Syngas Market: Overview
The market size for Syngas was USD 45.2 billion in 2021, and it is projected to grow at a CAGR of 5.8 percent during the forecast period. The demand for syngas and derivatives is increasing due to their application in liquid fuels, gaseous fuel, and chemical and power generation sectors. The use of syngas contributes a lot of ease to ecological protection due to its contribution to reducing waste pollution in landfills and urban and rural areas. Syngas is mostly utilized for electricity generation and the production of chemicals.
One of the major factors driving the growth of the global syngas market is the increasing demand for synthetic gas from the chemical industry. This is anticipated to the fact that syngas is used to manufacture synthetic natural gas (SNG), which is utilized in the rail, marine, and road transport industries in the form of liquefied natural gas (LNG) and compressed natural gas (CNG). Furthermore, advantages related to syngas, such as low energy cost, upgraded stability, and its utilization to fuel gas engines for power supply, boost its global demand. In addition, the development of the method of underground coal gasification (UGC) allows the completion of the process of in-situ gasification that transforms coal into syngas. This, in turn, fuels the demand, as it eliminates the need to transport the feedstock to the gasification plants, resulting in substantial cost advantages.
The syngas market is partly fragmented in nature. For instance, in June 2022, Shell PLC joined a decarbonization agreement with Tokyo Gas Co. and Osaka Gas Co. for the natural gas and carbon capture, utilization, and sequestration (CCUS) projects. By 2030, these Japanese companies strive to replace 1% of the gas currently offered with biomethane-based synthetic gas or syngas. Furthermore, in May 2022, Pertamina and Air Liquide Indonesia agreed to cooperate in developing carbon capture and utilization technology at the Balikpapan refinery processing unit. Within the framework of this joint study agreement, Pertamina and Air Liquide will perform a joint study on CO2syngas and flue gas capture technology application from hydrogen production.
Syngas Market: COVID-19 Impact
The impact of the COVID-19 pandemic has been unusual on a global scale. Also, the syngas market has noticed slow growth throughout the COVID-19 pandemic, mainly owing to the obstruction in the supply chain, causing uncertainties in the production of syngas. Contrary to this, syngas industry players such as Linde plc, a multinational chemical firm with German-American roots, are coming ahead with their effective strategy implementation. For instance, in May 2020, Linde plc declared that it started a syngas production plant in Geismar, Louisiana. Such developments may further drive the market in the coming years.
Syngas Market: Drivers
Increase in Demand for Steam Reformingto Drive Market Growth
Steam reforming in the global syngas market is anticipated to have the fastest growth during the forecast period, which drives the market growth. Steam reforming is one of the verified and efficient technologies for the production of syngas, especially because this process is a cost-effective, dependable, and widely used method to create hydrogen with environmental benefits. Hence, key players such as Haldor Topsoe A/S, a leading Danish catalysis company, are coming up with novel inventions to strengthen their presence in the global market. For example, in February 2020, Topsoe announced to establishment 'advanced steam reforming catalyst series' called TITAN with high efficiency and reliability. It mainly delivers enhanced performance and a longer catalyst lifetime owing to the hibonite-rich composition. In the analysis period, such company inventions may positively impact the sub-segment growth.
Growing Evolution in Manufacturing to Drive Market Growth
Owing to the evolution and manufacturing of creative solutions, the syngas market is augmenting its growth over the forecast period. For instance, in March 2020, Haldor Topsoe A/S signed an agreement with Nacero Inc. (US) for basic engineering and license for a planned natural-gas-to-gasoline facility in Casa Grande, Arizona, with a capacity of 35,000 barrels-per-day of finished gasoline. The plant will utilize the company's proven TIGAS gas-to-gasoline technology to create clean, high-value gasoline from low-cost natural gas. The natural gas-to-gasoline plant is valued at USD 3.0 billion. Furthermore, in January 2020, Air Products and Chemicals Inc. created the largest-ever US investment of USD 500.0 million to build, own and manage its largest-ever steam methane reformer (SMR) to produce hydrogen, an air detachment unit (ASU) to supply nitrogen and utility facilities and won a long-term agreement to supply gulf coast ammonia's new world-scale Texas Production Plant.
Syngas Market: Restraints
High Capital Investment to Hamper Market Growth
Key market restraint for the global syngas market during the forecast period is the increased capital investment and the time needed for the construction of an operating plant. The plant needs hi-tech gasification technology, which boosts the cost of the plant. The unavailability of feedstock also acts as a key market restriction for the global syngas and derivatives market.
Syngas Market: Segment Overview
Coal will Dominate Market due to its High Accessibilityto Producing Energy
Coal was the largest feedstock segment in simulating syngas & derivatives and is estimated to rule the market during the forecast period. The increased accessibility of coal for creating energy and the excellent feedstock with diverse syngas production technologies drives the growth of the coal segment in the syngas & derivatives market. Furthermore, coal forms an abundant energy resource in different regions such as India, China, Japan, and others; harnessing its energy needs a greener and cleaner approach. This is anticipated to instigate research for creating efficient and eco-friendly coal technologies. Integration of UCG and GTL technologies is expected to add assistance to the processes such as carbon capture and sequestration, thereby underestimating production costs. Conversion of underground coal gasification (UCG) for expanding FT liquid fuels shows sufficient opportunities for developing energy blends as a substitute for fuels. It also shows potential for greenhouse gas emissions sequestration in upstream activities, thereby providing remarkable life cycle reductions.
Increased Demand for Fertilizer and Fuel, Chemical Category Dominated Market
The chemicals segment is anticipated to account for the largest revenue share over the forecast period. A broad range of chemicals, such as fertilizers, fuels, solvents, and synthetic materials, can be created from syngas. Syngas can be processed using a technique known as the Fischer-Tropsch process to create diesel, methane, methanol, and dimethyl ether, all of which can be utilized as vehicle fuels.Syngas fermentation is a microbiological process in which microorganisms consume carbon and energy source present in syngas and transform it into chemicals and fuels. The principal by-products of syngas fermentation aremethane, butyric acid, acetic acid, butanol, and ethanol. These by-products are widely utilized in the production of fertilizers, solvents, and synthetic materials, and therefore syngas is embraced for commercial manufacturing of chemicals and other derivatives. This is anticipated to propel revenue growth of the segment.
Syngas Market: Regional Landscape
North America to Dominate Market due to Growing Need for Liquid Fuel and Power
The North American market accounted for the most considerable revenue share in the market during the forecast period. The growing demand for liquid fuel and power for domestic and commercial services and the increasing demand for sustainable energy sources are key factors anticipated to contribute to revenue growth of the market in the region. Clean syngas makes it possible to develop electricity with the tiniest carbon footprint and is ideal for the production of fuels, chemicals, and other derivatives. Reduced production costs and excellent environmental performance can be achieved by integrating systems with higher availability, dependability, and flexibility of enhanced reactors and processes for gasification, syngas upgrading and cleanup, and conversion of syngas into fuels or power. In order to allow low-cost power generation and production of transportation fuels, chemicals, hydrogen, and other valuable products to meet various demands, the DOE Gasification Systems Program of the Department of Energy is developing new modular systems for turning various types of coal into clean synthesis gas. In addition to increasing energy security in the United States, advances in this field will encourage the utilization of ample domestic coal resources. In addition, this will improve the productivity of power generation and other syngas-based technologies in both home and foreign markets. Such initiatives are anticipated to drive revenue growth in the market.
The syngas & derivatives market in the Asia-Pacific region is projected to increase at the highest rate. The development can be attributed to the high need for syngas & derivatives in countries such as China, India, and Japan, such as chemicals, fuel, and electricity. The region's largest chemical industry user submits subsequent growth opportunities for chemical applications, fertilizers, and petrochemicals. In addition, the region is rapidly increasing in fuel and electricity applications, with growing demand for syngas & derivatives in liquid fuel, gaseous fuel, and hydrogen-based electricity. According to the NBS, China remains the world's largest customer and producer of coal. Chinese mines produced 357 million tonnes of coal in November 2021, up from 334 million tonnes in September. Moreover, according to National Development and Reform Commission (NDRC), China's everyday coal production achieved 11.93 million tons,its highest level in recent years. In November 2021, the average daily dispatched of coal production reached 11.66 million tons, an addition of more than 1.2 million tons than that of the end of September 2021.
Global Syngas Market: Competitive Landscape
In March 2020, Nacero Inc. inscribed the agreement with Haldor Topsoe in Casa Grande, Arizona, for necessary engineering and license for a planned natural gas-to gasoline service with a capability of 35,000 barrels per day of finished gasoline. Furthermore, in September 2020, the SMS group began building their first pilot plant in Vienna to produce syngas mixture from sewage sludge. The plant is to demonstrate the practicality of eco-friendly and carbon-neutral production of fuels from waste.
Few of the players in the Syngas Market include Sasol Limited (South Africa), Haldor Topsoe A/S (Denmark), Air Liquide S.A.(France), Siemens AG (Germany), Air Products and Chemicals Inc. (US), KBR Inc. (US), Linde plc (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),
Global Syngas Market is Segmented as Below:
Key Elements Included In The Study: Global Syngas Market
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