Syngas Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)


Posted April 24, 2021 by Statzyreports

The Global Syngas Market size was estimated at around 300 GWth in 2020 and the market is projected to register a CAGR of over 11% during the forecast period (2021-2026).
 
The Global Syngas Market size was estimated at around 300 GWth in 2020 and the market is projected to register a CAGR of over 11% during the forecast period (2021-2026). The market was negatively impacted by COVID-19 in 2020. Syngas is mainly consumed by end-user industries such as chemicals, liquid fuels, gaseous fuels, and others. Considering the pandemic scenario, the chemical manufacturing units were on a temporary halt, thus led to a decrease in the demand for the syngas, furthermore, the demand for syngas-based chemicals like dimethyl ether and methanol has been decreased as they can be used as an automotive fuel. However, the usage of ammonia as an excipient (inactive agent) from the pharmaceutical industry has been increased during this period.

- Over the short term, the growing demand for syngas from the power generation industry and feedstock flexibility for syngas production is expected to drive the market growth.
- On the flip side, syngas production plants setup requires high capital investment and funding. This factor is expected to hinder the market growth.
- The development of underground coal gasification technology and utilization of biomass and municipal wastes are likely to act as an opportunity in the future.
- Asia-Pacific dominated the market across the globe, with the largest consumption, holding a major share in the market, followed by North America and Europe.

Key Market Trends

Chemicals Application to Dominate the Market

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- The chemical industry is the largest application of syngas. The chemical industry tends to use feedstocks that are the most economical to procure or produce.
- Major economies of the world, like the United States, China, and India, along with some African nations use coal as the raw material for the production of various chemicals, like methanol, hydrogen (H2), and carbon monoxide (CO). These are the building blocks for the manufacturing of a wide range of derivative chemicals.
- Syngas is the widely used feedstock for the production of methanol. Methanol is produced from syngas in three stages. They are synthesis gas production, methanol synthesis, and methanol purification.
- Moreover, n-butanol is one of the chief oxo-alcohols produced from the syngas, along with propene. N-butanol is used as an alternative to ethanol as bio-fuel apart from its various other uses in plastic production.
- The global chemical industry was valued at about USD 3938.5 billion in 2019, registering a decline rate of about 3.5% compared to the previous year. However, witnessed a decline in 2020 due to the fall in capital spending and negative growth in chemical trade.

- Ammonia, a syngas product, is used to produce nitrogen based fertilizer for agricultural sectors. In 2019, the total volume of nitrogen based fertilizers used for agricultural purposes was accounted for 11.5 million tons in Europe, registering a decline rate of about 2.5%, which in turn stimulates the market demand for the syngas.
- Therefore, the aforementioned factors are expected to show significant impact on the market in the coming years.

Asia-Pacific Region to Drive the Market Demand

- Asia-Pacific dominated the global market share, with rising demand from the chemical industry, primarily from refineries.
- China is a hub for chemical processing, accounting for the majority of chemicals produced, globally. With the growing global demand for various chemicals, the demand for syngas from this sector is expected to increase significantly during the forecast period.

- Moreover, the consumption of both liquid and gaseous fuels is increasing exponentially in the country. This is expected to augment the syngas market’s growth over the forecast period.

- India is another largest oil consumer in the world. The demand for increasing refining capacity is primarily due to the growing demand for fuel. Replacement of LPG as a cooking fuel, increasing urbanization, along with demand for infrastructure and consumer goods, are some of the factors augmenting the demand for fuel.
- Synthesis gas plays a huge role in power generation. Total installed capacity of electric power generation in China was about 2011 gigawatts in 2019 and reached about 2200 gigawatts in 2020, with a growth rate of about 9%.

- Ammonia, a syngas product, is used to produce di-ammonium phosphate (DAP) which is used in the agricultural sector. The production volume of DAP was about 3.89 million tons in India as of FY2019 and reached about 4.48 million tons as of FY2020, with a growth rate of about 15%, thus led to an increase in the demand for ammonia.
- Therefore, the aforementioned factors are expected to show significant impact on the market in the coming years.

Competitive Landscape

The global syngas market is fragmented in nature. Some of the key players in the market include Air Products Inc., Linde plc, Air Liquide, Sasol, and Haldor Topsoe A/S, among others.

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Tags covid19 impact , syngas market , syngas market forecast , syngas market share , syngas market size , syngas market trends
Last Updated April 24, 2021