Power-to-Gas

Power-to-Gas

Global Power-to-Gas Market to Reach US$89.0 Million by 2030

The global market for Power-to-Gas estimated at US$49.4 Million in the year 2023, is expected to reach US$89.0 Million by 2030, growing at a CAGR of 8.8% over the analysis period 2023-2030. Electrolysis Technology, one of the segments analyzed in the report, is expected to record a 9.2% CAGR and reach US$59.8 Million by the end of the analysis period. Growth in the Methanation Technology segment is estimated at 8.0% CAGR over the analysis period.

The U.S. Market is Estimated at US$13.7 Million While China is Forecast to Grow at 8.1% CAGR

The Power-to-Gas market in the U.S. is estimated at US$13.7 Million in the year 2023. China, the world`s second largest economy, is forecast to reach a projected market size of US$13.6 Million by the year 2030 trailing a CAGR of 8.1% over the analysis period 2023-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 8.2% and 7.1% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 6.9% CAGR.

Global Power-to-Gas Market - Key Trends & Drivers Summarized

How Is Power-to-Gas Technology Emerging As A Key Player In The Energy Transition?

Power-to-Gas (P2G) technology is rapidly gaining traction as a critical solution in the global energy transition, particularly as nations strive to meet ambitious carbon reduction goals and increase the integration of renewable energy sources into the grid. This innovative process allows for the conversion of surplus renewable energy, such as wind and solar power, into hydrogen or synthetic methane through electrolysis. By converting excess electricity into gas, Power-to-Gas offers an effective method for long-term energy storage and a way to address the intermittency issues associated with renewable energy sources. The growing capacity of wind and solar installations globally has intensified the need for such flexible energy storage solutions, as these renewable sources often generate power when demand is low or in unpredictable bursts. P2G not only helps balance the grid by storing excess energy but also provides a pathway for decarbonizing sectors that are difficult to electrify, such as heavy industry, heating, and transportation. Countries with strong renewable energy mandates, particularly in Europe and parts of Asia, are leading the way in adopting Power-to-Gas technology, recognizing its potential to complement the energy ecosystem and support the shift toward greener alternatives.

What Technological Advancements Are Shaping The Power-to-Gas Market?

Technological advancements in electrolyzer efficiency, gas storage, and distribution infrastructure are playing a pivotal role in accelerating the growth of the Power-to-Gas market. One of the key innovations driving this market is the development of more efficient and scalable electrolyzers, such as proton exchange membrane (PEM) electrolyzers, alkaline electrolyzers, and solid oxide electrolyzers. These technologies are becoming more cost-effective, energy-efficient, and capable of operating at larger scales, making the P2G process increasingly viable for widespread adoption. In particular, PEM electrolyzers, which are known for their rapid response times and ability to function efficiently at varying loads, are gaining favor as renewable energy sources such as wind and solar are inherently variable. Furthermore, advancements in hydrogen storage technologies, including high-pressure tanks and underground storage, are helping to overcome one of the key challenges in the Power-to-Gas process—storing large quantities of hydrogen safely and economically. The development of hydrogen transport infrastructure, such as pipelines and fueling stations, is also critical for connecting the production sites to end-users, particularly in industries such as transportation and manufacturing. Additionally, ongoing research into synthetic methane production, which allows for the use of existing natural gas infrastructure, is expanding the range of applications for Power-to-Gas technology, enhancing its potential to play a significant role in global energy systems.

How Are Policy Support And Environmental Goals Driving The Adoption Of Power-to-Gas?

Government policies and environmental regulations aimed at reducing greenhouse gas emissions and promoting renewable energy adoption are significant drivers of the Power-to-Gas market. Many countries have set ambitious targets for carbon neutrality, which require a dramatic reduction in emissions across all sectors of the economy. The versatility of Power-to-Gas technology makes it a valuable tool for achieving these goals, particularly in sectors where direct electrification is challenging, such as heavy transportation, steel manufacturing, and chemical production. For instance, hydrogen produced via P2G can be used as a clean fuel for vehicles, reducing the reliance on fossil fuels and helping to decarbonize the transportation sector. In Europe, policies such as the European Green Deal and the Hydrogen Strategy are providing strong support for hydrogen as a cornerstone of future energy systems, with Power-to-Gas technology playing a critical role in producing green hydrogen. Similarly, in countries like Japan and South Korea, government initiatives are promoting hydrogen-based economies, creating a favorable regulatory environment for Power-to-Gas projects. Furthermore, as nations seek to increase their share of renewable energy in the overall energy mix, the ability of P2G to store surplus electricity during periods of low demand and generate renewable gases is seen as an essential solution to stabilize energy systems and improve the resilience of the power grid.

What Factors Are Driving The Growth Of The Power-to-Gas Market?

The growth in the Power-to-Gas market is driven by several factors, including the increasing integration of renewable energy sources, advances in hydrogen technology, and growing demand for energy storage solutions. One of the primary drivers is the rising share of renewable energy in the global energy mix, which necessitates more robust solutions for managing excess power generation and addressing grid stability issues. Power-to-Gas offers an innovative way to convert this surplus renewable electricity into storable gas, allowing for long-term energy storage and providing a flexible mechanism to balance supply and demand in the power grid. Additionally, the expanding hydrogen economy is a key factor propelling market growth, as hydrogen produced via electrolysis can be used in a wide range of applications, from transportation to industrial processes, and even in residential heating. As hydrogen fuel cell technology becomes more mainstream, the demand for green hydrogen produced through Power-to-Gas is expected to increase significantly. Moreover, the development of supportive infrastructure, such as hydrogen pipelines, storage facilities, and fueling stations, is facilitating the deployment of P2G projects on a larger scale.

Another key growth driver is the shift towards decarbonization, with industries and governments worldwide focusing on reducing carbon emissions across sectors that are hard to electrify. Power-to-Gas provides a viable solution by enabling the production of green hydrogen or synthetic methane, both of which can replace fossil fuels in high-energy sectors like steel production, shipping, and aviation. Furthermore, technological advancements are making Power-to-Gas more cost-effective, as the cost of electrolyzers continues to decrease, and renewable energy becomes cheaper to generate. The increasing emphasis on energy security, especially in regions that are heavily reliant on imported fossil fuels, is also driving the adoption of P2G, as it offers a way to locally produce and store energy, reducing dependence on external energy sources. These factors, combined with favorable regulatory environments and growing investment in hydrogen and renewable energy projects, are expected to drive the Power-to-Gas market’s expansion in the coming years.

SCOPE OF STUDY:

The report analyzes the Power-to-Gas market in terms of US$ by the following Capacity; End-Use; Technology, and Geographic Regions/Countries:

Segments:
Technology (Electrolysis, Methanation); Capacity (1000 kW & Above, 100-999 kW, Less than 100 kW); End-Use (Utilities, Commercial, Industrial)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; and Rest of Europe); Asia-Pacific; Rest of World.

Select Competitors (Total 37 Featured) -

• Aquahydrex
• Avacon
• Carbotech
• Electrochaea
• Exytron
• Fuelcell Energy
• GreenHydrogen
• Hitachi Zosen Inova Etogas
• Hydrogenics
• Ineratec
• ITM Power
• MAN Energy Solutions
• McPhy Energy
• Micropyros
• Nel Hydrogen
• Power-to-gas Hungary
• Siemens
• Socalgas
• ThyssenKrupp
• Uniper

Please note: Reports are sold as single-site single-user licenses. Electronic versions require 24-48 hours as each copy is customized to the client with digital controls and custom watermarks. The Publisher uses digital controls protecting against copying and printing is restricted to one full copy to be used at the same location.

The latest version of Adobe Acrobat Reader is required to view the report. Upon ordering an electronic version, the Publisher will provide a link to download the purchased report.

Prior to fulfillment of an order, the client will be required to sign a document detailing the purchase terms for a publication from this publisher.