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                                  Home Press Releases

                                  Syngas Market Size Forecast to Reach $61.9 Billion by 2026

                                  admin by admin
                                  February 13, 2022
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                                  (EMAILWIRE.COM, February 13, 2022 ) Syngas Market size is forecast to reach US$61.9 billion by 2026, after growing at a CAGR of 5.8% during 2021-2026. Syngas is a gaseous mix consisting primarily of hydrogen and carbon monoxide, which is generated from coal gasification, fluidized bed gasifier, steam reforming, and others. It can be used to fabricated chemicals such as ammonia, butanol, methanol, acetic acid, and dimethyl ether. Ammonia is generally utilized by the fertilizer segment, and methanol, dimethyl carbonate and ether can be used as fuel. The competence of syngas to be formed from a widespread variety of feedstock such as coal, synthetic natural gas, biomass and petroleum coke is impacting the market growth constructively. Uprising environmental concerns have been the foremost drivers for the growth of the syngas market in order to afford alternative methods of fuel production.

                                  COVID-19 Impact

                                  The syngas market was adversely impacted by COVID-19 in 2020. Syngas is mainly consumed by end-user industries such as chemicals, oil and gas, automotive and others. Considering the pandemic situation, the chemical industrialized divisions were on a momentary halt, consequently led to a shrinkage in the demand for the syngas. Due to the COVID-19 pandemic, most of the countries have gone under temporary shutdown, due to which operations of Syngas related industries has been negatively affected, thus hampering the growth of the market. However, the demand for ammonia as an excipient from the pharmaceutical industry has boosted during this pandemic as per the demand.

                                  Syngas Market Segment Analysis – By Feedstock

                                  Coal segment held the largest share of 37% in the Syngas Market in 2020. Coal is primarily used as a fuel. The production of syngas, a mixture consisting primarily of carbon monoxide, carbon dioxide, hydrogen, natural gas, and water vapor from coal and water, and oxygen is majorly achieved by the gasification of coal. Coal formulates a rich energy resource and utilizing its energy requires a greener and cleaner approach. This is likely to initiate research for widening efficient and eco-friendly coal technologies. The high availability of coal for energy production and the excellent compatibility of the feedstock with various syngas production technologies further drives the growth of the coal segment in the syngas market.

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                                  Syngas Market Segment Analysis – By Gasification

                                  Fluidized Gasifiers segment held the largest share in the Syngas Market in 2020. This segment holds the largest share in the syngas market as they are best suited to relatively reactive coals, low rank coals, and other fuels such as biomass. These gasifiers engage back-mixing, and effectively admix feed coal elements with coal particles previously enduring gasification. It is normally use to sustain fluidization, or suspension of coal particles within the gasifier, coal of small particles sizes. The decent fluidized bed devices present a carbon conversion of 97% and in contrast, both entrained-flow and moving-beds processes offer about 99%. The requirement for fluidized gasifiers as an alternative for clean energy supply is increasing continuously with its increased approval in the industrial sectors of oil and gas, chemicals, power, and others. Due to its properties like fuel flexibility and oxidant to certify effective heat and mass transfer, and their aptitude to deal with small particles the demands are escalation in the end-use industries which enhance the growth of syngas market.

                                  Syngas Market Segment Analysis – By Application

                                  Fuel segment held the largest share in the Syngas Market in 2020. The demand for syngas is rapidly increasing mostly in liquid fuel, gaseous fuel, and hydrogen-based electricity. Fuel is produced from syngas as it is obtained from waste materials which would otherwise be thrown away. Ethanol is obtained from syngas which is currently use as biofuel which help reduce greenhouse gas effects and lower domestic dependence on foreign petroleum. Syngas can be used to produce hydrogen, has the potential to be efficient as a fuel source. Hydrogen-based electricity produce no carbon or any harmful byproducts to the atmosphere. Syngas is also use as an intermediate to produce other chemicals. It also extends potential for greenhouse gas emissions in challenging activities, thereby offering significant life cycle reductions as compared to crude oil derivatives which directly boost the growth of syngas market.

                                  Syngas Market Segment Analysis – By End-Use Industry

                                  Chemical segment held the largest share in the Syngas Market in 2020 and is growing at a CAGR of 8.2% during 2021-2026. Syngas is widely used in the processing of chemicals for manufacturing fertilizers, petrochemicals, and oxo chemicals, and others. The chemicals segment is fragmented by derivative into methanol, ammonia, and FT synthesis products. Ammonia is the most manufactured chemical in the world and widely use in production of fertilizers and plant nutrition products. And with the increasing population, redoubled demand for food crops. The need to increase yield per unit of cultivated land in order to meet increasing production requirements is driving large-scale adoption of fertilizers in agriculture sector. As ammonia is a key basic material used as fertilizers, its demand is rising. For instance, global production of ammonia is about 180 million metric tons annually, and 120 ports are fitted out with ammonia terminals. Ammonia being the major chemical used in the production of fertilizers is the major motivation for the growth of the chemical segment for the syngas market.

                                  Syngas Market Segment Analysis – By Geography

                                  Asia-Pacific region held the largest share in the Syngas in 2020 up to 43% followed by North America and Europe. The region is the largest consumer in the chemical industry which offers high growth opportunities for the syngas market. The demand for syngas is rapidly rising in the Asia-Pacific countries such as China, India, and Japan in various applications specially in chemicals, fuel, and electricity. In addition, the growth is attributed to the high availability of coal reserves in countries, for instance, World coal reserves in 2020 stood at 1074 billion tonnes and China holds about 13% of it and on the other hand, India has produced about 729 million tonnes of coal in 2020. Due to increasing demand of syngas in the region, new production plants of syngas are being constructed, for instance, Air Products, one of the world’s largest hydrogen producer, is all set to launch a 30 tonnes per day liquid hydrogen production plant in eastern China in 2022.Moreover, the consumption of both liquid and gaseous fuels is increasing exponentially in the country. This is anticipated to enhance the growth of syngas market over the forecast period.

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                                  Syngas Market Drivers

                                  Usage of syngas in various industrial applications

                                  Rising demand for fuels, fertilizers in agricultural products and others are influencing the growth of the syngas market. Polygeneration is the leading factor that is boosting the syngas market due to the reason that it can be used to derive fuels and chemicals for the purpose of power generation. Furthermore, syngas is use to produce Ammonia which is used to produce nitrogen-based fertilizer for agricultural sectors. In 2019, about 11.5 million tons of total nitrogen-based fertilizers used for agricultural purposes in Europe. Therefore, the factors are expected to show a significant impact on the market in the forecast years. The increasing use of the derivatives in different industrial applications is driving the demand of syngas market.

                                  Syngas for the production of Natural Gas

                                  Syngas is primarily used to produce SNG that is used in the form of Liquified Natural Gas (LNG) and Compressed Natural Gas (CNG) in various industries including railways, marine, transportation and others. It can also be utilized as fuel gas engines for power supply owing to benefits such as low energy costs, increased stability and predictability. The increasing urbanization and rising income are accelerating the number of passengers which apparently drives the growth for the railway sector, for instance, compared to 2019 the revenue for Canadian railways anticipated increase of 7% in 2020. Whereas, India’s export of railways has grown at a CAGR of 31.51% during 2010-2018 to US$507.9 million. Exports of railways in 2019 stood at US$635 million.

                                  Syngas Market Challenges

                                  Heavy capital investments

                                  One of the major restraints to the market is the high capital investments requirements and the long duration and time taken for the installation latest gasification techniques in the operational plants. And moreover, no existing commercial catalyst and usually requires oxygen plant. Besides, the plant has to build in such an area where there is constant availability of the required feedstock and would require heat and mass management. The limitation with the installation plant to a very extend hamper the growth of syngas market.

                                  Syngas Market Landscape

                                  Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Syngas. Major players in the Syngas Market are Dow Chemical, BASF, KBR, Mitsubishi Heavy Industries, Oxea, Methanex, Linde PLC, and Jiangsu Province.

                                  Acquisitions/Technology Launches/ Product Launches

                                  In May 2020, Linde PLC announced to lead a new syngas processing facility with an investment of US$250 million in Southern Louisiana, United States, for supplying hydrogen and carbon monoxide to several global chemical companies.

                                  n September 2019, Air Products advanced gasification growth strategy via new syngas project with Debang Group in Jiangsu Province, China.

                                  Key Takeaways

                                  Asia Pacific dominates the Syngas Market owing to rapid increase in Chemical and Oil and Gas sector. For instance, an investment of US$107.4 billion is estimated in the Indian chemicals and petrochemicals sector by 2025

                                  The market drivers and restraints have been assessed to understand their impact over the forecast period.

                                  The report further identifies the key opportunities for growth while also detailing the key challenges and possible threats.

                                  The other key areas of focus include the various applications and end use industry in Syngas Market and their specific segmented revenue.

                                  The fuel application is expected to augment the syngas market’s growth over the forecast period due to increase in the consumption of liquid and gaseous fuels in various end-use industry.

                                  Related Reports:

                                  A. Syngas & Derivatives Market

                                  https://www.industryarc.com/Report/16557/syngas-derivatives-market.html

                                  B. Gas Treatment Market

                                  https://www.industryarc.com/Research/gas-treatment-Market-Research-500003

                                  For more Chemicals and Materials Market reports, please click here

                                  About IndustryARC: IndustryARC primarily focuses on Cutting Edge Technologies and Newer Applications market research. Our Custom Research Services are designed to provide insights on the constant flux in the global supply-demand gap of markets. Our strong team of analysts enables us to meet the client research needs at a rapid speed, with a variety of options for your business. Any other custom requirements can be discussed with our team, drop an e-mail to sales@industryarc.com to discuss more about our consulting services.



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