The global natural gas storage market is estimated to grow at a CAGR of ~10% over the forecast period, i.e., 2022 – 2030. The growth of the market can be attributed to the increasing usage of natural gas as an alternative to liquid petroleum gas, along with the growing need to store natural gas. According to the data by International Energy Agency (IEA,) global natural gas production grew by almost 1 trillion cubic meter in the past decade, with an annual growth rate of 2.5%. The production of natural gas fluctuates according to the availability of raw material, environmental conditions, and other variable factors. Due to this, there has been a need for controlling and maintaining flow in the pipeline, and supply gas when the demand is higher. Natural gas is cheaper and more easily available, especially in rural areas, where cattle breeding is practiced prominently. The growing demand for natural gas, backed by the cheaper cost of this gas and fluctuating prices of petroleum products, is estimated to boost the market growth. Moreover, the marketability of natural gas is increasing, which is estimated to promote natural gas storage for unhindered supply throughout the year. The growing investment in this direction is also estimated to boost the market growth. Furthermore, people are becoming more aware towards the environmental benefits of using natural gas, which is estimated to fuel the market growth.
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The market is segmented by application into residential, commercial, and others, out of which, the commercial segment is anticipated to hold the larger share in the global natural gas storage market over the forecast period on account of increasing commercialization of natural gas. The companies providing natural gas on a commercial basis require a year-long supply of the gas. However, the production is higher in summers and much lower in winter. Storage of natural gas can solve the issue of supply fluctuation, which is estimated to boost the demand for natural gas storage in commercial sector.
In 2018, the world’s total energy supply was 14282 Mtoe, wherein the highest share in terms of source was captured by oil, accounting for 31.6%, followed by coal (26.9%), natural gas (22.8%), biofuels and waste (9.3%), nuclear (4.9%), hydro (2.5%), and other (2.0%). Where there was an increase in energy demand in 2018, the year 2019 witnessed slow growth as the energy efficiency improved owing to decline in the demand for cooling and heating. However, in 2020, the electricity demand decreased by 2.5% in the first quarter of 2020 due to the outbreak of Coronavirus resulting in government-imposed shutdowns in order to limit the spread of the virus, which was further followed by shutdown of numerous business operations impacting their growth. This also resulted in decline of 5.8% in the worldwide CO2 emissions which was recorded to be five times larger than the one recorded during the global financial crisis in 2009. However, in 2021, the demand for oil, gas and coal is estimated to witness growth, which is further projected to create opportunities for market growth. Moreover, rising environment degradation and awareness related to climate change is motivating many key players to employ sustainable energy strategies and invest significantly in environment-friendly power generation technologies with an aim to promote sustainable development among various nations around the world. Such factors are anticipated to promote the growth of the market in upcoming years.
On the basis of geographical analysis, the global natural gas storage market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region. The market in Asia Pacific region is estimated to witness noteworthy growth over the forecast period on the back of favorable climatic conditions to produce natural gas, along with presence of vast rural settlements in countries, such as, India, China, and Indonesia. Moreover, increasing commercial viability of natural gas is estimated to boost the market growth in the upcoming years.
The market in the North America region is anticipated to gain the largest market share throughout the forecast period owing to the growing adoption of natural gas as an alternative to LPG, as it is cleaner and environment friendly. Moreover, the masses in this region are aware, which is estimated to encourage the usage of natural gas. As per the statistics of the U.S. Energy Information Administration (EIA), the production of natural gas surpassed 33,967,557 million cubic feet in 2019, with the consumption of natural gas rising to 31,099,061 million cubic feet. Furthermore, presence of major market players in the region is also estimated to boost the market growth.
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The global natural gas storage market is further classified on the basis of region as follows:
Our in-depth analysis of the global natural gas storage market includes the following segments:
FREQUENTLY ASKED QUESTIONS
The growing adoption of natural gas, and increasing commercial viability of this gas, are estimated to boost the market growth.
The market is anticipated to attain a CAGR of ~10% over the forecast period, i.e., 2022 – 2030.
Slow adoption and lack of awareness in poor economies are estimated to hamper the market growth.
The market in the North America region is estimated to provide major growth opportunities owing to the expanding adoption of natural gas in the region, along with raise in production and consumption of natural gas in the region.
The major players in the market are Centrica plc, Niska Gas Storage Partners, Samsung Heavy Industries Co., Ltd., E. ON SE, Spectra Energy Corp, Chiyoda Corporation, Technip S.A., Engie SA, and others.
The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
The market is segmented by storage type, application, and by region.
The commercial segment is anticipated to hold largest market size over the forecast period owing to the increasing commercial viability of natural gas and display significant growth opportunities.
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