According to Fortune Business Insights™, the global green methanol ships market size was valued at USD 4.37 billion in 2024. The market is projected to grow from USD 5.85 billion in 2025 to USD 33.42 billion by 2032, exhibiting a robust CAGR of 28.3% during the forecast period. Asia Pacific dominated the market in 2024, accounting for 57.44% of the global share due to its strong shipbuilding base and decarbonization policies.
Green methanol, a low-carbon alternative fuel derived from biomass or captured carbon combined with renewable hydrogen, is gaining traction as the maritime industry transitions to sustainable operations. Compared to conventional fuels, green methanol can reduce CO₂ emissions by up to 95%, positioning it as a preferred fuel for next-generation vessels.
Key Companies Profiled
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HD Hyundai Heavy Industries (South Korea)
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Samsung Heavy Industries (South Korea)
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COSCO Shipping Lines (China)
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Damen Shipyards Group (Netherlands)
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VARD AS (Norway)
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Kawasaki Heavy Industries (Japan)
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Hanwha Engine Co. Ltd. (South Korea)
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Methanex Corporation (Canada)
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Shanghai Waigaoqiao Shipbuilding Co. (China)
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Yangzijiang Shipbuilding Group (China)
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Huangpu Wenchong Shipbuilding (China)
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COSCO Shipping Industries (China)
Source
https://www.fortunebusinessinsights.com/green-methanol-ships-market-112757
Market Segmentation
By Ship Type
In 2024, container vessels dominated the green methanol ships market and are projected to remain the fastest-growing segment through 2032. This growth is primarily driven by the increasing need for cleaner long-haul shipping solutions. The high fuel consumption of container vessels makes them ideal candidates for the adoption of green methanol, a sustainable alternative fuel. Leading shipping companies such as Maersk have already begun deploying methanol-powered container ships, reinforcing the segment's dominance. Other ship types analyzed in the market include cruise ships, bulk carriers, tankers, cargo ships, tugs, and others, which are also witnessing growing interest in low-emission propulsion technologies.
By Fuel Type
The dual fuel segment accounted for the largest market share in 2024 and is anticipated to maintain its lead throughout the forecast period. This segment is gaining traction due to its operational flexibility, allowing vessels to operate on both conventional fuels and green methanol. Dual fuel systems enable shipowners to comply with evolving emission regulations while avoiding the need for immediate and costly infrastructure overhauls, making them a practical solution for gradual decarbonization of marine fleets.
By Sales Channel
In terms of sales channel, the line fit segment held the largest market share in 2024 and is expected to witness the fastest growth through 2032. This is attributed to the rising demand for purpose-built green methanol ships that are designed from inception to meet stringent environmental regulations. Line-fit vessels also offer long-term operational benefits and efficiency, making them a more attractive option compared to retrofitting existing fleets. Technological advancements in dual-fuel and methanol-specific propulsion systems further support the growth of this segment.
Market Dynamics
Market Drivers
One of the primary drivers of the green methanol ships market is the surge in new build orders from major shipping companies such as Maersk, Evergreen, and COSCO. These industry leaders are heavily investing in methanol-fueled vessels to meet future sustainability goals and comply with upcoming environmental regulations. For instance, Evergreen placed an order for 24 green methanol container ships in 2023, valued at nearly USD 5 billion, reflecting the industry's commitment to cleaner maritime solutions. Additionally, growing regulatory pressure from global bodies like the International Maritime Organization (IMO) and regional initiatives such as the EU Emissions Trading System (EU ETS) are compelling shipping companies to transition toward low-emission fuels like green methanol. These regulations are accelerating fleet modernization and the adoption of alternative marine fuels.
Market Restraints
Despite its growth potential, the market faces significant restraints, primarily due to the high production costs of green methanol. The fuel is considerably more expensive than fossil alternatives because of the elevated costs associated with renewable feedstocks, carbon capture, and advanced synthesis technologies. Furthermore, there are major infrastructure gaps, particularly in terms of bunkering and storage facilities for green methanol. Unlike conventional marine fuels, methanol requires specialized handling and distribution systems, and the lack of such infrastructure slows adoption across the maritime industry.
Market Challenges
The market also contends with several challenges that hinder its widespread adoption. Feedstock and supply limitations present a critical issue, as green methanol production depends on scarce renewable resources such as biomass and captured CO₂. The lack of affordable and scalable sources delays production timelines and affects supply consistency. In addition, retrofitting existing ships to run on methanol is both technically complex and cost-intensive, requiring new fuel storage, handling systems, and safety modifications. Finally, the presence of a substantial green premium—the price gap between green methanol and traditional fuels—creates a significant hurdle, particularly for shipping companies operating in cost-sensitive markets. This price disparity makes it difficult to justify a switch without strong regulatory incentives or subsidies.
Key Market Trends
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Technological Investments: Growing R&D in onboard carbon capture, dual-fuel engine design, and fuel supply logistics.
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Government & Port Initiatives: Countries like Singapore and ports in North America are establishing standards and bunkering hubs for methanol.
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Strategic Collaborations: Bioenergy firms and shipping giants are teaming up for methanol production and infrastructure development.
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E.g., WasteFuel and ITC partnered in 2025 to build a green methanol biorefinery in Türkiye.
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Regional Insights
Asia Pacific
Asia Pacific was the leading market in 2024 and is projected to grow the fastest through 2032.
Countries like China, Japan, and South Korea are heavily investing in dual-fuel technology and methanol-ready shipbuilding.
Strong government support and shipbuilding capabilities drive regional dominance.
Europe
Europe is rapidly adopting green methanol ships due to strict environmental regulations like the EU ETS.
Over 200 methanol-powered vessels have been ordered by major European shipowners.
The region is a leader in maritime decarbonization efforts.
North America
North America is witnessing growth through investments in methanol production and bunkering infrastructure.
OCI Global is scaling up production to 400,000 metric tons annually.
Ports like Houston and Vancouver are preparing for methanol fueling.
Rest of the World
The Middle East & Africa are investing in green shipping corridors and cleaner port infrastructure.
Latin America shows promise due to abundant renewable energy and pro-environment policies.
Both regions are emerging contributors to green maritime fuel adoption.
Key Industry Developments
- March 2025 – WasteFuel, a U.S.-based bioenergy company, partnered with ITC, a Turkish integrated waste management firm, to begin front-end engineering design (FEED) for a green methanol biorefinery in Ankara, Türkiye. The facility will utilize biogas from anaerobic digestion and landfill gas collection at ITC’s existing site. Once operational, the plant will produce green methanol as a low-carbon marine fuel. A final investment decision (FID) is expected in early 2026.
- March 2025 – Singapore launched its first national standard for methanol bunkering, marking a key milestone in supporting large-scale methanol fueling operations. This move strengthens Singapore’s position as a global leader in sustainable, multi-fuel maritime bunkering infrastructure.
