The synthesis Gas Market size was valued at US$ 43.7 billion in 2022 and is anticipated to grow to US$ 66.4 billion by 2028 and increase at a CAGR of 6.3% between 2023-2028
Synthesis gas commonly referred to as syngas, is a fuel gas that consists primarily of carbon monoxide, hydrogen, and a small quantity of carbon dioxide. Syngas is the byproduct of gasification, and it is mainly used to generate power. Syngas is an excellent alternative for liquid and gaseous fuel processing. Power generation businesses are resorting to a variety of options, including syngas, to meet expanding demand. Furthermore, rising environmental concerns and government initiatives encouraging renewable fuels are boosting market growth.
Synthesis Gas Market Drivers:
The surge in demand for synthetic gas from the chemical industry is one of the primary reasons propelling the global synthesis gas market. This is because syngas is used to make synthetic natural gas (SNG), which is used in the rail, marine, and road transport industries as liquefied natural gas (LNG) and compressed natural gas (CNG) (CNG). Furthermore, syngas' benefits, such as its low energy cost, enhanced stability, and use as a fuel for gas engines for power generation, are driving up demand globally. Moreover, the underground coal gasification (UCG) method allows for completing the gasification process, which involves converting coal into syngas. This, in turn, increases demand by removing the need to transfer feedstock to gasification units, resulting in significant cost savings.
Furthermore, increased environmental consciousness and the imposition of rigorous government regulations on renewable fuels contribute significantly to the industry's growth. Syngas is also essential for lowering landfill waste and greenhouse gas emissions, driving the syngas market forward. On the contrary, the advancement of underground coal gasification technology is likely to open up new global synthesis gas market opportunities.
The primary drawbacks are the high gas yield, high hydrogen consumption, and oil can only be used as a boiler due to impurities. Moreover, high capital investments and the considerable time required to create an operational plant with the installation of high-tech gasification procedures, on the other hand, are obstacles that limit global synthesis gas market expansion. The composition of syngas and the physicochemical features that result significantly impact the safety of gas consumption. The qualities of the two fundamental components, hydrogen and carbon monoxide, should be considered when assessing the risk and dangers of syngas manufacturing, transport, and storage. Because of the two gases' composition, discharged synthesis gas can cause a fire or explosion. The presence of a hazardous gas might potentially provide a risk of poisoning. When a synthesis gas installation fails, and the mixture ignites immediately or slowly, several harmful events might occur, including:
The fire-generated heat flux impacting humans and the environment is one of the adverse outcomes of the scenarios mentioned above. Therefore, these are significant factors that hamper the global synthesis gas market growth.
Recent Developments in the Global Synthesis Gas Market:
BASF declares that it is going to develop the process for climate-friendly methanol. Methanol is often manufactured from syngas, which was previously derived primarily from natural gas using a combination of steam and auto-thermal reforming. This can then be converted to crude methanol using specific catalysts, and further processed after purification. The syngas is produced in the innovative BASF method by partial oxidation of natural gas, making no CO2 emissions and proving useful.
Evonik and Siemens Energy have begun construction on a prototype plant that will use carbon dioxide as raw material, store energy, and produce a variety of specialized chemicals named artificial photosynthesis.
REPORT METRIC |
DETAILS |
Market Size Available |
2022-2028 |
Base Year |
2022 |
Forecast Period |
2023-2028 |
CAGR |
6.3% |
Segments Covered |
|
Various Analyses Covered |
Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview on Investment Opportunities |
Regions Covered |
|
Market Leaders Profiled |
Air Liquide, Air Products and Chemicals Inc., BASF SE, John Wood Group, ROYAL DUTCH SHELL PLC., Sasol Limited, SIEMENS AG, Syngas Energy Holdings, SynGas Technology LLC. |
Synthesis Gas Market By Application:
Chemicals
Power Generation
Others
Depending on the application, the chemicals will play a vital role in the global synthesis gas market during 2022 - 2027. The chemical industry prefers to use feedstocks that are the most cost-effective to obtain or manufacture. The significant components of inflammable gas are carbon monoxide and hydrogen. Syngas is used in various applications, including gas turbine fuel, anode gas in raw material, and solid oxide fuel cells for synthetic natural gas and liquid fuels. Therefore, owing to these factors, synthesis gas is primarily utilized in chemical firms.
Partial oxidation
Steam reforming
Auto thermal reforming
Biomass gasification
Combined or two-step reforming
The steam reforming segment is augmented to dominate the global synthesis gas market in terms of technology during the projected period. Natural gas steam reformation is a dependable, cost-effective, and commonly utilized technique for producing hydrogen, with immediate and long-term energy and environmental benefits. The most common method for producing hydrogen-rich synthesis gas from light carbohydrates is steam reforming. In catalytic tube reactors, natural gas, liquid gas, or naphtha are endothermically transformed into synthesis gas using water steam.
Moving bed gasifier
Entrained flow gasifier
Fluidized bed gasifier
Others
The fluidized bed gasifier sector maintained a large part of the global synthesis gas market in 2019. These are typically employed to increase turbulence so that low-quality, low-reactivity feedstocks can be gasified more completely. Moreover, Fluidized-bed gasifiers settle feedstock particles in an oxygen-rich gas, resulting in a fluidized-bed bed within the gasifier. Back-mixing is used in these gasifiers to efficiently mix feed coal particles with coal particles that have already been gasified. Coal with small particle sizes (less than 6 mm) is typically used to maintain fluidization or the suspension of coal particles within the gasifier. Coal enters the reactor from the side, while steam and oxidant enter from the bottom at a sufficient velocity to entirely suspend or fluidize the reactor bed. As a result, the reactor bed maintains a consistent temperature due to complete mixing within the gasifier.
Coal
Natural gas
Biomass/waste
Others
Due to the large availability of coal for energy generation and the strong compatibility of feedstock with different technologies for the manufacture of synthetic gases, the coal segment is likely to lead the market over the forecast period
Syngas is majorly utilized in power generation, chemicals, and liquid fuels, and these industries have seen a modest slowdown in growth due to the national lockdown.Many countries' economies have suffered due to the shutdown of various businesses, particularly transportation and supply chains. Moreover, because there is no development due to the lockout, demand has been hampered. Therefore, during the COVID-19 pandemic, the chemical industry's growth is likely hindered by a demand-supply mismatch, disruptions in raw material procurement, and price instability
The companies covered in the report include:
Sasol Limited
SIEMENS AG
Syngas Energy Holdings
SynGas Technology LLC
The Linde Group
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