Impact Analysis of Covid-19
The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.
Renewable methanol is produced from renewable sources such as industrial wastages and biomass. It is a key ingredient in the manufacturing of biodiesel production which can be used with automobile fuels. Renewable methanol is widely used across power generation, transportation, automobiles, and chemical manufacturing sectors. Renewable methanol contributes to decreasing carbon dioxide emissions level by 60%-80%.
The global renewable methanol market is projected to reach around US$ 266.2 million by the end of 2027, in terms of revenue, growing at CAGR of 6.5% during the forecast period (2020-2027).
Rising demand for renewable methanol as a motor fuel across the transportation industry is projected to augment market growth. Renewable methanol is produced from natural gas, coal and landfill waste, wood waste, and seaweed. It reduces greenhouse emissions by 15–20% as compared to gasoline. Renewable methanol is used as a motor fuel and also has the highest hydrogen-to-carbon ratio as compared to liquid fuel owing to its high octane number.
Growing environmental concerns due to global warming and changing weather conditions is primarily fueling the market growth of renewable methanol. The depletion of natural resources due to increasing reliance on fossil fuels and fluctuating prices of natural gas and crude oil is also contributing to the market of renewable methanol. Thus, growing environmental concern subjected to CO2 emission is projected to propel the market growth of renewable methanol.
Figure 1. Global Renewable Methanol Market Share (%) in terms of Value, By Region, in 2019
Europe region dominated the global renewable methanol market in 2019, accounting for 29.4% share in terms of value, followed by North America and Asia Pacific, respectively.
High demand for agricultural feedstock for the production of biogas and bioethanol is expected to hamper the production and consumption of renewable methanol. This is expected to hinder the market growth of renewable methanol.
Renewable Methanol Market Report Coverage
||Market Size in 2019:
||US$ 161.2 Mn
|Historical Data for:
||2016 to 2019
||2020 to 2027
|Forecast Period 2020 to 2027 CAGR:
||2027 Value Projection:
||US$ 266.2 Mn
|Geographies covered (27):
- North America: U.S., Canada
- Latin America: Brazil, Argentina, Mexico, Rest of Latin America
- Europe: Germany, U.K., Spain, France, Italy, Russia, Rest of Europe
- Asia Pacific: China, India, Japan, Australia, South Korea, ASEAN, and Rest of Asia Pacific
- Middle East: GCC, Israel, and Rest of Middle East
- Africa: South Africa, North Africa, and Africa
- By Primary Source: Biomass, Municipal Waste, Industrial Waste, and Others
- By Application: Formaldehyde, Methyl tert-butyl ether (MTBE), Gasoline, Dimethyl ether, Solvents, and Others
Methanex Corporation, Carbon Recycling International, BioMCN, Enerkem, Chemrec Inc., Varmlands Methanol
- Rising demand for renewable methanol as a motor fuel across the transportation industry
- Growing environmental concerns due to global warming and changing weather conditions
|Restraints & Challenges:
- High demand for agricultural feedstock for the production of biogas and bioethanol
Growing demand for renewable methanol from the automotive industry as a superior liquid motor fuel is expected to present lucrative opportunities to the market. According to the Coherent Market Insights analysis, the total number of passenger transport in Europe is expected to increase by over 35% by 2050 as compared to the current level. Increasing the use of an electric vehicle that is powered by fuels and renewable methanol is used in fuel-cell vehicles. Thus, growth in the automotive industry will favor market growth.
Increasing focus of manufacturer on the conversion of industrial and agricultural wastages into renewable methanol is projected to raise the product demand. This is expected to create major opportunities for growth in the market of renewable methanol. Also, increasing demand for bio-based chemicals and solvents around the globe is further expected to accelerate the market growth of renewable methanol.
Figure 2. Global Renewable Methanol Market– Opportunity Analysis
Increasing adoption of advanced and eco-friendly technology for the production of renewable methanol is expected to foster market growth. For instance, in June 2019, Eni and Synhelion, a spin-off of Zurich Polytechnic University (ETHZ), announce the development of new technology for the production of methanol from carbon dioxide (CO2), water and methane. The production of methanol using renewable energy will help Eni to simultaneously work towards the twin targets of greenhouse gas reduction and carbon dioxide usage as raw material.
Figure 3. Global Renewable Methanol Market Share (%) in terms of Value, By Primary Source, in 2019
On the basis of primary source in 2019, the biomass segment has accounted the largest market share of 42.4% in terms of value, followed by municipal waste and industrial waste segment respectively.
Low Carbon Fuel Standard
- EU: Directive 2009/30/EC (Fuel Quality Directive)
- Canada (British Columbia): Renewable & Low Carbon Fuel Requirements Regulation
- U.S. (California): Low Carbon Fuel Standard (also being considered in Oregon, Washington, the Northeast and Mid-Atlantic states, the Midwest states, and at the
- national level)
Global Renewable Methanol Market - Impact of Coronavirus (Covid-19) Pandemic
The coronavirus outbreak has resulted in lower transport activity across the globe. This has resulted in lower demand for blended fuels from transportation industry, which in turn is expected to impact demand for renewable methanol in 2020. Moreover, low gasoline prices is also impacting renewable methanol consumption. Many production facilities in Brazil, European Union and United States have reduced their production due to sluggish local and international demand. Reduced demand is expected to increased renewable methanol stocks in many markets, decreasing the renewable methanol prices and compromising profitability. The global renewable methanol market is expected to grow at a low CAGR of around 3% for a short term period till 2021.
- Methanex Corporation
- Carbon Recycling International
- Chemrec Inc.