Synagas market to grow 52% by 2027

According to “Syngas Market Outlook 2027” of Allied Market Research, global syngas market size was valued at $43.6 billion in 2019, and is projected to reach $66.5 billion by 2027, growing at a CAGR of 6.1% from 2020 to 2027. Power generation and chemicals applications are expected to drive the adoption of syngas.

Demand for synthetic gas from the chemical industry

Allied Market Research reports that one of the major factors driving the growth of the global syngas market is the rise in demand for synthetic gas from the chemical industry. This is attributed to the fact that syngas is used to manufacture synthetic natural gas (SNG), which is used in the rail, marine, and road transport industries in the form of liquefied natural gas (LNG) and compressed natural gas (CNG). Furthermore, advantages associated with syngas such as low energy cost, improved stability, and its use to fuel gas engines for power supply boost its demand globally.

Coal into syngas

In addition, the development of the method of underground coal gasification (UCG), enables the completion of the process of in-situ gasification that transforms coal into syngas. This, in turn, boosts the demand, as it eliminates the need to transport the feedstock to the gasification plants, resulting in substantial cost advantages. Moreover, increase in environmental awareness and implementation of stringent government restrictions on the use of renewable fuels notably contribute toward the growth of the industry.

In addition, syngas is critical in reducing atmospheric waste emissions in landfills and greenhouse gases, which propels the syngas market growth.

High capital investments

However, the factors that restrain the market growth include high capital investments and the significant time required to build the operational plant with the installation of hi-tech gasification techniques. On the contrary, the development of underground coal gasification technology is expected to act as an opportunity for the market expansion.

Source: Allied Market Research