"An increasing demand for petrochemicals toward the automotive and building & construction industries is driving the demand for methanol"
The market size for methanol is projected to reach USD 54.16 billion by 2021, registering a CAGR of 12.4% between 2016 and 2021. Increasing demand of methanol from the end-use industries, such as automotive and construction is the major driver for methanol market.
The automotive and construction industries is growing in the emerging markets of Asia-Pacific such as, China, India, and the other Southeast Asian countries. With the increasing usage of methanol in the production of olefins in some major economies, such as India, China, and Japan, the market is expected to grow further. Hence, the use of methanol is increasing in various end-use industries, and is expected to grow rapidly in the near future.
Automotive is the largest end-use industry for methanol
Methanol is used widely in the automotive industry. Methanol can be blended with gasoline and used in the internal combustion engines of vehicles and aircrafts, with similar efficiency to diesel engines. Earlier, methanol was also used as an anti-freezing agent in the car's cooling system, but then it has been replaced with more effective alternatives such as propylene or ethylene glycol. However, it is still popular as a windshield water fuel.
Asia-Pacific, the largest market for methanol
Asia-Pacific is the most favorable market for chemicals, power, and fuels and is anticipated to be the same in the near future. The continuous rise in the production of methanol for energy consumption within the region and for exports drives a huge demand for the feedstocks.
The growing demand for bio-fuels and the rising policies including controlled emission, environment friendly products, has led to innovation and developments in the industry, making Asia-Pacific, a strong methanol derivative, and sub-derivative chemicals hub globally. The excessive growth and modernization along with the industry consolidations are expected to ascertain a bright future for the methanol industry in the region.
The report also includes company profiles and competitive strategies adopted by the key market players, such as Methanex Corporation (Canada), SABIC (Saudi Arabia), PETRONAS (Malaysia), Mitsubishi Gas Chemical Company (Japan), and Mitsui & Co., Ltd. (Japan).