Rising Application Of Methanol In Automotive Industries To Drive The Methanol Market

(MENAFN- Straits Research) Introduction

Methanol (CH3OH) is a single carbon compound produced from coal, natural gas, and biomass. Based on end-user, the automotive segment is anticipated to account for a significant share in the global market due to the rising demand for lightweight vehicles in order to reduce carbon emission. The automotive segment is anticipated to contribute most to the methanol market as there has been a drastic rise in the use of transportation fuel.
Methanol is extensively used as a transportation fuel in the automobile industry for its efficiency and easy availability. The compound is also used for manufacturing Dimethyl Ether (DME) and Methyl Tert-Butyl Ether (MTBE), which is considered as an ideal substitute over traditional gasoline.

Methanol also finds application in the manufacturing of formaldehyde, acetic acid, and methyl acetate. The rising demand for methanol in the construction industry drives market growth. Formaldehyde-based resins are utilized to make engineered wood and composites products. Increasing commercial and residential construction activities and surging per capita income provide an impetus to the market growth.

The global methanol market size was valued at
USD 32,325.9 million in 2024
and is projected to reach from
USD 34,253.3 million
in 2025
to
USD 53,145.9 million by 2033, growing at a
CAGR of 5.7%
during the forecast period (2025-2033).

Impact of COVID-19 on Methanol market

Coronavirus outbreak in China has disrupted the supply chain across the globe. Methanol is extensively used in the packaging industry, which is currently witnessing a significant surge due to the rising demand for packaged food across the globe. On the other hand, the automotive industry is witnessing a considerable decline due to lockdown imposed by the government. China is one of the largest producers of the polyester chain, polyvinyl chloride (PVC), purified terephthalic acid (PTA), methanol, and methyl tertiary butyl ether (MTBE); thus disruption in the supply Chain has majorly affected the global methanol market.

Competitive Players

Atlantic Methanol

Metafrax Group

Celanese Corporation

Methanex Corporation

Zagros Petrochemical Company

OCI Global

Mitsui

BASF SE

Proman AG

Equinor

Koch Industries

Mitsubishi Gas Company

Petroliam Nasional Berhad (PETRONAS)

LyondellBasell Industries

SABIC

Recent Developments

March 2024 : Methanol Chemicals Company has signed an agreement to acquire an 84% stake in Adani Chaddar Chemicals Company. This strategic acquisition is expected to enhance Methanol Chemicals Company's production capabilities and expand its market presence.
February 2024 - Consolidated Energy Limited (CEL) successfully acquired a 60% stake in Oman Methanol Company LLC (OMC) . This acquisition will enable CEL to strengthen its foothold in the CH3OH market and leverage OMC's operational efficiencies to drive growth and innovation in CH3OH production.

Segmentation

By Feedstock

Natural Gas

Coal

Biomass & Renewables

By Applications

Formaldehyde

Acetic Acid

Methyl tert-butyl ether (MTBE)

Dimethyl ether (DME)

Fuel Blending

Methanol-to-diesel (MTD)

Biodiesel

Others

By Sales Channel

Direct

Distribution

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