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Global Methanol Market Report by Application, and Region 2024-2032

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  • 137 Pages
  • April 2024
  • Region: Global
  • IMARC Group
  • ID: 5330961
The global methanol market size reached US$ 36.3 Billion in 2023. Looking forward, the market is projected to reach US$ 55.2 Billion by 2032, exhibiting a growth rate (CAGR) of 4.77% during 2023-2032. The rapidly expanding chemical industry, widespread product employment in manufacturing antibiotics and antifungals, significant growth in the automotive industry, and the implementation of various government initiatives are some of the major factors propelling the market.

Methanol (CH3OH), also known as wood alcohol, is a colorless, flammable liquid that is used as a solvent, fuel, and antifreeze. It is the simplest alcohol and consists of a methyl group (CH3) linked to a hydroxyl group (OH). It can be produced through several processes, including from biomass, such as wood, through a process known as destructive distillation or catalytic conversion of synthesis gas derived from natural gas or coal. Methanol is miscible in water, alcohol, ether, ketones, and other organic solvents. As a result, it is also widely used in the production of formaldehyde, acetic acid, dimethyl terephthalate (DMT), methyl tertiary butyl ether (MTBE), tertiary amyl methyl ether (TAME), dimethyl ether (DME), and biodiesel.

The significant growth in the automotive industry is one of the key factors creating a positive outlook for the market. Methanol is widely used as a fuel in internal combustion engines and an antifreeze agent for automobile radiators. Moreover, the widespread product utilization in the energy sector to manufacture dimethyl ether (DME), a clean fuel that is commonly used as a substitute for propane, is favoring the market growth. Apart from this, the development and commercialization of renewable methanol, which can be produced from carbon dioxide (CO2) captured from industrial emissions or direct air capture, are providing an impetus to the market growth.

Additionally, the increasing product demand as a safer fuel alternative due to its low rate of evaporation and low radiant heat energy owing to the rising environmental concerns among consumers is acting as another growth-inducing factor. Furthermore, the widespread product utilization for the production of various chemicals, such as formaldehyde, acetic acid, methyl tert-butyl ether (MTBE), and dimethyl ether (DME), is contributing to the market growth. Other factors, including the implementation of various favorable government regulations, extensive research and development (R&D) activities, and the increasing product employment in the manufacturing of adhesives, paints are presenting remunerative growth opportunities for the market.

Methanol Market Trends/Drivers

The widespread product adoption in the chemical industry

Methanol is widely used in the chemical industry as a versatile raw material to produce various chemicals and chemical intermediates. It is widely used due to its versatility as a chemical feedstock, and its properties, such as its reactivity, solvency, and ease of handling, make it an essential component in various chemical processes. Moreover, methanol serves as a vital feedstock for producing acetic acid, a chemical used to manufacture vinyl acetate monomer (VAM), acetic anhydride, and various esters. In line with this, acetic acid and its derivatives are used to produce fibers, films, paints, solvents, and other industrial products.

Significant growth in the automotive industry

Methanol is widely used as an alternative fuel for internal combustion engines in passenger vehicles as it can be blended with gasoline in certain proportions. It also reduces emissions and improves fuel efficiency, which in turn is acting as a growth-inducing factor. Additionally, methanol is used as a fuel in professional motorsports such as drag racing and oval track racing as it offers high octane ratings and excellent knock resistance, allowing for increased engine performance. Apart from this, the widespread product utilization as an alternative power source for electric vehicles (EVs), where methanol is converted into electricity through electrochemical reactions, is supporting the market growth.

Extensive research and development (R&D) activities

The methanol market is continuously evolving due to the extensive R&D activities leading to various innovations. Moreover, the introduction of renewable methanol produced from non-fossil fuel feedstocks, such as biomass, industrial waste gases, or captured carbon dioxide (CO2), is propelling the market growth. Additionally, researchers are continuously working on developing advanced catalysts with improved selectivity, activity, and stability for methanol synthesis, which is positively influencing the market growth. Besides this, ongoing research and development efforts are exploring advanced technologies such as carbon dioxide utilization and biomass conversion to further expand the range of methanol production options and promote sustainability, which is providing a considerable boost to the market growth.

Methanol Industry Segmentation

This report provides an analysis of the key trends in each segment of the global methanol market report, along with forecasts at the global and regional levels from 2024-2032. The report has categorized the market based on the application.

Breakup by Application:

  • Formaldehyde
  • Dimethyl ether
  • Gasoline
  • Chloromethane
  • Acetic acid
  • Others
Formaldehyde dominates the methanol market

The report has provided a detailed breakup and analysis of the methanol market based on the application. This includes formaldehyde, dimethyl ether, gasoline, chloromethane, MTBE/TAME, acetic acid, and others. According to the report, formaldehyde represented the largest market segment.

Methanol is a key raw material in the production of formaldehyde, which is a colorless gas with a pungent odor. It is widely used in manufacturing resins, plastics, textiles, and various household products. Formaldehyde is also used to make various resins, including urea-formaldehyde (UF), phenol-formaldehyde (PF), and melamine-formaldehyde (MF) resins. These resins are widely employed in the manufacture of plywood, particleboard, laminates, adhesives, coatings, and composite materials. Besides this, ethanol is used commercially as a stabilizer in formaldehyde solutions and generates hemiacetal or acetal compounds that prevent the formaldehyde's precipitation.

Breakup by Region:

  • China
  • Asia Pacific (excluding China)
  • Europe
  • North America
  • Latin America
  • Middle East and Africa
China exhibits a clear dominance in the market, accounting for the largest methanol market share

The report has also provided a comprehensive analysis of all the major regional markets, which include China, Asia Pacific (excluding China), Europe, North America, Latin America, and Middle East and Africa. According to the report, China represented the largest market for methanol.

China is one of the largest consumers and producers of methanol, which is used in diverse applications ranging from fuel and energy sources to chemicals and industrial processes. Methanol serves as a vital feedstock to produce various chemicals and chemical intermediates in China. It is used in the production of formaldehyde, acetic acid, methylamines, methyl methacrylate (MMA), dimethylformamide (DMF), and other chemicals that find applications in industries such as plastics, textiles, adhesives, and coatings. Moreover, China is a significant producer and consumer of dimethyl ether (DME), which is synthesized from methanol and is used as a clean-burning alternative to diesel fuel in transportation.

Competitive Landscape

Several key market players are significantly investing in research and development (R&D) projects to explore innovative methods to improve methanol production processes. Additionally, the development of advanced catalysts, novel reactor designs, and optimization of process conditions to enhance methanol yield and energy efficiency and reduce environmental impacts is supporting the market growth.

Furthermore, growing strategic partnerships between top companies, industry players, academic institutions, and research organizations to advance methanol-related technologies are further driving the market growth. Besides this, the leading market players and various manufacturers are investing in R&D activities to develop advanced production methods, such as the BASF and ICI processes. Several companies are also expanding their production capacities by establishing new plants to serve the growing markets and gain a competitive advantage.

Recent Developments

In 2023, BASF SE signed an agreement with Linde Engineering to develop a new process for producing methanol from carbon dioxide. The process uses renewable energy sources, such as wind and solar power, to convert carbon dioxide into methanol, which can then be used as a fuel or chemical feedstock.

Mitsubishi Gas Chemical became the first company in Japan to successfully synthesize natural gas into methanol. The company also developed methanol-to-olefins (MTO) technology that converts methanol to olefins, which are used as feedstocks for producing various chemicals and plastics.

In 2021, Celanese Corporation expanded its methanol production from recycled CO2 to support environmental targets. In recent years, Celanese Corporation has continued to be involved in the methanol industry, with a focus on sustainability and reducing the environmental impact of methanol production.

Key Questions Answered in This Report

1. What was the global methanol market size in 2023?
2. What will be the global methanol market outlook during the forecast period (2024-2032)?
3. What are the global methanol market drivers?
4. What are the major trends in the global methanol market?
5. What is the impact of COVID-19 on the global methanol market?
6. What is the global methanol market breakup by application?
7. What are the major regions in the global methanol market?

Table of Contents

1 Preface
2 Scope and Methodology
2.1 Objectives of the Study
2.2 Stakeholders
2.3 Data Sources
2.3.1 Primary Sources
2.3.2 Secondary Sources
2.4 Market Estimation
2.4.1 Bottom-Up Approach
2.4.2 Top-Down Approach
2.5 Forecasting Methodology
3 Executive Summary
4 Introduction
4.1 Overview
4.2 Physical and Chemical Properties
4.3 Key Industry Trends
5 Global Methanol Industry
5.1 Market Overview
5.2 Market Performance
5.2.1 Volume Trends
5.2.2 Value Trends
5.3 Impact of COVID-19
5.4 Price Trends
5.4.1 Key Price Indicators
5.4.2 Price Structure
5.4.3 Price Trends
5.5 Market Forecast
5.6 SWOT Analysis
5.6.1 Overview
5.6.2 Strengths
5.6.3 Weaknesses
5.6.4 Opportunities
5.6.5 Threats
5.7 Value Chain Analysis
5.7.1 Overview
5.7.2 Raw Material Mining and Extraction
5.7.3 Manufacturing
5.7.4 Marketing
5.7.5 Distribution
5.7.6 Export
5.7.7 End Use
5.8 Margin Analysis
5.9 Porter’s Five Forces Analysis
5.9.1 Overview
5.9.2 Bargaining Power of Buyers
5.9.3 Bargaining Power of Suppliers
5.9.4 Degree of Competition
5.9.5 Threat of New Entrants
5.9.6 Threat of Substitutes
5.10 Trade Data
5.10.1 Imports
5.10.2 Exports
5.11 Key Market Drivers and Success Factors
6 Performance of Key Regions
6.1 China
6.1.1 Market Trends
6.1.2 Market Forecast
6.2 Asia-Pacific (Excluding China)
6.2.1 Market Trends
6.2.2 Market Forecast
6.3 Europe
6.3.1 Market Trends
6.3.2 Market Forecast
6.4 North America
6.4.1 Market Trends
6.4.2 Market Forecast
6.5 Latin America
6.5.1 Market Trends
6.5.2 Market Forecast
6.6 Middle East and Africa
6.6.1 Market Trends
6.6.2 Market Forecast
7 Market Breakup by Application
7.1 Formaldehyde
7.1.1 Market Trends
7.1.2 Market Forecast
7.2 Dimethyl Ether
7.2.1 Market Trends
7.2.2 Market Forecast
7.3 Gasoline
7.3.1 Market Trends
7.3.2 Market Forecast
7.4 Chloromethane
7.4.1 Market Trends
7.4.2 Market Forecast
7.5.1 Market Trends
7.5.2 Market Forecast
7.6 Acetic Acid
7.6.1 Market Trends
7.6.2 Market Forecast
7.7 Others
7.7.1 Market Trends
7.7.2 Market Forecast
8 Competitive Landscape
8.1 Market Structure
8.2 Market Breakup by Key Players
8.3 Key Player Profiles
9 Methanol Manufacturing Process
9.1 Product Overview
9.2 Chemical Reactions Involved
9.3 Detailed Process Flow
9.4 Raw Material Requirements
9.5 Mass Balance and Feedstock Conversion Rates
10 Methanol: Feedstock Analysis
10.1 Coal
10.1.1 Market Performance Volume Trends Value Trends
10.1.2 Price Trends
10.1.3 Market Breakup by Region
10.1.4 Market Breakup by Application
10.2 Natural Gas
10.2.1 Market Performance Volume Trends Value Trends
10.2.2 Price Trends
10.2.3 Market Breakup by Region
10.2.4 Market Breakup by Application
List of Figures
Figure 1: Global: Methanol Market: Major Drivers and Challenges
Figure 2: Global: Methanol Market: Volume Trends (in Million Tons), 2018-2023
Figure 3: Global: Methanol Market: Value Trends (in Billion US$), 2018-2023
Figure 4: Global: Methanol Market: Average Prices (in US$/Ton), 2018-2023
Figure 5: Global: Methanol Market Forecast: Volume Trends (in Million Tons), 2024-2032
Figure 6: Global: Methanol Market Forecast: Value Trends (in Billion US$), 2024-2032
Figure 7: Global: Methanol Market Forecast: Average Prices (in US$/Ton), 2024-2032
Figure 8: Global: Methanol Market: Price Structure
Figure 9: Global: Methanol Industry: SWOT Analysis
Figure 10: Global: Methanol Industry: Value Chain Analysis
Figure 11: Global: Methanol Industry: Profit Margin at Various Level of Supply Chain
Figure 12: Global: Methanol Industry: Porter’s Five Forces Analysis
Figure 13: Global: Methanol Market: Breakup by Region (in %), 2023
Figure 14: China: Methanol Market (in ‘000 Tons), 2018 & 2023
Figure 15: China: Methanol Market Forecast (in ‘000 Tons), 2024-2032
Figure 16: Asia Pacific (Excluding China): Methanol Market (in ‘000 Tons), 2018 & 2023
Figure 17: Asia Pacific (Excluding China): Methanol Market Forecast (in ‘000 Tons), 2024-2032
Figure 18: Europe: Methanol Market (in ‘000 Tons), 2018 & 2023
Figure 19: Europe: Methanol Market Forecast (in ‘000 Tons), 2024-2032
Figure 20: North America: Methanol Market (in ‘000 Tons), 2018 & 2023
Figure 21: North America: Methanol Market Forecast (in ‘000 Tons), 2024-2032
Figure 22: Latin America: Methanol Market (in ‘000 Tons), 2018 & 2023
Figure 23: Latin America: Methanol Market Forecast (in ‘000 Tons), 2024-2032
Figure 24: Middle East and Africa: Methanol Market (in ‘000 Tons), 2018 & 2023
Figure 25: Middle East and Africa: Methanol Market Forecast (in ‘000 Tons), 2024-2032
Figure 26: Global: Methanol Market: Breakup by Application (in %), 2023
Figure 27: Global: Methanol Market: Formaldehyde (in ‘000 Tons), 2018 & 2023
Figure 28: Global: Methanol Market Forecast: Formaldehyde (in ‘000 Tons), 2024-2032
Figure 29: Global: Methanol Market: Dimethyl Ether (in ‘000 Tons), 2018 & 2023
Figure 30: Global: Methanol Market Forecast: Dimethyl Ether (in ‘000 Tons), 2024-2032
Figure 31: Global: Methanol Market: Gasoline (in ‘000 Tons), 2018 & 2023
Figure 32: Global: Methanol Market Forecast: Gasoline (in ‘000 Tons), 2024-2032
Figure 33: Global: Methanol Market: Chloromethane (in ‘000 Tons), 2018 & 2023
Figure 34: Global: Methanol Market Forecast: Chloromethane (in ‘000 Tons), 2024-2032
Figure 35: Global: Methanol Market: MTBE/TAME (in ‘000 Tons), 2018 & 2023
Figure 36: Global: Methanol Market Forecast: MTBE/TAME (in ‘000 Tons), 2024-2032
Figure 37: Global: Methanol Market: Acetic Acid (in ‘000 Tons), 2018 & 2023
Figure 38: Global: Methanol Market Forecast: Acetic Acid (in ‘000 Tons), 2024-2032
Figure 39: Global: Methanol Market: Other Applications (in ‘000 Tons), 2018 & 2023
Figure 40: Global: Methanol Market Forecast: Other Applications (in ‘000 Tons), 2024-2032
Figure 41: Global: Methanol Market: Share of Key Players (in %), 2023
Figure 42: Methanol Manufacturing: Detailed Process Flow
Figure 43: Methanol Manufacturing: Conversion Rate of Feedstocks
Figure 44: Global: Coal Market: Production Volume Trends (in Million Tons), 2018-2023
Figure 45: Global: Coal Market: Value Trends (in ’000 US$), 2018-2023
Figure 46: Global: Coal Market: Average Prices (in US$/Ton), 2018-2023
Figure 47: Global: Coal Market: Breakup by Region (in %), 2023
Figure 48: Global: Coal Market: Breakup by Application (in %), 2023
Figure 49: Global: Natural Gas Market: Production Volume Trends (in Million Tons), 2018-2023
Figure 50: Global: Natural Gas Market: Value Trends (in ’000 US$), 2018-2023
Figure 51: Global: Natural Gas Market: Average Prices (in US$/Ton), 2018-2023
Figure 52: Global: Natural Gas Market: Breakup by Region (in %), 2023
Figure 53: Global: Natural Gas Market: Breakup by Application (in %), 2023
List of Tables
Table 1: Methanol: Physical Properties
Table 2: Methanol: Chemical Properties
Table 3: Global: Methanol Market: Key Industry Highlights, 2023 and 2032
Table 4: Global: Methanol Market Forecast: Breakup by Region (in ‘000 Tons), 2024-2032
Table 5: Global: Methanol Market Forecast: Breakup by Application (in ‘000 Tons), 2024-2032
Table 6: Global: Methanol Market: Imports by Major Countries
Table 7: Global: Methanol Market: Exports by Major Countries
Table 8: Methanol Manufacturing: Raw Materials Required
Table 9: Methanol Manufacturing: Chemical Reactions Involved in Syngas Formation
Table 10: Methanol Manufacturing: Chemical Reactions Involved in Methanol Formation
Table 11: Global: Methanol Market: Competitive Structure
Table 12: Global: Methanol Market: Key Players
Table 13: Global: Coal Market: Key Suppliers
Table 14: Global: Natural Gas Market: Key Suppliers



Table Information