USD 196.8 million
Global Renewable Methanol Market Size, Share, Growth Analysis, By Feedstock(Agricultural Waste, Forestry Residues), By End user(Industry, Chemicals) - Industry Forecast 2024-2031
Report ID:
SQMIG15C2062 |
Region:
Global |
Published Date: March, 2024
Pages:
184
|
Tables:
67 |
Figures:
65
Global Renewable Methanol Market Insights
Global Renewable Methanol Market size was valued at USD 196.8 million in 2022 and is poised to grow from USD 212.35 million in 2023 to USD 390.14 million by 2031, growing at a CAGR of 7.9% in the forecast period (2024- 2031).
The renewable methanol market has experienced significant growth and attention in recent years as a promising sustainable alternative to traditional methanol production methods. Renewable methanol, also known as bio-methanol or green methanol, is synthesized using carbon dioxide (CO2) captured from industrial processes or directly from the atmosphere, combined with hydrogen derived from renewable sources such as biomass, wind, or solar energy. The market's growth is driven by its potential to address critical environmental and energy challenges. It offers a viable pathway for reducing carbon emissions by utilizing CO2 as a feedstock rather than emitting it into the atmosphere. This aligns with global efforts to combat climate change and transition towards a low-carbon economy.
Renewable methanol finds applications across various sectors. It serves as a clean-burning fuel for transportation, replacing fossil-based fuels and reducing greenhouse gas emissions. Additionally, it is a valuable feedstock in chemical production, enabling the creation of bio-based plastics, solvents, and other products. The versatility of renewable methanol positions it as a key player in the emerging circular economy. Investments and partnerships in research and development have accelerated technological advancements in renewable methanol production, making it increasingly cost-competitive with conventional methods. Government incentives and regulatory support for renewable fuels further bolster market growth.
US Renewable Methanol Market is poised to grow at a sustainable CAGR for the next forecast year.
Market snapshot - 2024-2031
Global Market Size
Largest Segment
Transportation
Fastest Growth
Power Generation
Growth Rate
7.9% CAGR
Global Renewable Methanol Market ($ Bn)
Country Share for Europe Region (%)
Global Renewable Methanol Market By End user ($ Bn)
Global Renewable Methanol Market By End user (%)
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Global Renewable Methanol Market Segmental Analysis
The global renewable methanol market is segmented on the basis of Feedstock, End user, Application, and region. By Feedstock, the market is segmented into Agricultural Waste, Forestry Residues, Municipal Solid Waste, Co2 Emissions, Others. By End user, the market is segmented into Industry, Chemicals, Transportation, Power Generation, Others. By Application, the market is segmented into Formaldehyde, Dimethyl Ether (DME, also known as Methoxymethane) and Methyl tert-Butyl Ether (MTBE), Gasoline, Solvents, Others. By region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Renewable Methanol Market Analysis By Feedstock
In the renewable methanol market, agricultural waste holds a dominant position. Agricultural waste, such as crop residues, agricultural byproducts, and organic waste from farms, can be a significant feedstock for renewable methanol production. This feedstock is likely to be the dominant segment due to its abundance and availability. Agricultural waste is generated consistently from farming activities, making it a reliable source for methanol production. Moreover, it has the potential to address waste management challenges and provide economic benefits to the agricultural sector.
On the other hand, Municipal Solid Waste (MSW), which includes household waste, commercial waste, and non-hazardous industrial waste, is expected to be the fastest-growing segment. As societies continue to focus on waste reduction, recycling, and sustainability, there's an increasing interest in converting MSW into valuable products, such as renewable methanol. MSW offers a diverse and substantial feedstock source for methanol production, especially as waste-to-energy technologies advance and become more efficient.
Renewable Methanol Market Analysis By End user
Transportation is a dominant end-user industry for renewable methanol. It is used as a cleaner alternative fuel to traditional gasoline and diesel in internal combustion engines and fuel cells. Renewable methanol can be produced from various renewable sources such as biomass, carbon dioxide (CO2) captured from industrial processes or directly from the air (known as "carbon capture and utilization" or CCU), and even from waste materials. It has the potential to significantly reduce greenhouse gas emissions and air pollutants compared to fossil fuels.
On the other hand, the Power generation is one of the fastest-growing segments for renewable methanol. It can be used as a sustainable energy carrier and energy storage solution. Methanol can be synthesized using renewable energy sources (such as solar, wind, and hydropower) by converting electricity into hydrogen through water electrolysis and then combining the hydrogen with captured CO2 to produce methanol. This process allows for the storage and utilization of excess renewable energy, helping to balance the intermittent nature of renewable power generation. In power generation applications, renewable methanol can be used as a fuel for stationary fuel cells, providing a clean and reliable source of electricity. It can also be utilized as a fuel additive or combustion enhancer in traditional power plants to reduce emissions and increase efficiency.
Global Renewable Methanol Market By End user, 2023 (%)
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Global Renewable Methanol Market Regional Insights
The global renewable methanol market is analyzed based on its regional presence, which includes North America, Europe, Asia Pacific, Middle East and Africa, and Latin America. Europe has been a dominant region in the renewable methanol market due to its strong commitment to decarbonization and the transition to cleaner energy sources. Several European countries have implemented ambitious renewable energy and emissions reduction targets, which have driven the demand for renewable methanol as a sustainable fuel and feedstock for various industries. European nations are investing in renewable energy projects, and policies such as the Renewable Energy Directive (RED) have further propelled the adoption of renewable fuels like methanol.
As for the fastest growing segment, Asia-Pacific showcases remarkable growth. The Asia-Pacific region, particularly countries like China and Japan, has shown significant potential for rapid growth in the renewable methanol market. These countries have substantial energy demands and are actively seeking cleaner alternatives to traditional fossil fuels. The adoption of renewable methanol in this region is driven by factors such as air quality concerns, energy security, and a growing focus on sustainable development. China, for example, has been investing in renewable energy infrastructure and has set ambitious targets for reducing greenhouse gas emissions, which could lead to increased demand for renewable methanol as a substitute for fossil fuels.
Global Renewable Methanol Market By Region, 2024-2031
- Largest
- Fastest
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Global Renewable Methanol Market Dynamics
Renewable Methanol Market Drivers
Environmental Concerns and Regulatory Pressures:
- Growing global concerns over climate change and air quality have led to increased demand for renewable and low-carbon fuel options. Renewable methanol, which can be produced from various feedstocks like biomass, CO2, and renewable hydrogen, offers a cleaner alternative to traditional fossil fuels. Additionally, many governments have introduced or strengthened regulations and incentives to promote the use of renewable fuels, creating a favorable market environment for renewable methanol.
Emergence of Carbon Capture and Utilization (CCU) Technologies:
- Carbon capture and utilization technologies involve capturing carbon dioxide emissions from industrial processes and using them as a feedstock for the production of valuable chemicals, such as renewable methanol. The development of efficient CCU technologies has opened up new avenues for producing renewable methanol while simultaneously reducing carbon emissions. As these technologies advance, they contribute to the growth of the renewable methanol market.
Renewable Methanol Market Restraints
Cost Competitiveness and Infrastructure Development:
- The production of renewable methanol, especially from non-traditional feedstocks, can currently be more expensive compared to conventional methanol production methods. This cost differential may hinder the widespread adoption of renewable methanol, especially in regions where there is a lack of supportive policies or infrastructure for renewable fuel distribution and consumption. As a result, the development of cost-effective production processes and the expansion of distribution networks are crucial for overcoming this restraint.
Scale and Feedstock Availability:
- The availability of suitable and sustainable feedstocks for renewable methanol production is essential for its growth. Competition for feedstocks with other industries (e.g., agriculture, biofuels) can potentially limit the scalability of renewable methanol production. Additionally, establishing a consistent and reliable supply chain of feedstocks for large-scale production can be challenging. Adequate supply chain management and diversification of feedstock sources are necessary to address this restraint.
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Global Renewable Methanol Market Competitive Landscape
The Global renewable methanol market’s competitive landscape is characterized by a dynamic interplay of established players and emerging entrants vying to capitalize on the growing demand for sustainable fuels. Leading companies such as Carbon Recycling International, Enerkem are leveraging technological advancements to enhance production efficiency and lower carbon footprints. Collaborations, strategic partnerships, and investments in research and development are shaping the industry, while evolving government policies and rising environmental awareness create both opportunities and challenges. As the global transition towards cleaner energy intensifies, competitive strategies centered on innovation, scalability, and environmental stewardship will define the success of companies in this burgeoning market.
Renewable Methanol Market Top Player’s Company Profile
- BASF SE - Germany
- Carbon Recycling International - Iceland
- Enerkem - Canada
- Fraunhofer - Germany
- Innogy - Germany
- Nordic Green - Norway
- OCI N.V. - Netherlands
- Sodra - Sweden
- Uniper SE - Germany
- Vertimass LLC - United States
Renewable Methanol Market Recent Developments
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In January 2024, Maritime Strategies International (MSI) predicts that there will be more popularity for renewable ammonia contrasted with renewable methanol in fueling the low-carbon economy. This shift mirrors the rising role of elective powers in decreasing fossil fuel byproducts.
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In December 2023, Masdar and Hy24 consented to cooperate to investigate potential open doors in green hydrogen production. They will focus on transforming sustainable power into green hydrogen through a cycle called electrolysis. This partnership will likewise investigate delivering other green energy derivatives like ammonia, methanol, aviation fuel, and liquid hydrogen. They intend to focus on different regions all around the world, including Europe, the Americas, Asia Pacific, and the Middle East and North Africa (MENA).
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In December 2023, Mitsubishi Gas Chemical Company, the City of Yokohama, and Maersk AS signed a Memorandum of Understanding (MOU). This partnership expects to advance the use of green methanol at the Port of Yokohama, determined to decrease fossil fuel byproducts from international marine transportation. The collaboration lines up with Japan's International Container Strategic Port and Harbour Policies and supports the Port of Yokohama's objective of accomplishing carbon neutrality.
Global Renewable Methanol Key Market Trends
- Growing Interest in Carbon-Neutral Fuels: The renewable methanol market has been experiencing increased interest due to the global push for decarbonization and the transition to more sustainable energy sources. Methanol, when produced from renewable sources such as biomass, carbon capture and utilization (CCU), or renewable hydrogen, can be considered a carbon-neutral fuel. This characteristic has led to a rise in demand for renewable methanol, particularly in industries looking to reduce their carbon footprint, such as transportation and power generation. Governments and organizations seeking to meet climate targets have been exploring renewable methanol as a way to achieve cleaner energy solutions.
- Integration with Hydrogen Economy: The trend of integrating renewable methanol with the growing hydrogen economy has been gaining momentum. Methanol can be produced from hydrogen and carbon dioxide, and it can also be converted back into hydrogen through various processes. This flexibility in conversion and storage makes renewable methanol a valuable component of the overall hydrogen ecosystem. The methanol-to-hydrogen pathway can help address some of the challenges associated with hydrogen storage and transportation. As the hydrogen infrastructure develops, renewable methanol could play a crucial role in storing excess renewable energy and providing a readily transportable form of hydrogen for various applications.
Global Renewable Methanol Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Component types team that Collects, Collates, Correlates, and Analyzes the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
According to our global renewable methanol market analysis, the market is experiencing rapid growth as a sustainable alternative to conventional methanol, driven by increasing environmental concerns and the shift towards cleaner energy sources. Renewable methanol is produced from renewable feedstocks like biomass, CO2, and hydrogen, utilizing advanced technologies such as electrolysis and gasification. Its versatile applications in fuel blending, chemicals, and industrial processes are fostering its adoption. The market's expansion is further propelled by government incentives, stringent emission regulations, and corporate sustainability initiatives. However, challenges like high production costs and limited infrastructure hinder its full-scale integration. The renewable methanol market presents significant opportunities for reducing carbon emissions and advancing the transition to a greener economy, while continued innovation and supportive policies will be crucial for its sustained development.
| Report Metric | Details |
|---|---|
| Market size value in 2023 | USD 196.8 million |
| Market size value in 2031 | USD 390.14 million |
| Growth Rate | 7.9% |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Million |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Global Renewable Methanol Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Global Renewable Methanol Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Global Renewable Methanol Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Global Renewable Methanol Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Global Renewable Methanol Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Global Renewable Methanol Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
Global Renewable Methanol Market Report Snapshots
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