Global methanol market is expected to witness a remarkable growth during the forecast period, 2021-2028. By feedstock, natural gas sub-segment is expected to be the most profitable. By end-use, automotive sub-segment is expected to be the most beneficial. Asia-Pacific is expected to lead the market.
NEW YORK, Oct. 14, 2021 /PRNewswire/ -- Research Dive has published a report titled, "Methanol Market by Feedstock (Coal, Natural Gas, and Others), End-use Industry (Automotive, Construction, Electronics, Appliances, Paints & Coatings, Insulation, Pharmaceutical, Packaging, and Others), and Regional Analysis (North America, Europe, Asia-Pacific, and LAMEA): Global Opportunity Analysis and Industry Forecast, 2021–2028."
The Global Methanol Market is predicted to generate a revenue of $39,283.4 million at a CAGR of 6.4% by 2028 increasing from $24,000.0 million in 2020.
The Asia-Pacific regional methanol market garnered $13,780.8 million in 2020 and is further predicted to generate the highest revenue at a CAGR of 6.3%. The reason behind the growth is the demand of methanol fuel cell vehicles, methanol range extended electric vehicles, and methanol-electric hybrid vehicles in the regional countries. This demand is because of the applicability of methanol as a low emission alternative fuel.
The report has divided the market into different segments based on feedstock, end-use, and regional outlook.
Feedstock: The natural gas sub-segment is expected to dominate the market with a revenue of $16,868.2 million by 2028, rising from $10,189.5 million in 2020. The main attributor behind this growth is use of natural gas as a feedstock in the production procedure of methanol. The methanol production process involves simple methods such as synthesis gas production.
End-Use: The automotive sub-segment is anticipated to garner the highest revenue of $8,255.0 million by 2028, increasing from $5,283.8 million in 2020. The main reason enhancing the growth of the segment is the high octane of Methanol which offers outstanding power and acceleration which makes it necessary for the automotive sector as a motor fuel.
Dynamics of the Methanol Market
Drivers: One of the main factors behind the accelerating growth of the methanol market is its application in everyday consumer products. Other applications of methanol include manufacturing of plywood subfloors, solvents, foams, and windshield washer fluids, and as a feedstock in the chemical production. Methanol is also used as fuel and biodiesel in many countries. These are the factors behind the growth of the market.
The main restraining factor behind the growth of the methanol market is the more demand of ethanol compared to methanol because of the lesser toxic elements ethanol contains.
Opportunity: Methanol is being applied as a biodiesel in many countries which is expected to create many opportunities for the market during the forecast period.
These players are focusing on the development of the industry by focusing on various strategies and business tactics such as product renovation, long-term partnership, mergers, acquisitions etc.
They are focusing on advanced product developments and merger & acquisition. These are some of the strategies conducted by the startups as well as established business organizations.
In August 2021, The National Gas Company of Trinidad and Tobago Limited (NGC) signed a Consolidated Gas Supply Contract (CGSC) with Methanol Holdings (Trinidad) Limited (MHTL), the largest methanol producer in the world and a part of the Proman family of companies. The agreement is supposed to upkeep operations at the MHTL Methanol Complex, which includes one of the world's most efficient low carbon methanol producers, the mega-methanol M5 plant.
Impact Analysis of COVID-19 on the Methanol Industry
The global methanol market has been impacted in a negative way during the coronavirus pandemic. The main reason behind this decline is the financial slowdown and temporary shutdown of manufacturing industries. Other factor is the restrictions on supply chain in the major methanol producing countries. The leading players of the market are developing many strategies to sustain the market growth in the post pandemic period.
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