.V.
  • Serenergy A/S
  • Methanex Corporation
  • Eni S.p.A.
  • Synhelion 

Recent Developments

  • In June 2019, Eni and Synhelion teamed up to produce methanol from renewable energy. This collaboration helps Eni to achieve the goal of reducing greenhouse gases and the use of carbon dioxide as raw material. 

Relevant Reports 

Report Code: CMR 0024 

Report Code: CMR 1096

For more Chemicals and Materials related reports, please click here

1. Renewable Methanol Market- Market Overview
    1.1 Definitions and Scope
2. Renewable Methanol Market- Executive Summary
    2.1 Key Trends by Feedstock
    2.2 Key Trends by Application
    2.3 Key Trends by End Use Industry
    2.4 Key Trends by Geography
3. Renewable 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. Renewable 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. Renewable Methanol Market– Industry Market Entry Scenario Premium Premium
    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. Renewable Methanol Market- Market Forces
    6.1 Market Drivers
    6.2 Market Constraints
    6.3 Porters five force model
        6.3.1 Bargaining power of suppliers
        6.3.2 Bargaining powers of customers
        6.3.3 Threat of new entrants
        6.3.4 Competitive Rivalry
        6.3.5 Threat of substitutes
7. Renewable Methanol Market-Strategic analysis
    7.1 Value chain analysis
    7.2 Opportunities analysis
    7.3 Product/Market life cycle
    7.4 Distributors Analysis - Major Companies
8. Renewable Methanol Market– By Feedstock (Market Size -US$ Million, Billion)
    8.1 Co2 Emissions
    8.2 Biomass
    8.2.1 Agricultural Residue
    8.2.2 Forestry Residue
    8.2.3 Others
    8.3 Municipal Solid Waste
    8.4 Renewable Hydrogen
    8.5 Others
9. Renewable Methanol Market– By Application (Market Size -US$ Million, Billion)
    9.1 Formaldehyde
    9.2 Acetic Acid
    9.3 Methyl Tert-Butyl Ether (MTBE)
    9.4 Dimethyl Ether (DME)
    9.5 Gasoline Blending
    9.6 Methyl Methacrylate
    9.7 Methyl Chloride
    9.8 Biodiesel
    9.9 Others
10. Renewable Methanol Market– By End Use Industry (Market Size -US$ Million, Billion)
    10.1 Automotive
        10.1.1 Passenger Vehicle
        10.1.2 Commercial Vehicle
            10.1.2.1 Light Commercial Vehicle
            10.1.2.2 Heavy Commercial Vehicle
    10.2 Marine
    10.3 Power Generation
    10.4 Industrial
    10.5 Appliance
    10.6 Construction
    10.7 Chemical
    10.8 Paints and Adhesives
    10.9 Others
11. Renewable Methanol Market - By Geography (Market Size -US$ Million / Billion)
    11.1 North America
        11.1.1 USA
        11.1.2 Canada
        11.1.3 Mexico
    11.2 Europe
        11.2.1 UK
        11.2.2 Germany
        11.2.3 France
        11.2.4 Italy
        11.2.5 Netherlands
        11.2.6 Spain
        11.2.7 Russia
        11.2.8 Belgium
        11.2.9 Rest of Europe
    11.3 Asia Pacific
        11.3.1 China
        11.3.2 Japan
        11.3.3 India
        11.3.4 South Korea
        11.3.5 Australia and New Zealand
        11.3.6 Indonesia
        11.3.7 Taiwan
        11.3.8 Malaysia
        11.3.9 Rest of Asia Pacific
    11.4 South America
        11.4.1 Brazil
        11.4.2 Argentina
        11.4.3 Colombia
        11.4.4 Chile
        11.4.5 Rest of South America
    11.5 ROW
        11.5.1 Middle East
        11.5.1.1 Saudi Arabia
        11.5.1.2 UAE
        11.5.1.3 Israel
        11.5.1.4 Rest of Middle East
        11.5.2 Africa
        11.5.2.1 South Africa
        11.5.2.2 Nigeria
        11.5.2.3 Rest of Africa
12. Renewable Methanol Market-Entropy
    12.1 New Product Launches
    12.2 M&A’s, Collaborations, JVs and Partnerships
13. Renewable Methanol Market-Industry/Segment Competition Landscape Premium
    13.1 Company Benchmarking Matrix- Major Companies
    13.2 Market Share at Global Level- Major companies
    13.3 Market Share by Key Region- Major companies
    13.4 Market Share by Key Country- Major companies
    13.5 Market Share by Key Application - Major companies
    13.6 Market Share by Key Product Type/Product category- Major companies
14. Renewable Methanol Market- Key Company List by Country Premium Premium 
15. Renewable Methanol Market Company Analysis- Business Overview, Product Portfolio, Financials, and Developments
    15.1 Company 1
    15.2 Company 2
    15.3 Company 3
    15.4 Company 4
    15.5 Company 5
    15.6 Company 6
    15.7 Company 7
    15.8 Company 8
    15.9 Company 9
    15.10 Company 10 and more
"*Financials would be provided on a best efforts basis for private companies"

LIST OF TABLES

1.Global Renewable Methanol Market Analysis And Forecast, By End-Use Application Market 2023-2030 ($M)
1.1 By End-Use Application Market 2023-2030 ($M) - Global Industry Research
1.1.1 Formaldehyde Market 2023-2030 ($M)
1.1.2 Mtbe Market 2023-2030 ($M)
1.1.3 Dimethyl Ether Market 2023-2030 ($M)
2.Global Renewable Methanol Market Analysis And Forecast, By Primary Source Market 2023-2030 ($M)
2.1 By Primary Source Market 2023-2030 ($M) - Global Industry Research
2.1.1 Biomass Market 2023-2030 ($M)
2.1.2 Municipal Waste Market 2023-2030 ($M)
2.1.3 Industrial Waste Market 2023-2030 ($M)
3.Global Renewable Methanol Market Analysis And Forecast, By End-Use Application Market 2023-2030 (Volume/Units)
3.1 By End-Use Application Market 2023-2030 (Volume/Units) - Global Industry Research
3.1.1 Formaldehyde Market 2023-2030 (Volume/Units)
3.1.2 Mtbe Market 2023-2030 (Volume/Units)
3.1.3 Dimethyl Ether Market 2023-2030 (Volume/Units)
4.Global Renewable Methanol Market Analysis And Forecast, By Primary Source Market 2023-2030 (Volume/Units)
4.1 By Primary Source Market 2023-2030 (Volume/Units) - Global Industry Research
4.1.1 Biomass Market 2023-2030 (Volume/Units)
4.1.2 Municipal Waste Market 2023-2030 (Volume/Units)
4.1.3 Industrial Waste Market 2023-2030 (Volume/Units)
5.North America Renewable Methanol Market Analysis And Forecast, By End-Use Application Market 2023-2030 ($M)
5.1 By End-Use Application Market 2023-2030 ($M) - Regional Industry Research
5.1.1 Formaldehyde Market 2023-2030 ($M)
5.1.2 Mtbe Market 2023-2030 ($M)
5.1.3 Dimethyl Ether Market 2023-2030 ($M)
6.North America Renewable Methanol Market Analysis And Forecast, By Primary Source Market 2023-2030 ($M)
6.1 By Primary Source Market 2023-2030 ($M) - Regional Industry Research
6.1.1 Biomass Market 2023-2030 ($M)
6.1.2 Municipal Waste Market 2023-2030 ($M)
6.1.3 Industrial Waste Market 2023-2030 ($M)
7.South America Renewable Methanol Market Analysis And Forecast, By End-Use Application Market 2023-2030 ($M)
7.1 By End-Use Application Market 2023-2030 ($M) - Regional Industry Research
7.1.1 Formaldehyde Market 2023-2030 ($M)
7.1.2 Mtbe Market 2023-2030 ($M)
7.1.3 Dimethyl Ether Market 2023-2030 ($M)
8.South America Renewable Methanol Market Analysis And Forecast, By Primary Source Market 2023-2030 ($M)
8.1 By Primary Source Market 2023-2030 ($M) - Regional Industry Research
8.1.1 Biomass Market 2023-2030 ($M)
8.1.2 Municipal Waste Market 2023-2030 ($M)
8.1.3 Industrial Waste Market 2023-2030 ($M)
9.Europe Renewable Methanol Market Analysis And Forecast, By End-Use Application Market 2023-2030 ($M)
9.1 By End-Use Application Market 2023-2030 ($M) - Regional Industry Research
9.1.1 Formaldehyde Market 2023-2030 ($M)
9.1.2 Mtbe Market 2023-2030 ($M)
9.1.3 Dimethyl Ether Market 2023-2030 ($M)
10.Europe Renewable Methanol Market Analysis And Forecast, By Primary Source Market 2023-2030 ($M)
10.1 By Primary Source Market 2023-2030 ($M) - Regional Industry Research
10.1.1 Biomass Market 2023-2030 ($M)
10.1.2 Municipal Waste Market 2023-2030 ($M)
10.1.3 Industrial Waste Market 2023-2030 ($M)
11.APAC Renewable Methanol Market Analysis And Forecast, By End-Use Application Market 2023-2030 ($M)
11.1 By End-Use Application Market 2023-2030 ($M) - Regional Industry Research
11.1.1 Formaldehyde Market 2023-2030 ($M)
11.1.2 Mtbe Market 2023-2030 ($M)
11.1.3 Dimethyl Ether Market 2023-2030 ($M)
12.APAC Renewable Methanol Market Analysis And Forecast, By Primary Source Market 2023-2030 ($M)
12.1 By Primary Source Market 2023-2030 ($M) - Regional Industry Research
12.1.1 Biomass Market 2023-2030 ($M)
12.1.2 Municipal Waste Market 2023-2030 ($M)
12.1.3 Industrial Waste Market 2023-2030 ($M)
13.MENA Renewable Methanol Market Analysis And Forecast, By End-Use Application Market 2023-2030 ($M)
13.1 By End-Use Application Market 2023-2030 ($M) - Regional Industry Research
13.1.1 Formaldehyde Market 2023-2030 ($M)
13.1.2 Mtbe Market 2023-2030 ($M)
13.1.3 Dimethyl Ether Market 2023-2030 ($M)
14.MENA Renewable Methanol Market Analysis And Forecast, By Primary Source Market 2023-2030 ($M)
14.1 By Primary Source Market 2023-2030 ($M) - Regional Industry Research
14.1.1 Biomass Market 2023-2030 ($M)
14.1.2 Municipal Waste Market 2023-2030 ($M)
14.1.3 Industrial Waste Market 2023-2030 ($M)

LIST OF FIGURES

1.US Renewable Methanol Market Revenue, 2023-2030 ($M)
2.Canada Renewable Methanol Market Revenue, 2023-2030 ($M)
3.Mexico Renewable Methanol Market Revenue, 2023-2030 ($M)
4.Brazil Renewable Methanol Market Revenue, 2023-2030 ($M)
5.Argentina Renewable Methanol Market Revenue, 2023-2030 ($M)
6.Peru Renewable Methanol Market Revenue, 2023-2030 ($M)
7.Colombia Renewable Methanol Market Revenue, 2023-2030 ($M)
8.Chile Renewable Methanol Market Revenue, 2023-2030 ($M)
9.Rest of South America Renewable Methanol Market Revenue, 2023-2030 ($M)
10.UK Renewable Methanol Market Revenue, 2023-2030 ($M)
11.Germany Renewable Methanol Market Revenue, 2023-2030 ($M)
12.France Renewable Methanol Market Revenue, 2023-2030 ($M)
13.Italy Renewable Methanol Market Revenue, 2023-2030 ($M)
14.Spain Renewable Methanol Market Revenue, 2023-2030 ($M)
15.Rest of Europe Renewable Methanol Market Revenue, 2023-2030 ($M)
16.China Renewable Methanol Market Revenue, 2023-2030 ($M)
17.India Renewable Methanol Market Revenue, 2023-2030 ($M)
18.Japan Renewable Methanol Market Revenue, 2023-2030 ($M)
19.South Korea Renewable Methanol Market Revenue, 2023-2030 ($M)
20.South Africa Renewable Methanol Market Revenue, 2023-2030 ($M)
21.North America Renewable Methanol By Application
22.South America Renewable Methanol By Application
23.Europe Renewable Methanol By Application
24.APAC Renewable Methanol By Application
25.MENA Renewable Methanol By Application