Rising Application of Methanol in Construction Activities

Methanol is used as feedstock for manufacturing various construction-related materials such as plastic pipes, paints and coatings, carpet underlay, wood panels, and crane ropes. Moreover, formaldehyde-based resins, one of the methanol's derivatives, are widely used to manufacture composite and engineered wood products used in cabinetry, countertops, moldings, shelving, stair systems, flooring, wall sheathing, support beams, and trusses. Also, glue adhesives used as bonding agents for building blocks are made of formaldehyde-based chemistry. In addition, methanol is used as a solvent for paints and varnishes as it is easily dissolvable compared to ethanol. Hence, methanol and its derivates are extensively used while producing a range of building construction-related materials. Rapidly growing building constructions in developing and developed economies are increasing the demand for building construction-related materials. As per the National Bureau of Statistics of China, the country's real estate development witnessed 38.3% growth from January to April 2021 compared to the same months in 2020. The country's real estate industry estimated around 1 trillion investments in construction activities in 2021.

The COVID-19 pandemic has negatively impacted the growth of the methanol market.The implementation of measures to combat the spread of the virus has impacted the growth of several industrial sectors. Industries such as construction, paints and coating, electronics, and packaging have been affected by the sudden distortion in operational efficiencies and disruptions in the value chains attributable to the sudden closure of national and international boundaries. The significant decline in the growth of several industrial sectors has impacted the demand in the global market. The demand has been negatively affected due to the total shutdown of construction activities and halt in expansion or new construction of plants and factories due to the shortage of labor and the reduced operational activities. However, as several countries' economy is resuming and companies from the manufacturing industries are regaining their operations to normalcy, the demand is expected to rise globally. Moreover, the previously postponed construction projects are ready to resume, further providing an opportunity for the market players to witness revenue growth.

Based on derivative, the market is segmented into formaldehyde, acetic acid, methanol-to-olefins (MTO) / methanol-to-propylene (MTP), methyl tertiary-butyl ether (MTBE), methyl methacrylate (MMA), biodiesel (gasoline blending), dimethyl ether (DME), and others. In 2020, the formaldehyde segment accounted for the largest revenue share. Formaldehyde is a colorless poisonous gas synthesized through methanol oxidation. It is utilized as an antiseptic, histologic fixative, disinfectant, and general-purpose chemical reagent for laboratory applications. The segment's growth can be attributed to the increasing application of formaldehyde resins in the automotive industry. The resin is extensively used to manufacture the vehicle's interior molded and under-the-hood components to reduce weight and increase the vehicle's fuel efficiency.