The burgeoning demand for petrochemicals is driving the sales of methanol across the world. This is because methanol is extensively used in the petrochemical industry for manufacturing various petrochemical products such as methyl chloride, methyl methacrylate (MMA), meth tert-butyl ether, formaldehyde, methylamine, and acetic acid. The expansion of several end-use industries such as automotive and construction, primarily because of the increasing disposable income and surging population, is propelling the sales of these products.
Furthermore, the rising globalization rate is creating lucrative growth opportunities for petrochemical companies, as they are now able to open their production facilities in multiple regions. Apart from this, the soaring requirement for methanol-based fuel, on account of its eco-friendliness, is also fueling the demand for methanol, thereby driving the expansion of the global methanol market. As a result, the market value is predicted to rise above $20 billion (its value in 2020) in the coming years.
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Automotive, electronic, construction, paint & coating, chemical, packaging, and pharmaceutical are the major end-use industries of methanol. Out of these, the requirement for the chemical was the highest in the automotive industry during the last few years, as per the observations of P&S Intelligence, a market research company based in India. This was because of the huge requirement for automobiles around the world and the huge demand for clean and green fuel sources for vehicles.
This is ascribed to its several applications such as development of building materials and many household items. Furthermore, formaldehyde is heavily used for manufacturing interior-molded components of automobiles for reducing their weight and increasing their efficiency and as a preservative in various biological materials. Geographically, the demand for the chemical is predicted to soar in Asia-Pacific (APAC) in the upcoming years, primarily because of the surging utilization of methanol-based fuel in the regional countries such as India, Japan, and China.
Hence, it is clear that the demand for methanol will shoot up all over the world in the coming years, mainly because of the soaring sales of petrochemicals, growing requirement for methanol-based fuel, and the increasing production of formaldehyde.
