Methanol Market is Set to Reach USD 48.60 Billion by 2032; Sustained by Demand in Construction and Automotive Industries

The global methanol market size stood at USD 37.54 billion in 2024. It's expected to rise from USD 38.74 billion in 2025 to USD 48.60 billion by 2032, with a significant CAGR of 2.7%. Fortune Business Insights™ presents this information in its report titled “Methanol Market Size, Share & Industry Analysis, By Feedstock (Natural Gas, Coal, Biomass & Renewables), By Derivative (Formaldehyde, Acetic Acid, MTBE, DME, Gasoline Blending, Biodiesel, MTO/MTP, Solvent, and Others), By Application (Construction, Automotive, Electronics, and Others) and Regional Forecast, 2025-2032”

Methanol is a clear, lightweight, volatile, and flammable substance with an odor similar to ethanol. Due to its toxic nature, it is often blended with ethyl alcohol to produce denatured alcohol for industrial uses. Its increasing use as a key raw material in manufacturing various chemicals, such as solvents and plastics, and is expected to propel market growth. Additionally, the transition of end-users toward more sustainable fuel alternatives is likely to create new opportunities. The compound’s versatility has made it an essential resource for meeting the expanding needs of global industries.

The methanol market is steadily shifting toward more renewable and bio-based production methods, as the push for sustainability and lower emissions transforms the global chemical industry. More producers are turning to technologies like carbon capture, green hydrogen, and biomass gasification to create low-carbon methanol that can serve as a cleaner energy source and feedstock.

Acquisition of OCI Global Internation Methanol Business by Methanex Expanded Production Capacity

Methanex is a Vancouver-based, publicly traded company and is the world’s largest producer and supplier of methanol globally. In June 2025, Methanex finalized the purchase of OCI Global’s international methanol operations for USD 1.2 billion in cash. This move broadened the company’s production capabilities, added significant new assets, and reinforced its global supply chain and marketing network.

Growing Industrial Use in Automotive and Construction to Accelerate Market Expansion

Increasing demand from sectors such as automotive and construction is set to drive higher methanol consumption, thereby leading to methanol market growth. Methyl alcohol is widely used as a base ingredient for numerous chemicals and materials, including adhesives, plastics, textiles, and insulation products. Its role in producing lightweight polymers and coatings enhances vehicle efficiency and strengthens structural components in automotive and infrastructure applications. Within the construction sector, methanol-derived formaldehyde and acetic acid are essential for manufacturing resins and laminates that offer improved durability and thermal resistance.

However, due to its heavy reliance on feedstock availability, high production costs, and volatile natural gas prices. Additionally, increasing environmental pressure on coal-based production and stricter decarbonization policies further restrict capacity expansion.

Key Players’ Strategic Alliances and Modernization Led to a Firm Market Position

The global methanol market is moderately consolidated, with a few major producers controlling a significant share of total capacity and trade. These companies focus on large-scale manufacturing, backward integration with natural gas resources, expanding production facilities to meet growing demand from fuel, chemical, and energy sectors. Ongoing investments in low-carbon technologies and downstream integration are helping them improve efficiency, reduce costs, and meet environmental regulations. Leading companies include Methanex Corporations, SABIC, Proman AG, Zagros Petrochemical Company, and PETRONAS. Their wide production networks, strong logistics capabilities, and regional diversification support their leadership positions.

Key Players Profiled in the Report

• Methanex Corporation (Canada)
• Proman (Switzerland)
• SABIC (Saudi Arabia)
• Mitsubishi Gas Chemical Company, Inc. (Japan)
• Zagros Petrochemical Company (Iran)
• PETRONAS Chemicals Group Berhad (Malaysia)
• Mitsui & Co., Ltd. (Japan)
• LyondellBasell Industries Holdings B.V. (U.S.)
• BASF SE (Germany)
• Simalin Chemical Industries Pvt. Ltd. (India)
• Shanghai Huayi Holding Group Co., Ltd. (China)

To get a detailed report summary and research scope of this market, click here:

https://www.fortunebusinessinsights.com/industry-reports/methanol-market-101552

Key Industry Developments:

• September 2022 – Methanex invested in emissions-reduction technology at its facilities in New Zealand, aiming to cut more than 50,000 tonnes of carbon dioxide annually. This move aligns with the company’s wider sustainability supports strategy and highlights its commitment to advancing low-carbon methanol production.

Further Report Findings:

• By derivative, the MTO/MTP segment is expected to witness the fastest growth rate during the forecast period, and also hold the largest methanol market share among the other segments. Increasing demand for polymers in industries such as packaging, automotive, and consumer goods has further driven investment in MTO/MTP production facilities.
• Asia Pacific accounted for the largest share of the methanol market in 2023, valued at 34.60 billion. This leadership is driven by extensive production capacity, strong downstream integration, and rising demand from the construction, automotive, and fuel industries.
• The North American methanol market is expected to reach USD 4.07 billion by 2025, supported largely by increasing demand in fuel-rated applications, including green fuel production and fuel bending. Growth in the region’s petrochemical industry is also contributing to market expansion.

Table of Segmentation