The global methanol market is estimated to proliferate at a CAGR of 5.42% in the forecast years 2019-2027, as per a report by ResearchAndMarkets.com. The key drivers responsible for the growth of the methanol market are the rising acceptance of the MTO technology, the rise in the demand for petrochemicals, the need for conventional transportation fuels and the promotion of methanol as an alternative fuel by government. However, the scarcity of raw materials and the use of fuel grade ethanol or bioethanol instead of methanol are factors that restrain the growth of the market.
The methanol market also faces challenges such as unstable methanol prices, economic slowdown hindering the demand for methanol and strict regulations & policies. The increase in the demand for bio-based products, development in technology for biorefining and the application of methanol as a marine fuel are some of the opportunities that can be leveraged by this market in order to propel further growth. The market is segmented based on derivatives and end-users. Derivatives comprise formaldehyde, gasoline, DME, acetic acid, MTBE & TAME and others; whereas, end-users consist of automotive, electronics, paints & coatings, construction and others.
In 2018, the Asia-Pacific region was the dominant region in the global methanol market, and it is projected to further continue its course of growth trajectory throughout the forecasting period. The demand for methanol has witnessed a huge upsurge in the region at a pace faster than the regions of North America and Europe. The dominance of APAC in the global market is attributable to the increasing demand for methanol and its derivatives from various industries.