$36.3 bn Methanol markets by feedstock

The global Methanol market is estimated to be $30.7 billion in 2021 and is projected to reach $36.3 billion by 2026, at a CAGR of 3.4% from 2021 to 2026.

Increase in demand of methanol from the end-use industries such as automotive, construction, electronics, solvents, pharmaceuticals, appliances, packaging, and insulation is propelling the growth of this market.

Coal feedstock is anticipated to grow at the highest CAGR during the forecast period

Coal is estimated to account for the fastest growth in the methanol feedstock segment from 2021 to 2026. Coal is considered to be the sustainable alternative raw material for large-scale methanol production which is one the important reason for the increase in demand of coal as feedstock of methanol.

MTO/MTP derivative is anticipated to grow at the highest CAGR during the forecast period

Methanol-to-olefins/methanol-to-propylene (MTO/MTP) is estimated to account for the fastest growth in the methanol derivatives segment from 2021 to 2026. The growth is due to the rise in MTO/CTO plants in China to produce olefins through methanol, as the demand for olefins is growing in the petrochemical industry. The growing demand for methanol is highly attributed to its increasing demand in the automotive and construction end-use industries.

Olefins sub-derivative is anticipated to grow at the highest CAGR during the forecast period

Olefins is estimated to account for the fastest growth in the methanol sub-derivatives segment from 2021 to 2026. The growth is due to high demand of olefins in end-use industries such as building and construction industry. The increase in production of methanol and high feedstock availability will increase the demand for methanol-based sub-derivatives such as olefins.

Solvents end-use industry is estimated to account for the fastest growth during the forecast period

Solvents end-use industry is estimated to account for the fastest growth in the methanol sub-derivatives segment from 2021 to 2026. The growth in the solvent industry is due to increasing demand of solvents in the pharmaceutical, construction, and paints & coatings industries.

Asia-Pacific is projected to grow at the highest CAGR during the forecast period

Asia Pacific is projected to grow at the highest CAGR in the methanol market from 2021 to 2026. Asia Pacific is the largest and fastest-growing market of methanol, with China and India being the major emerging markets. The growth can be attributed to the rapidly increasing demand for methanol from the automotive and construction industries. China is a major manufacturer of methanol and had the highest consumption of methanol. The increasing demand for UF/PF resins and increasing methanol usage as an emerging fuel for automotive are the key factors expected to drive the demand for methanol during the forecast period.

Some of the companies involved in the manufacturing of methanol are Methanex Corporation (Canada), Celanese Corporation (US), BASF SE (Germany), SABIC (Saudi Arabia), Petronas (Malaysia), Yangzhou Coal Mining Company (China), HELM Proman Methanol AG (Switzerland), Zagros Petrochemical Company (Iran), Mitsubishi Gas Chemical Company Inc. (Japan), and Mitsui & Co., Ltd. (Japan).

Source: Business Wire