Syngas Market

Syngas Market Outlook 2027

Global syngas market size 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. Synthesis gas, referred to as syngas, is a fuel gas composed mostly of carbon monoxide, hydrogen, and a certain amount of carbon dioxide. Syngas is the result of gasification, and the major application of syngas is electricity generation. Syngas serves as an ideal choice for the processing of liquid and gaseous fuel. With rising increase in demand, power generation companies are turning to a number of alternatives, including syngas. Furthermore, rise in environmental issues and implementation of government policies to encourage the use of renewable fuels boost the market growth.

The outbreak of COVID-19 halted the manufacturing activities of end-use industries such as chemical, oil, and construction which consequently hindered the demand for syngas.

One of the major factors driving the growth of the global syngas market is rise in demand for synthetic gas from the chemical industry. This is attributed to the fact that syngas is used to manufacture synthetic natural gas (SNG), which is used in the rail, marine, and road transport industries in the form of liquefied natural gas (LNG) and compressed natural gas (CNG). Furthermore, advantages associated with syngas such as low energy cost, improved stability, and its use to fuel gas engines for power supply boost its demand globally. In addition, the development of the method of underground coal gasification (UCG), which enables the completion of the process of in-situ gasification that transforms coal into syngas. This, in turn, boosts the demand, as it eliminates the need to transport the feedstock to the gasification plants, resulting in substantial cost advantages. Moreover, increase in environmental awareness and implementation of stringent government restrictions on the use of renewable fuels notably contribute toward the growth of the industry. In addition, syngas is critical in reducing atmospheric waste emissions in landfills and greenhouse gases, which propels the syngas market growth. However, the factors that restrain the market growth include high capital investments and the significant time required to build the operational plant with the installation of hi-tech gasification techniques. On the contrary, the development of underground coal gasification technology is expected to act as an opportunity for the market expansion.

The global syngas market is segmented into gasifier, technology, feedstock, application, and region. Depending on gasifier, the market is categorized into moving bed gasifier, fluidized bed gasifier, entrained flow gasifier, and others. On the basis of technology, the it is categorized into steam reforming, partial oxidation, auto-thermal reforming, combined or two-step reforming, and biomass gasification. By feedstock, it is segregated into natural gas, coal, biomass/ waste, and others. As per application, it is fragmented into power generation, chemicals, and others. Region wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

Some of the key players operating in the global market are 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.

Global syngas market, by gasifier

On the basis of gasifier, the fluidized bed gasifier segment held a significant share in 2019. These are commonly used to enhance turbulence for more complete gasification of low quality, low reactivity feedstocks.

Global syngas market, by technology

By technology, the steam reforming segment is expected to lead the global market during the forecast period. Natural gas steam reforming is a reliable, cost-effective, and widely used method to produce hydrogen, with near- and mid-term energy protection and environmental benefits.

Global syngas market, by feedstock

Depending on feedstock, the coal segment is expected to lead the market during the forecast period, owing to high availability of coal for energy production and excellent compatibility of feedstock with different technologies for the production of synthetic gases.

Global syngas market, by application 

By application, the chemical industry is the largest user of syngas. The chemical industry tends to use feed stocks that are most economical to procure or produce.

Global syngas market, by region

Asia-Pacific dominated the global syngas market share, owing to surge in demand from the chemical industry, primarily from refineries.

Key Benefits For Stakeholders

• The report provides an in-depth analysis of the market trends along with the current and future syngas market forecast.
• This report highlights the key drivers, opportunities, and restraints of the market along with the impact analyses during the forecast period.
• Porter’s five forces analysis helps analyze the potential of the buyers & suppliers and the competitive scenario of the global syngas industry for strategy building.
• A comprehensive syngas market analysis covers factors that drive and restrain market growth.
• The qualitative data in this report aims on market dynamics, trends, and developments.

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 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.

 Syngas Market Report Highlights