Global Methanation Market Growth (Status and Outlook) 2025-2031

The global Methanation market size is predicted to grow from US$ 169 million in 2025 to US$ 241 million in 2031; it is expected to grow at a CAGR of 6.1% from 2025 to 2031.

Methanation is a chemical reaction that converts carbon monoxide and/or carbon dioxide to methane. Methanation is garnering significant attention as industries and governments seek sustainable solutions for energy production and carbon management. The importance of this process lies not only in its ability to produce synthetic natural gas but also in its potential to mitigate greenhouse gas emissions.

This report covers technology license, engineering, equipment and catalysts.

The global key manufacturers of Methanation include Johnson Matthey, Topsoe, Electrochaea, Wood, Hubei Huihuang, ThyssenKrupp AG, INPEX, Taiyuan Heavy Industry Co., Ltd (TYHI), BASF, Kanadevia Corporation, etc. In 2023, the global top 5 players had a share approximately 65% in terms of revenue. As industries increasingly focus on carbon reduction strategies and sustainable practices, these companies are well-positioned to benefit from growing demand.

Industrial applications dominate the methanation market. Methanation is key in producing synthetic natural gas, which can be injected into existing gas networks or used as a fuel for heating and power generation.

Environmental application is the fastest-growing application market. This segment includes the use of methanation technologies for carbon capture and utilization (CCU), converting captured CO2 into methane. Environmental regulations and climate commitments drive this application, making it vital for industries seeking to achieve carbon neutrality.

The Asia-Pacific region stands out as the largest market for methanation, driven by rapid industrialization, urbanization, and stringent environmental policies. Countries like China, mainly concentrated in industrial application, such as coal-based natural gas industry, are leading the way in adopting methanation technologies to address air pollution and meet renewable energy targets.

LPI (LP Information)' newest research report, the “Methanation Industry Forecast” looks at past sales and reviews total world Methanation sales in 2024, providing a comprehensive analysis by region and market sector of projected Methanation sales for 2025 through 2031. With Methanation sales broken down by region, market sector and sub-sector, this report provides a detailed analysis in US$ millions of the world Methanation industry.

This Insight Report provides a comprehensive analysis of the global Methanation landscape and highlights key trends related to product segmentation, company formation, revenue, and market share, latest development, and M&A activity. This report also analyses the strategies of leading global companies with a focus on Methanation portfolios and capabilities, market entry strategies, market positions, and geographic footprints, to better understand these firms’ unique position in an accelerating global Methanation market.

This Insight Report evaluates the key market trends, drivers, and affecting factors shaping the global outlook for Methanation and breaks down the forecast by Type, by Application, geography, and market size to highlight emerging pockets of opportunity. With a transparent methodology based on hundreds of bottom-up qualitative and quantitative market inputs, this study forecast offers a highly nuanced view of the current state and future trajectory in the global Methanation.

This report presents a comprehensive overview, market shares, and growth opportunities of Methanation market by product type, application, key players and key regions and countries.

Segmentation by Type:

Technology and Service

Catalysts

Segmentation by Application:

Environmental

Industrial Application

This report also splits the market by region:

Americas

United States

Canada

Mexico

Brazil

APAC

China

Japan

Korea

Southeast Asia

India

Australia

Europe

Germany

France

UK

Italy

Russia

Middle East & Africa

Egypt

South Africa

Israel

Turkey

GCC Countries

The below companies that are profiled have been selected based on inputs gathered from primary experts and analyzing the company's coverage, product portfolio, its market penetration.

Johnson Matthey

Topsoe

Electrochaea

Wood

Hubei Huihuang

ThyssenKrupp AG

INPEX

Taiyuan Heavy Industry Co., Ltd (TYHI)

BASF

Kanadevia Corporation

Haohua Chemical Science & Technology

KHIMOD

IHI

Clariant AG

Please note: The report will take approximately 2 business days to prepare and deliver.