Methanol Market reveals the market size reaching approximately 115.90 million tons in 2025, with forecasts projecting growth to 138.79 million tons by 2030, reflecting a compound annual growth rate (CAGR) of 3.67% over the period 2025–2030, This comprehensive study—including detailed segmentation, regional analysis, and strategic drivers—shows how methanol is evolving amid energy transition, shipping decarbonization, and shifting global demand dynamics.

Report Overview: https://www.mordorintelligence.com/industry-reports/methanol-market?utm_source=ayema.ng  

Key Growth Drivers

Methanol‑to‑Olefin (MTO) Expansion: China continues to invest heavily in MTO capacity as a feedstock for polyethylene and polypropylene production, boosting methanol demand for downstream petrochemical applications 

Energy Transition & Marine Fuel: Methanol’s appeal as an alternative marine fuel is gaining traction. Dual‑fuel vessels and shipping lines converting to methanol (cleaner combustion with lower SOₓ/NOₓ emissions) underpin rising fuel-grade demand 

Feedstock Diversification & Renewables: While natural gas accounted for about 65% of the feedstock share in 2024, renewable methanol (bio‑methanol and power‑to‑methanol) is forecasted to grow at a faster CAGR (~5.12% through 2030), backed by over 210 announced low‑carbon projects 

Decarbonization mandates: Governmental policies targeting shipping emissions, industrial greenhouse gas reduction, and transportation fuels are providing regulatory tailwinds for methanol adoption across sectors.

Check out more details and stay updated with the latest industry trends, including the Japanese version for localized insights: https://www.mordorintelligence.com/ja/industry-reports/methanol-market?utm_source=ayema.ng

Market Segmentation

• By Feedstock:
• Natural Gas–based: ~65% share in 2024.
• Renewable feedstocks: Fastest growth segment at ~5.12% CAGR towards 2030, supported by renewable hydrogen + CO₂ and bio‑residue pathways
• By Application/Derivative:
• Energy/Marine Fuel: Made up ~54% of market in 2024; projected to grow at ~4.24% CAGR through 2030 due to rising dual‑fuel ship orders and fuel‑grade demand
• Chemical derivatives: Continued leadership in demand via use in formaldehyde, acetic acid, and DME feedstock.
• By End‑use Industry:
• Chemical sector: Dominant sector with ~66% share in 2024.
• Transportation/shipping: Expected to record the highest CAGR (~4.15%) to 2030 as maritime decarbonization ramps up 
• By Grade:
• Chemical‑grade methanol: ~75% share in 2024.
• Fuel‑grade methanol: Projected to grow at ~4.04% CAGR through 2030, driven by IMO fuel regulations and marine fuel conversions Mordor Intelligence.

Regional Insights

Asia‑Pacific not only leads in total demand (~78% share) but also in renewable methanol deployment plans and feedstock investments, particularly in China, India, and Southeast Asia Other regions—such as Europe and North America—are witnessing accelerating interest in green/renewable methanol projects, albeit from a smaller base, often tied to shipping fuel hubs, policy incentives, and tax credits Africa and Latin America remain emerging regions, but modest recent plant announcements and shifting local policy suggest future upside.

Renewable Energy Top Companies

•  BASF SE
• Celanese Corporation
• PETRONAS
• SABIC

Challenges and Opportunities

• Feedstock Volatility: Prices of natural gas and coal feedstocks can fluctuate substantially, affecting cost dynamics for large capacity plants.
• Infrastructure Gaps: Renewable methanol supply and marine fueling infrastructure remain nascent in many parts of the world, slowing large‑scale adoption.
• Regulatory and Certification Lag: Green methanol certification protocols and global standards are still evolving, delaying widespread acceptance in fuel and chemical markets.
• Competition from Alternative Fuels: Other low‑carbon fuel options—such as ammonia, hydrogen, and biofuels—pose competitive threats, particularly in marine and industrial sectors.

Conclusion:

Mordor Intelligence’s report underscores methanol’s transition from conventional petrochemical feedstock to a strategic, versatile component of the energy transition. Growth will be broadly supported by Asia‑Pacific demand, maritime fuel shift, renewable methanol deployment, and sustained feedstock investments. While challenges remain—from feedstock volatility to infrastructure limitations the methanol industry is poised for transformation as sustainability, regulation and innovation converge.

For a comprehensive understanding of the trends shaping the future of the Renewable Energy Industry, access the full report on the Methanol Market here. Stay ahead of the curve by leveraging our insights to drive your strategic decisions.

About Mordor Intelligence:

With a team of over 550 domain experts and on-ground specialists spanning 150+ countries, Mordor Intelligence possesses a unique understanding of the global business landscape. This expertise translates into comprehensive syndicated and custom research reports covering a wide spectrum of industries, including aerospace & defense, agriculture, animal nutrition and wellness, automation, automotive, chemicals & materials, consumer goods & services, electronics, energy & Renewable Energy, financial services, food & beverages, healthcare, hospitality & tourism, information & communications technology, investment opportunities, and logistics.

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