A new market research report has projected the syngas and derivatives market to reach to reach 4,06,860 MWth by 2025, at a CAGR of 10.6 per cent from 2020 to 2025.

 

The ‘Syngas & Derivatives Market by Production Technology, Gasifier Type, Feedstock (Coal, Natural Gas, Petroleum Byproducts, Biomass/Waste), Application (Chemicals, Fuel, And Electricity), and Region – Global Forecast To 2025’ put the syngas and derivatives market in 2020 at 2,45,557 MWth.

 

Rising environmental concerns have been the major driver for the growth of the syngas and derivatives market in order to provide alternative methods of fuel production. Polygeneration of derivatives from syngas and flexibility in the use of feedstocks to produce syngas and its derivatives are the factors driving the syngas and derivatives market growth. Furthermore, outbreak of the Covid-19 pandemic is anticipated to fuel the consumption of syngas derived chemical intermediaries in health and hygiene products.

 

The syngas and derivatives market is projected to grow at a CAGR of 12.6 per cent between 2019 and 2024.

 

The Biomass/waste segment was projected to grow at the highest CAGR in the syngas and derivatives market between 2019 and 2024

 

The report said biomass/waste is projected to be the fastest growing feedstock segment in the syngas and derivatives market during the forecast period. Biomass and organic wastes are considered as renewable feedstocks that are available in high quantities in many countries.

 

The application of biomass and organic wastes in the production of syngas and derivatives produces clean and renewable energy and reduces landfills to a great extent. The adoption of biomass/waste feedstock in the syngas and derivatives market is in the nascent stage. With increasingly stringent environmental regulations in developed countries, the biomass/waste segment is expected to grow at a rapid pace during the forecast period.

 

Chemicals segment contributed to the highest volume in the syngas and derivatives market

 

The chemicals segment is estimated to lead the syngas and derivatives market in 2019, due to rising demand for syngas and derivatives such as methanol, ammonia, and FT synthesis products for the production of chemical intermediates. Chemicals such as methanol are used as an intermediate for the synthesis of many chemicals as well as in fuels. Ammonia being the major chemical used in the production of fertilizers is the prime reason for the growth of the chemicals segment for the syngas & derivatives market.

 

Based on the region, Asia Pacific is projected to grow at the highest CAGR in the syngas and derivatives market between 2019 and 2024

 

The Asia Pacific region is projected to grow at the highest CAGR between 2019 and 2024. China accounted for the major share of the global syngas and derivatives market in 2018, which is driving the growth of the Asia Pacific region.

 

China, India, and Japan are the lucrative markets for syngas and derivatives in the Asia Pacific region during the forecast period. The growth can be attributed to increasing demand for syngas & derivatives from the region’s chemical, fuel, and electricity industries, particularly in China and India. –Tradearabia News Service