by The renewable methanol market has seen significant growth in recent years due to its increasing use as a clean source of energy in transportation fuels. Methanol is an alternative fuel that can replace gasoline and be utilized in internal combustion engines as well as fuel cells. Compared to conventional fossil fuel sources, renewable methanol has a much lower carbon footprint as it is produced from biomass waste, greenhouse gases, and even water using renewable sources of energy like solar and wind power. The global renewable methanol production process captures carbon emissions that would otherwise be released into the atmosphere and converts it into a liquid fuel.
The renewable methanol market is estimated to be valued at US$ 212.35 Mn in 2023 and is expected to exhibit a CAGR of 7.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the major trends driving the renewable methanol market is its usage in transportation fuel applications. Methanol is being increasingly used as a blending component in gasoline to reduce emissions from vehicles. It can be directly utilized in methanol-fueled vehicles or converted to gasoline via methyl-tert-butyl ether (MTBE). Methanol fuel cells are also emerging as an alternative to power vehicles, offering higher efficiencies than gasoline. Renewable methanol provides a sustainable fueling solution and helps reduce dependence on crude oil. As governments worldwide push for cleaner energy adoption in transportation, the demand for renewable methanol as a transport fuel is expected to witness strong gains over the coming years.
Porter’s Analysis
Threat of new entrants: Low capital requirements and availability of raw materials lowers the threat of new entrants in the renewable methanol market. However, established players have technological expertise and economies of scale
Bargaining power of buyers: Buyers have moderate bargaining power due to the availability of substitute products. However, stringent environmental regulations boost the demand for renewable methanol.
Bargaining power of suppliers: Suppliers have low to moderate bargaining power due to the availability of alternative raw material sources and suppliers.
Threat of new substitutes: Hydrogen and renewable diesel pose potential threats, but renewable methanol has established infrastructure and distribution channels.
Competitive rivalry: The renewable methanol market is moderately competitive with players differentiating based on production technologies and feedstock.
Key Takeaways
The global Renewable Methanol Market Growth is expected to witness high growth. North America dominates the market currently due to supportive government policies and presence of key players. Stringent environmental regulations regarding carbon emissions boost the demand for renewable methanol as transportation fuel.
Regional analysis comprises- Europe is expected to grow at a significant rate during the forecast period due to increasing use of renewable methanol in transportation. The region is focusing on replacing fossil fuels with renewable alternatives to reduce reliance on imports.
Key players operating in the renewable methanol market are Methanex Corporation, Carbon Recycling International, BioMCN, Enerkem, Chemrec Inc. Key players are focusing on capacity expansion and partnerships to cater to the growing demand. Methanex Corporation is one of the largest producers of renewable methanol using diverse production processes.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc.
