Global methanol market is expected to reach USD 68.26 billion by 2033, at a CAGR of 5.53% from 2024 to 2033. Global Methanol market is witnessing a considerable growth owing torise in the demand for petrochemicals. The methanol market has experienced impressive growth and holds global significance, with various applications across construction, energy, chemicals and automotive industries. The chemical industry is major among its consumers because it is primarily used as a raw material to produce numerous products, including paints, plastics, adhesives, textiles, and other industries. Additionally, automotive manufacturers are increasingly interested in this renewable fuel source fueled by rising expectations for reduced emissions. Methanol can be utilized either directly in modified gasoline engines or converted into dimethyl ether (DME) that powers diesel engines; thus, several research initiatives are underway towards discovering the true potential value of methanol concerning low-emissions alternative fuels through pilot projects initiatives aimed at exploring such possibilities.

Market Overview:

Methanol, also called as methyl alcohol is a chemical compound with the formula CH3OH. The chemical is considered as the simplest alcohol, containing of a methyl group being attached to a hydroxyl group. This chemical compound is frequently abbreviated Me-OH. Sometimes, methanol is also called as wood alcohol because methanol was mainly producedwith the help of destructive distillation of wood method. Methanol has been manufactured and utilized for many millennia. The ancient Egyptians utilized methanol in the embalming process which was part of mixing the substances formed during the pyrolysis (destructive distillation) of wood. However, in 1661 Robert Boyle manufactured pure methanol through further distillation of wood and its material, and in 1834, the elemental composition of methanol was determined by Eugene Peligot and Jean-Baptiste Dumas. After knowing its chemical composition and structure, the commercial operations using destructive distillation were started for production of ethanol. But in present scenario, methanol is usually manufacturedthrough hydrogenation process of carbon monoxide in the chemical producing/manufacturing industries.

Methanol is a volatile, light,flammableand colorless liquid with a uniquestenchvery much similar in comparison to ethanol (consumable alcohol). However, methanol has greater toxicity than that of ethanol. If consumed in larger amounts, methanol can hazardous to human health. It acts as a depressant in the central nervous system leading to poisoning. Occurrences of methanol poisoning have occurred in many developing countries mostly due to contamination of methanol with drinking alcohol. It is a polar liquid at room temperature. Methanol is utilized as anantecedent to other commodity chemicals, including acetic acid, formaldehyde, methyl tert-butyl ether, and other specialized chemicals.

Get an overview of this study by requesting a free sample

Market Dynamics:

Drivers

• Rise in Demand for the MTO Technology

Methanol has paved its way within the various industry verticals. In the present scenario, there are advancedproduction processes through which methanol can be produced or manufactured. Methanol acts a basic raw material for the production and manufacturing of commodity chemicals, such as formaldehyde, methyl tertbutyl ether (MTBE), dimethyl terephthalate, acetic acid, methyl methacrylate, and olefins (propylene and ethylene). The rapidly growing demand for a wide range of methanol derivatives, particularly olefins via the MTO process is going to stimulate the market growth and development in the present scenario. This is because the olefins are extensively used for producing synthetic plastic, synthetic rubber, textile dyes and pharmaceuticals. In countries such as China, MTO technology has facilitated the plastic manufacturing process using substitutes such as coal and natural gas. 

• Need For Conventional Transportation Fuels

The increasing need for conventional transport fuel owing to the stringent regulations towards sustainability and eco-friendly environment is another factor which is stimulating the market growth and development for the global methanol market.Methanol is broadlyutilized to produce biodiesel. The production process from methanol to biodiesel is called as trans-esterification. In this process methanol as a raw material is used to convert the triglycerides in various types of oils into biodiesel.  Biodiesel is considered to be eco-friendly, safe and sustainable as it produces less air pollutants in comparison to traditional and conventional fuels.Irrespective of any engine modification, biodiesel is most often utilized as a blend with petroleum diesel fuel in many diesel vehicles in many countries.

Restraints:

• Hazards associated with Methanol

Methanol is exposed to the atmosphere naturally from volcanic gases, vegetation, and microbes and during industrial usage. Exposure of this chemical compound may occur during the use of solvents and from ambient air.  Chronic (long-term) or Acute (short-term) exposure of methanol to humans by consumption or inhalationresults in headache, blurred vision, dizziness, and nausea. The consumption of ethanol is categorized dangerous because it directly hampers the central nervous system of the body. Skin contact with methanol causes mild dermatitis in human beings. This factor may restrain the market development.

Opportunities:

• Rising adoption of Methanol as a Marine Fuel

The growing adoption of the methanol as a fuel in marine industry is going to provide potential opportunities for the market to grow and flourish. With the rise in trade activities between the sea routes, the marine industry is facing huge developments. In the present scenario, Methanol can be used as a substitute for gasoline and diesel marine engines. With the rising demand for cleaner marine fuel coupled with the increasingly strict emissions regulations, methanol seems to be a favorable alternative fuel for marine and the shipping industry. Methanol significantly reduces emissions of nitrogen oxides (NOx), sulphur oxides (SOx), and particulate matters in the atmosphere.

Challenges:

• Fluctuating prices of the Methanol

The ongoing price fluctuations associated with methanol may hamper the market growth in future. In China, the shortages of supply have taken place as major methanol producers have shut their manufacturing plants for scheduled maintenance in the month of August 2018 as required by environmental protection regulation.It is estimated that the prices of the methanol will go up as large no of manufacturing plants have been shut for maintenance turnaround in and other countries. This has created the situation of shortage of supply of the product.

Segmentation Analysis:

The global methanol market has been segmented based on derivatives, application, and regions.

• The derivatives segment is divided intoformaldehyde, acetic acid, gasoline, methanol-to-olefins/methanol-to-propylene (MTO/MTP), biodiesel, others. The formaldehyde segment dominated the methanol market with a market share of around 32.5% in 2023.The segment growth is attributed because formaldehyde resins are utilized to manufacture interior molded components of automobiles in order to increase fuel efficiency and minimize weight.
• The application segment includes automotive, construction, electronics, paints and coatings and others. The marine segment is estimated to grow at the highest CAGR of 6.1% over the forecast period. The segment growth is attributed because methanol is used as a substitute for traditional fuel in the marine industry as it limits the nitrogen oxides, sulfur oxides and other harmful air pollutant emissions in the atmosphere.

Regional segmentation analysis:

The regions analyzed for the market include North America, Europe, South America, Asia Pacific, and the Middle East and Africa. Asia Pacific region emerged as the largest market for the global methanol market with a 62.2% share of the market revenue in 2023.

Check the geographical analysis of this market by requesting a free sample

• This is because China is the largest country for methanol production. Additionally, the growing petrochemical industry coupled with increasing usage of methanol-based fuel in countries, such as China, India, and Japan, the utilization of methanol is rising in and across the region. Furthermore, the growing initiatives by the government and various other regulatory bodies for sustainability, the demand for methanol as a fuel is expected to rise. In India, the government is consistently pushing the utilization of methanol as fuel in automobiles and as a cooking fuel, to promote sustainable development with eco-friendly environment.
• European regional market is projected to register the highest growth during the forecast period owing to the initiation of waste-to-methanol projects in order to reduce environmental degradation.  For instance, Netherlands has made a capital investment of USD 246 million in order to convert around 360,000 tons of waste into green methanol.

Competitive Analysis:

The key players are now concentrating on implementing strategies such as adopting new technology, product innovations, mergers & acquisitions, joint venture, alliances and partnerships to improve their market position in the global methanol industry.

In January 2019, SABIC entered into the partnership with South Louisiana Methanol for the development and establishment of the company’s new plant situated in U.S.

In March 2019, Honeywell Company announced that Jiangsu Sailboat Petrochemical Co., Ltd., a petrochemical producer in China, will be utilizing Honeywell UOP’s C3 Oleflex technology to produce and generate around 700,000 MT of propylene (polymer-grade) yearly.

List of Key Market Players:

• BASF AG
• Celanese Corporation
• Qatar Fuel Additives Company Limited
• Methanol Holdings (Trinidad) Limited (MHTL)
• Methanex Corporation
• Mitsubishi Chemicals
• Mitsui & Co., Ltd.
• Petroliam NasionalBerhad (Petronas)
• Saudi Basic Industries Corporation
• Teijin
• Valero Marketing and Supply Company
• Zagros Petrochemical Company (ZPC)

Key Target Audience

• Investors
• Chemical Manufacturing Companies
• Chemical Suppliers/Distributors
• Government Authorities and R&D Institutions
• Food and Drug Administration
• Consulting And Research Firm

Report Description:

• Global Methanol Market, Industry Analysis, Trends, Analysis and Forecast, 2024 to 2033 is a forthcoming/imminent research report which is to be published by The Brainy Insights.
• 2023 is considered as the base year of the report. 2020, 2021 and 2022 are considered as the historic years and 2024 to 2033 are the forecast years. The global methanol market is based on revenue (USD Billion), volume (Kilotons) and price. The report incorporates the market study on the basis of revenue, and volume. The study covers the market share revenue/market share/volume for each of the segments, regions and countries catering to global methanol market. The regions analyzed for the market are Europe, Asia Pacific, North America, South America and Middle East &Africa. Furthermore, the regions are further analyzed at the country level.
• The report encompasses with the relative data & information, which have been validated by the leading industry professionals and experts all across the globe. The research report also delivers an outline of the attractiveness of methanol on the basis of derivatives, application, and regions which are deduced and formulated on the basis of their growth rate (CAGR), market size, and attractiveness by analyzing the present and future prospects to fathom market growth and development in future.
• The report illustrates the detailed (both quantitative and qualitative) analysis of historical data, revenues, key developments, along with the crucial strategies adopted by key organizations catering to global methanol market. This offers vital and in depth insights in order to depict the overall market scenario.
• The report offers the detailed study for the company profiles of key organizations operating in the global methanol market and a comparative assessment based on their product offering, business overviews, geographic presence, business strategies, segment market share, product development & innovations, recent developments, joint venture, partnerships, mergers & acquisitions, strategic alliances, SWOT analysis, and key financial information. This helps in evaluating the overall competition present in the market scenario.
• The report provides an elaborative assessment of the porter’s five forces analysis coupled with SWOT analysis so as to provide business related data and information’s. Porter’s five forces model is analyzed to understand the overall competitive scenario that is prevailing in the market. Additionally, the SWOT analysis identifies both the positive and negative attributes of the market development which influences the company growth and development in order to sustain and survive in the long run.
• Along with that, the report also focuses on the market related driving factors, growth limitations (restraints), potential industry opportunities, significant trends and development which act as a key potential for the investors.
• Potential growth prospects along with the penetration rate analysis of the products (market related i.e., global methanol market) is covered in order to comprehend the adoption rate and evaluate the market size.