Gasification Market Size, Share & COVID-19 Impact Analysis, By Feedstock (Coal, Petroleum, Natural Gas, and Biomass/Waste), By Application (Chemical, Liquid Fuel, Power, and Gaseous Fuel), and Regional Forecast, 2020-2027

The global gasification market size was valued at USD 479.13 billion in 2019 and is projected to reach USD 901.51 billion by 2027, exhibiting a CAGR of 8.4% during the forecast period (2020-2027).

This report covers COVID-19 impact analysis on Gasification Market

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Gasification is a thermochemical process that converts organic or fossil fuel-based carbonaceous materials into carbon monoxide and hydrogen, with a small amount of carbon dioxide and water. Partial oxidation occurs at high temperatures with oxygen, air, or steam. The resulting product is called syngas. Fixed bed gasifier, entrained-flow gasifier, and fluidized-bed gasifier are the major gasifiers used in the process. Increasing power consumption across the globe and growing demand for clean energy are the major factors that are expected to propel the global market growth from 2019 to 2027.

COVID-19 Pandemic to Heavily Disturb the Market

The ongoing COVID-19 pandemic has resulted in a full-scale crisis with the imposition of travel restrictions and the suspension of flights in an effort to contain the spread of the virus. Furthermore, restrictions on travel, work, and industry due to the coronavirus are expected to cut billions of barrels of oil, trillions of cubic meters of gas, and millions of tons of coal from the global energy system in 2020 alone. Production of biofuels is likely to be directly affected by declining demand for road transport as they are blended with gasoline or diesel under existing blending mandates.

The COVID-19 pandemic is also expected to impact largely on electricity consumption as most of the countries are in the lockdown phase. Many projects across the globe are facing delays due to COVID-19. Currently, a large proposed coal and fertilizer project in eastern India is facing potential delays as the Covid-19 pandemic curtails operations at its Chinese contractor. Thus, the Rs 13,270 crore Talcher Fertiliser Urea Plant project has been delayed by about six months.

LATEST TRENDS

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Increasing Application in Waste Management to Spur Opportunities

Waste management is a major global problem. Billion tons of waste is generated by agriculture, municipal, and industrial sectors every year. The plants for this process, turn a waste management issue into a revenue opportunity for farms, dairies, food processing, and wastewater treatment industries. The process converts solid and liquid waste materials into synthesis gas (syngas) through a chemical reaction. Further, syngas can be converted into electricity, gas fuels, and other valuable products. With this process, MSW and wastes are no longer useless, but they become feedstocks for a gasifier. Instead of paying to dispose of and manage the waste in a landfill, using it as a feedstock, thus reducing disposal costs and landfill space, and converts those wastes into valuable electricity, fuels, chemicals, or fertilizers.

DRIVING FACTORS

High Demand for Clean Energy to Drive the Market

The rise in environmental protection regulations across the globe is encouraging the power generation industry to opt for cleaner and eco-friendly energy resources. Major economies around the world are focused on developing renewable energy capacities to reduce their dependency on conventional power generation, which requires fossil fuels. Hence, investment in anaerobic digestion plants is increasing continuously. Such plants can help the world both manage its waste and produce the energy and products needed to fuel economic growth. The process also represents significant advances over incineration. It does not involve combustion, but instead uses little or no oxygen or air in a closed reactor to convert carbon-based materials directly into a synthetic gas, or syngas. Thus, the growing demand for clean energy is expected to drive the global market

Expansion of the Coal Industry to Boost Growth

According to the BP Statistical Review, 2019, coal production output rose at a rate of 4.3% y-o-y in 2018, the fastest in the last five years. Demand for coal also increased by 1.4% y-o-y in 2018. Expansion of the coal industry can be majorly attributed to an increase in the consumption of coal in the power generation sector. The coal industry is especially expanding in developing nations, such as China and India, where coal constitutes a major gasification market share of the energy generation mix. An increase in demand for coal from Eastern Europe and the construction of new coal-based power plants in Poland, Greece, and the Balkan region are other factors driving the market. The seaborne trade of coal also witnessed a recovery in 2017. This trend followed in 2018, with an overall increase in coal imports. The coal industry is likely to expand due to increased demand for power and coal in the industrial sector. Thus, the expansion of the coal industry is expected to boost the growth of the global market.

RESTRAINING FACTORS

High Installation Cost to Hinder Market Growth

In several Asian countries have huge electricity and climate-related issues, despite the use of conventional coal power plants, coal gasification capacities have not picked up as expected, due to the high capital and production costs involved in the process. Integrated gasification combined cycle (IGCC) coal plants are the prime users of the technology to generate power. The technology is expected to be 35% more expensive than conventional coal technology. Moreover, adding carbon capture and storage (CCS) technology makes it even more expensive. Recently, the U.S. also suggests that the electricity produced from IGCC plants, with CCS, is likely to cost twice as much as electricity from wind or commercial-scale solar plants.

SEGMENTATION

By Feedstock Analysis

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Coal Feedstock Segment to Hold Dominant Market Share

Based on feedstock, the market is segmented into coal, petroleum, natural gas, and biomass/waste. The coal segment is projected to lead the market in 2019. Gasification harnesses the full energy potential of the feedstock while reducing the costs associated with disposal and environmental impact. Also, underground coal gasification can further be used for converting coal into useful gases without mining. Furthermore, this also eliminates several activities associated with underground coal mining, including coal washing, coal stockpiling, and waste disposal, including ash handling and disposal. Thus, it is an effective and environment-friendly technique to lower the associated operating costs with the use of coal. This will contribute to the growing popularity of coal gasification across both emerging and advanced economies.

Biomass/waste is another major feedstock segment expected to contribute significantly during the forecast period. Biomass offers a possible alternative to coal-based power generation. Due to rising environmental concerns and increasing greenhouse gas emissions, several companies across the globe are now turning towards environment-friendly energy sources. Moreover, the government's support through various policies and regulations, along with the abundant availability of biomass, are some of the other factors that are currently driving this market.

By Application Analysis

Chemical Application to Hold Dominant Market Share

Based on the application, the market can be divided into chemical, liquid fuel, power, and gaseous fuel. The chemical segment is projected to lead the global market in 2019. Synthesis gas is the primary product of the plant and is used in the manufacturing of various products. The majority of it is consumed in the chemical industry where ammonia, methanol, liquid fuels, and hydrogen are produced. Chemicals such as methanol are used as an intermediate for the synthesis of many chemicals as well as in fuels.

In terms of revenue, power application is expected to contribute significantly during the forecast period. Increasing demand for electricity across the globe due to rapid industrialization and urbanization is also driving the growth of the market.

REGIONAL INSIGHTS

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Geographically, the global market has been analyzed across five key regions, including North America, Europe, Asia Pacific, the Middle East & Africa, and South America. Asia Pacific region is anticipated to lead the market over the forecast period. The market growth in Asia Pacific region can be attributed to several factors such as the rising demand for energy, the presence of significant coal reserves, and the increasing demand for clean energy technologies.

In terms of revenue, China, India, and Japan are the other major contributors to the Asia Pacific market. Furthermore, according to the BP Statistical Review 2019, coal production in Asia Pacific stood at 2,853.1 million tons of oil equivalent in 2019. The region accounted for around 73% of the share of global coal production in 2018. The region was also the leading consumer of coal across the globe, with coal consumption amounting to 2,841.3 million tons of oil equivalent in 2018.

North America and Europe are expected to grow at a moderate pace over the forecast period. Europe has the highest number of biomass gasification plants. By the end of 2018, Europe has a capacity of more than 15,000 MW.

KEY INDUSTRY PLAYERS

Key Participants Are Concentrating On Expanding Production Capacities

The gasification market is highly fragmented with the presence several large scale players across the world. These include a group of 5-6 key companies with a wider geographic presence. Different players across the global market are increasingly participating in organic & inorganic developments to solidify their market position globally. Additionally, the companies are also expanding their production capacities by introducing new plants or expanding the existing ones. For instance, in January 2020, Jindal Steel and Power Ltd (JSPL) announced that its coal gasification-based direct reduced iron (DRI) plant at Angul district in Odisha has resumed operation. The facility, which has a production capacity of 1.80 MTPA, had halted its operations due to scarcity of coal. In October 2019, the Bioenergy Infrastructure (BIG) Group, an independent power producer specializing in energy-from-waste and biomass, has officially opened its 170,000 tons per year capacity waste wood gasification plant in Cheshire, U.K.

LIST OF KEY COMPANIES PROFILED:

• Air Liquide (France)


• Mitsubishi Heavy Industries (Japan)


• ANDRITZ (Austria)


• Thyssenkrupp ag (Germany)


• Synthesis Energy Systems, Inc. (U.S.)


• Larsen & Toubro Limited (India)


• Dakota Gasification Company (U.S.)


• EQTEC plc (Ireland)


• Air Products (U.S.)


• SEDIN ENGINEERING COMPANY LIMITED (China)

KEY INDUSTRY DEVELOPMENTS:

• May 2020 – International technology group ANDRITZ has received an order from Klabin for a complete biomass gasification plant and a new biomass handling line for their Ortigueira mill in Brazil


• March 2018 – Air Products announced that it had completed the acquisition of the Coal Gasification Technology licensing business from Shell Global Solutions International B.V., a subsidiary of Royal Dutch Shell plc, and formed a strategic alliance with Shell for residue gasification technology to refinery complexes.

REPORT COVERAGE

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The gasification market research report provides a detailed analysis of the market and focuses on key aspects such as leading companies, feedstock, and leading applications of the product. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the advanced market over recent years.

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