The syngas & derivatives market is estimated at 2,45,557 MWth in 2020 and is projected to reach 4,06,860 MWth by 2025, at a CAGR of 10.6% from 2020 to 2025.
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.
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.
Impact of COVID-19 outbreak on the syngas & derivatives market
The COVID-19 outbreak started from Wuhan, China has spread across all the major economies in the world.
The syngas & derivatives market has been slightly impacted due to the outbreak of COVID-19 as most of the syngas and its derivatives production plants are located in the countries that are highly impacted due to coronavirus.
Also, major manufacturers of syngas and its derivatives have their headquarters and principal subsidiaries in the impacted countries.
The disruption caused by the COVID-19 outbreak has impacted the supply chain of the syngas & derivatives market due to low demand fuel and as the production has slowed down in many manufacturing units of the end-users.
However, manufacture of chemical intermediaries for health and hygiene products and fuels was marked as critical infrastructure and as essential goods and services, which led to continuation in the operations and production of syngas and its derivatives to meet the demand across the world.
In the first half of 2020, companies operating in the syngas & derivatives market focused on the production of chemical intermediaries to support the demand for agrochemicals and hygiene and sanitization products. Syngas was also widely used for electricity generation.
Significant consumption of syngas and its derivatives is anticipated in applications across chemicals, fuel, and electricity.
Biomass/waste segment is projected to grow at the highest CAGR in the syngas & derivatives market between 2020 and 2025
Biomass/waste is projected to be the fastest-growing feedstock segment in the syngas & 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 & derivatives produces clean and renewable energy and reduces landfills to a great extent.
The adoption of biomass/waste feedstock in the syngas & 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 consumption in the syngas & derivatives market
The chemicals segment is estimated to lead the syngas & derivatives market in 2020, due to rising demand for syngas & 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, subsequently due to COVID-19 impact fueling the growth of agrochemicals.
Based on the region, Asia Pacific is projected to grow at the highest CAGR in the syngas & derivatives market between 2020 and 2025
The syngas & derivatives market in the Asia Pacific region is projected to grow at the highest CAGR between 2020 and 2025. China accounted for the major share of the global syngas & derivatives market in 2019, which is driving the growth of the Asia Pacific region.
China, India, and Japan are the lucrative markets for syngas & 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.
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