Increasing demand for petrochemicals in APAC driving the market growth of Methanol
The global methanol market size is expected to grow from USD 24.0 billion in 2020 to USD 26.6 billion by 2025, at a CAGR of 5.5% during the forecast period. Methanol are used across industries, such as Construction, Automotive, Electronics, Appliances, Paints & Coatings, Insulation, Pharmaceuticals, Packaging (PET bottles) and Solvents. In the methanol market, automotive is the key end-use industry owing to the wide applications of these methanol.
Methanol is used large-scale production of petrochemicals. The growth in petrochemicals demand in APAC is driving the methanol market. The use of petrochemicals in end-use industries such as automotive and construction is the main driving force for the methanol market. In the petrochemical industry, organic chemicals with the largest production volume are methanol, ethylene, propylene, butadiene, benzene, toluene, and xylenes. Ethylene, propylene, and butadiene, along with butylene, are collectively called olefins.
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Methanol is a forerunner to a variety of chemical products and is generally referred to as primary petrochemical. The production of olefins from methanol is coming as a major driver for the growth of methanol in the petrochemical industry. MTO/MTP is the third-largest and the fastest-growing derivative segment in the methanol market. Methanol-to-olefins and methanol-to-propylene (MTO/MTP) applications are gaining momentum. This usage is driven solely by China. In 1990, the conversion of methanol to olefins technology was introduced. In this process, methanol is first converted into dimethyl ether (DME), and then it is converted into hydrocarbons. These hydrocarbons are then converted into plastics with large amount of water as a by-product. Ethylene and propylene are the major feedstock of polyethylene and polypropylene, respectively.
The demand for propylene is growing faster than ethylene. The conventional technologies used in the olefins production process are failing to fulfill the demand. MTO technologies are the most economical and are fulfilling the need for olefins in the market. There are several MTO plants in China, which are using coal as the major feedstock. The growth of MTO plants in China is increasing rapidly due to the huge demand for plastics such as polyethylene and polypropylene in end-use industries. Therefore, the rise in MTO plants in China and the huge production of olefins from methanol in the country are the major drivers of the methanol market in APAC.
The solvents will continue to highest growing industry in the Methanol market. Due to the huge demand from the pharmaceutical, construction, and paints & coating end-use industries. Methanol is the most used solvent in the construction and paint & coating industries. Methanol is used as a laboratory solvent, which is useful for HPLC, UV/VIS spectroscopy, and LCMS due to its low UV cutoff.
Asia Pacific accounted for the largest share of the Methanol market in 2020. Factors such as the rapidly increasing consumption of methanol in the automotive, construction and phramacutical industries in countries such as China, Japan, India, South korea and Australia have led to an increased demand for Methanol in the Asia Pacific region.
Celanese Corporation (Texas), BASF SE (Germany), Methanex Corporation (Canada), SABIC (Saudi Arabia), PETRONAS (Malaysia), Mitsubishi Gas Chemical Company (Japan), and Mitsui & Co., Ltd. (Japan) are the leading methanol manufacturers, globally.
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