Syn Gas Market - Segmented by Technology, Feedstock, Gasifier Type, End-user Industry, and Geography - Growth, Trends, and Forecast (2018 - 2023)
The global syngas market stood at 173.5 GWth in 2017. The market studied is expected to reach 239.5 GWth by 2023, at an estimated CAGR of 11.02%, over the forecast period, 2018 to 2023. Asia-Pacific is estimated to lead the market owing to the growing energy consumption and availability of abundant coal reserves.
Feedstock Flexibility for Syngas Production
Syngas is produced through gasification or pyrolysis of these carbonaceous materials. In gasification, these materials are subjected to high temperatures, a controlled supply of oxygen, with only limited combustion, in order to provide thermal energy and sustain the reaction. The type of feedstock used to produce syngas holds limited effect on quality of syngas produced. This offers free choice to the producers to opt any feedstock. Limited availability of conventional fuels and need for alternative fuel sources have increased the production of syngas, worldwide. The cost of production of syngas is directly related to the cost of feedstock, which gives manufacturers the flexibility to choose feedstock according to their budgets. Besides this, the flexibility of using various feedstock for production of syngas further facilitates power production, even at those locations, where natural resources, like natural gas, naphtha, heavy oil, etc. are not available. Moreover, in the remote areas, where power transmission remains a major barrier, the installation of gasification systems or pyrolysis technologies may help in power generation through easily accessible feedstocks, such as municipal waste, plastics, and biomass. Such aforementioned benefits of flexibility in choosing feedstock serve as the major drivers for the syngas market.
Power Generation End-use to Dominate the Market
High level of economic growth and improvement in quality of life in emerging economies, such as China, India, South Korea, Brazil, and South Africa, among others is expected to drive the power generation end-use. According to International Energy Outlook 2016, world net electricity generation is expected to increase to 69% by 2040, from 21.6 trillion kilowatt-hours (kWh) in 2012 to 25.8 trillion kWh in 2020, and 36.5 trillion kWh in 2040. Various countries, globally, are promoting sustainable energy policies to spur economic growth. More than 27 Giga Watts (GW) of electricity generating capacity was added to the US power grid during 2016 (the largest amount of added capacity, since 2012). These additions more than offset the retirement of roughly 12 GW of capacity, resulting in a net capacity gain of nearly 15 GW. China, currently, has 56 operating gasification plants with about 29% of the worldwide capacity, and has surpassed South Africa's Sasol, which accounts for 20% of world gasification capacity. Electricity is the world’s fastest-growing form of end-use energy consumption, as it has been for many decades. Power systems have continued to evolve from isolated, small grids to national and international markets.
Asia-Pacific Region to Lead the Market
Asia-Pacific is projected to dominate the syngas market, during the forecast period, due to growing energy consumption. Higher economic growth coupled with increase in electricity consumption in countries, such as China, India, South Korea, Indonesia, and Taiwan has increased the production of syngas. China constitutes many power plants, and thus, is emerging as one of the largest energy consuming countries in the world. In 2012, the International Energy Agency (IEA) reported that China accounted for the largest installed power capacity. In China, coal remains the major source of electricity generation, accounting for about 70% of the total electricity generated. The domination of coal, in terms of power generation, is likely to continue for a considerable period. Furthermore, the addition of a number of power plants to the Indian thermoelectric power generation portfolio is expected to drive the demand for syngas. At least, 30 GW of additional power is expected to be generated from thermoelectric power plants till 2020. The aforementioned factors are projected to increase the consumption of syngas in the region during the forecast period.
Key Developments in the Market
- October 2017- Praxair Inc., an industrial gas company signed an agreement with BASF SE to construct a syngas processing plant at BASF's campus in Geismar, Germany.
Major Players -Air Liquide, BASF SE, John Wood Group PLC, GENERAL ELECTRIC, The Linde Group, Royal Dutch Shell, SASOL, and Siemens AG, among others.
Reasons to Purchase the Report
- To understand the impact of end-use applications on the market.
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