Syngas Market

Increasing demand for syngas from the chemical industry to boost the market growth

One of the major factors behind the growth of the syngas market is the increasing demand for syngas from the chemical industry. This is due to the use of syngas in the production of synthetic natural gas (SNG), which is used in the form of liquefied natural gas (LNG) and compressed natural gas (CNG) in the rail, marine and road transport industries.

Further, the benefits associated with syngas, such as lower energy costs, increased stability, and use as a fuel for gas engines that provide electricity, have increased its demand. In addition, the development of the Underground Coal Gasification (UCG) process that enables the completion of an in situ gasification process that converts coal to syngas. This increases demand and provides significant cost advantages as feedstock does not need to be transported to the gasification plant.

Additionally, increasing environmental awareness and the implementation of strict government restrictions on the use of renewable fuels are particularly contributing to the growth of the industry. Additionally, syngas is important in reducing air waste emissions to landfills and greenhouse gases that are driving the growth of the syngas market. However, the factors restraining the market growth include high capital investment and long time required to introduce high-tech gasification technology and build the plant. Conversely, the development of underground coal gasification technology has enhanced the Syngas market CAGR across the globe in the recent years.

However, to cater the demand there has been significant advancement and innovations is another factor driving the growth of the Syngas market revenue.

In 2024 Air Products released a new syngas production technology with improved efficiency and reduced carbon emissions.

In 2023 Linde introduced an advanced syngas generation system designed for enhanced performance in industrial applications.

The Global Global Syngas Market Industry is poised for substantial growth, with projections indicating a market value of 58.2 USD Billion in 2024 and an anticipated increase to 111.6 USD Billion by 2035. This growth trajectory suggests a compound annual growth rate (CAGR) of 6.1% from 2025 to 2035, reflecting the increasing adoption of syngas technologies across various sectors. The rising demand for cleaner energy solutions, coupled with advancements in gasification technologies and supportive government policies, creates a conducive environment for market expansion. As the industry evolves, it is likely to play a crucial role in shaping the future of global energy production.

The versatility of syngas in various applications is a key driver for the Global Global Syngas Market Industry. Syngas is utilized in the production of chemicals, fuels, and electricity, catering to diverse sectors such as transportation, manufacturing, and power generation. For example, syngas can be converted into methanol, which is a precursor for numerous chemical products. This broad applicability not only enhances market demand but also encourages research and development in syngas technologies. As the industry evolves, the potential for syngas to play a pivotal role in the global energy landscape becomes increasingly evident.

The Global Global Syngas Market Industry is experiencing a surge in demand for clean energy solutions, driven by increasing environmental concerns and regulatory pressures. Governments worldwide are implementing stringent policies to reduce greenhouse gas emissions, which propels the adoption of syngas as a cleaner alternative to fossil fuels. For instance, syngas can be produced from renewable sources such as biomass, which aligns with global sustainability goals. This shift is expected to contribute to the market's growth, with projections indicating a market value of 58.2 USD Billion in 2024, reflecting the industry's potential to meet energy needs while minimizing environmental impact.

Government initiatives aimed at promoting alternative energy sources significantly influence the Global Global Syngas Market Industry. Various countries are providing financial incentives, subsidies, and research grants to foster the development of syngas technologies. These supportive measures are crucial in overcoming the initial capital barriers associated with syngas production facilities. For instance, the implementation of favorable policies can lead to increased investments in syngas projects, thereby accelerating market growth. As the industry matures, the collaborative efforts between governments and private sectors are likely to enhance the overall sustainability and competitiveness of the syngas market.

The Global Global Syngas Market Industry is witnessing a notable increase in investments directed towards renewable energy projects. As countries strive to transition to sustainable energy systems, syngas derived from renewable sources is gaining traction. This trend is supported by the global commitment to achieving net-zero emissions by mid-century, which necessitates the development of cleaner energy alternatives. The market is projected to reach 111.6 USD Billion by 2035, underscoring the growing recognition of syngas as a viable solution for energy production. The influx of capital into renewable syngas projects is likely to drive innovation and enhance the industry's overall growth trajectory.

Technological innovations in gasification processes are significantly enhancing the efficiency and cost-effectiveness of syngas production. The Global Global Syngas Market Industry benefits from advancements such as integrated gasification combined cycle (IGCC) technology, which allows for higher energy conversion rates and lower emissions. These innovations not only improve the economic viability of syngas but also attract investments from various sectors. As a result, the market is poised for substantial growth, with an anticipated compound annual growth rate (CAGR) of 6.1% from 2025 to 2035, indicating a robust trajectory for the industry.

By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. Asia-Pacific Syngas market accounted for USD 21.15 billion in 2021 and is expected to exhibit a significant CAGR growth of 46.10% during the study period. This is attributed to the increasing collaboration between foreign and domestic companies, increase in foreign direct investment (FDI) in the power sector, and a conducive environment for foreign manufacturers to build and operate power plants in the countries across the region.

Moreover, China Syngas market held the largest market share, and the India Syngas market was the fastest-growing market in the Asia-Pacific region

Further, the major countries studied in the market report are The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3:  SYNGAS MARKET SHARE BY REGION 2021 (%)

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Europe Syngas market accounts for one of the largest market shares due to the increase in government investment to promote R&D and research to promote an efficient process of syngas production. An EU-Funded project such as UNIQUE was initiated to provide high purity syngasFurther, the Germany Syngas market held the largest market share, and the UK Syngas market was the fastest growing market in the European region.

The North America Syngas Market is expected to grow at the fastest CAGR from 2022 to 2030. This is due to the growing need for liquid fuel and power for domestic and commercial purposes and increasing demand for sustainable energy sources are key factors expected to contribute market growth in the region.

Major market players are spending a lot of money on R&D to increase their product lines, which will help the Syngas market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the Syngas industry must offer cost-effective solutions to expand and survive in an increasingly competitive and rising market environment.

One of the primary business strategies adopted by manufacturers in the  Syngas industry to benefit clients and expand the market sector is to manufacture locally to reduce operating costs. In recent years, Syngas industry has provided medicine with some of the most significant benefits. The Syngas market major player such as Shell (Netherlands), Synthesis Energy Systems Inc. (US), Yankuang Group (China), Air Products and Chemicals Inc (US), Air Liquide (France) and others are working to expand the market demand by investing in research and development activities.

Air Products Syngas Solutions offers complete turnkey gasification complexes under a sale of Gas model where Air Products builds, finances, owns and operates the syngas production facility. It provides a variety of highly reliable, low-cost syngas solutions tailored to convert hydrocarbon feedstock for process requirements. In October 2022, Air Products invested about $500 million to build a green hydrogen production facility in New York.

Also, Synthesis Energy Systems (SES) is a Houston-based technology company that focused on carrying cleaner and more efficient energy to developing countries from low-grade coal and biomass natural resources through its gasification technology. It enables larger fuel flexibility and effective small-scale operations close to fuel sources. Fuel sources such as low-rank, low-cost high ash, high moisture coals, which are significantly cheaper than higher grade coals, many coal waste products, and biomass feedstocks.

In April 2019, Synthesis Energy Systems, Inc. announced that the company entered into a technology purchase option agreement with Australian Future Energy Pty Ltd (AFE) for the sale of its subsidiary company, Synthesis Energy Systems Technologies, LLC (SEST) which owns the SES Gasification Technology (SGT) and its related SGT  business undertakings.