Global Syngas Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Feedstock (Natural Gas, Coal, Petroleum, Pet-coke, Biomass), By Technology (Partial Oxidation, Biomass Gasification, Steam Reforming, Autothermal Reforming, Combined Or Two-step Reforming), By Gasifier Type (Fluidized Bed, Fixed Bed, Entrained Flow, Others), By Application (Power Generation, Chemicals, Others), And By Geography - Forecasts From 2022 To 2027

The global syngas market was valued at 215.179 GW in 2020 and is expected to grow at a CAGR of 9.19% over the forecast period to reach a total market size of 398.307 GW by 2027.

Synthesis gas, often known as syngas, is a fuel gas mostly comprised of carbon monoxide, hydrogen, and a trace of carbon dioxide. Syngas is produced as a byproduct of gasification, and their primary application is in the generation of electricity. Syngas is an excellent alternative for digesting liquid and gaseous fuels. As demand rises, Power production firms are turning to a variety of options, including syngas. Furthermore, the rise of environmental problems and the implementation of government regulations encouraging the use of renewable fuels drive market growth.

The rise in demand for synthetic gas from the chemical sector is one of the key reasons driving the growth of the global syngas market. This is because syngas is used to produce synthetic natural gas (SNG), which is utilized in the rail, marine, and road transportation sectors like liquefied natural gas (LNG) and compressed natural gas (CNG). Furthermore, benefits connected with syngas, such as lower energy costs, greater stability, and its usage to fuel gas engines for power generation, increase its global demand. The advancement of the underground coal gasification (UCG) method, enables the completion of the in-situ gasification process that converts coal into syngas. This, in turn, increases demand since it removes the need to transport feedstock to gasification facilities, resulting in significant cost savings. Moreover, increased environmental consciousness and the adoption of rigorous government regulations on the use of renewable fuels have significantly contributed to the industry's growth. Syngas is essential in lowering landfill waste emissions and greenhouse gas emissions, which is what drives the syngas market’s expansion.

With growing demand from the chemical sector, particularly refineries, the Asia-Pacific region will dominate the global market share. China is a chemical processing powerhouse, producing the vast majority of the chemicals. The demand for syngas from this industry is projected to rise considerably throughout the forecast period, owing to the rising worldwide demand for different chemicals. Furthermore, the country's use of both liquid and gaseous fuels is rising at an exponential rate. This is likely to boost the growth of the syngas market throughout the forecast period. India is one of the world's largest users of oil. The growing demand for fuel is driving the demand for more refining capacity. Some of the causes driving fuel consumption include the replacement of LPG as a cooking fuel, rising urbanization, and increased demand for infrastructure and consumer products. In syngas products, ammonia is used to make di-ammonium phosphate (DAP), which is utilized in agriculture. According to the India Brand Equity Foundation, the production, import, and sales volume of DAP in India were about 9.3 million tonnes in FY2020 and approximately 9.5 million tonnes in FY2021, resulting in a rise in demand for ammonia.

Growth Factors

• An  increase in applications of syngas:

Rising demand for electricity, fuels, and agricultural products is propelling the syngas and derivatives market forward. New syngas production plants are being built in various regions. Polygeneration is the primary driver of the syngas and derivatives market since it can be used to produce fuels and chemicals for power generation. Chemical production is the most common application for syngas. Popular chemicals derived from syngas include methanol, oxo-chemicals, ammonia, dimethyl ether, and hydrogen. Methanol is then used to make a variety of derivatives, including olefins and formaldehyde. According to the OECD 2019 report, the global production of chemical products will be valued at about US$22 trillion by 2060.

Restraints:

• High capital investment

Some constraints that limit market expansion include costly capital investments and the lengthy-time period necessary to establish an operational plant with the installation of high-tech gasification methods. Another consideration is that the facilities need to be built in regions where the feedstock is always available.

COVID-19's Impact on the Syngas Market:

COVID-19 had a negative impact on the market. End-user industries such as chemicals, liquid fuels, gaseous fuels, and others mostly utilize syngas. Given the pandemic scenario, the chemical production facilities were temporarily shut down, resulting in a drop in demand for syngas. Furthermore, demand for syngas-derived compounds such as dimethyl ether and methanol has declined because they can be utilized as fuel for vehicles. During this time, however, the pharmaceutical industry's use of ammonia as an excipient (an inactive substance) has risen.

Key Developments:

• Hanwha Solutions, a renewable energy service provider affiliated with the South Hanwha Group of South Korea, will begin producing syngas in September 2021, which will be used to produce polyurethane and other products, thus reducing dependency on imports.
• SK Innovation became the first petrochemical company in South Korea to employ waste plastic pyrolysis oil in the manufacturing of petrochemical goods in September 2021. Pyrolysis technology will be utilized to generate synthetic gas (syngas), which will be used as the primary raw material in the manufacturing of methanol and ammonia.

Global Syngas Market Scope:

Market Segmentation

• By Feedstock
  • Natural Gas
  • Coal
  • Petroleum
  • Pet-coke
  • Biomass
• By Technology
  • Partial Oxidation
  • Biomass Gasification
  • Steam Reforming
  • Autothermal Reforming
  • Combined or Two-step Reforming
• By Gasifier Type
  • Fluidized Bed
  • Fixed Bed
  • Entrained Flow
  • Others
• By Application
  • Power Generation
  • Chemicals
  • Others
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • Germany
    • France
    • UK
    • Italy
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • South Africa
    • Others
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • Taiwan
    • Thailand
    • Indonesia
    • Others

Frequently Asked Questions (FAQs)

Q1. What will be the syngas market size by 2027?
A1. The global syngas market is expected to reach a total market size of 398.307 GW in 2027.

Q2. What are the growth prospects for the syngas market?
A2. The syngas market is expected to grow at a CAGR of 9.19% over the forecast period.

Q3. What is the size of the global syngas market?
A3. Syngas Market was valued at 215.179 GW in 2020.

Q4. What factors are anticipated to drive syngas market growth?
A4. The rise in demand for synthetic gas from the chemical sector is one of the key reasons driving the growth of the global syngas market.

Q5. Which region holds the largest market share in the syngas market?
A5. The Asia-Pacific region is expected to hold the largest share of the syngas market with growing demand from the chemical sector, particularly refineries.