SAN FRANCISCO, Nov. 5, 2019 /PRNewswire/ -- The global methanol market size is projected to reach USD 38.98 billion by 2025, registering a 2.9% CAGR during the forecast period, according to a new report by Grand View Research, Inc. Exceptional blending capacity and high octane rating of the product are the key factors driving the consumption of methanol as fuel.
Methanol, also known as methyl alcohol or wood alcohol, is a light, colorless, volatile, and flammable liquid with an odor similar to that of ethanol or drinking alcohol. It is one of the most extensively used industrial chemicals and acts as a precursor during the production of formaldehyde, acetic acid, Methyl Tert-Butyl Ether (MTBE), Dimethyl Ether (DME), biodiesels, olefins, and others.
Key suggestions from the report:
- Methanol to Olefins (MTO) segment is anticipated to expand at a CAGR of 6.6%, in terms of revenue, from 2019 to 2025 as they are used in large quantities for the production of propylene and ethylene, used for producing synthetic rubber, synthetic plastic, pharmaceuticals, and textile dyes
- The U.S. methanol market is anticipated to reach 7,769.5 kilotons by 2025. Development of shale gas has encouraged manufacturers to step up their efforts to increase their production capacity
- Asia Pacific is expected to account for the largest market share in terms of volume as well as revenue, over the forecast period. Factors such as rising affordability and rapid industrialization in countries such as China, India, and Japan are expected to drive the regional demand
- Some of the key market participants are Zagros Petrochemical Company, BASF, Celanese Corporation, Mitsui & Co., Ltd, Saudi Arabia Basic Industries Corporation (SABIC), Methanex Corporation, Petroliam Nasional Berhad, and Valero Marketing & Supply Company
- Prominent market players engage in developing novel production technologies and expansion of their plant capacities to gain competitive advantage
Read 70 page research report with ToC on "Methanol Market Size, Share & Trends Analysis Report By Application (Formaldehyde, Acetic Acid, MTBE, DME, Fuel Blending, MTO, Biodiesel), By Region, And Segment Forecasts, 2019 - 2025: https://www.grandviewresearch.com/industry-analysis/methanol-market
Japan accounts for approximately 7% of the overall methanol production in Asia and relies on imports to meet the local demand, owing to the low in-house production capacity of the country. However, various Japan-based manufacturers, including Mitsubishi Gas Chemicals have been picking up pace in terms of production and are benefitting by stable market prices.
Increasing demand for acetic acid, formaldehyde, and DME are considered as the key drivers for the growth of the methanol Industry in Asia Pacific. In addition, the supply and demand of the product across Asia Pacific is projected to be stable during the forecast period, with slight turbulence caused by the U.S. and China trade war.
The significant demand for methanol in North America is driven by a strong supply of the product to cater to the rising demand for MTBE, acetic acid, and formaldehyde. In 2018, the market was stable, backed by the steady supply of natural gas at low costs. Also, increasing biodiesel projects to be commissioned till 2021 is among the other prominent drivers fueling the regional demand for methanol in near future.
Grand View Research has segmented the global methanol market based on application and region:
- Methanol Application Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)
- Acetic Acid
- Fuel Blending
- Methanol Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)
- North America
- Asia Pacific
- Central & South America
- Middle East & Africa
Find more research reports on Petrochemicals Industry, by Grand View Research:
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About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.
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