Methanol is a colorless, volatile, and flammable liquid with the chemical formula CH3OH. It is one of the basic chemicals (alongside ethylene, propylene, and ammonia) and is used to produce many other chemical products such as formaldehyde, acetic acid, and plastics.
The global Methanol market is segmented by application (formaldehyde, acetic acid, MTBE, DME, fuel blending, MTO, biodiesel), by end-user (construction, automotive, electrical & electronics, pharmaceutical, packaging, paints & coatings) and by region (North America, Europe, APAC, Middle East and Africa). China alone produces about 65% of the world’s methanol, followed by Italy, Japan, Israel, and South Korea.
Methanol specifications
Methanol is the simplest aliphatic alcohol, comprising a methyl and an alcohol group. It is a highly flammable and toxic substance. So, extreme caution is necessary during operations. Methanol should be stored in well-ventilated areas, away from direct sunlight and moisture.
Methanol specifications | |
CAS No. | 67-56-1 |
HS Code | 290511 |
Packaging | Bag |
Our experts in ArChem monitor and analyze various aspects of the global Methanol market. They analyze various segments and provide an analysis of the market performance in the long term. This would be useful for our customers to plan their future investments, understand the cost dynamics, and gain awareness about the behaviour of competitors across the globe.
Methanol market
Methanol is primarily used in the production of formaldehyde as well as acetic acid, which are essential for making plastics, resins, synthetic fibers, paints, and adhesives. Alongside this production, methanol is also used as a solvent, as an antifreeze within pipelines, and as an extractant for vegetable oils.
The global Methanol market size was US$ 37 billion in 2021 and is projected to reach US$ 60 billion by 2030, growing at a CAGR of 3.5% during the forecast period. Saudi Arabia leads as the top exporter of Methanol, followed by the United States and the Netherlands, while China, the United States, India, and the Netherlands stand out as major methanol importers.
The global Methanol market is segmented by application (formaldehyde, acetic acid, MTBE, DME, fuel blending, MTO, biodiesel), by end-user (construction, automotive, electrical & electronics, pharmaceutical, packaging, paints & coatings) and by region (North America, Europe, APAC, Middle East and Africa).
Methanol market, by application
Based on application, Methanol is used in the chemical industry to make acetic acid, olefins, formaldehyde, and others. In 2022, approximately 27% of global Methanol was utilized by the Formaldehyde industry. Additionally, Methanol can be mixed with gasoline as a replacement of octane enhancers to improve fuel quality. The global Methanol market is anticipated to reach about 130 million tonnes by 2032.
Methanol market, by end user
Based on the end-user, the global Methanol market is segmented into different sectors that include Formaldehyde, MTO, MTBE, and others. The Formaldehyde industry is the dominating the Methanol market. MTO industry has the second position and employed as a raw material for paints, sprays, etc.
Methanol market, by geography
Based on geography, the global Methanol market is classified into North America, Europe, APAC, Middle East and Africa. In 2022, APAC region consumed approximately 65% of the Methanol. It is anticipated that Asia Pacific will be most likely remain the biggest consumer. In 2022, Saudi Arabia was the leading producer of Methanol.
Methanol market drivers
One of the key drivers of Methanol market is the expanding petrochemical sector in China, the United States, and other Asia-Pacific countries. The rising demand for methanol-based fuels are the major driving factors augmenting the growth of the Methanol market. Furthermore, the growing utilization of methanol in producing olefins using MTO propels increased offtakes in the chemical industries.
In recent years, the Asia-Pacific emerged as the largest market for Methanol. It is expected to witness the highest CAGR during the forecast period. The dominance of the Asia-Pacific is attributed to the high demand for Methanol in China, Japan, and other Southeast Asian countries, expanding chemical and other application sectors.
Global Methanol Market Trends
The use of methanol in energy-related applications increased significantly in the recent years. Methanol is widely used in methanol-to-olefins (MTO) transformation reactions, which provides a chance to produce basic petrochemicals from non-oil resources like coal and natural gas.
Methanol is a precursor for producing methyl tertiary-butyl ether (MTBE), which is added to gasoline to enhance the octane number by increasing the oxygen content. MTBE leads to the complete combustion of gasoline and, thus, lowers the exhaust of harmful gases, like carbon monoxide, and other emissions from vehicles, reducing air pollution. Plus, Methanol is a vital material for the production of biodiesel, which is used as an alternative renewable fuel for crude oil-derived diesel.
Considering all these factors, the use and demand of methanol for energy-related applications are expected to grow in the forecast period.
FAQ
What is the Methanol market size?
The global Methanol market size was US$ 37 billion in 2021 and is projected to reach US$ 60 billion by 2030, growing at a CAGR of 3.5% during the forecast period.
What is Methanol used for?
Methanol is a colorless and volatile liquid produced by oxidizing methane. This product is used in the transportation industry as an alternative fuel for its high-octane-rated and excellent blending properties. Methanol is environmentally friendly, reduces greenhouse, and is considered an ideal alternative for crude oil, gasoline, and diesel fuel.
What is Methanol CAS Number?
Methanol CAS Number is 67-56-1.
Is Methanol toxic?
Inhalation or oral exposure to methanol may result in headache, dizziness, giddiness, insomnia, Nausea, visual disturbances, and blindness in humans. It should be stored in well-ventilated areas, away from direct sunlight and moisture.