The global Renewable Methanol Market is estimated to be valued at US$ 212.35 Mn in 2023 and is expected to exhibit a CAGR of 7.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Renewable methanol is methanol produced from non-petroleum sources like natural gas, coal, renewables and municipal solid waste. It is a clear colorless liquid primarily used as a precursor to various chemical products and as a fuel or fuel additive. As an alternative fuel, it is cleaner burning than other liquid fuels and reduces greenhouse gas and other emissions. It has a high octane rating and energy density, making it an excellent blending component for gasoline. With growing concerns regarding emissions and focus on reducing dependence on fossil fuels, the demand for renewable fuels is increasing significantly.
Market key trends:
Renewable methanol is increasingly gaining traction as a carbon-neutral fuel that can reduce transportation sector emissions. With rising carbon emissions becoming a major concern worldwide, various countries and organizations are taking initiatives to promote the use of renewable fuels. The International Maritime Organization (IMO) has introduced regulations to reduce greenhouse gas emissions from ships which is expected to provide opportunities for renewable methanol as a marine fuel. Many large shipping companies and ports are actively investing and partnering to develop infrastructure for renewable methanol. In the coming years, its adoption is expected to grow substantially in the shipping and road transportation sectors, driving the renewable methanol market growth over the forecast period.
Porter’s Analysis.
Threat of new entrants: The renewable methanol industry requires high capital investments for establishing production plants, which poses barriers for new players.
Bargaining power of buyers: The presence of numerous large buyers such as BP, Sasol and SABIC in the industry increases their bargaining power over suppliers.
Bargaining power of suppliers: Majority of the key feedstock suppliers in the industry such as CO2 and syngas have global presence, thus exerting pressure on prices.
Threat of new substitutes: Alternatives like ethanol have limited threat currently due to renewable methanol's ability to use diverse range of waste resources as feedstock.
Competitive rivalry: The industry comprises few major players globally controlling majority share. Intense competition exists between these players to gain higher market share.
Key Takeaways
The Global Renewable Methanol Market Demand is expected to witness high growth, exhibiting CAGR of 7.9% over the forecast period, due to increasing need for cleaner transportation fuels. The market size for 2023 is US$ 212.35 Mn.
Regional analysis: Asia Pacific region dominates the global market currently owing to presence of large methanol producers and consumers such as China. North America is also expected to grow at fastest pace during the forecast period driven by supporting policies for waste-based biofuel production.
Key players operating in the renewable methanol market are Methanex Corporation, Carbon Recycling International, BioMCN, Enerkem, Chemrec Inc., and Varmlands Methanol. Methanex Corporation is the largest producer with annual capacity of over 3 million tonnes.
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