According to a new report published by Allied Market Research titled, “Syngas Market by Gasifier, Technology, Feedstock, and Application: Opportunity Analysis and Industry Forecast, 2020–2027,” the global syngas market was valued at $43.6 billion in 2019, and is projected to reach $66.5 billion by 2027, growing at a CAGR of 6.1% from 2020 to 2027.
Syngas, which consists of hydrogen and carbon dioxide, is a natural gas fusion. It is an adaptable intermediate used in methanol, ammonia, and SNG manufacturing. Syngas is created by a reaction between steam and oxygen from several hydrocarbon feedstocks.
Increase in environmental issues has been the key driver of the syngas market. This is attributed to the syngas is widely used as clean and renewable energy to replace conventional sources of energy. In addition, owing to the outbreak of COVID-19, rise in demand for chemical intermediaries in the production of hygiene and sanitation and pharmaceutical products is expected to drive the need for syngas in the chemical industry.
In the 2019, the fluidized-bed gasifiers segment garnered the largest share. Major benefits of fluidized-bed gasifiers include fuel flexibility resulting from good mixing of feedstock and oxidants to ensure efficient heat and mass transfer, and their ability to deal with small particles.
The steam reforming segment held the major share in in 2019. Steam reforming is the most utilized and cost-effective technology for the production of syngas.
Coal dominated the feedstock segment by accounting for the largest share of 69.8%. The processing of syngas includes coal, an abundantly available raw material. Coal gasification is flexible and is the cleanest way to turn coal into hydrogen, power, and other useful items.
Depending on application, the chemical industry dominated the market, owing to increase in demand for syngas from the chemical industry. As the demand for gaseous fuels rises, the market is expected to expand further.
Players analyzed and profiled in the global syngas market Air Liquide, Air Products and Chemicals Inc., BASF SE, John Wood Group, Royal Dutch Shell, Sasol Limited, Siemens, Syngas Energy Holdings, SynGas Technology LLC, and The Linde Group.
Key Findings Of The Study
- Based on gasifier, the fluidized bed gasifier is likely to witness the growth rate of 40.1%, in terms of revenue, during the forecast period.
- On the basis of technology, the steam reforming segment emerged as the global leader with more than 39.6% share in 2019.
- By feedstock, the coal segment is anticipated to witness moderate growth rate of 69.8%, in terms of revenue, during the forecast period.
- Depending on application, the chemicals segment dominated the global syngas market with around 61.3% global market share in 2019.
- Countries such as China, India, and Indonesia are emerging as an investment-centric hubs due to wide scope in the manufacturing sector.
Impact Of Covid-19 On The Global Syngas Market
- COVID-19 has spread to almost 213 countries around the globe with the World Health Organization declaring it a public health emergency on March 11, 2020.
- Some of the major economies suffering the COVID-19 crises include Germany, France, Italy, Spain, the UK, and Norway.
- Syngas is primarily used in power generation, chemicals, and liquid fuels, and as an impact of national lockdown, these sectors were experiencing a slight decline in growth rate.
- In many countries, the economy has dropped due to the halt of several industries, especially transport and supply chain. Demand for the product has been hindered as there is no development due to the implementation of lockdown.
- The demand–supply gap, disruptions in raw material procurement, and price volatility are expected to hamper the growth of the chemical industry during the COVID-19 pandemic.