Methanol

Methanol is a key product in the chemical industry. It is mainly used for producing other chemicals such as formaldehyde, acetic acid, MTBE, MMA, and DMT among others. Therefore, the demand for methanol depends on the production of the aforementioned chemicals. For instance, a product like formaldehyde is an important raw material in the production of a wide range of products like particleboard, plywood, and fiberboard; glues and adhesives; permanent-press fabrics; paper products coatings; and certain insulation materials. Further, it is used in the production of food, paints & coatings, and disinfectants. Since the demand for building products is increasing on account of rising construction activities in the developing economies, coupled with the growing market for food, paints & coatings, and pharmaceuticals owing to increasing urbanization and growing population, thus propelling the demand for formaldehyde. Moreover, several companies are manufacturing products that can run on methanol fuels. For instance, Thermax Ltd. has developed a 5 KW methanol-based reformer on a Direct Methanol Fuel Cell (DMFC). This module is being tested to replace DG sets in mobile towers. The Global Methanol Market is likely to showcase a growth of around 4% during the forecast period.
Based on feedstock, the market is categorized into natural gas, coal, and others. Among these, natural gas has a prominent share in the methanol market. This can be mainly attributable to the large use of natural gas for the production of methanol due to the abundance of natural gas globally and it also results in low-cost methanol production.
Based on derivatives, the market is categorized into formaldehyde, acetic acid, MTBE, MMA, DMT, methanethiol, methylamines, methyl chloride, gasoline blending & combustion, biodiesel, DME, fuel cells, methanol-to-olefins, and others. Among these, formaldehyde has a considerable share in the methanol market. Formaldehyde is an important raw material in the production of a wide range of products like particleboard, plywood, and fiberboard; glues and adhesives; permanent-press fabrics; paper product coatings; and certain insulation materials. Further, it is used in the production of food, paints & coatings, and disinfectants. Therefore, with rising construction activities in the region demand for the aforementioned products would also increase, thus increasing the consumption of formaldehyde.
Based on industry, the market is categorized into chemical & polymer, transport, and others. Among these, chemical & polymer has a considerable share in the methanol market due to the production of a large number of chemical-related methanol derivatives. Derivatives like formaldehyde, MTBE, and acetic acid are among the largest consumer of methanol which is produced in the chemical industry. Further, increasing construction activities due to rising urbanization and growing population along with improving consumer disposable power which resulted in home decoration activities are further propelling the demand for building materials. Thus, increasing the consumption of methanol derivatives like formaldehyde, as a result, improving the market share of chemicals & polymers.
For a better understanding of the market adoption of methanol, the market is analyzed based on its worldwide presence in the countries such as North America (United States, Canada, Rest of North America), Europe (Germany, France, United Kingdom, Italy, Spain, and Rest of Europe), Asia-Pacific (China, Japan, India, Australia, and Rest of APAC), and Rest of World. Asia-Pacific accounted for a significant share of the market and is expected to showcase substantial growth during the forecast period. This can be ascribed to the large and growing base of the chemical industry. Also, the region is the largest producer of chemicals across the globe. Further, the region has an abundance of coal and natural gas, which can be converted into methanol through gasification and reforming. The production of methanol from natural gas reforming is a mature technology. This has helped the region to capture a prominent position in the market.
The key players with a considerable market share in the global methanol market include Methanex Corporation, BASF SE, Mitsubishi Gas Chemical Company, Mitsui & Co. Ltd., Metafrax Chemicals, Petronas, Yanzhou Coal Mining Company Ltd., Shanghai Huayi (Group) Company, Ningxia Baofeng Energy Group Co. Ltd., Celanese Corporation.