Power-To-Gas Market: Global Industry Analysis and Forecast (2024-2030) by Technology, Capacity, End User and Region

Power-To-Gas market was valued at US$ 37.30 Mn. in 2023, and it is expected to reach US$ 73.39 Mn. by 2030 with a CAGR of 10.15% during the forecast period (2024-2030)

Format : PDF | Report ID : SMR_501

About Power-to-Gas:

The term "power-to-gas" refers to energy production and storage technology that permits megawatts of electricity stored in reserve. By connecting existing power and natural gas grids, the current network infrastructure can be leveraged. This allows for the seasonal storage of large amounts of power and the provision of CO2-neutral fuels in the form of renewable energy source gas. The global report on the power-to-gas market is provided with the segment analysis on the basis of technology, capacity, end-user and region.

On the route to a new renewable energy age, power-to-gas is a complete system solution to the problem of excess energy reserves. Electrolyzation is used to manufacture hydrogen from extra wind energy, as well as methane in a second step. The hydrogen produced can be stored in the existing natural gas network for subsequent use.

Power-To-Gas Market

To get more Insights: Request Free Sample Report

Several Countries Are Shifting To Renewable Energy Sources

Several countries like the UK, Korea, and Spain are driving power-to-gas market by shifting towords renewable energy sources and investing in R&D to make a big decarburization transition. Because fossil fuel supplies are limited and unable to supply the world's ever-increasing energy demand, it is critical to developing technical ingenuity to stimulate renewable resources to meet the demand.

Owing to environmental concerns, regions like Europe have set lofty goals to incorporate renewable energy sources and reduce overall energy usage. Economies like Spain are good examples where plans have been developed to cover the energy demand of over 100% renewable resources by 2050. The primary goal, however, is to reach 42% of the energy demand being seen by renewable resources by 2030.

Reduction of Carbon Footprint:

The concept of carbon footprint has raised consumer and producer awareness of the amount of CO2 emitted and the dangers it poses to the environment. As the globe places a greater emphasis on reducing carbon emissions, there is a growing demand for items that are environmentally friendly and made using renewable resources. The rising awareness of the need to reduce CO2 emissions has resulted in an increase in demand for power-to-gas market. As a result, the Paris Agreement and its mandate for different countries to take quantifiable efforts to reduce the average world temperature becomes a critical first step towards reducing climate change's adverse effects.

Governments Support to the Power-To-Gas Industry:

Various countries and their governments are taking massive steps or initiatives in support of the power-to-gas market. Various governments have established goals for boosting renewable energy-based electricity producing capacity. The use of hydrogen in the transportation sector is also a crucial factor propelling the industry forward. Fuel cell autos use hydrogen to power their motors, and increasing hydrogen use in the transportation industry will be a cost-effective choice. The power-to-gas technology is particularly useful due to its reduced weight and zero-emission rates. In the foreseeable term, the numerous benefits will propel the market potential to new heights.

Opportunities for the Power-To-Gas Market:

The public's knowledge of environmental issues is growing, as are demands for a reduction in CO2 emissions. Coal and natural gas, for example, are nonrenewable fuels that produce hazardous gases and waste. As a result, the reliance on renewable energy sources is growing. It will boost the market's economic growth rate to new heights. The governments of several countries have established a goal to enhance electricity generation capacity in the near future, resulting in a rise in power-to-gas market value. Market trends are always changing, and the continued rise of the transportation sector for hydrogen will present significant market growth prospects in the coming years.

Impact of COVID-19 on Global Power-To-Gas Market:

The pandemic of COVID-19 has had a significant impact on the power-to-gas market. The global gas sector is experiencing a dramatic reduction in demand. Due of the COVID-19 pandemic, the chemical, transportation, and industrial production industries were hampered for 4 to 6 months in 2020. Electrolysis and methanation expansion plans are projected to be pushed back by at least a year. The pandemic could be good to the electricity to gas industry in the long run. Green gas and the reduction of harmful emissions into the environment would be the focus of global governments.

The demand for electricity in residential regions was far greater than in business and industrial areas during the lockdown. With a power supply mix that included renewables, demand shifted more towards renewables, and market growth improved steadily. The demand for coal-based, gas-based, and nuclear-powered energy consumption, on the other hand, has dropped sharply, which will help the market value expand in the near future.

Global Power-To-Gas Market Segment Analysis:

The Global Power-To-Gas Market is segmented by Technology, Capacity, and End-User.

Based on Technology, Electrolysis segment is expected to hold the largest power-to-gas market shares of 62% by 2027. Electrolysis accounted for US$ 17.65 Bn. in 2020 and is expected to grow at a CAGR of 12.5% over the forecast period 2020-2027. This is thanks to its flexible operations and ability to successfully incorporate electricity from intermittent renewable energy sources like wind and solar. These are the key benefit that drives the growth of the Electrolysis segment in the global market during the forecast period. However, Methanation segment was valued US$ 11 Mn. in 2020 and CAGR of 10.05% over forecast period.

Based on Capacity, 1000 kW and above segment of power-to-gas market is expected to grow rapidly at a CAGR of 12.45% during the forecast period. This is due to an increasing commercialization and implementation of several MW level projects of power to gas technologies, as well as demand from utilities and industrial end-users, 1000 KW and above capacity is widely preferred. These are the key factors of 1000 kW and above segment that drives the growth of the global market during the forecast period.

Based on End-User, Utilities segment is expected to grow rapidly at a CAGR of 13.2% during the forecast period. The utility industry is increasing as power and gas utilities seek to create hydrogen more efficiently by incorporating intermittent renewable power source and maintaining power system flexibility. These are the major factor that drives the growth of the utilities segment in the power-to-gas market during the forecast period.

Power-To-Gas Market

Global Power-To-Gas Market Ambitious Future

The German transmission grid operator Amprion GmbH and European pipeline owner Open Grid Europe has announced a 100-MW electrolysis plant along with dedicated hydrogen. The companies are expected the projected cost of around €150 million and they want to successfully implement this technology for the German economy on an industrial scale. If the project receives necessary approvals, it could begin operations by 2023.

The industrial hydrogen producer H2V has contracted GE Power’s Grid Solutions business for the turnkey supply of two 225 kV/30 kV substations to feed the first 100-MW H2V Industry production units In Europe. The two projects are expected to feature 26 electrolyzers supplied by HydrogenPro and produce an average of 14,000 tonnes of hydrogen per year. The first unit is expected to be scheduled online in 2021.

Key developments in the Power-to-Gas market include:

October 2021- German company Sunfire GmbH received an investment of USD 126 million of funding to expand its role in green hydrogen generation derived from sources such as solar or wind.

March 2020- GRT gaz successfully injected the first hydrogen into its network produced by the power-to-gas demonstrator JUPITER 1000, which is located in Fos-sur-Mer.

January 2021- The Hydrogen Council, a CEO-led Initiative of 92 global companies to develop the hydrogen economy, has published report on January 19, 2021 that says that low carbon hydrogen supply at scale is economically and environmentally feasible.

Global Power-To-Gas Market Regional Insights:

Based on the Regional Analysis, Europe accounted for the largest market share of 35% in 2020 and the European power-to-gas market is expected to register a CAGR of 11.8% during the 2019-2027. The massive development of renewable electricity production is underway in some European countries like Denmark and Germany and is expected to a larger extent in Europe during the forecast period. High capacities of power production which are from intermittent sources are expected to drive low spot prices of electricity. It also offers an opportunity for the development of flexible electro-intensive processes.

In Europe, the technical validation of power-to-gas has witnessed at the pilot scale, due to the series of projects, combined with targets for renewable electricity integration in Europe. The European energy system is undergoing a major transition to reduce carbon emissions. The political RES integration and carbon reduction targets are expected to increase the demand for the power-to-gas technology requirements. The region has put some of the world's highest environmental standards and ambitious climate policies to shape a sustainable future in the power-to-gas market. A climate change and reducing greenhouse gas emissions through efficient renewable energy systems are at the top of the agenda for the maintenance of environment pollution.

In 2020, The APAC accounted for nearly 29% power-to-gas market share. The Asian market is expected to increase modestly throughout the projected period, thanks to the region's government's supply of incentives and subsidies, such as specific benefits in new automobile registration. In APAC, India and China are likely to lead the market. The prognosis is contingent on these countries' political policies and economic recovery from the pandemic.

Global Power-To-Gas Market Scope

Power-To-Gas Market
Market Size in 2023	USD 37.30 Mn
Market Size in 2030	USD 73.39 Mn
CAGR (2024-2030)	10.15%
Historic Data	2018-2022
Base Year	2023
Forecast Period	2024-2030
Segment Scope	By Technology Electrolysis Methanation
Segment Scope	By Capacity Less than 100 kW 100–999 kW 1000 kW and above.
	By End-User Commercial Utilities Industrial
Regional Scope	North America- United States, Canada, and Mexico Europe – UK, France, Germany, Italy, Spain, Sweden, Austria, and Rest of Europe Asia Pacific – China, India, Japan, South Korea, Australia, ASEAN, Rest of APAC Middle East and Africa - South Africa, GCC, Egypt, Nigeria, Rest of the Middle East and Africa South America – Brazil, Argentina, Rest of South America