Syngas Market Size (2024 – 2030)

The Global Syngas Market is estimated to be worth USD 49.87 Billion in 2023 and is projected to reach a value of USD 75.48 Billion by 2030, growing at a fast compound annual growth rate (CAGR) of 6.1% during the forecast period 2024-2030.

A flammable gas called syngas that results from pyrolysis can be used to generate energy in turbines, gas engines, and steam turbines. By gasifying biomass, syngas is produced, which is utilized to produce heat and power. Both conventional combustion techniques and biomass fuels can be used to generate electricity. The system's thermal efficiency, though, is low. Syngas can be converted into various fuels and chemicals, such as methanol, ethanol, hydrogen, and others. Internal combustion (IC) gas engines are best suited for small and medium-sized plants with a capacity of 1 to 10 MW. Moreover, IC engines are more practical than turbines. Rising demand for liquid fuels and energy for industrial, commercial, and residential end-uses is boosting market revenue growth. Several businesses are creating more advanced waste gasification techniques. For instance, Burkhardt GmbH gasifiers produce syngas for the production of heat and power from wood pellets. Burkhardt Energy systems use homogenous wood pellets to address problems brought on by heterogeneous waste streams and control the quality and composition of syngas through the use of gas composition.  Major constraints limiting market revenue development include the substantial capital expenditure required to build up syngas plants and growing government measures to reduce coal use. Beginning January 1, 2023, the National Capital Region (NCR) in Delhi, India, will outlaw the use of coal as a fuel. Because of its high calorific value, coal is frequently used to produce syngas. Various governments are attempting to control the use of coal in the production of electricity. This has some negative effects on the market's revenue growth.

Global Syngas Market Drivers:

Growing Demand for Syngas as Key Feedstock and Popularity of Gasification Technology is Driving Syngas Market Growth:

Syngas is a crucial feedstock for the synthesis of fertilizers like urea, as well as chemicals like methanol, ammonia, and synthetic fuels. The demand for syngas is increasing along with the overall demand for these goods. Due to its capacity to transform a variety of feedstocks into a usable gas, gasification technology is growing in popularity as a method of manufacturing syngas. The market for syngas is expanding as more businesses embrace gasification technology as a result. As a way to cut greenhouse gas emissions, several governments all over the world are supporting the use of renewable energy sources, such as biomass.

Increasing Use and Demand for Syngas as a Clean Energy Source is fuelling demand globally:

This has increased the production of syngas through biomass gasification, further fuelling the market's expansion. Syngas can be used as fuel for electricity production by either directly burning them in a gas turbine or converting them into hydrogen fuel cells. The demand for syngas as a fuel source is rising along with the overall demand for energy. Methanol and synthetic diesel are two examples of clean transportation fuels that can be produced from syngas. The demand for these clean transportation fuels is anticipated to increase as nations around the world adopt stronger emissions regulations and work to lessen their reliance on fossil fuels, thus boosting the growth of the syngas market.

Global Syngas Market Challenges:

Some businesses may find it challenging to enter the market due to the significant capital expenses involved in constructing and running syngas plants. Feedstocks like coal, biomass, and natural gas might be expensive or available at different times of the year depending on location and other variables. This may have an impact on syngas production costs and make it more challenging for some businesses to turn a profit. It takes a high level of technical competence to produce syngas, which is a complicated process. Syngas plants can be difficult to maintain and run, and technical problems can crop up that might cause production to halt. Significant emissions of greenhouse gases and other pollutants can result from the manufacture of syngas.

Global Syngas Market Opportunities:

Syngas may now be produced more effectively and from a wider range of feedstocks due to ongoing developments in gasification technology. Syngas's potential markets are growing and its price is becoming more competitive. Among the main users of syngas are the chemical and fertilizer sectors. The need for syngas will increase as these sectors develop and thrive. The possibility of using syngas as a fuel for power generation is expanding due to the rising global demand for electricity. This can apply to both conventional gas turbine power facilities and cutting-edge innovations like hydrogen fuel cells. Methanol and synthetic diesel are two examples of clean transportation fuels that can be produced from syngas. The demand for these clean transportation fuels is anticipated to increase as nations around the world adopt stronger emissions regulations and work to lessen their reliance on fossil fuels, opening up new potential for the syngas market. By capturing and storing carbon emissions from the production of syngas, CCS technologies aim to lower greenhouse gas emissions and improve the environmental impact of the sector. The advancement of these technologies offers the syngas business the chance to expand while resolving environmental issues.

COVID-19 Impact on the Global Syngas Market:

Syngas is predominantly used in the production of electricity, chemicals, and liquid fuels, and as a result of the national lockout, these industries' growth rates slightly decreased. Due to the shutdown, there has been no significant development, which has slowed down the demand for the product. The COVID-19 pandemic is projected to impede the expansion of the chemical sector due to disruptions in the supply of raw materials and price instability.

Global Syngas Market Recent Developments:

• In June 2022, three SGT-300 industrial gas turbine generators (GTG), three SGT-300 gas turbines with mechanical drives, and three DATUM centrifugal compressors will be supplied by Siemens AG under a contract with Malaysia Marine and Heavy Engineering (Malaysia) for the PETRONAS Kasawari Gas Field Development Project in the South China Sea, off the coast of Sarawak in Malaysia. The industrial gas turbines will run PETRONAS Carigali Sdn Bhd's offshore Central Processing Platform (CPP) at a rate of 900 million cubic feet per day.

• In November 2021, in order to build, own, and operate its largest-ever steam methane reformer (SMR) to produce hydrogen, an air separation unit (ASU) to supply nitrogen and utility facilities, Air Products and Chemicals Inc. has made the largest-ever US investment of USD 500.0 million.

SYNGAS MARKET REPORT COVERAGE:

Global Syngas Market Segmentation: By Feedstock Type

• Coal

• Biomass

• Natural Gas

• Petroleum Coke

Over the projection period, the biomass segment is anticipated to have substantial revenue expansion. The parts of plants and algae used to make fuels like syngas, methanol, ethanol, and biodiesel are known as biomass feedstocks. Syngas is produced using a variety of feedstocks, with wood serving as the main ingredient. Other feedstocks utilized in the process include corn, straw, sugarcane, and straw. Tar and other contaminants can be removed physically from syngas that has been extracted following biomass gasification, which is both practical and economical. Fuel synthesis is the process through which syngas is converted into liquid fuel. Future revenue growth of this sector is anticipated to be boosted by rising demand for biomass feedstock.

Global Syngas Market Segmentation: By Application

• Chemical Production

• Power Generation

• Fuel Synthesis

• Gaseous Fuel for Transportation

Over the projection period, the chemicals section is anticipated to generate the most revenue. Syngas can be used to make a wide variety of chemicals, including synthetic materials, fuels, solvents, and fertilizers. The Fischer-Tropsch method, which can be used to process syngas, can result in the production of motor fuels such as diesel, methane, methanol, and dimethyl ether. A microbiological process known as syngas fermentation uses microorganisms to devour the carbon and energy source found in syngas and transform it into chemicals and fuels. The main by-products of syngas fermentation are ethanol, butanol, butyric acid, and butyric acid. Due to the widespread usage of these by-products in the manufacture of fertilizers, solvents, and synthetic materials, syngas is now used in the synthesis of chemicals and other derivatives for commercial purposes. This is anticipated to fuel the segment's revenue growth.

Global Syngas Market Segmentation: By End-User

• Chemical Industry

• Power Generation Industry

• Fuel Industry

• Others

One of the biggest users of syngas is the chemical industry, which uses it to produce compounds like hydrogen, methanol, and ammonia. In order to create electricity, syngas can be burned directly in a gas turbine or transformed into hydrogen fuel cells. Methanol and synthetic diesel are two clean transportation fuels that can be produced from syngas and used in the transportation sector. Among its other uses are the manufacture of fertilizers, the reduction of iron ore in the steel industry, and the creation of synthetic natural gas.

Global Syngas Market Segmentation: By Region

• North America

• Europe

• Asia Pacific

• Rest of the World

The North American region's market is anticipated to experience revenue growth as a result of variables like rising household and commercial demand for liquid fuel and power as well as the rising desire for sustainable energy sources. Clean syngas is excellent for producing fuels, chemicals, and other derivatives and enables the production of power with a negligible carbon footprint. By integrating systems with increased availability, reliability, and flexibility of upgraded reactors and processes for gasification, syngas upgrading and clean-up, and conversion of syngas into fuels or electricity, it is possible to reduce production costs and achieve good environmental performance. The DOE Gasification Systems Program aims to enable low-cost power generation and the manufacturing of chemicals, hydrogen, and other useful products to satisfy varied demands.

Global Syngas Market Key Players:

1. Air Products Inc.

2. KBR Inc.

3. Linde plc

4. Siemens

5. Haldor Topsoe A/S

6. Air Liquide

7. BASF SE

8. Synthesis Energy Systems, Inc.

9. Dow Inc.

10. Sasol Limited