Syngas Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Syngas Market is segmented by Feedstock (Coal, Natural Gas, Petroleum, Pet-coke, and Biomass), Technology (Steam Reforming, Partial Oxidation, Auto-thermal Reforming, Combined or Two-step Reforming, and Biomass Gasification), Gasifier Type (Fixed Bed, Entrained Flow, and Fluidized Bed), End-user Industry (Power Generation, Chemicals, Liquid Fuels, and Gaseous Fuels), and Geography (Asia-Pacific, North America, Europe, South America, and Middle-East and Africa).

Market Snapshot

Syngas Market Bar Graph
Study Period: 2016 - 2026
Base Year: 2020
Fastest Growing Market: Asia Pacific
Largest Market: Asia Pacific
CAGR: >11 %
Syngas Market Major Players

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Market Overview

The syngas market size was estimated at around 300 GWth in 2020, and the market is projected to register a CAGR of over 11% during the forecast period (2021-2026).

The market was negatively impacted by COVID-19 in 2020. Syngas is mainly consumed by end-user industries such as chemicals, liquid fuels, gaseous fuels, and others. Considering the pandemic scenario, the chemical manufacturing units were on a temporary halt, thus led to a decrease in the demand for the syngas. Furthermore, the demand for syngas-based chemicals like dimethyl ether and methanol has been decreased as they can be used as an automotive fuel. However, the usage of ammonia as an excipient (inactive agent) from the pharmaceutical industry has been increased during this period.

  • Over the short term, the growing demand for syngas from the power generation industry and feedstock flexibility for syngas production is expected to drive the market’s growth.
  • On the flip side, syngas production plants setup requires high capital investment and funding. This factor is expected to hinder the market’s growth.
  • The development of underground coal gasification technology and utilization of biomass and municipal wastes are likely to act as an opportunity in the future.
  • Asia-Pacific dominated the market across the world, with the largest consumption, holding a major share in the market, followed by North America and Europe.

Scope of the Report

Syngas is a gaseous mix containing mainly hydrogen and carbon monoxide, which is mainly produced from coal gasification, steam reforming, and others. It can be used to produce chemicals such as ammonia, acetic acid, butanol, methanol, and dimethyl ether. Ammonia is mainly consumed by the fertilizer segment, and methanol and dimethyl ether can be used as fuel. The syngas market is segmented by feedstock, technology, gasifier type, end-user industry, and geography. By feedstock, the market is segmented into coal, natural gas, petroleum, pet-coke, and biomass. By technology, the market is segmented into steam reforming, partial oxidation, auto-thermal reforming, combined or two-step reforming, and biomass gasification. By gasifier type, the market is segmented into fixed bed, entrained flow, and fluidized bed. By end-user industry, the market is segmented into power generation, chemicals, liquid fuels, and gaseous fuels. The report also covers the market size and forecasts for the syngas market in 18 countries across major regions. For each segment, the market sizing and forecasts have been done on the basis of capacity (GWth).

Feedstock
Coal
Natural Gas
Petroleum
Pet-coke
Biomass
Technology
Steam Reforming
Partial Oxidation
Auto-thermal Reforming
Combined or Two-step Reforming
Biomass Gasification
Gasifier Type
Fixed Bed
Entrained Flow
Fluidized Bed
Application
Power Generation
Chemicals
Methanol
Ammonia
Oxo Chemicals
n-Butanol
Hydrogen
Dimethyl Ether
Liquid Fuels
Gaseous Fuels
Geography
Asia-Pacific
China
India
Japan
South Korea
Australia and New Zealand
Rest of Asia-Pacific
North America
United States
Canada
Mexico
Europe
Germany
United Kingdom
Italy
France
Spain
Russia
Rest of Europe
South America
Brazil
Argentina
Rest of South America
Middle-East and Africa
Saudi Arabia
South Africa
Rest of Middle-East and Africa

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Key Market Trends

Chemicals Application to Dominate the Market

  • The chemical industry is the largest application of syngas. The chemical industry tends to use feedstocks that are the most economical to procure or produce.
  • Major economies of the world, like the United States, China, and India, along with some African nations, use coal as the raw material for the production of various chemicals, like methanol, hydrogen (H2), and carbon monoxide (CO). These are the building blocks for the manufacturing of a wide range of derivative chemicals.
  • Syngas is the widely used feedstock for the production of methanol. Methanol is produced from syngas in three stages. They are synthesis gas production, methanol synthesis, and methanol purification.
  • Moreover, n-butanol is one of the chief oxo-alcohols produced from the syngas, along with propene. N-butanol is used as an alternative to ethanol as bio-fuel apart from its various other uses in plastic production.
  • The global chemical industry was valued at about USD 3938.5 billion in 2019, registering a decline rate of about 3.5% compared to the previous year.
  • Ammonia, a syngas product, is used to produce nitrogen-based fertilizer for agricultural sectors. In 2019, the total volume of nitrogen-based fertilizers used for agricultural purposes was accounted for 11.5 million tons in Europe, registering a decline rate of about 2.5%, which in turn stimulates the market demand for the syngas.
  • Therefore, the aforementioned factors are expected to show a significant impact on the market in the coming years.
Syngas Market Key Trends

Asia-Pacific Region to Drive the Market Demand

  • Asia-Pacific dominated the global market share, with rising demand from the chemical industry, primarily from refineries.
  • China is a hub for chemical processing, accounting for the majority of chemicals produced globally. With the growing global demand for various chemicals, the demand for syngas from this sector is expected to increase significantly during the forecast period.
  • Moreover, the consumption of both liquid and gaseous fuels is increasing exponentially in the country. This is expected to augment the syngas market’s growth over the forecast period.
  • India is another largest oil consumer in the world. The demand for increasing refining capacity is primarily due to the growing demand for fuel. Replacement of LPG as a cooking fuel, increasing urbanization, along with demand for infrastructure and consumer goods, are some of the factors augmenting the demand for fuel.
  • Synthesis gas plays a huge role in power generation. Total installed capacity of electric power generation in China was about 2011 gigawatts in 2019 and reached about 2200 gigawatts in 2020, with a growth rate of about 9%.
  • Ammonia, a syngas product, is used to produce di-ammonium phosphate (DAP), which is used in the agricultural sector. The production volume of DAP was about 3.89 million tons in India as of FY2019 and reached about 4.48 million tons as of FY2020, with a growth rate of about 15%, thus led to an increase in the demand for ammonia.
  • Therefore, the aforementioned factors are expected to show a significant impact on the market in the coming years.
Syngas Market Growth By Region

Competitive Landscape

The syngas market is fragmented in nature. Some of the key players in the market include Air Products Inc., Linde plc, Air Liquide, Sasol, and Haldor Topsoe A/S, among others.

Recent Developments

  • In May 2020, Linde PLC announced to start a new syngas processing facility with a total investment of USD 250 million in Southern Louisiana, United States, for supplying carbon monoxide and hydrogen to different global chemical companies.
  • In May 2018, Air Products Inc. announced to acquire General Electric Company’s gasification business to further strengthening the company's business.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Report

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Drivers

      1. 4.1.1 Feedstock Flexibility for Syngas Production

      2. 4.1.2 Growing Demand for Electricity

      3. 4.1.3 Other Drivers

    2. 4.2 Restraints

      1. 4.2.1 High Capital Investment and Funding

      2. 4.2.2 Unfavorable Conditions Arising Due to the Impact of COVID-19

    3. 4.3 Industry Value Chain Analysis

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Suppliers

      2. 4.4.2 Bargaining Power of Consumers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitute Products and Services

      5. 4.4.5 Degree of Competition

  5. 5. MARKET SEGMENTATION

    1. 5.1 Feedstock

      1. 5.1.1 Coal

      2. 5.1.2 Natural Gas

      3. 5.1.3 Petroleum

      4. 5.1.4 Pet-coke

      5. 5.1.5 Biomass

    2. 5.2 Technology

      1. 5.2.1 Steam Reforming

      2. 5.2.2 Partial Oxidation

      3. 5.2.3 Auto-thermal Reforming

      4. 5.2.4 Combined or Two-step Reforming

      5. 5.2.5 Biomass Gasification

    3. 5.3 Gasifier Type

      1. 5.3.1 Fixed Bed

      2. 5.3.2 Entrained Flow

      3. 5.3.3 Fluidized Bed

    4. 5.4 Application

      1. 5.4.1 Power Generation

      2. 5.4.2 Chemicals

        1. 5.4.2.1 Methanol

        2. 5.4.2.2 Ammonia

        3. 5.4.2.3 Oxo Chemicals

        4. 5.4.2.4 n-Butanol

        5. 5.4.2.5 Hydrogen

        6. 5.4.2.6 Dimethyl Ether

      3. 5.4.3 Liquid Fuels

      4. 5.4.4 Gaseous Fuels

    5. 5.5 Geography

      1. 5.5.1 Asia-Pacific

        1. 5.5.1.1 China

        2. 5.5.1.2 India

        3. 5.5.1.3 Japan

        4. 5.5.1.4 South Korea

        5. 5.5.1.5 Australia and New Zealand

        6. 5.5.1.6 Rest of Asia-Pacific

      2. 5.5.2 North America

        1. 5.5.2.1 United States

        2. 5.5.2.2 Canada

        3. 5.5.2.3 Mexico

      3. 5.5.3 Europe

        1. 5.5.3.1 Germany

        2. 5.5.3.2 United Kingdom

        3. 5.5.3.3 Italy

        4. 5.5.3.4 France

        5. 5.5.3.5 Spain

        6. 5.5.3.6 Russia

        7. 5.5.3.7 Rest of Europe

      4. 5.5.4 South America

        1. 5.5.4.1 Brazil

        2. 5.5.4.2 Argentina

        3. 5.5.4.3 Rest of South America

      5. 5.5.5 Middle-East and Africa

        1. 5.5.5.1 Saudi Arabia

        2. 5.5.5.2 South Africa

        3. 5.5.5.3 Rest of Middle-East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Market Ranking Analysis

    3. 6.3 Strategies Adopted by Leading Players

    4. 6.4 Company Profiles

      1. 6.4.1 Air Products Inc.

      2. 6.4.2 Air Liquide

      3. 6.4.3 BP PLC

      4. 6.4.4 East China University of Science and Technology

      5. 6.4.5 John Wood Group PLC

      6. 6.4.6 Haldor Topsoe AS

      7. 6.4.7 KBR Inc.

      8. 6.4.8 Linde PLC

      9. 6.4.9 Royal Dutch Shell PLC

      10. 6.4.10 Sasol

      11. 6.4.11 SynGas Technology LLC

      12. 6.4.12 OQ Chemicals GmbH

    5. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

    1. 7.1 Utilization of Biomass and Municipal Waste

    2. 7.2 Development of Underground Coal Gasification Technology

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Frequently Asked Questions

The Syngas Market market is studied from 2016 - 2026.

The Syngas Market is growing at a CAGR of >11% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

Asia Pacific holds highest share in 2020.

Air Products Inc., Linde plc, Air Liquide, Sasol, Haldor Topsoe A/S are the major companies operating in Syngas Market.

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