In 2020, the syngas & derivatives market is estimated at 2,45,557 MWth by 2020 and is projected to reach 4,06,860 MWth by 2027, at a CAGR of 10.6 % from 2020 to 2027. Rising environmental concerns have been the major drivers for the growth of the syngas & derivatives market in order to provide alternative methods of fuel production. Syngas as a clean and renewable energy is estimated to be adopted widely to replace traditional forms of energy. In addition, high demand for chemical intermediaries in the production of hygiene and sanitization and pharmaceutical products due to outbreak of COVID-19 is anticipated to fuel the growth of syngas and its derivatives in the chemical segment.
Rising consumer disposable income coupled with growing urbanization is expected to steer forward the transport and electric systems consumption trend. This in turn is anticipated to increase the global energy demand and transport fuel consumption over the forecast period. Major challenge lies in developing sustainable solution to address these demands and manage carbon footprint during the production process.
While conventional sources of liquid fuel are expected to witness opposite trend of growing consumption, it offers new frontiers for oil discovery and feasible alternate fuel production. Feasibility of replacing conventional resources is determined by cost, production efficiency, and transport vehicle modifications to cater to the new fuel types.
Another approach lies in utilization of by-products and modification of Fischer-Tropsch (FT) process that leads to syngas production. Hydrocarbon feedstock such as natural gas, coal, and biomass are utilized in this process. Producer gas is formed as an intermediate resource that enables production of methanol, hydrogen, and ammonia.
Conversion of underground coal gasification (UCG) for developing FT liquid fuels offers ample opportunities for developing energy blends as alternative fuels. It also offers potential for greenhouse gas emissions’ sequestration in upstream activities, thereby providing significant life cycle reductions as compared to crude oil derivatives.
Major automotive segments are compatible with FT diesel, and thus, requirement of large-scale modifications is reduced. Gasoline production also offers new opportunities in aviation sectors and is expected to steer jet fuels demand in commercial passenger airlines. Other products formed in the FT gas to liquid (GTL) process include ethanol, methanol, and ethers for production of specialty and commodity waxes, polymers, and oils.
Sasol Limited (South Africa), HaldorTopsoe A/S (Denmark), Air Liquide S.A.(France), Siemens AG (Germany), Air Products and Chemicals Inc. (US), KBR Inc. (US), Lindeplc (UK), BASF SE (Germany), TechnipFMC PLC (UK), McDermott International, Inc. (US), Mitsubishi Heavy Industries, Ltd. (Japan), Chiyoda Corporation (Japan), Synthesis Energy Systems, Inc. (US), Yara International ASA (Norway), Methanex Corporation (Canada), CF Industries Holdings, Inc. (US), Dow Inc. (US), and John Wood Group PLC (UK), among others, are the major players in the syngas & derivatives market.
Asia Pacific is anticipated to witness the fastest growth over the forecast period on account of increasing power sources demand coupled with availability of coal reserves. Growing energy sector in the region, particularly in Japan, China, India, South Korea, and Taiwan is anticipated to have a positive effect on syngas and derivatives market growth. European and North American counties including the U.S., the UK, Norway, and Canada have been exhibiting rising syngas demand for production of various chemicals.
Report : The Syngas & Derivatives Market - By Production Technology ( Steam Reforming, Partial Oxidation, Autothermal Reforming, Biomass Gasification, Others), By Gasifier Type (Fixed (Moving) Bed Gasifier, Entrained Flow Gasifier, Fluidized Bed Gasifier, Others), By Feedstock (Coal, Natural Gas, Petroleum), By Application (Chemicals, Fuels, Electricity) And By Region (North America, Asia Pacific, Europe, Middle East & Africa and Latin America) - Industry Analysis, Opportunity and Forecast 2020 To 2027