Natural Gas Storage Market size is poised to surpass USD 12 billion by the end of 2035, growing at a CAGR of 4% during the forecast period, i.e., 2023-2035. In the year 2022, the industry size of natural gas storage was over USD 8 billion. The growth of the market can be attributed to the increasing demand for natural gas in multiple sectors rapidly such as homes, businesses, cooking and heating, and others. In modern times there is a higher demand for natural gas since there are enhanced machines available that are either powered by electricity or gas. For instance, in 2021, the global production of natural gas was anticipated to be around 35,000,000 MMcf.
In addition to these, global natural gas storage market trends such as higher demand for natural gas in the industrials sector are anticipated to influence the market growth positively over the forecast period. the industrial uses of natural gas are observed to be in producing chemicals, hydrogen, and fertilizers. It also used the manufacturing of steel, bricks, cement, glass, ceramic, and others. For instance, as of 2022, the total production of cement across the globe was evaluated to be around 4 billion tons.
Growth Drivers
Growing Export and Import of Natural Gas – the surge in the export and import of natural gas has boosted the demand for natural gas storage. The stored gas is highly exported and imported across the globe at a higher scale based on seasonal demand. For instance, the total export volume of natural gas in the USA was estimated to be around 6,000,ooo MMcf, and the import was anticipated to be nearly 2,800,000 in 2021
Rising Construction of Buildings across the Globe – as the construction of new buildings rises, the demand for gas pipelines is also estimated to hike since many people are living in these buildings who utilize gas for cooking and heating. As of 2022, nearly 200,000 dwellings were noticed to be completed in the United Kingdom alone.
Increasing Number of Restaurants to Boost Market Growth - there is a higher demand for gas in restaurant facilities that are estimated to flourish the market growth over the forecast period. As of 2021, the total number of restaurants functioning in the United States was observed to be above 1 million.
Growing Utilization of Natural Gas in Hospital Facilities – Natural gas is highly used in hospital facilities for powering medical equipment, cooking, dry cleaning, and many other purposes. As of 2020, The total number of hospitals was estimated to be in France (~2500), Korea (~4000), Germany (~3000), and others.
Challenges
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~4% |
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Base Year Market Size (2022) |
~ USD 8 Billion |
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Forecast Year Market Size (2035) |
~ USD 12 Billion |
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Regional Scope |
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Type (Underground, Floating)
The global natural gas storage market is segmented and analyzed for demand and supply by type into the underground, floating, and others. Out of these types, the underground segment is estimated to gain the largest market share in the year 2035. The growth of the segment can be attributed to the fact that a vast quantity of gas can be stored underground for a prolonged time period. It is beneficial to balance the fluctuation in energy generation based on different seasons. In modern society, gas is highly consumed by the global population, hence, higher demand for gas storage is estimated to propel the segment growth over the forecast period since underground gas storage provides all the required facilities. Furthermore, underground gas storage is noticed to eliminate the problem of water production owing to the coning phenomenon. It was estimated that currently, approximately 10 million standard cubic feet of gas can be delivered per day that is stored underground.
Application (Residential, Commercial)
The global natural gas storage market is also segmented and analyzed for demand and supply by application into residential, commercial, and others. Amongst these segments, the commercial segment is expected to garner a significant share in the year 2035. The segment's expansion can be attributed to increased implementation in a variety of applications such as cooking, farming, heating, forklift trucks, and others. The main application of natural gas is considered various industries such as food processing industries, pulp & paper, plastic, clay and glass, petroleum and chemical refining, and others. For instance, in 2021, approximately 35% of the natural gas was consumed by the industrial sector of the United States. Nowadays, natural gas is also highly consumed in house facilities at a higher scale. The commercial sector requires natural gas for cooking, drying clothes, operating cooling equipment, and others. Hence, all these factors are expected to boost segment growth over the forecast period.
Our in-depth analysis of the global market includes the following segments:
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By Storage Type |
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By Application |
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APAC Market Statistics
The Asia Pacific natural gas storage market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2035. The growth of the market can be attributed majorly to favorable climatic conditions to produce natural gas, along with the presence of vast rural settlements in countries, such as, India, China, and Indonesia. Moreover, increasing the commercial viability of natural gas and the rising number of hotels is estimated to boost market growth in the region over the forecast period. Hotels have a higher demand for gas for cooking and providing other services. As of 2022, in Asia Pacific, the total hotel supply was estimated to reach around 250,000.
North American Market Forecast
The North American natural gas storage market, amongst the market in all the other regions, is projected to hold the second largest share during the forecast period. The growth of the market can be attributed majorly to the growing adoption of natural gas as an alternative to LPG, as it is cleaner and environmentally 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, in 2021, the United States became the world’s largest natural gas generator reaching approximately 800 billion cubic meters of consumption.
Europe Market Forecast
The European natural gas storage market, amongst the market in all the other regions, is projected to hold a remarkable share during the forecast period. The growth of the market in the region can be attributed to the higher utilization of natural gas to generate heat in houses owing to the cold environment. Additionally, both the commercial and residential sectors of the region are noticed to have a higher demand for natural gas. Hence, all these factors are anticipated to flourish the market growth over the forecast period.
WorleyParsons Limited supported a global initiative, Zero, to prevent the emission of methane in the upstream oil and gas industry. The reduction in methane emissions is necessary to address climate change.
British Gas Services Limited unveiled its new service to help customers save on their energy bills. The new service of the company is associated with the process of decarbonizing their home.
Author Credits: Payel Roy, Dhruv Bhatia
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