The gasification market involves the conversion of carbonaceous materials such as coal, petroleum, natural gas and biomass into carbon monoxide and hydrogen. Gasification is considered a clean coal technology as it produces a synthetic gas (syngas) that can be utilized as fuel. Syngas produced from gasification has applications as a fuel in power generation systems, such as integrated gasification combined cycle (IGCC) systems. It also finds usage in production of chemicals and liquid fuels via downstream processes like methanol and Fischer–Tropsch synthesis.
The global gasification market is estimated to be worth USD 50-100 million by 2024 and the market is expected to reach USD 50-100 million by 2031, exhibiting a compound annual growth rate (CAGR) of 4.4% from 2024 to 2031.
Key Takeaways
Key players operating in the gasification market are Air Liquide, Royal Dutch Shell PLC, General Electric, KBR Inc., Mitsubishi Heavy Industries, Sedin Engineering, Siemens AG, Synthesis Energy Systems. The demand for syngas from power and chemical industries are growing at a robust pace which is expected to drive the gasification market during the forecast period. Various technological advancements such as advanced gasifier designs, use of feedstock flexibility and carbon capture technologies are helping lower the capital costs of gasification plants and making the process more commercially viable.
Market Trends
There is a growing shift towards modular and mobile Gasification Market Growth plants owing to their economical and flexible design. Their compact footprint makes them suitable for on-site installation and decentralized applications. Another major trend is the increasing development of mixed-feed flexible gasifiers which can accept multiple feedstocks. This helps utilize various carbonaceous waste streams and agricultural residues for syngas production.
Market Opportunities
Emerging applications of syngas such as production of cleaner transportation fuels using Fisher-Tropsch process present major opportunities for gasification companies. The industry is also exploring opportunities in co-gasification of coal and biomass which helps lower capital costs and carbon footprint of gasification projects. Widespread deployment of carbon capture and sequestration technologies in future gasification plants will help boost their commercialization prospects.
Here is 300 words content on impact of COVID-19 on Gasification Market:
The COVID-19 pandemic has significantly impacted the gasification market growth globally. During the initial lockdown phase, the demand from end-use industries like power, chemical, and fertilizer significantly decreased which reduced the demand for gasification projects. Furthermore, supply chain disruptions and shortage of workforce due to travel restrictions delayed several planned and ongoing gasification projects across major countries. Post initial lockdowns, the demand is recovering gradually as end-use industries resumed operations with new safety protocols. However, project delays during 2020 are expected to hamper the market growth during the forecast period.
To mitigate future impact, gasification technology providers are focusing on cost optimization and fast-tracking low-cost modular gasification solutions. Several energy companies are also evaluating gasification as an alternative to ensure energy security during such crisis situations. In the long-run, demand for cleaner energy from gasification is expected to increase owing to stringent environmental regulations. Governments across nations are providing incentives and subsidies and relaxing environment compliance norms temporarily to boost investments in gasification projects. With resumption of operations and accelerated vaccination drives, the market is anticipated to witness healthy growth post-pandemic with rising focus on domestic energy production and decarbonization goals.
Here is 300 words content on geographical regions concentration for Gasification Market:
Asia Pacific dominates the global gasification market and accounted for over 40% of the total market share in terms of value in 2020. China leads the Asia Pacific gasification market with the country investing heavily in coal and biomass gasification projects for power and chemical applications. Other major Asian markets include India, Japan, and South Korea. Being densely populated regions with huge coal reserves and growing energy needs, these countries are deploying gasification on a large scale to ensure energy security. North America is another key geographical region for the gasification market owing to policy support for clean coal technologies in the United States. Europe accounts for around 25% market share led by countries like Germany, UK, and Spain focusing on gasifying biomass, municipal solid waste, and biogas. Going forward, Asia Pacific and North America are expected to remain the most lucrative regions as investments in coal gasification projects continue in China and renewable gas projects gain momentum in the U.S. and copyright.
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Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. (https://www.linkedin.com/in/money-singh-590844163)