According to the latest market study released by Technavio, the global methanol market is expected to reach USD 54.3 billion by 2021, growing at a CAGR of over 11%.
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This research report titled ‘Global Methanol Market 2017-2021’ provides an in-depth analysis of the market in terms of revenue and emerging market trends. To calculate the market size, the report considers the revenue generated from the sales of methanol and its derivatives such as formaldehyde, acetic acid, gasoline, dimethyl ether (DME), methyl tert-butyl ether (MTBE), tertiary amyl methyl ether (TAME), and others.
The development of new application areas, rising demand from APAC, and the establishment of new production facilities by key vendors are factors that are positively impacting the global methanol market in recent times. Previously, China had a limited role in the methanol industry, with Europe and North America leading the market. However, due to the swift economic growth in China, it has successfully surpassed both North America and Europe in terms of methanol consumption.
Technavio’s analysts categorize the global methanol market into five major segments by end users. They are:
- Paints and coatings
The three major end-user segments for the global methanol market are:
Global methanol market in the automotive industry
The global methanol market in the automotive industry was valued at USD 11.2 billion in 2016 and will likely reach USD 18.4 billion by 2021 at a CAGR of above 10%.
Methanol is widely used in the automotive industry. It can be combined with gasoline and used in the internal combustion engines of vehicles. The conventional fuels in the automotive industry are now being successfully replaced with more efficient alternatives like ethylene glycol and propylene.
According to Ajay Adhikary, a lead specialty chemicals research analyst from Technavio, “Gasoline blending is registering an increasing adoption in China from the fuels segment. The demand for other types of fuels such as DME, biodiesel, and MTBE or TAME will also increase in the next five years owing to the increasing preference for emission-controlled fuel.”
Global methanol market in the construction industry
The global methanol market in the construction industry was valued at USD 7.1 billion in 2016 and will likely reach USD 12.5 billion by 2021 at a CAGR of almost 12%.
The demand for methanol in the construction industry is expected to increase during the forecast period, primarily driven by the formaldehyde derivative segment. Formaldehyde is commonly used in the production of adhesives, which are needed for manufacturing construction board products such as plywood.
“In developed countries, such as the US and Germany, the demand for methanol is influenced by the increasing usage of engineering board products such as oriented strand board. These wood composites need more formaldehyde-based resins per square foot of board as compared with plywood,” says Ajay.
Global methanol market in the electronics industry
The global methanol market in the electronics industry was valued at USD 6.4 billion in 2016 and will likely reach USD 11.3 billion by 2021 at a CAGR of over 12%.
Methanol’s use as a fuel for electricity generation is emerging as an attractive application area in the global market. Currently, it is successfully being used to generate power. Methanol is an ideal alternative to oil as a fuel for backup generators.
There are various projects under construction wherein methanol is planned to be incorporated into dual-fueled gas turbines. This application of methanol will likely gain momentum in the coming years owing to its low heating value, low flash point, and low lubricity.
The top vendors highlighted by Technavio’s research analysts in this report are: