Syngas and Derivatives

Global syngas and derivatives are gaining widespread popularity across regions in coming years. According to the WK Research, “Global Syngas and Derivatives Professional Survey Report 2024, Forecast to 2029”, the global Syngas and Derivatives Market has witnessed strong growth owing to the rising environmental concerns, growing demand for electricity, fuels, and agricultural products, and the growing use of derivatives in multiple industrial applications. The compound annual growth rate (CAGR) for the 2024-2029 period is projected to be 10.36% base on WK Research regression analysis model.

Analysts’ Viewpoint:
“Syngas as a clean and renewable energy is widely adopted in various industrial applications across the globe. Rising environmental concerns, along with increasing need of producing alternative fuel is a major factor driving the global syngas and derivatives market. Companies in the market should accelerate their product development and leverage revenue opportunities to obtain competitive benefits. There is a healthy growth in the syngas and derivatives market due to the surging demand from rapidly developing economies and rising infrastructure development projects across the world. In addition, rapid urbanization and industrialization are some of the factors contributing to the growth of the syngas and derivatives market in developing economies”, said Kevin Rose, Senior analyst, in WK Research.

Market insight:
The global Syngas and Derivatives Market is principally driven by rising environmental concerns. Syngas as clear and renewable energy is expected to be utilized extensively to replace conventional forms of energy. Growing demand for electricity, fuels, and agricultural products are other important driving factors of the Syngas and Derivatives Market. The latest production plants of syngas are being built in multiple regions. The extensively used application of syngas is chemical production.
The common chemicals that are introduced from the syngas include methanol, oxo-chemicals, ammonia, dimethyl ether, and hydrogen. Of which methanol is utilized further to produce a lot of derivatives such as olefins and formaldehyde. The growing use of derivatives in multiple industrial applications is driving the demand for Syngas and Derivatives Market. Furthermore, the increased adoption of syngas and derivatives in power generation is driving its market growth. Despite having numerous advantages of syngas and derivatives, some factors restrain and challenge market growth.
The huge capital investments and the long period required to make the operational plant with the foundation of hi-tech gasification techniques are expected to hamper the market growth. Further, the Syngas and Derivatives Market has been lightly affected due to the outbreak of COVID-19 as a most maximum of the syngas and its derivatives production plants are established in the countries that are highly impacted due to coronavirus. The disruption induced by the COVID-19 outbreak has affected the supply chain of the Syngas and Derivatives Market due to low demand fuel and as the production has decreased down in many manufacturing units of the end-users.

Competition Landscape:
Malaysia Marine and Heavy Engineering (Malaysia) awarded Siemens AG a contract in June 2020 to supply three SGT-300 industrial gas turbine generators (GTG), three mechanical-drive SGT-300 gas turbines, and three DATUM centrifugal compressors for the PETRONAS Kasawari Gas Field Development Project in the South China Sea, off the coast of Sarawak, Malaysia. PETRONAS Carigali Sdn Bhd will use the industrial gas turbines to power 900 milli This WK Research market report is designed to help clients improve their market position, and in line with this, this report provides a detailed analysis of several leading syngas and derivatives companies that include: HaldorTopsoe A/S, KBR Inc., Air Products and Chemicals, Air Liquide SA, Sasol Limited, Agrium Inc., The Linde Group, Technip SA, Royal Dutch Shell PLC, Yara International ASA, General Electric Company, Linc Energy Ltd., Siemens AG, The DOW Chemical Company, Methanex Corporation.

Segmentation of Syngas and Derivatives Market:
According to the type, the market for syngas and derivatives is divided into: Coal, Petroleum, Natural Gas, and Biomass/Waste. The Coal segment is estimated to witness the highest CAGR for the forecast period. The factors that can be attributed to the growth of the Coal segment are associated with the high availability of coal for energy production and the great adaptability of the feedstock with various syngas production technologies. Also, the growth is attributed to the high availability of coal resources in countries such as China, the US, and Russia.

According to the application, the market for syngas and derivatives is divided into: Chemicals, Liquid Fuels, and Power Generation. The chemical segment is further bifurcated into OXO Chemicals, Ammonia, Methanol, Dimethyl Ether, Hydrogen, N-butanol. The Chemical segment is estimated to witness the highest CAGR for the forecast period. The factors that can be attributed to the growth of the chemical segment are associated with the rising demand for green chemicals for the synthesis and creation of chemical intermediates. Depending on the H2/CO ratio, syngas & derivatives are extensively used in the processing of chemicals for manufacturing fertilizers, petrochemicals, and oxo chemicals, amongst others.

Syngas and Derivatives Market: Regional Analysis
In terms of geography, the global syngas and derivatives market has been segmented into: North America, Asia Pacific, Europe, South America, and the Middle East and Africa. The Asia Pacific is expected to grow at the highest CAGR during the forecast period. The growth of the region can be attributed to the huge demand for syngas & derivatives in nations such as China, India, and Japan in applications such as chemicals, fuel, and electricity. The region comprising the largest consumer in the chemical sector offers huge growth opportunities for chemical applications for application in fertilizers and petrochemicals. In addition, the region is swiftly increasing in fuel and electricity applications, with the growing demand for syngas & derivatives in liquid fuel, gaseous fuel, and hydrogen-based power.