Over the past few decades, the soaring need for reducing the dependency on fossil fuels has spurred the demand for syngas and its derivatives. The increasing demand for finding alternatives to fossil fuels has led to the soaring application of syngas. A variety of industrial applications also use the derivatives of syngas in generation of thermal energy to power their gasification plants. Syngas derivatives are increasingly being used as fuel in internal combustion (IC) engines in various end-use industries such as cement, chemicals, and food processing. These factors bode well for the growth of the syngas and derivatives market.
Propelled by a healthy growth in the demand for syngas and its derivatives for fuel, electricity, and agricultural applications, the market is poised to rise at an impressive CAGR of 9.40% from 2016 to 2024 and attaining the 256,605 MWth mark by the end of forecast period.
Which are the production technologies anticipated to gain traction along the forecast period?
Biomass gasification production technology is expected to gain ground over the forecast period. Under this technology, production of syngas and derivatives utilizes carbonaceous materials, such as coal and biomass, to churn out high-value fuels, along with the generation of chemicals such as carbon monoxide, carbon dioxide, and hydrogen. In the coming years, the global market is poised to witness a steady demand for this technology.
Steam reform technology is another prominent technology gaining steady adoption along the forecast period. The substantial demand is attributed to the use of natural gas as a feedstock to produce syngas. Besides, hydrogen, carbon monoxide, and numerous other chemicals are also produced as valuable by-products.
However, the lack of capital investment in setting up production units may hinder the demand for syngas and derivatives to some extent. In the coming years, advancement in technologies is expected to help manufacturers overcome this barrier.
At present, partial oxidation technology, occupies a minor share in the global syngas and derivatives market; however, the segment is expected to grow at significant CAGR over the forecast period.
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Which are the regions likely to witness substantial demand for syngas and derivatives?
The major regional markets are Asia Pacific, the Middle East and Africa, North America, Europe, and Latin America. Geographically, Asia Pacific led the global market in 2015 and 2016 and is anticipated to dominate the market along the forecast period. The substantial growth in the regional market will be fuelled by the presence of abundant coal and natural gas reserves, rapid pace of urbanization, and developments in the energy infrastructure. In addition, the advancement in production technologies is expected to propel the regional market. The soaring utilization of syngas for generation of electricity will lead to rapidly emerging demand for syngas and derivatives in the Middle East and Africa.