Renewable Methanol Market

Renewable Methanol Market Size Analysis

According to a recent survey conducted by ChemView Consulting, the Global Renewable Methanol Market grew at a CAGR of 5.2% between 2017-2021 and is estimated to be US$ 2,874.9 Mn in 2022. Currently, the market is anticipated to grow at a CAGR of 5.6 % and is expected to reach a valuation of US$  4,957.5 Mn by 2032 end.

The increase in carbon dioxide emissions and strict environmental restrictions to lessen the effects of carbon dioxide are fueling the growth of the worldwide renewable methanol market. This element is anticipated to increase demand for renewable methanol, which finds use in the industrial and transportation sectors. Additionally, it is expected that producing renewable methanol from agricultural and industrial waste would give the industry chances for future expansion.

Market Dynamic

GROWING DEMAND FROM THE CHEMICAL INDUSTRY

Renewable methanol is an integral element in the chemical industry, which is implemented as a feedstock in large quantities to produce several chemicals. The chemical industry is expanding globally with increasing production, which will stimulate the market’s growth in the forecast period.

Expansion in the chemical industry will augment higher uses of renewable methanol in the production of various chemicals, ultimately contributing to the growth of market prospects.

HIGH INVESTMENT COSTS HAMPER THE MARKET GROWTH

The production of renewable methanol involves a high cost which has been a challenge in the market for many years and might affect the market’s growth in the forecast period. The expensive nature of the production process restricts the scaling up of renewable methanol.

THE RISE IN THE AUTOMOBILE SECTOR WILL CREATE MORE OPPORTUNITIES FOR THE MARKET

As the automotive industry is witnessing unprecedented growth in the upcoming years, there is an immense demand for renewable methanol, which can be used as a fuel. The market is projected to grow over the forecast period in line with the growing implementation of renewable methanol as a fuel in various vehicles to meet growing energy demands across transportation sectors.

COVID-19 Impact

The COVID-19 pandemic hurt the renewable methanol market. Supply chain disruption and raw material procurement were the major challenges faced by the market during the pandemic. Market players had to modify their working strategies to maintain a stable business operation amid the pandemic. As per the April 2020 report by OCI N.V., the demand for methanol got hindered due to the slowdown of industrial activity.

The stagnant growth in automotive, chemical, and power generation further restricted the market’s growth during the pandemic. According to Forrester Consulting Inc., consumer demand for alternative fuels is expected to grow significantly from 2020 through 2021, with Biofuel 4.0 set to comprise five percent of worldwide transportation fuels by 2024.

Market Segments Covered in Report

By Primary Source:

• Biomass
• Municipal Waste
• Industrial Waste
• Others

By End Use Sector:

• Formaldehyde
• MTBE
• Gasoline
• Dimethyl Ethers
• Solvents
• Others

By Region and Country:

• North America (U.S., Canada)
• Latin America (Brazil, Mexico, Rest of Latin America)
• Europe (Germany, Italy, France, UK, Spain, Netherlands, Norway, Russia, Rest of Europe)
• Asia-Pacific (China, Japan, South Korea, India, Indonesia, Thailand, Vietnam, Australia & New Zealand, Rest of Asia-Pacific)
• Middle East (Saudi Arabia, Turkey, UAE, Rest of Middle East)
• Africa (South Africa, Nigeria, Egypt, Rest of Africa)

Segment-Wise Analysis

Why is Biomass Feedstock to Produce Next Generation Fuelling Solutions projected to ensure the most revenue during the forecast period?

At 42.0% of the market, Biomass Feedstock had the greatest revenue share. Biomass feedstocks are the most preferred feedstocks to produce renewable methanol across the globe. Low treatment cost and pre-treatment methods are some factors that provide biomass an edge over its alternatives. Production of methanol using biomass feedstocks solves two of the major environmental concerns: treatment of waste and reduction of vehicle emissions, owing to which various environment protection agencies, regulatory bodies, and regional governments provide multiple benefits and aid in the set-up of production lines and production of renewable methanol.

Why is the Formaldehyde segment expected to expand the fastest during the forecast period?

A wide spectrum of vital chemicals across the globe. About 29.0% of the renewable methanol produced worldwide is consumed in formaldehyde (HCHO) manufacturing. Chemical synthesis of formaldehyde also finds its applications in various industries, including paints and coatings, food, medicine, disinfection, and numerous others. Due to such immense use of chemicals in some rapidly growing industries, formaldehyde manufacturers are anticipated to create ample opportunities for methanol manufacturers over the upcoming assessment period of 2022-2032.

Region-Wise Analysis

The regions analyzed for the market include North America, Europe, Latin America, Asia Pacific, Middle East, and Africa.

• In 2021, the North American market held a sizeable revenue share of 30.7 %. The U.S. is one of the largest consumers of renewable methanol globally, with stringent government regulation and high awareness regarding its carbon footprint as key factors fuelling this use in fuel and other products.
• India is considered to be the fastest-growing market for methanol and renewable methanol across the world. Regulations over vehicle emissions are among the key factors promoting the growth of renewable methanol in the country. Implementing BS – III, BS – IV, BS – VI, and various other regulations, including compulsory use of methanol or other renewable fuel in fuel blending, benefits the market.

Competition Analysis

The renewable methanol market is focused on the key needs of China, India, and Japan. The rising demand for sustainable products and government initiatives stimulate market expansion. Key manufacturers are engaged in developing production capacity to cater to the growing demand for natural gas-derived methanol. Rising competition among key players is expected to reduce prices in this market.

Some of the key developments that have taken place in the Renewable Methanol Market include:

• In June 2019, To create methanol using renewable energy, Eni and Synhelion joined forces. Eni can reduce greenhouse gases and use carbon dioxide as a raw material thanks to this partnership.

A list of some of the key suppliers present in the market are:

• Methanex Corporation
• Carbon Recycling International
• BioMCN
• Enerkem
• Chemrec Inc.
• VarmlandsMethanol
• Alberta Pacific
• New Hope Energy
• Trans World Energy
• Proman
• ENI
• BASF SE
• Apex Energy Teterow GmbH
• Liquid wind
• Veolia

Report Coverage and Highlights

• Our comprehensive, data-backed, and facts-oriented report provides niche and cross-sectional analysis at global and country levels.
• Assessment of the historical (actual data) and current market size (2017-2021), market projections (2022-2032), and CAGR.
• The market assessment across North America, Europe, East Asia, South Asia & Pacific, Latin America, Middle East, and Africa.
• Competitive tactical intelligence, key strategies adopted by top players, production capacity and company shares analysis, product brand surveys, and export-import analysis
• Pricing analysis to set and benchmark your current or future offerings across each product type helps you understand whether your pricing strategy is aligned with market expectations and can be compared to market disruptions.
• Predictions on critical supply and demand trends and technological expertise needed to address operations scalability.
• Consumer behavior shifts and their implications for players, list of end-users, and their consumption analysis.
• Key drivers, restraints, opportunities, and emerging trends impacting the market growth.
• Value chain analysis (list of manufacturers, distributors, end-users, and average profitability margins).
• Strategic market analysis, recommendations, and future headways on crucial winning strategies.