The global syngas market size was valued at USD 56,910.0 million in 2024 and is projected to grow from USD 59,459.6 million in 2025 to reach USD 91,056.6 million by 2033, exhibiting a CAGR of 5.5% during the forecast period (2025-2033).
Syngas, a mixture of hydrogen, carbon monoxide, carbon dioxide, methane, nitrogen, water vapors, and other hydrocarbons, is a crucial component in the production of synthetic natural gas. Its versatility lies not only in its direct use but also in its ability to be processed to extract and purify valuable elements such as hydrogen and methanol.
Syngas is generated through the gasification of carbon-rich feedstocks under high heat, pressure, and oxygen-depleted conditions. While natural gas and coal have traditionally served as feedstocks, advancements in gasification technology have broadened the range of materials, now including petroleum coke and biomass.
In line with the growing demand for syngas, Air Liquide has entered a long-term supply agreement with Eastman Chemical Company to provide additional gaseous oxygen, nitrogen, and syngas to support Eastman’s expansion at its Longview, Texas facility. As part of this agreement, Air Liquide invested approximately USD 160 million to modernize existing assets and construct a new Air Separation Unit (ASU) and Partial Oxidation Unit (POX).
This investment will boost production capacity, allowing Air Liquide to supply Eastman with essential gases, including oxygen, nitrogen, and syngas, ensuring continued growth and production at the facility.
The growing adoption of Syngas-to-Liquid (STL) technology is transforming industries that seek alternatives to conventional crude oil refining. STL technology enables the conversion of syngas into synthetic fuels, such as diesel, gasoline, and jet fuel, which can serve as direct substitutes for traditional fossil fuels. This technology is particularly advantageous in regions rich in coal, natural gas, or biomass but lacking in oil reserves.
Moreover, synthetic fuels derived from syngas are increasingly being promoted as cleaner-burning alternatives, aligning with global regulatory efforts to reduce sulfur emissions in the transportation sector.
The increasing demand for chemicals and fertilizers is driving the global syngas market. Syngas is a crucial feedstock in producing chemicals such as methanol, ammonia, and synthetic fuels. Ammonia, derived from the nitrogen and hydrogen in syngas, is vital for fertilizer production, which supports agricultural productivity.
For instance,
Moreover, methanol from syngas plays a key role in manufacturing formaldehyde, plastics, and adhesives, further boosting syngas demand. As a result, industries, especially in Asia-Pacific countries like China and India, are investing heavily in syngas-based facilities to meet the rising needs of fertilizers and chemicals.
Despite Syngas’s potential to support clean energy initiatives, its production processes can generate significant carbon emissions, particularly when derived from coal or natural gas. Countries with strict environmental regulations, such as those in Europe, are implementing measures to curb emissions from industrial operations, creating compliance challenges for syngas producers.
Moreover, public opposition to coal gasification due to environmental concerns is forcing companies to invest in carbon capture and storage (CCS) technologies, further increasing production costs and complicating operations. Regulatory hurdles could limit syngas adoption, especially in regions transitioning toward low-carbon economies.
Syngas, primarily composed of hydrogen and carbon monoxide, is emerging as a crucial feedstock for hydrogen extraction, a key component in various industrial processes. As renewable energy sources such as biomass and biogas continue to gain momentum, syngas production is evolving to align with sustainability goals, resulting in a lower carbon footprint.
In response to this demand, syngas production projects in regions like Europe and North America are incorporating advanced carbon capture and storage (CCS) technologies. These efforts not only reduce emissions but also enhance hydrogen yield, paving the way for cleaner energy solutions.
This initiative further strengthens Syngas’s role in advancing the clean energy transition and offering greater opportunities in the global market.
Study Period | 2021-2033 | CAGR | 5.5% |
Historical Period | 2021-2023 | Forecast Period | 2025-2033 |
Base Year | 2024 | Base Year Market Size | USD 56,910.0 Million |
Forecast Year | 2033 | Forecast Year Market Size | USD 91,056.6 Million |
Largest Market | Asia Pacific | Fastest Growing Market | North America |
Asia Pacific stands out as the dominant region in the global syngas market, driven by rapid industrialization and a growing energy demand. The region’s robust market growth is primarily attributed to the increasing adoption of syngas in various sectors, such as chemicals, fuel, and electricity. Countries like China and India are leading the charge due to their expanding industrial bases and rising investments in cleaner and sustainable energy sources.
Moreover, the region benefits from abundant coal reserves, a key feedstock for syngas production, further bolstering its market dominance. The growing emphasis on reducing carbon emissions and the shift towards renewable energy sources also support the syngas market expansion in the Asia Pacific.
North America is witnessing significant syngas market growth, particularly in the U.S., where the transportation sector accounts for nearly one-third of greenhouse gas (GHG) emissions. To address this, the U.S. government has prioritized decarbonizing transportation, aiming for net-zero GHG emissions by 2050 and a 50-52% reduction below 2005 levels by 2030.
Furthermore, key initiatives, such as the Bipartisan Infrastructure Law (BIL) and the 2022 Inflation Reduction Act (IRA), provide robust support for reducing emissions across the economy, including the transportation sector. These policies are fostering investment in syngas production to meet rising energy demands while contributing to sustainability goals.
Countries Insights
We can customize every report - free of charge - including purchasing stand-alone sections or country-level reports
The natural gas segment leads the syngas market, driven by its cost-effectiveness and high growth potential. With its lack of heteroatoms and high hydrogen-to-carbon (H:C) ratio, natural gas is a preferred feedstock for synthetic fuel production. Moreover, certain gas fields contain significant CO2, which can be utilized through processes like tri-reforming. This method combines greenhouse gases, such as CO2 and CH4, to produce syngas, enabling the creation of clean liquid fuels and valuable chemicals.
Steam reforming dominates syngas production due to its efficiency in generating hydrogen, ammonia, and methanol. This process uses a tubular primary reformer where hydrocarbons like methane react catalytically with steam, producing hydrogen, carbon monoxide, and carbon dioxide. Natural gas and light naphtha are common feedstocks in Steam Methane Reforming (SMR), delivering hydrogen-rich syngas with a hydrogen-to-carbon monoxide ratio ranging from 3:1 to 5:1, making it a key technology in industrial applications.
The fuels segment holds the largest revenue share, as syngas provides a cleaner alternative to traditional fossil fuels. Its combustion produces fewer emissions, including sulfur oxides (SOx), nitrogen oxides (NOx), and CO2, contributing to reduced global warming. Syngas’s high hydrogen content enhances its utility as a fuel for internal combustion engines, offering a sustainable option alongside natural gas, liquefied petroleum gas (LPG), hydrogen, and biogas for various energy applications.
The global syngas market is moderately fragmented, with key companies focusing on enhancing their operations in chemicals, fuels, and power generation to meet rising demand. In the chemicals sector, companies are expanding their syngas-based production of methanol, ammonia, and hydrogen to support industries such as fertilizers, plastics, and chemicals.
Moreover, power generation facilities are adopting syngas for Integrated Gasification Combined Cycle (IGCC) systems to enhance efficiency and reduce emissions. These advancements, along with regional feedstock optimization, are driving competition across a moderately fragmented global market.
Source: Straits Analysis
Thyssenkrupp Uhde GmbH: An Emerging Player
Thyssenkrupp Uhde GmbH, a subsidiary of the global industrial group Thyssenkrupp, is one of the key providers of engineering, procurement, and construction (EPC) services for the chemical, energy, and industrial sectors. The company specializes in the design and implementation of complex process plants, with a strong focus on sustainability and innovative technologies. Moreover, the company operates across various industries, including petrochemicals, oil and gas, power generation, and environmental services.
As per our analyst, the global syngas market is experiencing consistent growth, driven by its extensive applications in chemicals, synthetic fuels, and power generation. Syngas serves as a critical feedstock for ammonia, methanol, and hydrogen production, which are integral to the fertilizer, petrochemical, and energy industries.
Advancements in gasification technologies, such as biomass and municipal waste gasification, are addressing sustainability concerns and reducing reliance on fossil fuels. Moreover, the growing adoption of syngas-to-liquid (STL) technologies underscores its significance in producing cleaner fuels, facilitating the transition toward low-emission energy systems.
However, the market faces challenges, including high initial capital investment and operational complexities associated with gasification technologies. Likewise, stringent environmental regulations and competition from renewable energy sources pose additional hurdles. Despite these challenges, the syngas market is poised for growth, supported by technological innovations and increasing demand for sustainable energy solutions.