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The Methanol is produced from synthesis gas, which is a mixture of carbon monoxide, carbon dioxide and hydrogen gas. Methanol is further processed to produce other industrially important chemicals such as formaldehyde and acetyls. The largest application of methanol is processing it into formaldehyde which is further treated to form resins, glues and various plastics. Methanol is also being considered as an alternative transportation fuel, as it is a clean-burning fuel that produces fewer smog-causing emissions
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The methanol market can be segmented by end use into Formaldehyde, MTO/MTP, Fuel Blending, Dimethyl Ether, Acetic Acid, Methyl Tert-Butyl Ether (MTBE), Solvents, Methylamines, MMA, Chloro-methanes, and others. The formaldehyde market was the largest segment of the methanol market in 2018 at around 31%. The MTO/MTP market is expected to be the fastest-growing segment.
The Growth in the methanol market in the historic period resulted from low natural gas prices, developing economies, increased demand for vehicles, and low interest environment. Factor that negatively affected growth in the historic period was safety concerns. Going forward, economic growth and increasing end use applications of methanol will drive growth. Factors that could hinder the growth of this market in the future are interest rate increases, and reduction in free trade.
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By Geography – The methanol market is segmented into
1. North America
2. Western Europe
3. Asia Pacific
4. Eastern Europe
5. South America
6. Middle East
7. Africa
Among these regions, Asia-Pacific is the largest market for methanol, accounting for about 44% of the global market.
Some of the major key players involved in the methanol market are Methanex Corporation, LyondellBasell Industries Holdings NV, PetroChina Company Limited, SABIC, OCI N.V.
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