Increase in usage in industrial applications and the power generation industry drive the growth of the global syngas market
PORTLAND, Ore., April 5, 2021 /PRNewswire/ -- Allied Market Research published a report, titled, "Syngas Market by Gasifier (Moving Bed Gasifier, Fluidized Bed Gasifier, Entrained Flow Gasifier, and Others), Technology (Steam Reforming, Partial Oxidation, Auto-Thermal Reforming, Combined or Two-step Reforming, and Biomass Gasification), Feedstock (Natural Gas, Coal, Biomass/Waste, and Others), and Application (Power Generation, Chemicals, and Others): Global Opportunity Analysis and Industry Forecast, 2020–2027." According to the report, the global syngas industry generated $43.6 billion in 2019, and is expected to reach $66.5 billion by 2027, witnessing a CAGR of 6.1% from 2020 to 2027.
Drivers, restraints, and opportunities
Increase in usage in industrial applications and the power generation industry drive the growth of the global syngas market. However, requirement of high capital investments hinders the market growth. On the other hand, surge in demand for chemicals creates new opportunities in the coming years.
Manufacturing activities and daily operations from the chemical, construction, power generation, and oil & gas industries have been hindered due to the lockdown imposed during the pandemic. This reduced the demand for syngas from these industries.
The supply–demand gap, disruptions in raw material procurement, and price variations restrained the growth of the chemical industry, which in turn, lowered the demand for syngas.
During the post-lockdown, the day-to-day operations in the chemical, power, and oil sectors resumed, and the demand for syngas is expected to increase gradually.
The fluidized bed gasifier segment to maintain its lead position during the forecast period
Based on gasifier, the fluidized bed gasifier segment held around two-fifths of the global syngas market in 2019, and is projected to maintain its lead position during the forecast period. This is due to their ability to enhance turbulence for complete gasification of low quality and low reactivity feedstock. However, the moving bed gasifier segment is estimated to witness the highest CAGR of 6.3% from 2020 to 2027, owing to wide usage for gasification of biomass as they have a lower operating temperature, larger flexibility in feed size, and ability to handle higher moisture content as compared to others.
The steam reforming segment to continue its lead position by 2027
Based on technology, the steam reforming segment accounted for the highest market share in 2019, contributing to nearly two-fifths of the global syngas market in 2019, and is expected to continue its lead position by 2027. This is attributed to its reliable, cost-effective, and wide usage for producing hydrogen. However, the auto-thermal reforming segment is estimated to manifest the largest CAGR of 6.3% from 2020 to 2027, owing to its high reliability, superior performance, simplified design for cost-effectiveness, and low environmental impact.
Asia-Pacific, followed by North America, to offer lucrative opportunities
Based on region, Asia-Pacific, followed by North America, is estimated to portray the fastest CAGR of 6.2% during the forecast period. Moreover, this region contributed to the highest market share in terms of revenue, holding nearly two-thirds of the global syngas market in 2019, and is expected to maintain its dominant position by 2027. This is due to rise in demand from the chemical industry, majorly from refineries and China being a chemical manufacturing powerhouse that supplies a majority of the chemicals to the world.
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