The methanol market size in Europe was valued at USD 8.87 billion in 2023. The European market is projected to grow at a CAGR of 4.83% from 2024 to 2029 and be worth USD 10.6 billion by 2029 from USD 9.14 billion in 2024.
Methanol plays an important role as feedstock in the production process of chemicals and fuels. Many industries like automotive, chemical, energy sector, and others find various applications that are ascribed to fuel the methanol market growth rate. Petrochemical manufacturing units are creating a huge demand for the use of methanol as a transportation fuel as additives or fuel blends and biodiesel, which is a diesel alternative. It has become a crucial chemical material in the production process of petrochemicals as it is a building block for manufacturing other chemical compounds. Hence, the growing number of petrochemical industries across the region is prompting market growth.
The growing demand for methanol from the growing construction activities is greatly influencing the growth rate of the market. For instance, the European construction revenue in 2020 was estimated at 1.7 trillion Euros, which is the biggest turnover in share. Increasing efforts to reduce the greenhouse effects are leveling up the market share. Europe is one of the regions taking steps to invest huge amounts in green energies that are strong enough to elevate the adoption of applications with methanol. For instance, a Danish company in the European energy field is all set to construct the Green H2 and E-methanol Plants in Romania. This company has become the largest commercial renewable energy producer at an affordable cost. Government support to focus on renewable energy projects in Europe is greatly influencing the growth rate of the Methanol market.
The combination of petroleum fuel and methanol will emit less carbon dioxide when compared to gasoline or diesel fuel. This is one of the major advantages of the rapid adoption of this chemical in the automobile industry. Stringent rules and regulations by private organizations to curb the spread of harmful emissions from vehicles are propelling the demand for methanol usage. Even in the marine industry, the usage of methanol is increasing rapidly with the new set of regulations by European authorities to deploy alternative fuel infrastructure.
Increasing research and development activities to launch innovative products can potentially create growth opportunities for the methanol market in Europe. Methanol, when blended with gasoline, results in a 15% reduction in the import of crude oil, especially in emerging countries. This is anticipated to promote the growth rate of the market in the near future. Also, to meet the increasing demand for the production of energy everywhere is prompting the need for the use of methanol in many industries. Lower risk of flammability is another factor ascribed to bolster the growth rate of the methanol market in the future.
The availability of alternative chemical compounds as attractive alternatives, such as ethanol, is limiting the market growth rate. In remote areas, the reluctance to adopt new technologies is quietly low when compared to urban areas, which is another factor limiting the demand for the use of methanol in various industries. Difficulty in the availability of methanol creates disruptions in the supply chain, where the cost of this product is increasing every year. Small-scale industries cannot afford to adopt alternative fuel infrastructure, which is merely hampering the growth rate of the methanol market.
Increasing prominence to improve efficiency and maintain uninterrupted power input, the chances for adopting methanol as an alternative fuel are slowly hindering. This factor is accounted for in impacting negative results on the growth rate of the market. However, the key players are concentrating on several solutions to enhance the engine efficiency rate using methanol.
The natural gas segment has been led with the dominant share of the market for the past few years and is expected to continue the same flow during the forecast period. Biomass segment is projected to hit the highest CAGR by the end of 2024 to 2029. Production of methanol from natural gas is quite easy and affordable compared to other feedstocks, and hence, the demand for natural gas feedstock is eventually increasing.
The formaldehyde segment is ruling with the prominent share of the market as it is a major derivative of methanol. Formaldehyde has various applications in various industries such as textiles, polymers, resins, and others. The acetic acid segment is next in leading the highest share, whereas the chloromethane segment is gaining traction over the growth rate.
Polyethylene terephthalate (PET) has major benefits like sustainability and tensile strength, which is a major factor for the segment to grow at a higher rate. The acetic anhydride segment is growing at a dominant growth rate in the foreseen years.
Based on the end user, the Construction segment rules the dominant share as it is used majorly in the making of plywood and medium-density fibreboard. The automotive segment is likely to grow at a faster rate with the growing demand for hybrid vehicles.
Europe is gaining traction over the methanol market share. All the construction activities are going at a faster rate after the COVID-19 lockdown restrictions, which is greatly impacting the growth rate of the market. Also, rising investments in the European automotive industries with the growing demand for luxury vehicles are accounted for in leveling up the growth rate of the market.
Germany's methanol market is leading with the largest share. Owing to a high number of construction activities with innovative applications, the growth rate of the market in Germany is increasing exponentially. For instance, the German construction production rate was held at 360 billion Euros in 2022. Alongside, the market share in the U.K. and France has also grown tremendously in the past few years.
Italy's methanol market share is set to have robust growth opportunities in the coming period, whereas Spain's market is expected to have a slow growth rate during the forecast period.
Companies playing a major role in the Europe methanol market include Methanex Corporation, HELM Proman Methanol AG, Zagros Petrochemical Company (ZPC), Celanese Corporation, BASF SE, PETRONAS, Mitsubishi Gas Chemical Company Inc., Mitsui & Co., Ltd., LyondellBasell Industries B.V., OCI N.V., Metafrax Chemicals and SIPCHEM.
Related Reports
Access the study in MULTIPLE FORMATS
Purchase options starting from $ 2000
Didn’t find what you’re looking for?
TALK TO OUR ANALYST TEAM
Need something within your budget?
NO WORRIES! WE GOT YOU COVERED!
Call us on: +1 888 702 9696 (U.S Toll Free)
Write to us: [email protected]
Reports By Region