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Methanol Market

Report Code CH 1642
Published in Apr, 2025, By MarketsandMarkets™
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Methanol Market by Feedstock (Natural Gas, Coal), Derivative (Formaldehyde, MTO/MTP, Gasoline, MTBE, MMA, Acetic Acid, DME, Biodiesel), Sub-Derivative, End-use Industry (Automotive, Construction, Electronics), and Region - Global Forecasts to 2030

Overview

The methanol market is expected to grow from USD 45.56 billion in 2025 to USD 55.80 billion by 2030, achieving a CAGR of 4.1% during this period. The increasing demand for automotive applications from various countries is driving this growth. Additionally, government regulations regarding fuel standards and emissions, along with the availability of methanol refueling infrastructure, significantly influence the demand for methanol in automotive uses.

Methanol Market

Attractive Opportunities in the Methanol Market

Asia Pacific

The market growth in Asia Pacific can be attributed to the region’s growing automotive, construction, electronics, appliances, and other end-use industries that have bolstered the demand for methanol.

The growth of major end-use industries of methanol market can be attributed to growth in region’s effort in continuous effort in automotive industry.

Major players are expanding their reach through expansions, new product developments, agreements, and acquisitions.

The Asia Pacific methanol market is expected to be worth USD 35.6 billion by 2030, growing at CAGR of 4.4% during the forecast period.

The methanol market is expected to witness considerable growth during the forecast period due to the increasing demand for formaldehyde and other derivatives

Global Methanol Market Dynamics

DRIVER: Growing demand from automotive and construction industries

The demand for methanol is growing in the automotive and construction industries. When used in vehicle and aircraft engines, methanol demonstrates comparable efficiency to other fuels. China was a pioneer in utilizing methanol and methanol blends in the automotive sector. Methanol is also used to produce MTBE, a gasoline additive, as well as biodiesel. Additionally, formaldehyde, which is manufactured from methanol, is widely used in the production of various building materials.

RESTRAINT: Use of fuel-grade ethanol

Ethanol presents a multitude of benefits as a fuel source. One of its key advantages is its low toxicity, making it safer for both humans and the environment compared to many conventional fuels. Additionally, ethanol boasts a higher octane rating, which enhances engine performance by allowing for more efficient combustion and reduced knocking. Another significant benefit is its minimal contamination potential, contributing to cleaner emissions and a healthier atmosphere. Many countries are incorporating ethanol into their fuel supplies not only for its ability to improve energy density, being more effective than methanol, but also for its liquid nature. This allows for easier storage and transportation, solidifying ethanol's position as an attractive alternative fuel in the transition toward cleaner energy solutions.

 

OPPORTUNITY: Use of methanol as an alternative fuel in marine and manufacturing industries

In marine applications, bunkering with methanol would be relatively straightforward because it is non-cryogenic and remains liquid at room temperature. This means it does not require refrigeration or storage in expensive, specialized materials. The increasing interest in clean-burning fuels, along with regulatory changes, is driving the adoption of methanol as a marine fuel due to its lower emissions.

CHALLENGES: Capital-intensive requirements for using methanol

There are several political and environmental challenges that hinder market growth. These challenges include the exploitation of natural gas reserves in various regions and the environmental issues associated with methanol production. When carbon-based sources are utilized, the production process tends to be capital-intensive. Additionally, costs are elevated during the post-production phase due to the high expenses related to technology maintenance and installation, among other factors. Unforeseen costs, such as repairs, further contribute to the increase in overall expenses.

Global Methanol Market Ecosystem Analysis

Methanol Market
 

Based on feedstock, natural gas accounts for the largest market share of the overall market

The expansion of this market is being driven by the increasing demand for natural gas as a feedstock in end-use sectors such as automotive, construction, electronics, solvents, pharmaceuticals, appliances, packaging, and insulation. Natural gas is a critical feedstock for the production of methanol, as it provides the hydrogen and carbon necessary for the process. Because it is an inexpensive and abundant source of hydrocarbons, it provides a compelling alternative for commercial-scale methanol production.

The formaldehyde segment dominates the methanol derivatives market

The demand for formaldehyde derived from methanol is expected to rise, driven by the growing construction sector in developing economies across the Asia Pacific, South America, Africa, and certain parts of Europe. Formaldehyde plays a crucial role in the methanol value chain, as it can be produced through the oxidation of methanol. This essential intermediate chemical is widely used in various industries, including pharmaceuticals, textiles, resins, and plastics.

The UF/PF resins segment holds the largest share of the methanol subderivatives market

UF/PF resin is known for its strong adhesive properties, water resistance, heat resistance, and chemical resistance. It is commonly used in varnishes, adhesives, laminates, molded items, and wood panels like MDF and particleboard. The transformation of this resin into formaldehyde for further resin production showcases how a simple alcohol can create high-value materials. Methanol is essential as a feedstock, emphasizing its economic importance and its role in the manufacturing of industrial polymers.

Based on end-use industries, automotive segment accounted for the largest market share

The growth of the automobile industry is mainly driven by increasing car demand and advanced vehicle designs. Methanol is significant as a fuel additive when blended with gasoline, as it enhances combustion efficiency and reduces emissions like carbon monoxide. It is also used in petrol antifreeze blends to prevent fuel line condensation in cold temperatures and is being explored as a green alternative fuel for flexible-fuel vehicles. Additionally, methanol is important in manufacturing automotive parts such as consoles and safety systems made from plastics and polymers, highlighting its relevance in the industry.

Based on region, the Asia Pacific commands the largest share of the methanol market

The demand for methanol has significantly increased in the Asia Pacific region, primarily driven by major economies such as China, Japan, India, South Korea, and Australia. Key industries, including construction, automotive, and electronics, rely heavily on methanol as a fundamental raw material, contributing to this growth. India, in particular, is a notable consumer of methanol, primarily due to its use in the production of biodiesel, acetic acid, and formaldehyde. Additionally, government initiatives aimed at promoting cleaner fuels and reducing dependence on petroleum imports have sparked a growing interest in methanol as an alternative fuel source. Methanol is widely utilized in the synthesis of polymers and solvents for various applications, including pharmaceuticals and packaging.

HIGHEST CAGR MARKET FROM 2024 TO 2030
CHINA - FASTEST GROWING MARKET IN REGION
Methanol Market

Recent Developments of Methanol Market

  • In September 2024, Methanex Corporation has entered into a definitive agreement to acquire OCI Global’s (“OCI”) international methanol business for USD 2.05 billion. The transaction includes OCI’s interest in two methanol facilities in Beaumont, Texas, one of which also produces ammonia. This will help the company to maintain its leading position in the methanol industry.
  • In December 2023, SABIC, Scientific Design (SD), and Linde Engineering entered a Memorandum of Understanding to explore collaboration opportunities to decarbonize the SD Ethylene Glycol Process. This collaboration seeks to develop innovative solutions to reduce carbon footprint and achieve low-carbon-emission technology by offering SABIC’s innovative CO2 recovery and purification technology to SD-licensed manufacturing glycol plants worldwide.
  • In June 2023, HELM Proman Methanol (HPM), a market leader in global methanol supply solutions and part of the HELM group of companies, relaunched its worldwide marketing activities under the new brand, Valenz.
  • In April 2023, Methanex Corporation signed an agreement with Suez Methanol Derivatives (SMD) for the construction of a new methanol pipeline. With this agreement, Methanex Corporation will supply methanol from its Egypt plant to a nearby SMD company’s project in Damietta.
  • In March 2023, Zagros Petrochemical Company (ZPC) and Dalian Petrochemical Company signed an agreement to construct a methanol-to-synthetic ethanol conversion plant.
  • In March 2021, Celanese Corporation announced that it would expand its capacity and that its integrated chemical manufacturing facility in Clear Lake, Texas, would begin utilizing recycled carbon dioxide (CO2) as an alternative feedstock in the production of methanol.

Key Market Players

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Scope of the Report

Report Metric Details
Market size available for years 2021-2030
Base Year Considered 2024
Forecast period 2025-2030
Forecast units Value (USD Million/Billion), Volume (Thousand Metric Tons)
Segments covered Feedstock, Derivative, Subderivative, and End-use Industry
Geographies covered North America, Asia Pacific, Europe, Middle East & Africa, and South America

Key Questions Addressed by the Report

What are the key drivers and opportunities for the methanol market?
  • Key driver: Increasing demand for chemicals in Asia Pacific.
  • Key opportunity: Rising use of methanol as an alternative fuel in marine and manufacturing industries.
Which region is expected to hold the highest market share in the methanol market?
Asia Pacific is expected to dominate the market share in 2024, driven by strong demand from the automotive and construction industries.
What are the major derivatives of methanol?
Formaldehyde, MTO/MTP (Methanol-to-Olefins/Propylene), and gasoline.
Who are the major manufacturers of methanol?
Methanex Corporation (Canada), Valenz (Switzerland), SABIC (Saudi Arabia), Yankuang Energy Group Company Limited (China), Zagros Petrochemical Company (Iran), Celanese Corporation (Texas).
What is the CAGR for the methanol market during 2025–2030?
The market is expected to grow at a CAGR of 4.1% from 2025 to 2030.

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Table of Contents

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TITLE
PAGE NO
INTRODUCTION
1
RESEARCH METHODOLOGY
23
EXECUTIVE SUMMARY
56
PREMIUM INSIGHTS
82
MARKET OVERVIEW
91
  • 5.1 INTRODUCTION
  • 5.2 MARKET DYNAMICS
    DRIVERS
    RESTRAINTS
    OPPORTUNITIES
    CHALLENGES
  • 5.3 PORTER’S FIVE FORCES ANALYSIS
    BARGAINING POWER OF SUPPLIERS
    THREAT OF NEW ENTRANTS
    THREAT OF SUBSTITUTES
    BARGAINING POWER OF BUYERS
    INTENSITY OF RIVALRY
  • 5.4 VALUE CHAIN ANALYSIS
  • 5.5 CASE STUDY ANALYSIS
  • 5.6 ECOSYSTEM FOR GLOBAL METHANOL MARKET
  • 5.7 REGULATORY LANDSCAPE
    KEY REGULATIONS
  • 5.8 PATENT ANALYSIS
  • 5.9 TECHNOLOGY ANALYSIS
    KEY TECHNOLOGIES:
    - CONVENTIONAL GREENFIELD METHANOL PRODUCTION- CATALYTIC HYDROGENATION OF CARBON MONOXIDE (CO) AND CARBON DIOXIDE (CO2)
    - BIOMASS-TO-METHANOL (BTM) – A NEW KEY TECHNOLOGY
    ADJACENT TECHNOLOGIES:
    - CARBON CAPTURE (BLUE METHANOL)
    - E-METHANOL
    COMPLIMENTARY TECHNOLOGIES:
    - DMFC (DIRECT METHANOL FUEL CELL) TECHNOLOGY
    - METHANOL REFORMING PROCESSES FOR FUEL CELL APPLICATIONS
  • 5.10 TRENDS/DISRUPTIONS IMPACTING CUSTOMER’S BUSINESS
  • 5.11 TRADE ANALYSIS
  • 5.12 KEY CONFERENCES & EVENTS 2025-2026
  • 5.13 KEY STAKEHOLDER & BUYING CRITERIA
    KEY STAKEHOLDERS IN BUYING PROCESS
    BUYING CRITERIA
  • 5.14 IMPACT OF GENAI/AI ON GLOBAL METHANOL MARKET
  • 5.15 MACROECONOMIC OUTLOOK
  • 5.16 INVESTMENT AND FUNDING SCENARIO
GLOBAL METHANOL MARKET, BY FEED STOCK
119
  • 6.1 INTRODUCTION
  • 6.2 COAL
  • 6.3 NATURAL GAS
  • 6.4 OTHERS
GLOBAL METHANOL MARKET, BY DERIEVATIVE
145
  • 7.1 INTRODUCTION
  • 7.2 FORMALDEHYDE
  • 7.3 GASOLINE
  • 7.4 METHANOL TO OLEFINS/METHANOL T0 PROPYLENE (MTO/MTP)
  • 7.5 MEDICAL METHYL TERT-BUTYL ETHER (MTBE)
  • 7.6 ACETIC ACID
  • 7.7 DIMETHYL ETHER (DME)
  • 7.8 METHYL METHACRYLATE (MMA)
  • 7.9 BIODIESEL
  • 7.10 OTHERS
GLOBAL METHANOL MARKET, BY SUB-DERIVATIVES
187
  • 8.1 INTRODUCTION
  • 8.2 GASOLINE ADDITIVES
  • 8.3 OLEFINS
  • 8.4 UF/PF RESINS
  • 8.5 VINYL ACETATE MONOMER (VAM)
  • 8.6 POLYACETAL
  • 8.7 FUELS
  • 8.8 METHYLENE DIPHENYL DIISOCYANATE (MDI)
  • 8.9 ACETATE ESTER
  • 8.10 PURIFIED TEREPHTHALIC ACID (PTA)
  • 8.11 ACETIC ANHYDRIDE
  • 8.12 OTHERS
GLOBAL METHANOL MARKET, BY END-USE INDUSTRY
199
  • 9.1 INTRODUCTION
  • 9.2 AUTOMOTIVE
  • 9.3 CONSTRUCTION
  • 9.4 ELECTRONICS
  • 9.5 APPLIANCES
  • 9.6 PAINT & COATINGS
  • 9.7 INSULATION
  • 9.8 PHARMACEUTICAL
  • 9.9 PACKAGING (PET BOTTLES)
  • 9.10 SOLVENTS
  • 9.11 OTHERS
GLOBAL METHANOL MARKET MARKET, BY REGION
230
  • 10.1 INTRODUCTION
  • 10.2 ASIA-PACIFIC
    CHINA
    JAPAN
    INDIA
    SOUTH KOREA
    INDONESIA
    REST OF ASIA PACIFIC
  • 10.3 EUROPE
    GERMANY
    FRANCE
    UK
    RUSSIA
    TURKEY
    REST OF EUROPE
  • 10.4 NORTH AMERICA
    US
    CANADA
    MEXICO
  • 10.5 SOUTH AMERICA
    BRAZIL
    ARGENTINA
    REST OF SOUTH AMERICA
  • 10.6 MIDDLE EAST AND AFRICA
    SAUDI ARABIA
    UAE
    REST OF MIDDLE EAST AND AFRICA
COMPETITIVE LANDSCAPE
282
  • 11.1 INTRODUCTION
  • 11.2 KEY PLAYERS' STRATEGIES/RIGHT TO WIN
  • 11.3 MARKET SHARE ANALYSIS
  • 11.4 BRAND COMPARISON
  • 11.5 COMPANY EVALUATION MATRIX: KEY PLAYERS, 2024
    STAR
    EMERGING LEADERS
    PERVASIVE PLAYERS
    PARTICIPANTS
    COMPANY FOOTPRINT: KEY PLAYERS, 2024
    - COMPANY FOOTPRINT
    - REGION FOOTPRINT
    - FEEDSTOCK FOOTPRINT
    - DERIEVATIVE FOOTPRINT
    - END-USE INDUSTRY FOOTPRINT
  • 11.6 COMPANY EVALUATION MATRIX: START-UPS/SMES, 2024
    PROGRESSIVE COMPANIES
    RESPONSIVE COMPANIES
    DYNAMIC COMPANIES
    STARTING BLOCKS
    COMPETITIVE BENCHMARKING: STARTUPS/SMES, 2024
    - DETAILED LIST OF KEY STARTUPS/SMES
    - COMPETITIVE BENCHMARKING OF KEY STARTUPS/SMES
  • 11.7 COMPANY VALUATION AND FINANCIAL MATRICS
  • 11.8 COMPETITIVE SCENERIO & TRENDS
    PRODUCT LAUNCHES
    DEALS
    EXPANSIONS
COMPANY PROFILES
307
  • 12.1 METHANEX COPRORATION
    BUSINESS OVERVIEW
    PRODUCTS & SERVICES
    RECENT DEVELOPMENTS
    MNM VIEW
  • 12.2 SABIC
  • 12.3 CELANESE CORPORATION
  • 12.4 BASF SE
  • 12.5 PETROLIAM NASIONAL BERHAD (PETRONAS)
  • 12.6 YANKUANG ENERGY GROUP COMPANY LIMITED
  • 12.7 VALENZ
  • 12.8 ZAGROS PETROCHEMICAL COMPANY (ZPCIR)
  • 12.9 MITSUISHI GAS CHEMICAL COMPANY INC
  • 12.10 MITSUI & CO., LTD
  • 12.11 LYONDELLBASELL INDUSTRIES HOLDINGS B V
  • 12.12 SIPCHEM COMPANY
  • 12.13 METAFRAX CHEMICAL
  • 12.14 ATLANTIC METHANOL
  • 12.15 ENERKEM
    - OBERON FUELS
  • 12.16 OTHER PLAYERS
    - GUJARAT NARAMADA VALLEY FERTILIZERS & CHEMICALS LIMITED
    - DEEPAK FERTILIZERS & PETROCHEMICAL CORP. LTD
    - QATAR FUEL ADDITIVES COMPANY
    - COOGEE
    - CHINA RISUN COAL CHEMICAL GROUP LTD
    - RASHTRIYA CHEMICALS & FERTILIZERS LTD
    - ROSNEFT
    - VINATI ORGANICS LIMITED
ADJACENT AND INTERCONNECTED MARKET
333
APPENDIX
371
  • 14.1 INSIGHTS OF INDUSTRY EXPERTS
  • 14.2 DISCUSSION GUIDE
  • 14.3 RELATED REPORT
  • 14.4 AVAILABLE CUSTOMIZATIONS

The research encompassed four primary actions in assessing the present market size of methanol. Comprehensive secondary research was conducted to gather information on the overall, peer, and parent markets. The subsequent stage involved corroborating these findings, assumptions, and dimensions with industry specialists throughout the methanol value chain via primary research. The total market size is ascertained using both top-down and bottom-up methodologies. Subsequently, market segmentation analysis and data triangulation were employed to determine the dimensions of the market segments and subsegments.

Secondary Research

The research approach employed to assess and project the access control market is initiated by collecting revenue data from prominent suppliers using secondary research. During the secondary research, many secondary sources, such as Hoovers, Bloomberg BusinessWeek, Factiva, the World Bank, and industry magazines, were utilized to identify and compile information for this study. The secondary sources comprised annual reports, press releases, and investor presentations from corporations; white papers; accredited periodicals; writings by esteemed authors; announcements from regulatory agencies; trade directories; and databases. Vendor offerings have been considered to ascertain market segmentation.

Primary Research

The methanol market comprises several stakeholders in the supply chain, such as manufacturers, suppliers, traders, associations, and regulatory organizations. The demand side of this market is characterized by the development of construction, automotive, electronics, appliances, paints and coatings, insulation, pharmaceuticals, packaging, solvents, and other applications. Advancements in technology characterize the supply side. Various primary sources from the supply and demand sides of the market were interviewed to obtain qualitative and quantitative information.

Following is the breakdown of the primary respondents:

Methanol Market

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Market Size Estimation

Both the top-down and bottom-up approaches were used to estimate and validate the total size of the methanol market. These methods were also used extensively to determine the size of various sub-segments in the market. The research methodology used to estimate the market size included the following:

  • The key players were identified through extensive primary and secondary research.
  • The value chain and market size of the methanol market, in terms of value, were determined through primary and secondary research.
  • All percentage shares, splits, and breakdowns were determined using secondary sources and verified through primary sources.
  • All possible parameters that affect the market covered in this research study were accounted for, viewed in extensive detail, verified through primary research, and analyzed to obtain the final quantitative and qualitative data.
  • The research included the study of reports, reviews, and newsletters of top market players, along with extensive interviews for opinions from key leaders, such as CEOs, directors, and marketing executives.

Global Methanol Market Size: Bottom-Up and Top-Down Approach

Methanol Market

Data Triangulation

After arriving at the overall market size using the market size estimation processes as explained above, the market was split into several segments and subsegments. Data triangulation and market breakdown procedures were employed to complete the overall market engineering process and arrive at the exact statistics of each market segment and subsegment. The market size was calculated globally by summing up the country-level and regional-level data.

Market Definition

Methanol is known as methyl liquor or wood liquor. It is the most common of alcohols, comprising of a methyl gather joined to a hydroxyl bunch. Methanol is widely used in several industries, such as the marine, automotive, electronics, and construction sectors. Methanol is used in several blends and offers derivatives such as formaldehyde, acidic corrosive, gasoline, biodiesel, methanol to olefins (MTO), methanol to propylene (MTP), and methyl methacrylate (MMA).

Stakeholders

  • Raw material manufacturers
  • Methanol manufacturers
  • Methanol traders, distributors, and suppliers
  • Manufacturers of methanol and other related products that use methanol as an integral raw material
  • Associations and industrial bodies such as the United States Environment Protection Agency (EPA), the World Health Organization (WHO), the Department of Energy, the Methanol Institute, the European Investment Bank
  • Contract manufacturing organizations (CMOs)
  • NGOs, governments, investment banks, venture capitalists, and private equity firms

Report Objectives

  • To define, describe, and forecast the size of the global methanol market in terms of volume and value
  • To provide detailed information regarding the key factors, such as drivers, restraints, opportunities, and industry-specific challenges, influencing the growth of the global methanol market
  • To analyze and forecast the size of various segments (derivative and application) of the methanol market based on five major regions—North America, the Asia Pacific, Europe, South America, and the Middle East & Africa—along with key countries in each of these regions
  • To analyze recent developments and competitive strategies, such as expansions, new product developments, agreements, and acquisitions, to draw the competitive landscape of the market To strategically profile the key players in the market and comprehensively analyze their core competencies

Previous Versions of this Report

Methanol Market by Feedstock (Natural Gas, Coal), Derivative (Formaldehyde, MTO/MTP, Gasoline, MTBE, MMA, Acetic Acid, DME, Biodiesel), Sub-Derivative, End-use Industry (Automotive, Construction, Electronics), and Region - Global Forecasts to 2028

Report Code CH 1642
Published in Jun, 2023, By MarketsandMarkets™

Methanol Market by Feedstock(Natural Gas, Coal), Derivative(Formaldehyde, MTO/MTP, Gasoline, MTBE, MMA, Acetic Acid, DME, Biodiesel), Sub-Derivative, End-use Industry, and Region(North America, APAC, Europe, South America, MEA) - Global Forecasts to 2026

Report Code CH 1642
Published in Dec, 2021, By MarketsandMarkets™

Methanol Market by Feedstock (Natural Gas, Coal), Derivative (Formaldehyde, MTO/MTP, Gasoline, MTBE, MMA), Sub-Derivative (UF/PF Resins, Olefins), End-use Industry (Construction, Automotive), and Region - Global Forecasts to 2025

Report Code CH 1642
Published in Nov, 2020, By MarketsandMarkets™

Methanol Market by Feedstock (Natural Gas, Coal), Derivative (Formaldehyde, MTO/MTP, Gasoline, MTBE, MMA), Sub-Derivative (UF/PF Resins, Olefins), End-use Industry (Construction, Automotive), and Region - Global Forecasts to 2025

Report Code CH 1642
Published in Jul, 2016, By MarketsandMarkets™
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