Bio Methanol Market Size, Share, Growth, and Industry Analysis by Type (By-Product Sourced and Waste Sourced) By Application (MTBE, DME, Gasoline Blending, Bio-diesel, and Others) Covid-19 Impact, Latest Trends, Segmentation, Driving Factors, Restraining Factors, Key Industry Players, Regional Insights, and Forecast To 2031

Updated On: 20 November 2023

Bio Methanol Market Report Overview

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The global bio methanol market size was USD 117.7 million in 2022 and is expected to reach USD 2460.5 million in 2031, exhibiting a CAGR of 36.1% during the forecast period.

Bio-methanol is a term used to describe renewable methanol that is created from biomass, such as sewage, municipal solid waste (MSW), forestry and agricultural waste and by-products, biogas, and black liquor from the pulp and paper sector. Bio methanol is produced from unusual energy sources including biomass and industrial waste. The product is a perfect starting point for making biodiesel, which may then be processed as a feedstock for several chemicals and combined into gasoline. The production method is quite similar to that of conventional methanol except that carbon monoxide is used in place of carbon dioxide. Due to its high carbon to hydrogen ratio, carbon monoxide aids in reducing environmental greenhouse gas emissions. The substance has numerous uses in a variety of industries, such as transportation, chemicals, and power generation.

Several sources, including biomass, municipal trash, industrial waste, and many others, are used to make bio methanol. Biomass is mostly used to create the product because it is less expensive than other sources. Forest residues, crop residues, tree crops, and a few forage crops are the resources required to manufacture methanol via biomass. Gasification, a thermochemical process, can be used to create this kind of methanol. On the other hand, all waste materials produced commercially or domestically are included in the municipal trash needed to manufacture methanol. Methanol-to-Olefins (MTO) technology and rising demand for fuel applications are driving bio methanol market expansion, but methanol prices are erratic and constrain it.

COVID-19 Impact: Halt on Manufacturing Operations to Slower Market Growth 

The global COVID-19 pandemic has been unprecedented and staggering, with Bio Methanol experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden rise in CAGR is attributable to the market's growth and demand returning to pre-pandemic levels once the pandemic is over.

A large segment of the workforce working for the enterprises that manufacture Bio methanol was told to remain in quarantine once the COVID-19 pandemic's full scope became apparent. As a result, many manufacturing enterprises were unable to continue operations, and new construction projects came to a halt. Due to decreasing demand, supply chain congestion, and concern for their employees' safety during the COVID-19 pandemic, bio methanol producers have announced a suspension of production. Bio methanol's demand consequently declines in 2020. Firms scheduled output bythe demand from manufacturers and altered production to avoid bottlenecks.

LATEST TRENDS

"Different Storage options to Boost Market Growth"

Additionally, replacing heavy petroleum lubricants with bio methanol can drastically lower their carbon footprint, opening up the potential for the sector under consideration. Bio methanol is a solvent that can be easily stored in ballast and slop tanks, unlike LNG, which needs massive cryogenic tanks for storage. Cryogenic tanks also require more onboard space than cargo or slop tanks. To encourage the use of bio methanol, marine engine producers like MAN and Wartsila are constantly researching engine technology. The above mentioned factors facilitate bio methanol market growth.

Bio Methanol Market Segmentation

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• By Type Analysis

As per the type, the market is classified as follows: By-Product Sourced and Waste Sourced. By product leads the bio methanol market share.

• By Application Analysis

Based on application, the market is segmented as follows: MTBE, DME, Gasoline Blending, Bio-diesel, and Others. The bio methanol market is dominated by MTBE.

DRIVING FACTORS

"Increased Awareness on CO2 Risks to Facilitate Market Development"

Governments have been forced to enact tough restrictions for lowering carbon footprints as a result of rising CO2 emissions on a global scale. This has greatly increased the demand for bio methanol made from renewable sources during the past few years. Additionally, it's predicted that rising levels of agricultural and industrial wastes would be converted into bio methanol during the forecast period, driving up product demand. Bio methanol is mostly produced from biomass. These factors aid the bio methanol market expansion.

"Growing Demand for Bio Methanol to Promote Industry Progress"

The growing demand for bio methanol in the production of various chemicals and solvents has opened up the profit potential for the industry. Additionally, increased demand from the use of methanol to produce formaldehyde is anticipated to fuel product demand shortly. On the other hand, one of the significant variables positively influencing product consumption around the world is high crude oil price volatility. Particularly as a feedstock in the chemical industry or as a fuel for land or sea transportation, low-emission methanol plays a significant role in decarbonizing several industries where possibilities are constrained. Furthermore, it is anticipated that stringent government controls on carbon dioxide and other greenhouse gas emissions will spur market expansion. Trading System are anticipated to encourage the use of bio energy sources and accelerate the growth of the bio methanol market

RESTRAINING FACTORS

"High Manufacturing Cost to Hinder Market Growth"

In the upcoming years, the high cost of manufacturing and insufficient infrastructure needed for the production of bio methanol process may be roadblocks to the bio methanol market's expansion. When compared to conventional energy sources, the initial processing costs of such wastes require large investments. Shortly, difficulties in product demand may arise from the lack of desirable agricultural feedstock that is needed for the manufacturing of bio methanol and the creation of biogas.

Bio Methanol Market Regional Insights

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"Increase in Demand to Propel Market Progress in North America"

Because of its severe government regulations around carbon emissions, Europe is predicted to become a major market for renewable methanol. The demand for regional products is also projected to increase from 2020 to 2028 as a result of legislation in Europe about required product usage and its blends in the automotive industry. The product is also becoming increasingly well-known as a result of the growing need for alternative energy sources for power generation, which is being driven by a desire to wean the general populace off its reliance on fossil fuels for its supply of electricity.

KEY MARKET PLAYERS

"Market Players Focus on New Product Launches to Strengthen Market Position"

Leading players in the market are adopting various strategies to expand their presence in the market. These include R&D investments and the launch of new, technologically-advanced products in the market. Some companies are also adopting strategies such as partnerships, mergers, and acquisitions to strengthen their market position.   

List of Market Players Profiled

• OCI/BioMCN (Netherlands)
• Enerkem (Canada)
• Södra (Sweden)
• Methanex (Canada)
• Alberta Pacific (Canada)
• BASF (Germany)

REPORT COVERAGE

The report covers overall market aspects, including market segmentation based on its type and application. The report depicts a diverse group of participants, including the market and potential market leaders. Major factors that are expected to drive major growth in the market. The factors anticipated to expand the market share are also included in the report to offer market insights. The estimated growth of the market in the forecast period is also included in the report. The regional analysis is completed to explain the region's dominance in the global market. The factors hindering the growth of the market are discussed in detail. The SWOT analysis of the market is depicted in the report. It contains all-inclusive market details.