The global methanol market has undergone copious changes in the past few years owing to the launch of new application areas, increase of several innovative manufacturing facilities, and ever-changing regional demand. The global methanol market is foreseen to experience reasonable growth in upcoming years. The market is foretold to reach US$145.6 billion by 2024 from a value of US$ 101.4 billion in 2015, growing at a CAGR of 4.20% between 2015 and 2024.
Methanol is used extensively in the automobile industry. Methanol can be combined with gasoline and used in the internal combustion engines of automobiles and airplanes, with similar efficacy to diesel engines. Previously, methanol was also used as an anti-freezing instrument in the car’s cooling system, but then alternatives like propylene or ethylene glycol have taken its place. Nevertheless, it is still prevalent as a windshield water fuel.
Of all the segments in the global methanol market, the segments of acetic acid and formaldehyde are prophesied to experience a sluggish growth in the upcoming years. Formaldehyde held a foremost share of 29.6% in the market in 2015, and was followed by acetic acid. This fragment is employed in the manufacture of particular domestic products and construction materials. Furthermore, it is also used in manufacturing wooden products such as plywood, fiberboards, and particleboards.
Gasoline and DME have also materialized as top favourable sectors in the market and are jointly set to register a CAGR of 4.80% between 2016 and 2024. Among these, while gasoline is consumed as a fuel for internal combustion engines, DME is employed as an automotive fuel in household appliances and electric power generation.
The automotive and construction industries are growing in the emerging economies of Asia-Pacific such as India, China, and the other Southeast Asian nations. With the accumulative usage of methanol in the manufacture of olefins in some major markets, the market is anticipated to grow further. Therefore, the use of methanol is snowballing in various end-use businesses, and is estimated to grow promptly in the next few years. Asia-Pacific is the most approving market for power, chemicals, and fuels and is foreseen to be the same in the forthcoming years. The constant rise in the manufacture of methanol for energy consumption within the area and for trades drives a massive demand for the same.
The budding demand for bio-fuels and the intensifying guidelines including environment-friendly products, measured emission, has led to invention and advances in the industry, making Asia-Pacific a strong methanol derivative and sub-derivative chemicals nucleus globally. The extreme growth and urbanization along with the industry alliances are estimated to determine a positive future for the methanol industry in the region.
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