The methanol market is expected to increase from USD 30.9 billion in 2023 to USD 38.0 billion by 2030, at a compound annual growth rate (CAGR) of 4.2% from 2023 to 2030. The rising demand for methanol in the automotive sector from various countries has been a driving force in the methanol market's expansion. Government rules on fuel quality and emissions, as well as the availability of methanol refueling infrastructure, all have an impact on methanol consumption in automotive applications.
The construction and automotive sectors are experiencing a growing need for methanol. In terms of fuel efficiency, methanol shows similar performance to other fuels in automobiles and aircraft. Initially, methanol and methanol blends found application in the automotive industry in China. Methanol plays a crucial role in the production of both biodiesel and MTBE, a gasoline derivative. Additionally, formaldehyde, a key component in the manufacturing of various construction materials, is derived from methanol.