Methanol MarketSize and Trends

Future Outlook of Methanol Market

Globally, various mixtures of methanol are being utilized as alternative fuel source for vehicles and other applications. This trend is expected to boost the demand for methanol. Derivatives of methanol are widely used for various industrial applications and processes which are expected to boost the demand for methanol in these industries. Applications such olefins, DME, and gasoline blending provide huge growth opportunities for methanol market. Regions such Middle East and Africa and Latin America have also boosted the production of methanol owing to easy availability and low cost of natural gas in these regions. Production of methanol in North America has also increased owing to shale gas boom in the region. Production cost of methanol in North America has become competitive owing to these factors. Excess supply of methanol in the market and improved safety factors are expected to further drive the demand for methanol owing its low cost of production. Additionally, growing demand for biofuels and strict emissions norms are expected to further drive the demand for methanol across the globe during the forecast period. Asia Pacific is expected to be the leading market for methanol during the forecast period owing to high demand from countries such as China, India, Japan, and others.

Market Trends

Methanol is extensively utilized at filling stations and as alternative fuel which is expected to drive the demand for methanol. Methanol is widely used at various industries such as construction, automotive, textile, and furniture industries. Increased activities in these industries have further boosted the demand for methanol across the globe. Energy and petrochemical industries have increased their production which has led to high demand for methanol in these industries. Formaldehyde and acetic acid are widely used derivatives of methanol across the globe. Natural gas is the primary source of feedstock for manufacturing methanol. Asia Pacific is the leading market for methanol across the globe. China dominates the methanol market in Asia Pacific. China has been utilizing coal as the primary source of feedstock for methanol production owing to its low cost and easy availability. Share of coal feedstock is expected to increase owing to increase in share of China in global methanol market.