- The biggest portion of global methanol and its derivatives ends up in chemical manufacturing.
- Currently the market is dominated by China.
- Prices in the methanol market may vary in short-term but are expected to stabilize in the next two years.
Methanol is one of the basic chemicals which is prepared utilizing various feedstocks including shale gas, crude oil, and coal. It is utilized in various applications with major end-use focused around fuel blending and chemical manufacturing. Dynamic feedstock market and changing geopolitical scenarios are changing the market pattern and guiding organizations to be more agile and innovative to combat the changing terms.
Key Market Insights
Methanol enters the fuel stream either via direct blending or via octane improvers such as methyl tertiary butyl ether (MTBE). Methanol is also utilized for biodiesel adding the volume for fuel. The biggest portion of global methanol and its derivatives ends up in chemical manufacturing either as feedstock or as solvent. The chemical derivatives from methanol covers a range of uses, including resins for paints & paperboard to engineering plastic for automotive, and solvents for fragrances to polyethylene terephthalate (PET) for bottles.
Currently the market is dominated by China which covers little less than two-third of the global market for methanol. Large downstream capacities have been added with methanol to olefins (MTO) expansions that has been kept China in leading position for methanol consumption.
The US has been the second largest market with fuel blending supporting the traditional downstream capacities. The US market currently stands little less than 7% of the global market but is a significant market nevertheless. The market growth in developing countries and additional upcoming capacities in the US are expected to impact the trade scenarios for methanol. Trade relations among the US and China would be critical deciding factors in international pricing and trade flow.
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According to Infoholic Research, the global methanol market is expected to grow at a CAGR of 7.4% during the forecast period to reach $48.62 billion by 2023. Formaldehyde segment is expected to maintain its dominance in application segments, while fuel blending and MTO are expected to show higher growth rates than other segments. The crude oil price stabilization and Chinese advantage of domestic coal for olefin production would be critical for external methanol demand there.
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Almost all the new capacities are focused in the US and China with objective of reaping benefits from cheap local feedstock. Prices in the methanol market may vary in short-term but are expected to stabilize in the next two years. Some of the prominent players in the global methanol market are Methanex, Saudi Basic Industries Corporation (SABIC), Sinopec, Lanxess, and Shin-Etsu.
Methanol Market is segmented by Applications: Formaldehyde, MTBE/TAME, Fuel Blending, Acetic Acid, MTO, DME, Biodiesel, Solvents, and Others. It also is segmented by region.
The study of the global methanol market provides the market size information and industry trends along with the parameters and factors impacting it in both short- and long-term. The study also covers the competitive scenario of the market with respect to major players with their branding strategies and differentiating factors among others. The study ensures a 360° view, bringing out the complete key insights of the industry. These insights help the business decision makers to make better business plans and informed decisions for the future business. In addition, the study helps the venture capitalists and investment professionals in understanding the companies better and take informed decisions.