Methanol Market Size, Share & Industry Analysis, By Feedstock (Natural Gas, Coal, Biomass & Renewables), By Derivative (Formaldehyde, Acetic Acid, MTBE, DME, Gasoline Blending, Biodiesel, MTO/MTP, Solvent, and Others), By Application (Construction, Automotive, Electronics, and Others) and Regional Forecast, 2024-2032

The global methanol market size was valued at USD 31.26 billion in 2023 and is projected to grow from USD 32.70 billion in 2024 to USD 46.32 billion by 2032, exhibiting a CAGR of 4.5% during the forecast period. Asia Pacific dominated the methanol market with a market share of 63.34% in 2023. Moreover, the metahnol market in the U.S. is projected to grow significantly, reaching an estimated value of USD 4.38 billion by 2032,  driven by the heightened demand for its formaldehyde and acetic acid derivatives from different industries including chemicals, phramceuticals and adhesives & sealnts.

Methanol is a colorless, light, volatile, and flammable liquid with a characteristic smell similar to ethyl alcohol (ethanol). Owing to its toxicity, this chemical is usually mixed with ethyl alcohol to produce denatured alcohol, which is used for industrial applications. The rising preference of the product as a feedstock for producing several chemicals ranging from solvents to plastics is expected to drive the market. The shift of end-users towards sustainable fuels will create growth opportunities for the market. The versatile nature of this alcohol has been put to valuable applications to serve the needs of the growing world.

The outbreak of the COVID-19 pandemic caused the disruption of supply chains and halted or slowed down operations by major end-use industries, including construction, automotive, and electronics, thereby contributing to the decline in product adoption.

Methanol Market Trends

Transition of Fuel Industry to Cleaner Fuels is a Prominent Trend

Globally, heavy fuels, such as gasoline and diesel are the major contributors to environmental pollution, leading to numerous changes in the climate and global warming. A shift of the fuel industry to methanol and fuels blended with it is expected to significantly slow down the effects of climate change. The use of methyl alcohol as a transportation fuel provides advantages, including high octane fuels which minimize toxic emissions when blended with gasoline and the production from renewable feedstocks. The widespread adoption of vehicles powered by the product would intensely lower the carbon dioxide emissions from the transportation industry. Additionally, the substitution of heavy fuel oils in the marine industry will have a positive effect on the growth of the market.

Methanol Market Growth Factors

Rising Demand from Automotive and Construction Industries to Propel Growth

Globally, the rising demand from industries, such as automotive and construction is expected to increase its consumption. Methyl alcohol acts as a precursor to various chemicals and compounds, such as adhesives, plastics, textiles, insulation materials, and others. Plastics play an important role in automobiles by reducing the overall weight of the vehicle, thereby imparting properties similar to metals and improving the fuel efficiency of the vehicle. In the construction industry, the use of plastics ranges from piping to ropes of cranes. Furthermore, the demand for adhesives from furniture and consumer goods industries will also support the growth of the market. Additionally, the increasing consumption of methanol in fuel blending applications is expected to progress the growth of this market during the forecast period.

Rising Electronics Industry to Drive Market Growth

Globally, the heavily growing electronics industry, with increasing product demand from electronics components and devices, is propelling the methanol market growth.  Methyl alcohol is a crucial compound for producing various electronic materials, including printed circuit boards, semiconductors, and display screens. Additionally, the role of the product as a solvent in the manufacturing process of electronic products further drives its demand.

The rise of renewable energy technologies such as solar panels and batteries also drives product demand due to their use in production. Furthermore, the push for sustainable practices in manufacturing aligns with the product’s environment-friendly attributes as it can be derived from renewable sources such as biomass. Consequently, as the electronics industry expands, the market is poised for significant growth, driven by its indispensable role in electronic manufacturing.

RESTRAINING FACTORS

Detrimental Effects Due to Exposure to Methanol May Hamper Growth

Methyl alcohol is mainly used as a solvent, alternative fuel source, and pesticide. Other than the commercial production methods, it naturally occurs in foods, fruits, and the human body. Poisoning from the product might occur due to the consumption of alcohols, which are contaminated with it. The inhalation or consumption of it can lead to blindness, accumulation of acid in blood, and death. The other health effects due to exposure include nausea, vomiting, heart and respiratory failure, seizures, and kidney failure. These reasons are expected to act as a hindrance to the growth of the methyl alcohol market.

Methanol Market Segmentation Analysis

By Feedstock Analysis

Natural Gas Segment Dominated the Market in 2023 Backed by its Cost-effective Nature

On the basis of feedstock, the market includes natural gas, coal, and biomass & renewables.

The natural gas segment held a dominant share of the market in 2023. The production process involves the conversion of natural gas to syngas by partial oxidation or steam reforming, which is further processed to obtain methanol. The dominance of this segment is due to the comparatively lower cost required for the production with significant output.

The coal segment is expected to grow at a significant CAGR during the forecast period due to the increasing usage of coal to produce methyl alcohol in countries with abundant coal production.

By Derivative Analysis

MTO/MTP Segment to Grow at Fast Pace Stoked by High Demand from Various Industries

Based on derivatives, the market is segmented into formaldehyde, acetic acid, MTBE, DME, gasoline blending, biodiesel, methanol to olefins (MTO)/methanol to propylene (MTP), solvent, and others. The MTO/MTP segment is anticipated to grow at the highest CAGR during the forecast period. Polyolefins or polyethylene and polypropylene thermoplastic are obtained from methyl alcohol. These thermoplastics are favored in various industries including automotive, construction, and furniture due to their versatility and other beneficial properties. The increasing demand for polyolefins from several end-use industries will drive the market.

The formaldehyde segment is expected to remain the largest in terms of volume in the market during the forecast period. It is a key component in the production of adhesives, molding materials, and pesticides. It is showcasing a high demand from industries, such as construction, automobile, and textile, which is responsible for the overall market growth.

By Application Analysis

Construction Segment to Hold Higher Share owing to Rising Product Demand from Foam Products

In terms of application, the market is segmented into construction, automotive, electronics, and others.

The construction segment is expected to hold the largest methanol market share during the forecast period. This is due to the variety of products manufactured using methanol, such as foams, adhesives, plywood subfloors, and plastics. These products have large applications in the construction industry and their rising demand is expected to increase the consumption.

The automotive segment is expected to register a significant growth by the end of the forecast period owing to the rising use of plastics and methanol blended fuels.

REGIONAL INSIGHTS

The methanol market in Asia Pacific stood at USD 19.80 billion in 2023. It is the major contributor to the growth of the market owing to the expansion of the automotive and construction industries. Additionally, China being the major manufacturer and consumer of derivatives will have a significant effect on the growth of the market.

The demand from fueling applications, such as the production of green fuels and fuel blending in North America is responsible for growth in this region. Furthermore, the surging petrochemical industry in the region will support the market’s progress.

The rising automotive industry and preference for sustainable products in Europe will lead to the growth of the market in this region.

In Latin America and the Middle East & Africa, the rising construction and industrialization activities will progress the market.

List of Key Companies in Methanol Market

Serving Numerous Markets Has Increased the Presence of Key Players Globally

The global market is fragmented. Key players are investing in research and development activities to serve numerous markets. These companies are implementing expansion and acquisition strategies to increase their presence in the market. Many manufacturers are establishing new plants in developing countries to serve the growing markets and gain upcoming opportunities.

LIST OF KEY COMPANIES PROFILED:

• Methanex Corporation (Canada)


• HELM AG (Germany)


• Southern Chemical Corporation (U.S.)


• SABIC (Saudi Arabia)


• Mitsubishi Gas Chemical Company, Inc. (Japan)


• Zagros Petroleum(Iran)


• PETRONAS (Malaysia)


• Mitsui & Co., Ltd. (Japan)


• Celanese Corporation (U.S.)


• BASF SE (Germany)


• Simalin Chemical Industries Pvt. Ltd. (India)

KEY INDUSTRY DEVELOPMENTS:

• January 2024 – Celanese Corporation announced, that Fairyway Methanol company, a joint venture between the company and Mitsui & Co., has began carbon capture and utilization at its plant located in Clear Lake, Texas. The plant is producing  130,000 metric tons of methanol  from 180,000 metric tons of the greenhouse gas carbon dioxide per year.


• April 2019 – Celanese Corporation expands the production capacity at its Clear Lake acetyl intermediates manufacturing facility located in Texas, the U.S. The production will be increased to 1.7 million tons per annum, a surge of 125% from the original capacity.


• June 2018 – HELM AG is set to form a joint venture named HELM Proman Methanol AG with Proman AG and Southern Chemical Corporation. The joint venture is expected to increase the presence of these companies in the global market. HELM AG will hold a stake of 57% in the joint venture, while Proman AG will hold 38% and Jan W. Spin, CEO and shareholder of SCC, will hold

REPORT COVERAGE

The market research report provides a detailed analysis of the market and focuses on key aspects, such as leading companies, product types, and leading applications of the product. Besides this, it offers insights into the methanol market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the advanced market over recent years.

Report Scope & Segmentation