IMARC Group’s report titled “Renewable Methanol Market Report by Feedstock (Agricultural Waste, Forestry Residues, Municipal Solid Waste, Co2 Emissions, and Others), Application (Formaldehyde, Dimethyl Ether (DME) and Methyl tert-Butyl Ether (MTBE), Gasoline, Solvents, and Others), End Use Industry (Chemicals, Transportation, Power Generation, and Others), and Region 2025-2033”. The global renewable methanol market size reached USD 3.8 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 5.7 Billion by 2033, exhibiting a growth rate (CAGR) of 4.81% during 2025-2033.
Industry Trends and Drivers:
● Environmental Concerns and Regulatory Policies:
The prominent trends affecting the market include rising knowledge of ecological concerns, and the application of high standards of regulatory measures. National and international authorities are crystallizing rules in order to decrease emissions of greenhouse gases and fight climate change, thus enhancing concerns towards renewable and clean energies. Bio-methanol and methanol produced from renewable feed stock like biomass and carbon dioxide have been identified to have lower carbon emission rates than conventional methanol. This shift is particularly more pronounced in areas with ambitious climate policies which have considered renewable methanol as a critical enabler of emissions reduction across transportation, industrial and energy industries.
● Demand in the Transportation Sector:
Another reason that plays in the favour of renewable methanol is that the shifting of focus for transportation from traditional fuel such as gasoline to cleaner and fresher fuels. The increased exposure to emissions standards and the focus on conformity to CARB standards for controlling vehicle emissions has fueled the use of renewable methanol as a direct fuel or an addendum to methanol in internal combustion engines. The sustainable nature of renewable methanol for transport means that its adoption is continuing to grow, due to the favorable environmental impact of the fuel, with more people and companies starting to invest in renewable methanol technology. The uptake of renewable methanol is therefore expected to rise following the rising global transport industry search for cleaner fuel.
● Technological Advancements in Production:
Technological advancements of several techniques of hydrogen generation including CCU, biomass gasification, and electrolysis make the generation of renewable methanol substantially economical. These technologies enable the production of methanol from carbon dioxide (CO2), industrial waste and biomass making use of the wastes in the production of methanol for use as energy in the process. Technological changes enhance productivity thereby exerting pressure on the costs of producing renewable methanol making it cheaper to conventional fuel sources hence the competitiveness of renewable methanol. The trick is to grow its market beyond oil in order to make the fuel applicable for a plethora of uses- transportation, electricity generation and as a chemical input.
Leading Companies Operating in the Global Renewable Methanol Industry:
- Advanced Chemical Technologies
- Advent Technologies A/S
- BASF SE
- Blue Fuel Energy Corporation
- Carbon Recycling International
- Enerkem
- Methanex Corporation
- Methanol Holdings (Trinidad) Limited (Proman AG)
- Nordic Green Aps
- OCI N.V.
- Södra Skogsägarna
Renewable Methanol Market Report Segmentation:
By Feedstock:
- Agricultural Waste
- Forestry Residues
- Municipal Solid Waste
- Co2 Emissions
- Others
Municipal Solid Waste represents the largest segment in the market due to its abundant availability and the increasing adoption of waste-to-energy conversion technologies.
By Application:
- Formaldehyde
- Dimethyl Ether (DME) and Methyl tert-Butyl Ether (MTBE)
- Gasoline
- Solvents
- Others
Formaldehyde accounts for the largest segment due to its extensive use in producing various industrial and consumer goods, particularly in the plastics and resins industry.
- Chemicals
- Transportation
- Power Generation
- Others
Transportation holds the biggest share of the market due to the growing demand for cleaner fuels and the integration of methanol as a viable alternative fuel in transportation.
Regional Insights:
- North America (United States, Canada)
- Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, Others)
- Europe (Germany, France, United Kingdom, Italy, Spain, Russia, Others)
- Latin America (Brazil, Mexico, Others)
- Middle East and Africa
Asia-Pacific dominates the market due to the rising supportive government policies for renewable energy and significant investments in sustainable energy solutions in this region.
Global Renewable Methanol Market Trends:
The focus on renewable methanol for energy storage is rising. This is due to the growing use of solar and wind energy. Renewable methanol allows for easy storage and transport of energy.
Moreover, industries are seeking to cut carbon emissions. They are turning to renewable methanol for making chemicals. This trend is boosting the market. Renewable methanol is key in producing chemicals sustainably. It replaces fossil-based methanol in making formaldehyde, olefins, and solvents. This switch significantly cuts carbon emissions.
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