Syngas Market: Current Analysis and Forecast (2024-2032)

The syngas or synthesis gas market is proliferating with various uses in chemicals, electricity production, vehicle fuels, and others. Syngas, a combination of hydrogen, carbon monoxide, and carbon dioxide, are usually manufactured through gasification of carbon substances including coal, biomass, or natural gas. Due to its versatility as a feedstock for creating numerous chemical products such as methanol, ammonia, and synthetic natural gas, it plays a crucial role in the global energy and chemicals industry.

Another factor driving the syngas market is the rising concern of global society towards the usage of cleaner sources of energy. Due to its ability to provide for the manufacture of cleaner fuels and cut down on the use of conventional sources of fuel, syngas is highly relevant as governments and industries across the globe focus on tackling the problem of carbon emissions. The use of syngas in power generation, especially in combined cycle power plants makes use of efficient and environmentally friendly systems, which in turn increases demand for syngas. Moreover, the market is also experiencing enhancements in gasification technologies, which enhance the efficacy and cost-effectiveness of producing syngas. This progress has enhanced the possibility of applying syngas in a broad range of products such as advanced biofuels and chemical synthesis. For example, in 2024, Siemens AG and Boson Energy entered into an agreement to accelerate the green energy transition through waste-to-hydrogen technology. Boson gasification-based technology can create syngas with high quality and stability from nonrecyclable solid waste, including municipal solid waste (MSW) with low capital expenditures and operating expenses.

Based on production technology, the Syngas market is categorized into steam reforming and partial oxidation. Steam reforming caters significant share in the syngas market. Steam reforming is a widely applied technology based on the reaction of hydrocarbons, including natural gas, with steam to yield syngas. This process is highly economical and therefore widely used for large-scale syngas generation required for hydrogen synthesis, ammonia synthesis, and methanol synthesis. Besides, the lower operating costs and higher energy conversion efficiency of steam reforming in comparison with some other technologies including partial oxidation greatly influenced its high market share.

Based on feedstock, the Syngas market is segmented into natural gas, coal, biomass/waste, and others. In 2023, the coal segment is expected to cater to an extensive share of the syngas market. Coal gasification has particularly in the Asia-Pacific region owing to its large resources in coal. The technology of gasification of coal to produce syngas is relatively mature and expected to increase its production at a large scale. Further, the application of coal-based syngas is in the chemical industries such as the production of ammonia and methanol besides usage in the generation of power. Concerns over pollution of the environment by coal are closely addressed as improvements in the method of gasification and carbon capture and storage (CCS) offset any detrimental effects of the fossil fuel, thereby supporting the domination of the coal segment. However, as sustainability efforts continue to grow, the market could slowly transform to cleaner feedstock such as natural gas and biomass.

Based on gasifier type, the market is segmented into fixed bed gasifiers, entrained flow gasifiers, fluidized bed gasifiers, and others. The entrained flow gasifiers catered to a significant share of the syngas market. The factors attributed to its growth are to handle a wide range of feedstocks, including low-grade coals and biomass, with high efficiency and at a large scale. The entrained flow gasifiers work at high-temperature levels and hence the feedstocks can be gasified efficiently enough to produce higher standard syngas with low-level impurities. This makes them suitable for usage in large-scale industrial processes and power generation more appropriate.

Based on application, the market is categorized into methanol, ammonia, hydrogen, liquid fuels, direct reduced iron, synthetic natural gas, electricity, and others. The methanol synthesis segment caters to a significant share of the syngas market. It is mainly due to its wide range of applications such as a starting material for the manufacture of formaldehyde acetic acid, and other chemicals. Methanol is also increasingly used as an alternative fuel and for biodiesel manufacturing, due to the demand for environmentally friendly energy sources.

For a better understanding of the market adoption of Syngas, the market is analyzed based on its worldwide presence in countries such as North America (U.S., Canada, and the Rest of North America), Europe (Germany, UK, France, Spain, Rest of Europe), Asia-Pacific (China, India, Japan, and Rest of Asia-Pacific), Rest of World. Asia-Pacific has significantly contributed to the expansion of the Syngas market. This is mainly due to the high industrialization rate, rising energy consumption rates in the region, and a strong industrial focus on the manufacture of chemicals. China and India are leading the pack owing to chemical industries and growing power generation needs. Among the countries, China has the largest share in the syngas market due to the abundance of coal and the government's plan for less reliance on imported natural gas and oil. Additionally, the emphasis on developing clean power generation in the area, and hydrogen production through syngas, also propels the global market. The increasing trend in industrialization and the increased capital sunk on syngas technologies place Asia Pacific in a strategic position for the global syngas market.

Some of the major players operating in the market include Siemens AG, Linde Plc, Sasol, Shell Plc, Topsoe AS, Maire Tecnimont Spa, Dow Inc, Technip Energies NV, Air Products and Chemicals Inc, and Air Liquide.