Power-To-Gas Market Size, Share, Growth Analysis, By Technology (Electrolysis, Methanation), By Capacity (100 kW to 1000 kW, 100 KW), By End-User (Commercial, Utilities), By Region -Industry Forecast 2024-2031
Report ID:
SQMIG10B2108 |
Region:
Global |
Published Date: November, 2024
Pages:
167
|Tables:
0
|Figures:
0
Power-To-Gas Market Insights
Global Power-To-Gas Market size was valued at USD 35.26 Million in 2022 and is poised to grow from USD 39.22 Million in 2023 to USD 91.97 Million by 2031, growing at a CAGR of 11.24% during the forecast period (2024-2031).
Radioactive gases convert electricity into synthetic gases such as hydrogen and methane. The technology plays a key role in the transition to renewable energy systems to replace fossil fuels in industrial, transport and heating sectors. These wind turbines contribute significantly to decarbonization, reducing reliance on fossil fuels, thereby reducing greenhouse gas emissions and effectively addressing global climate change.
Countries around the world are capitalizing on the renewable resources and are involved in major investments through R&D to make a significant shift toward decarbonization. As the fossil fuel reserves are limited resources, they cannot cater the ever-growing demand for energy around the world. Thus, demand for technological creativity is increasing to cater the growing need for energy. This increasing shift toward renewable energy sources is therefore expected to drive growth of the global power-to-gas market over the forecast period. Governments and industries worldwide are increasingly investing in P2G as part of their strategies to achieve climate goals and reduce dependency on fossil fuels.
Market snapshot - 2024-2031
Global Market Size
Largest Segment
Fastest Growth
Growth Rate
CAGR
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Power-To-Gas Market Segmental Analysis
Global power-to-gas market is segmented based on technology, end user, capacity, and region. Based on technology the market is segmented as, electrolysis, methanation. Based on end user the market is segmented as, commercial, utilities, industrial. Based on capacity the market is segmented as, less than 100 kW, 100–999 kW, 1000 kW, Upto 100 KW, 100 KW-1000KW and above. Based on Region the market is segmented as, North America, Asia-Pacific, Europe, Latin America, Middle East and Africa.
Analysis by Technology
As per power-to-gas market analysis, electrolysis accounts for the dominant market share due to its efficiency and ubiquity. Modern electrolyzers, such as proton exchange membrane (PEM) and solid oxide electrolyzers have achieved 70-80% efficiency, making the process economically viable. Electrolysis is expected to dominate the global market over the forecast period, and this is attributed to the growing need for carbon neutral technologies to substitute the conventional procedures. The investments in research and development activities regarding energy efficient technologies that can facilitate the energy storing for future usage. These factors are driving the need for electrolysis technology, which is expected to drive growth of the segment.
Methanation segment is the fastest growing in the market. Methanation holds the second major global market share and is less efficient than direct hydrogen production. It uses the existing natural gas infrastructure and provides a way to store renewable energy in a way that is compatible with the current gas networks. This convergence with the ability to use CO2 makes methanation an important additional technology in the P2G landscape. Methanation converts synthetic hydrogen into synthetic methane (or alternative natural gas, SNG) in addition to electrolysis. This is done by catalytic reaction of hydrogen and carbon dioxide. The resulting methane is chemically like natural gas, allowing it to be injected seamlessly into existing natural gas pipelines and storage facilities.
Analysis by Capacity
As per the power-to-gas market forecast, the 100 kW to 1000 kW capacity range dominates the share due to the increasing demand for fuel production. This approach is optimal for a given industrial application and energy system, and provides a balance between scalability, efficiency and cost. As industries seek to emit emissions and embrace cleaner fuels such as hydrogen, these centralized P2G systems meet the growing needs for energy storage, grid balancing and hydrogen production in the area addressed to the market. The 100 kW to 1000 kW segment plays a role in the power-to-gas market by meeting the needs of medium-sized applications, bridging the gap between smaller pilot projects and large industrial systems.
The 100-kW segment is the fastest growing segment in the market due to its small size and is suitable for research projects, residential applications and local power systems. These small units are very important for testing and demonstrating P2G technologies, facilitating them to be adopted early. The path of larger installations to drive the global power-to-gas market size makes it commendable. The 100-kW segment is important for smaller, niche applications in the market. This framework is particularly suitable for research and development, pilot projects, and localized energy solutions, including residential and small commercial settings. Small power plants are increasingly being used in remote areas to generate green hydrogen for microgrids, improving energy reliability and reducing reliance on diesel or other fossil fuels.
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Power-To-Gas Market Regional Insights
North America dominates the market and supplies most of the power generation gas (P2G). North America is leading a robust renewable energy cycle, with wind and solar power expanding rapidly. This creates more renewable electricity that can be used for P2G systems, supporting the region’s transition to sustainable energy solutions. In the U.S., initiatives such as the Department of Energy's Hydrogen Program and partnerships between utilities and renewable energy developers are promoting P2G projects. For instance, the Advanced Clean Energy Storage project in California aims to demonstrate large-scale renewable hydrogen production through electrolysis.
Asia-Pacific is the second leading region in the market. The region has experienced rapid economic growth and urbanization, leading to increased demand for energy. This demand, coupled with growing environmental concerns and a commitment to reduce carbon emissions, has required investment in renewable energy technologies including P2G. South Korea's Hydrogen Economy Roadmap outlines investments in hydrogen production infrastructure, fuel cells, and P2G technologies. Such initiatives underscore the region's commitment and capability to drive the power-to-gas market growth. The country has placed a high priority on integrating renewable energy to combat air pollution and reduce greenhouse gas emissions, prompting federal policies and regulations that mandate hydrogen production.
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Power-To-Gas Market Dynamics
Drivers
- Transition to Renewable Energy
The global shift towards renewable energy is a major driver of the power-to-gas industry. As countries strive to decarbonize their energy systems, P2G technology offers a simple and effective solution to store surplus renewable energy such as wind and solar in the form of hydrogen or methane. This stored energy can be used during periods of low renewable energy production thereby addressing the intermittency issue of renewables and enhancing energy grid reliability.
- Growing Hydrogen Economy
Growing hydrogen economy is another important factor driving the market. Hydrogen is a versatile energy carrier and is increasingly being adopted as a clean fuel for a variety of applications including industrial processes, transportation and residential heating. P2G systems enable the generation of green hydrogen by utilizing renewable electricity, which aligns with global efforts to promote sustainable energy solutions.
Restraints
- High Initial Investment Costs
One of the key mandates in the power-to-gas industry is the high capital required to deployment. Besides the high cost of electricity transmission, storage and grid integration can restrict investment, especially in developing areas. Additionally, technology is still in the early stages of commercialization, resulting in limited economies of scale that drive up costs further.
- Inefficiencies in Energy Conversion
The efficiency of P2G systems remains a technical challenge, with energy losses occurring during the conversion processes from electricity to gas and back to electricity if reconversion is required. These inefficiencies can reduce overall system performance and make P2G less competitive compared to other energy storage and management solutions. Continued research and development are essential to improve efficiency rates and establish P2G as a viable long-term solution in the global energy landscape.
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Power-To-Gas Market Competitive Landscape
The power-to-gas industry is characterized by fierce competition among leading energy companies, innovative startups and technology providers, are trying to capture this rapidly growing segment. This segment has allowed companies in this market to participate in the renewable energy ecosystem. Leading players such as Siemens Energy, Hydrogenics (part of Cummins Inc.), ThyssenKrupp and McPhee Energy dominate the market with their combination of advanced electro cooking technologies and P2G solutions. For example, Siemens Energy partnered with Uniper of Germany to develop large green hydrogen production facilities, a critical step toward decarbonizing power generation and industrial processes.
Top Player’s Company Profiles
- Hydrogenics
- ITM Power
- McPhy Energy
- Fuelcell Energy
- Nel Hydrogen
- ThyssenKrupp
- Electrochaea
- Carbotech
- Power-to-gas Hungary
- Aquahydrex
- Ineratec
- Exytron
- GreenHydrogen
- Hitachi Zosen Inova Etogas
- Siemens
- MAN Energy Solutions
- Uniper
- Micropyros
- Socalgas
Recent Developments
- June 2024: Siemens Energy wins a $1.5 billion contract for long-term maintenance of two gas-fired power plants in Saudi Arabia. This 25-year contract allows Siemens to supply power plant technology that together will generate about 4GW of electricity for the country.
- May 2024: Nel Hydrogen Electrolyzer AS, a wholly owned subsidiary of Nel ASA, entered into a technology license agreement with Reliance Industries Limited (RIL). The agreement gives RIL the exclusive right to use Nell’s alkaline electrolytes in India. In addition, RIL has been authorized to manufacture Nel’s alkaline electrolyzers worldwide for domestic use.
- March 2024: ITM Power announced a partnership with Sumitomo Corporation to deliver and install the NEPTUNE electrolyzer at the Yokohama Techno Station of Tokyo Gas Co Ltd. This marks the first use of a MW-class PEM power plant manufactured overseas and imported into Japan.
Power-To-Gas Key Market Trends
- Communication and Industrial Decarbonization: The integration of P2G into industrial decarbonization efforts is emerging as a key market trend. High-carbon industries such as steel, chemicals and cement are increasingly adopting P2G solutions to replace fossil fuels with hydrogen. This shift not only reduces greenhouse gas emissions but makes P2G a cornerstone to reach technically identical goals.
- Developing Hydrogen Hubs: Another major trend is the establishment of a hydrogen hub, using P2G systems to produce, store and distribute hydrogen at a central location. These centers aim to create an integrated hydrogen ecosystem by connecting end users with transport infrastructure, such as transportation and power utilities etc. This approach encourages increased economies of scale promote and accelerate the commercialization of P2G technologies, fostering market growth in regions with strong hydrogen infrastructure.
Power-To-Gas Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
According to SkyQuest analysis, the power-to-gas market is growing as a key enabler in the global energy transition. By converting excess renewable energy into hydrogen or methane, P2G offers a flexible solution to address renewable energy intermittency and improve grid stability. The market is primarily driven by the increasing adoption of renewable energy sources and the rapid development of the hydrogen economy. Governments and businesses are investing heavily in P2G initiatives to decarbonize the energy system, driving innovation and growth potential in the sector. However, high initial costs and energy conversion inefficiencies remain major challenges, potentially hindering widespread adoption. Despite these obstacles, technology upgrades and the establishment of hydrogen hubs are emerging as key trends, accelerating P2G integration in the industrial and energy sectors. The market holds immense potential to reshape global energy systems, with its role expanding as a pivotal element in achieving net-zero emissions and supporting the growth of the green hydrogen economy.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 35.26 Million |
| Market size value in 2031 | USD 91.97 Million |
| Growth Rate | 11.24% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Million |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
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| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Power-To-Gas Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Power-To-Gas Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Power-To-Gas Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Power-To-Gas Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Power-To-Gas Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Power-To-Gas Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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