The global power-to-gas market is estimated to garner a large amount of revenue by growing at a CAGR of ~10% over the forecast period, i.e., 2022 – 2030. Increase in emissions of greenhouse gases across the globe, and rising industrial and household usage of energy are expected to drive significant market growth in the forthcoming years. Furthermore, reduction in capital expenditure (CAPEX) costs for electrolysis process, and escalating number of initiatives to decline carbon foot print around the world are crucial factors projected to offer ample opportunities to the market in the near future.
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Along with these, the growth of the market can be attributed to the growing utilization of renewable energy resources for electricity generation, and integrated management of power-to-gas technology. According to the International Energy Agency, the share of wind energy in world electricity generation increased up to 6.7 percent in 2021, up from 5.9 percent and 5.3 percent in 2020 and 2019 respectively.
The market is segmented by end user into commercial, utilities, industrial, and others, out of which, the utilities segment is anticipated to hold the largest share in the global power-to-gas market. This can be accounted to the increasing initiatives in this industry to effectively produce hydrogen by the integration of intermittent renewable power sources. Additionally, on the basis of technology, the segment for electrolysis is assessed to witness the highest growth during the forecast period, which can be credited to the rising solar and wind energy generation, predicted to reduce the price for electrolysis process. Apart from this, dynamic operations provided by electrolysis is also evaluated to boost the market segment’s growth in the imminent time.
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 power-to-gas market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and the Middle East & Africa region. The market in Asia Pacific is estimated to witness modest growth over the forecast period on the back of the provision of incentives and subsidies such as special benefits in new car registration by the government in the region. Moreover, the market in Europe is projected to acquire the largest share during the forecast period owing to the increasing number of power-to-gas plants, especially in Germany, and high production of electric vehicles in the region. As per the data provided by Europe Environment Agency, about 550,000 units of electric cars were registered in Europe in 2019, up from 300,000 units in 2018. This represents an increase of 2 percent to 3.5 percent of the total car registrations in the time period. In addition, the technology plays a crucial role in stabilizing the energy supply in the region, which is another factor predicted to fuel the market progress of Europe in the coming years.
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The global power-to-gas market is further classified on the basis of region as follows:
Our in-depth analysis of the global power-to-gas market includes the following segments:
FREQUENTLY ASKED QUESTIONS
The major factors driving market growth are growing utilization of renewable energy resources for power generation, and integrated management of power-to-gas technology.
The market is anticipated to attain a CAGR of ~10% over the forecast period, i.e., 2022 – 2030.
High initial costs associated with power-to-gas systems are estimated to hamper the market growth.
Europe will provide more opportunities for market growth owing to the increasing number of power-to-gas plants, especially in Germany, and high production of electric vehicles in the region.
The major players in the market are Sunfire GmbH, ENTSOG AISBL, GRT Gaz SA, Siemens AG, Man Energy Solutions SE, 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 technology, end user, and by region.
The utilities segment is anticipated to hold largest market size and is estimated to grow at a notable CAGR over the forecast period and display significant growth opportunities.
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