Top Emerging Trends Of Methanol Market Progress Forecast 2025 |Grand View Research, Inc.

The global methanol market size is projected to reach USD 38.98 billion by 2025, registering a 2.9% CAGR during the forecast period, according to a new report by Grand View Research, Inc. Exceptional blending capacity and high octane rating of the product are the key factors driving the consumption of methanol as fuel.

Methanol, also known as methyl alcohol or wood alcohol, is a light, colorless, volatile, and flammable liquid with an odor similar to that of ethanol or drinking alcohol. It is one of the most extensively used industrial chemicals and acts as a precursor during the production of formaldehyde, acetic acid, Methyl Tert-Butyl Ether (MTBE), Dimethyl Ether (DME), biodiesels, olefins, and others.

Japan accounts for approximately 7% of the overall methanol production in Asia and relies on imports to meet the local demand, owing to the low in-house production capacity of the country. However, various Japan-based manufacturers, including Mitsubishi Gas Chemicals have been picking up pace in terms of production and are benefitting by stable market prices.

Increasing demand for acetic acid, formaldehyde, and DME are considered as the key drivers for the growth of the methanol Industry in Asia Pacific. In addition, the supply and demand of the product across Asia Pacific is projected to be stable during the forecast period, with slight turbulence caused by the U.S. and China trade war.

The significant demand for methanol in North America is driven by a strong supply of the product to cater to the rising demand for MTBE, acetic acid, and formaldehyde. In 2018, the market was stable, backed by the steady supply of natural gas at low costs. Also, increasing biodiesel projects to be commissioned till 2021 is among the other prominent drivers fueling the regional demand for methanol in near future.

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Further key findings from the report suggest:

·         Methanol to Olefins (MTO) segment is anticipated to expand at a CAGR of 6.6%, in terms of revenue, from 2019 to 2025 as they are used in large quantities for the production of propylene and ethylene, used for producing synthetic rubber, synthetic plastic, pharmaceuticals, and textile dyes

·         The U.S. methanol market is anticipated to reach 7,769.5 kilotons by 2025. Development of shale gas has encouraged manufacturers to step up their efforts to increase their production capacity

·         Asia Pacific is expected to account for the largest market share in terms of volume as well as revenue, over the forecast period. Factors such as rising affordability and rapid industrialization in countries such as China, India, and Japan are expected to drive the regional demand

·         Some of the key market participants are Zagros Petrochemical Company, BASF, Celanese Corporation, Mitsui & Co., Ltd, Saudi Arabia Basic Industries Corporation (SABIC), Methanex Corporation, Petroliam Nasional Berhad, and Valero Marketing & Supply Company

·         Prominent market players engage in developing novel production technologies and expansion of their plant capacities to gain competitive advantage

Formaldehyde dominated the application segment with 24.3% of the overall volume share in 2018. Formaldehyde resins are used on a large scale to manufacture interior molded components of vehicles to reduce weight and increase fuel efficiency. In the personal care segment, formaldehyde releasing agents are used as preservatives to eliminate the growth of bacteria or pathogens.

Methanol is widely used for esterification of acetic acid. The most common production process with regards to acetic acid includes the rhodium-catalyzed carbonylation process. This process involves the reaction of carbon monoxide and methanol. It also facilitates the production of methyl acetate, which is broadly utilized as a solvent for esters, cellulose, and nitrates.

Methanol is considered as a feasible alternative to fossil fuel as it is cleaner and less expensive. This factor has led to its increasing consumption in emerging economies, most notably in Asia Pacific and Middle East. The countries in these regions principally import methanol for blending with non-renewable fossil fuel. Blending it to petrol increases vehicle acceleration and power and is known to reduce fuel costs. Governments across the emerging economies have been focusing on increasing the blending percentage of methanol in petrol by 3% to 85% depending on the desired vehicle performance and functional efficiency.

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Grand View Research has segmented the global methanol market on the basis of application:

Methanol Application Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

·         Formaldehyde

·         Acetic Acid

·         MTBE

·         DME

·         Fuel Blending

·         MTO

·         Biodiesel

·         Others

About Grand View Research

Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, we offer market intelligence studies ensuring relevant and fact-based research across a range of industries, from technology to chemicals, materials and healthcare.