[Research Report] The methanol market is projected to reach US$ 41,974.76 million by 2028 from US$ 28,114.27 million in 2021; it is expected to grow at a CAGR of 5.9% from 2021 to 2028.
Market Insights and Analyst View:
Methanol is the simplest alcohol compound utilized as an additive in industrial applications; it is a flammable, colorless, and toxic liquid chemical with a trivial smell. It is used in various industries such as, automotive, construction, electronics, packaging, pharmaceuticals, paints and coatings, and others. Methyl alcohol is used to produce formaldehyde, acetic acid, and methyl methacrylate (MMA) and is also used as a solvent in several applications. Methanol and its derivative products such as ascetic acid and formaldehyde made via chemical reactions are used as base materials in acrylic plastic; synthetic fabrics and fibers used to make clothing; adhesives, paint, and plywood used in construction; and as a chemical agent in pharmaceuticals and agrichemicals. Also, the versatility of methanol is making it a common fuel resource in the power generation industry. Further, the growth of this market is driven by factors such as increasing use of methanol as a feedstock in various applications and rapidly increasing construction activities.
Customize Research To Suit Your Requirement
We can optimize and tailor the analysis and scope which is unmet through our standard offerings. This flexibility will help you gain the exact information needed for your business planning and decision making.
Methanol Market: Strategic Insights
Market Size Value in US$ 28,114.27 million in 2021 Market Size Value by US$ 41,974.76 million by 2028 Growth rate CAGR of 5.9% from 2021 to 2028. Forecast Period 2022-2028 Base Year 2021
Shejal
Have a question?
Shejal will walk you through a 15-minute call to present the report’s content and answer all queries if you have any.
Speak to Analyst
Customize Research To Suit Your Requirement
We can optimize and tailor the analysis and scope which is unmet through our standard offerings. This flexibility will help you gain the exact information needed for your business planning and decision making.
Methanol Market: Strategic Insights
| Market Size Value in | US$ 28,114.27 million in 2021 |
| Market Size Value by | US$ 41,974.76 million by 2028 |
| Growth rate | CAGR of 5.9% from 2021 to 2028. |
| Forecast Period | 2022-2028 |
| Base Year | 2021 |
Shejal
Have a question?
Shejal will walk you through a 15-minute call to present the report’s content and answer all queries if you have any.
Speak to Analyst
Growth Drivers and Challenges:
The rapidly increasing construction activities in different countries across the globe are driving the methanol market growth. In India, the growth in the construction activities is driven by continuing industrialization, urbanization, increasing population, growth in middle-class income, and the increase in infrastructural developments. According to the Department for Promotion of Industry and Internal Trade (DPIIT), foreign direct investments (FDIs) in the construction development sector and construction (infrastructure) activities stood at US$ 26.20 billion and US$ 27.92 billion, respectively, between April 2000-March 2022. The government of India has given a massive push to the infrastructure sector by allocating US$ 130.57 billion in order to enhance the infrastructure sector. According to the India Brand Equity Foundation, the country is planning to spend US$ 1.4 trillion on infrastructure projects through the National Infrastructure Pipeline (NIP), from 2019 to 2023, to ensure sustainable development in the country. All these factors contribute to the strong growth of the construction industry in India, driving the methanol market in India. Further, the construction industry is a best prospect industry sector for Mexico. Mexican construction industry is growing due to the economic growth and public investment in infrastructure projects. In 2019 and 2020, the country’s President, along with private sector representatives, announced multiple projects as part of the nation’s infrastructure plan. Mexico is also moving rapidly towards green and environmentally-friendly construction activities. The construction industry from the country has embraced the green building movement. In the past few years, the construction sector in Indonesia has been a growth driver. The rapidly urbanizing population is driving the demand in the construction sector in the country. In addition, the growth in population and increase in government spending on infrastructure are major drivers for the construction market in Indonesia. Hence, the rapidly increasing construction activities in different countries across the globe are driving the methanol market growth. However, detrimental effect of methanol on human health is expected to restrain the methanol market growth.
Report Segmentation and Scope:
The “Global Methanol Market” is segmented based on derivative, end-user industry and geography. Based on derivative, the methanol market is segmented into formaldehyde, acetic acid, methanol-to-olefins (MTO) / methanol-to-propylene (MTP), methyl tertiary-butyl ether (MTBE), methyl methacrylate (MMA), biodiesel (Gasoline Blending), dimethyl ether (DME), and others. The methanol market is segmented based on end-user industry, into automotive, construction, electronics, packaging, pharmaceuticals, paints and coatings, and others. The methanol market based on geography is segmented into North America (US, Canada, and Mexico), Europe (Germany, France, Italy, UK, Russia, and Rest of Europe), Asia Pacific (Australia, China, Japan, India, South Korea, and Rest of Asia Pacific), Middle East & Africa (South Africa, Saudi Arabia, UAE, and Rest of Middle East & Africa), and South & Central America (Brazil, Argentina, and Rest of South & Central America)
Segmental Analysis:
Based on end-user industry, the methanol market is segmented into automotive, construction, electronics, packaging, pharmaceuticals, paints and coatings, and others. The automotive segment held the significant share in the methanol market and is expected to register the significant growth over the forecast period. Methyl alcohol is an alternative biofuel for internal combustion and other engines. It is less expensive to produce sustainably than ethanol. A blend of methyl alcohol, ethanol, and petroleum is used for optimizing engine performance and fuel availability. Also, methyl alcohol can be blended with gasoline in low quantities and used in existing road vehicles. Methyl alcohol is also considered a fuel for fuel cell electric vehicles.
Regional Analysis:
Based on geography, the methanol market is divided into five key regions: North America, Europe, Asia Pacific, South & Central America, and Middle East & Africa. The global methanol market was dominated by Asia Pacific which accounted for near about US$ 17,738 Million in 2021.Europe is a one of the major contributor in the global methanol market. North America is expected to register the considerable growth at a CAGR of over 5.2% over the forecast period. Methanol is extensively used in producing various chemicals and compounds such as plastics, adhesives, insulation materials, textiles, and food chemicals. The demand for plastics is increasing and positively favoring the methanol market due to the growing automotive industry in the region. The automotive industry largely uses plastic polymers to manufacture a vehicle's interior structure and other components such as a bumper, fuel system, wheelhouse, door handles, brake pads, and under the hood components. The application of plastic components significantly reduces the vehicle's weight, increases its fuel efficiency, and meets environmental regulations regarding carbon emissions from fossil fuels. In addition to this, the automotive industry uses adhesives for assembling, bonding, and sealing all types of cars and truck components to provide the highest safety. Thus, the growing automotive industry in the region is accelerating the methanol application, thereby positively influencing the methanol market growth.
Industry Developments and Future Opportunities:
Various initiatives taken by the key players operating in the methanol market are listed below:
- In April 2023, Jakson Green has won a project from state-run NTPC to set up a methanol synthesis facility at its Vindhyachal thermal power plant (TPP) in Madhya Pradesh, India. The methanol synthesis plant will be a part of NTPC’s Vindhyachal TPP with a production capacity of 10 tonnes per day (TPD). The methanol production unit is being designed to convert 20 TPD CO2 to 10 TPD methanol through a catalytic hydrogenation process, utilizing CO2 from thermal plant flue gas through a carbon capture unit and green hydrogen produced by electrolysis.
- In July 2023, Mitsui & Co., Ltd. has agreed to acquire a 49% equity interest in Kasso MidCo ApS, an affiliate of European Energy A/S. MidCo possesses a solar power generation and e-methanol business through Solar Park Kasso ApS, its wholly owned subsidiary. Kasso's e-methanol is a low-carbon methanol produced by synthesizing green hydrogen made by feeding renewable-based electricity into an electrolyzer and green carbon dioxide (CO2) captured from biomass sources.
Covid-19 Impact:
The COVID-19 pandemic affected almost all industries in various countries. Lockdowns, travel restrictions, and business shutdowns in North America, Europe, Asia Pacific (APAC), South & Central America (SAM), and the Middle East & Africa (MEA) hampered the growth of several industries, including the chemicals and materials industry. The shutdown of manufacturing units disturbed global supply chains, manufacturing activities, delivery schedules, and essential and nonessential product sales. Various companies witnessed delays in product deliveries and a slump in sales of their products in 2020. The construction of residential and commercial buildings was almost negligible due to the shortage of laborers and disrupted the supply chain of construction materials. In addition to this, the automotive industry was slowed down due to the lack of supply of various automotive parts and low demand for vehicles. In Asia Pacific, many methanol producers were operating their plants at reduced rates amid the COVID-19 pandemic. Various end-use industries, such as automotive and transportation, and building & construction have been hit hard by the pandemic, impacting methanol consumption in Asia Pacific. China is a leading automotive market in terms of production and consumption. Due to adverse impact of the pandemic on the automotive industry, the methanol market growth declined in the region. The construction market in North America also experienced the tremors of the disturbed supply chains and limited operational efficiencies. The construction industry has been adversely impacted by the COVID-19 pandemic in the US. The pandemic has brought unprecedented impacts such as labor shortage, suspension and cancellation of projects, and disrupted supply and logistics on the US construction industry. Due to all these factors, the demand for methanol has reduced in the region. The construction industry from the Europe has faced challenges in terms of the availability of construction materials. The supply networks for building materials have also been disrupted.
However, various industries are coming on track after supply constraints affecting these industries are resolving gradually. Moreover, the rising demand for methanol across diverse industrial applications and government initiatives to combat COVID-19 is expected to substantially promote the requirement for methanol in the global market. The automotive sector has also begun to revive with the resumption of operations in various industries from 2021. Moreover, the demand for methanol is witnessing significant recovery as various countries restarted their business activities, driving the methanol market growth.
Competitive Landscape and Key Companies:
A few players operating in the global methanol market include METHANEX CORPORATION; OCI N.V.; BASF SE; SABIC; MITSUBISHI GAS CHEMICAL COMPANY, INC.; HELM AG; CELANESE CORPORATION; ZAGROS PETROCHEMICAL COMPANY; MITSUI AND CO., LTD.; and LYONDELLBASELL INDUSTRIES HOLDINGS B.V. Players operating in the global methanol market focus on providing high-quality products to fulfil customer demand.
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Derivative, and End-Use Industry
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
Argentina, Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Russian Federation, Saudi Arabia, South Africa, South Korea, United Arab Emirates, United Kingdom, United States
Frequently Asked Questions
The major players operating in the global methanol market are Methanex Corporation; OCI N.V.; BASF SE; SABIC; Mitsubishi Gas Chemical Company, Inc.; HELM AG; Cleanse Corporation; Zagros Petrochemical Company; Mitsui & Co., LTD; and LYONDELLBASELL INDUSTRIES HOLDINGS B.V
Due to the COVID-19 pandemic, methanol manufacturers witnessed a major disruption in the supply chain of methanol during the first two quarters of 2020. However, the supply chain of methanol materials has been restored, and production activities have regained normalcy in late 2020. Later, the market was not significantly negatively impacted by the pandemic. Further, with the growing COVID-19 vaccinations and eased in lockdown restrictions, the global economy is resuming, and subsequently, the methanol market is regaining its growth.
Increasing use of methanol as feedstock in various applications is one of the major driving factors for the market. Methanol is extensively used in producing various chemicals and compounds such as plastics, adhesives, insulation materials, textiles, and food chemicals. The demand for plastics is increasing and positively favoring the methanol market due to the growing automotive industry globally. The automotive industry largely uses plastic polymers to manufacture a vehicle's interior structure and other components such as a bumper, fuel system, wheelhouse, door handles, brake pads, and under the hood components. The application of plastic components significantly reduces the vehicle's weight, increases its fuel efficiency, and meets environmental regulations regarding carbon emissions from fossil fuels.
Asia Pacific (APAC) is anticipated to grow with the fastest CAGR at rate of 6.2% from 2021 to 2028. The building and construction industry is a strong contributor to the market's growth. For instance, in India, the construction industry is the second largest industry after agriculture, accounting for about 11% of the country's GDP.
The List of Companies - Methanol Market
- Methanex Corporation
- OCI N.V.
- BASF SE
- SABIC
- Mitsubishi Gas Chemical Company, Inc.
- HELM AG
- Cleanse Corporation
- Zagros Petrochemical Company
- Mitsui & Co., LTD
- LYONDELLBASELL INDUSTRIES HOLDINGS B.V
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
Trends and growth analysis reports related to Methanol Market
Feb 2022
Construction Additives Market
Size and Forecasts (2020 - 2030), Global and Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Type [Cement Additives, Concrete Admixtures (Precast Concrete and Ready-Mix Concrete), Paints and Coatings Additives, Adhesives and Sealants Additives, Plastic Additives, Bitumen Additives, and Others], and Application (Residential, Commercial, Infrastructure, and Others)
Feb 2022
Oil Pollution Remediation Materials Market
Size and Forecasts (2020 - 2030), Global and Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Type [Physical Remediation (Booms, Skimmers, and Adsorbent Materials), Chemical Remediation (Dispersants and Solidifiers), Thermal Remediation, and Bioremediation]
Feb 2022
Greenhouse and Mulch Film Market
Size and Forecast (2020 - 2030), Global and Regional Share, Trends, and Growth Opportunity Analysis Report Coverage: By Product Type (Greenhouse Films and Mulch Films), Material (LLDPE, LDPE, HDPE, EVA, PHA, PVC, PC, and Others), and Application (Vegetable Farming, Horticulture, Floriculture, and Others)
Feb 2022
Plastic for SLS 3D Printing Market
Size and Forecasts (2020 - 2030), Global and Regional Share, Trends, and Growth Opportunity Analysis Report Coverage: By Type (Polyamide, Thermoplastic Polyurethane (TPU), Polyether Ether Ketone (PEEK), and Others) and End-Use Industry (Healthcare, Aerospace & Defense, Automotive, Electronics, Others)
Feb 2022
Carbon Fiber-Based SMC BMC Market
Size and Forecasts (2020 - 2030), Global and Regional Share, Trends, and Growth Opportunity Analysis Report Coverage: By Resin Type (Polyester, Vinyl Ester, Epoxy, and Others) and End-Use Industry (Automotive, Aerospace, Electrical and Electronics, Building and Construction, and Others)
Feb 2022
Thermoplastic Adhesive Films Market
Size and Forecasts (2020 - 2030), Global and Regional Share, Trends, and Growth Opportunity Analysis Report Coverage: By Material (Polyethylene, Polyamide, Thermoplastics Polyurethane, Polyester, Polypropylene, Polyolefins, Copolyamides, Copolyesters, and Others); Technology (Cast Film and Blown Film); Application (Membrane Films, Barrier Films, and Blackout Films); End Use (Textile, Automotive, Electrical and Electronics, Medical, Ballistic Protection, Lightweight Hybrid Construction, and Others)