Power-to-gas Market By Technology (Electrolysis, Methanation), By Capacity (Less than 100 kW, 100–999 kW, 1000 kW and Above), By Use Case (Wind, Solar, Biomass), By Application (Residential, Commercial, Utility): Global Opportunity Analysis and Industry F

Power-to-gas Market By Technology (Electrolysis, Methanation), By Capacity (Less than 100 kW, 100–999 kW, 1000 kW and Above), By Use Case (Wind, Solar, Biomass), By Application (Residential, Commercial, Utility): Global Opportunity Analysis and Industry Forecast, 2021-2031

The global power-to-gas market size was valued at $30.3 million in 2021, and is projected to reach $84.4 million by 2031, registering a CAGR of 10.8% from 2022 to 2031.

Power-to-gas is a technology that uses electric power to produce a gaseous fuel, using surplus power from wind generation, and the concept is called wind-gas. Most power-to-gas systems use electrolysis to produce hydrogen. Hydrogen can be used directly or may convert hydrogen into syngas, methane or LPG. The gas may be used as chemical feedstock, or converted back into electricity using conventional generators, such as gas turbines. Power-to-gas allows energy from electricity to be stored and transported in the form of compressed gas, often using existing infrastructure for long-term transport and storage of natural gas. Power-to-gas is often considered the most promising technology for seasonal renewable energy storage.

Demand for electricity is expected to increase due to growth in population and economy of countries globally. Companies are seeking cost efficient and more effective methods of energy generation. They are also looking for methods of electricity generation that do not have any adverse effect on the environment. The power-to-gas technology can effectively integrate renewable energy sources, such as wind and solar, and store that energy for a considerable period of time. The power-to-gas technology has no adverse effect on the environment, as it does not lead to emission of harmful gases. Growth in the transportation sector, rise in household and industrial usage of energy, and increase in production of chemicals are key drivers of the power-to-gas market. Decrease in capital expenditure (capex) costs for electrolysis process is expected to be one of the major indicators of the increase in usage of the power-to-gas technology. The usage of hydrogen and methane in various industries and ability of these gases to reconvert the electricity also drive the growth of the power-to-gas market. Thus, all these factors collectively are expected to augment the growth of the power-to-gas market globally.

Mitsubishi Power signed a purchase contract with HydrogenPro for a large-scale electrolyzer system in 2022. The HydrogenPro electrolyzer system is expected to use wind and solar energy to produce green hydrogen and oxygen through electrolysis. In October 2021, Oracle Power and PowerChina International Group Ltd. signed a non-exclusive cooperation agreement to jointly develop a green hydrogen project in Pakistan. The project's total cost is expected to be around $2 billion, and the planned location is 120 kilometers away from the seaport and 130 kilometers away from Karachi.

The power-to-gas market is segmented on the basis of technology, capacity, use case, application, and region. On the basis of technology, the market is segmented into electrolysis and methanation. On the basis of capacity, the market is bifurcated into less than 100KW, 100-999KW, and 1000KW and above. On the basis of use case, the market is segmented into wind, solar, and biomass. On the basis of application, the market is segmented into residential, commercial, and utility. Region-wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA. Presently, Europe accounts for the largest share of the market, followed by North America and Asia-Pacific.

The major companies profiled in this report include, Hydrogenics, ITM Power, McPhy Energy, Siemens AG, MAN Energy Solutions, Nel Hydrogen, ThyssenKrupp, Electrochaea, Exytron, GreenHydrogen, Hitachi Zosen Inova Etogas, Fuelcell Energy, Avacon, Carbotech, and Aquahydrex. Due to rapid development of industrialization and modernization and exhaustion of fossil fuel resources have led to the innovation of alternative fuels, such as hydrogen. Increase in demand for hydrogen in various sectors has fuelled the growth of the power-to-gas market. In addition, growth strategies such as expansion of production capacities, acquisition, partnership, and research & innovation in the solar energy application led to attain key developments in the global power-to-gas market trends.

COVID-19 analysis:

COVID-19 has severely impacted the global economy with devastating effects on global trade, which has simultaneously affected households, business, financial institution, industrial establishments, and infrastructure companies. The novel coronavirus has affected several economies and caused lockdown in many countries, which has limited the growth of the market. The COVID-19 pandemic has had a severe impact on the power to gas market. There is a significant drop in demand in the global gas market. Chemical production, transportation, and industrial production industries were hampered for around four to six months due to the COVID-19 pandemic. The current expansion plans of electrolysis and methanation have been delayed by minimum one year. In the long term, the pandemic may prove to be beneficial to the power to gas market. Global governments are expected to focus on green gas and reduction of harmful emissions into the environment.

After the global vaccination, governments of various countries have taken initiatives to increase the investment in the renewable energy related industries, especially solar and wind power systems. Increase in investment is mostly to improve the national energy security during the pandemic and other crisis. The presence of above mentioned activities and change in policies due to the outbreak of the COVID-19 pandemic have positive impact on the development of the market during the forecast period.

Key Benefits For Stakeholders

This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the power-to-gas market analysis from 2021 to 2031 to identify the prevailing power-to-gas market opportunities.
The market research is offered along with information related to key drivers, restraints, and opportunities.
Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
In-depth analysis of the power-to-gas market segmentation assists to determine the prevailing market opportunities.
Major countries in each region are mapped according to their revenue contribution to the global market.
Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
The report includes the analysis of the regional as well as global power-to-gas market trends, key players, market segments, application areas, and market growth strategies.

Key Market Segments

By Technology

Electrolysis
Methanation

By Capacity

Less than 100 kW
100–999 kW
1000 kW and Above

By Use Case

Wind
Solar
Biomass

By Application

Residential
Commercial
Utility

By Region

North America
U.S.
Canada
Mexico
Europe
Germany
U.K.
France
Italy
Spain
Rest of Europe
Asia-Pacific
China
Japan
India
South Korea
Rest Of Asia Pacific
LAMEA
Brazil
Saudi Arabia
South Africa
Rest of LAMEA

Key Market Players

Hydrogenics
ITM Power
McPhy Energy
Siemens AG
MAN Energy Solutions
Nel Hydrogen
ThyssenKrupp
Electrochaea
Exytron
GreenHydrogen
Hitachi Zosen Inova Etogas
Fuelcell Energy
Avacon
Carbotech
Aquahydrex

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