Market Size of City Gas Distribution Industry
Study Period | 2020 - 2029 |
Base Year For Estimation | 2023 |
CAGR | 3.20 % |
Fastest Growing Market | Asia Pacific |
Largest Market | Asia Pacific |
Market Concentration | Low |
Major Players*Disclaimer: Major Players sorted in no particular order |
City Gas Distribution Market Analysis
The global city gas distribution market is expected to grow at a CAGR of around 3.2%, during the forecast period. Growing urbanization across the globe, leads to the demand of natural gas in various sectors like industry, power, residential and commercial buildings, and transportation. During 2018, it has been estimated that nearly 82% of all gas consumed globally was in urban areas. Natural gas plays a significant role in energy generation for cities. With a lesser amount of greenhouse gas emissions than coal or oil (approximately 40% and 20%, respectively), it helps to maintain and to stabilize the carbon footprint around the world. Through city gas distribution pipeline network, one can have easy access to cleaner fuel like natural gas. The drivers for the market are the government initiatives to have access to cleaner energy, and thereby to reduce air pollution. As per World Health Organization (WHO), more than 80% of the people around the globe are exposed to the growing air pollution resulting in nearly seven million deaths per year. Inline initiatives to Paris Agreement such as C40 and the Global Covenant of Mayors for Climate Change are the prominent initiatives, with cleaner environment objective. However, the growing developments in renewable energy sector such as solar and wind is expected to act as a restraint for the market to grow during the forecasting period.
- In 2018, power sector is the largest end-use sector for natural gas or city gas consumption, accounting for nearly 39% of global natural gas consumption. Power generation through gas-fired power plants has a significant market share. Natural gas, as a relatively clean fuel than coal in getting preference for power generation in several nations of the world. During 2018, electricity generation from natural gas has taken a y-o-y growth of around 4%.
- The rate of urbanization primarily drives the consumption of city gas. With the properties of emitting low carbon particles than coal and oil, city gas has a tremendous potential to reduce the growing carbon emission. It has been estimated that during the year 2018, nearly 76% of the coal and 63% of the oil consumed around the world is from the urban area. Moreover, it is estimated that the share of the urban population has increased from 30% in 1950 to nearly 55% in 2018, and by 2050, it is expected to reach 66%. Thus, the rapid growth in urbanization especially in the developing economies is expected to create an opportunity for the city gas distribution market in the near future.
- The Asia-Pacific is expected to dominate the city gas distribution market with a higher demand for natural gas in the region during the forecasting period. With rising urbanization, the demand for natural gas is expected to exceed 20% of global natural gas demand.
City Gas Distribution Industry Segmentation
The city gas distribution market include:
End-User | |
Industrial | |
Power Sector | |
Residential and Commercial Buildings | |
Transportation |
Type | |
Compressed Natural Gas (CNG) | |
Pipeline Natural Gas (PNG) |
Geography | |
North America | |
Asia-Pacific | |
Europe | |
South America | |
Middle-East and Africa |
City Gas Distribution Market Size Summary
The city gas distribution market is poised for steady growth, driven by increasing urbanization and the rising demand for natural gas across various sectors such as industry, power, residential, commercial buildings, and transportation. Natural gas is becoming a preferred energy source due to its lower greenhouse gas emissions compared to coal and oil, making it a crucial component in efforts to reduce global carbon footprints. Government initiatives aimed at promoting cleaner energy and reducing air pollution are further propelling the market. However, the growth of renewable energy sources like solar and wind presents a challenge to the expansion of the city gas distribution market. The power sector remains the largest consumer of natural gas, with gas-fired power plants gaining popularity as a cleaner alternative to coal-based generation.
The Asia-Pacific region is expected to dominate the city gas distribution market, driven by high demand for natural gas and rapid urbanization. The region's focus on cleaner fuels and significant domestic and industrial energy needs position it as a key player in the global market. China and India are leading the charge, with China encouraging foreign investment in its gas sector and India expanding its city gas distribution network significantly. The market is characterized by fragmentation, with major players including Southern Co., Enel SpA, Enbridge Inc., Dominion Energy Inc., TC Energy Corporation, Kinder Morgan Inc., and Sempra Energy. As urban populations continue to grow, the city gas distribution market is anticipated to benefit from increased consumption and investment in infrastructure.
City Gas Distribution Market Size - Table of Contents
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1. MARKET OVERVIEW
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1.1 Introduction
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1.2 Market Size and Demand Forecast in USD billion, till 2025
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1.3 Recent Trends and Developments
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1.4 Government Policies and Regulations
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1.5 Market Dynamics
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1.5.1 Drivers
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1.5.2 Restraints
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1.6 Supply Chain Analysis
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1.7 Porter's Five Forces Analysis
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1.7.1 Bargaining Power of Suppliers
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1.7.2 Bargaining Power of Consumers
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1.7.3 Threat of New Entrants
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1.7.4 Threat of Substitute Products and Services
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1.7.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION
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2.1 End-User
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2.1.1 Industrial
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2.1.2 Power Sector
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2.1.3 Residential and Commercial Buildings
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2.1.4 Transportation
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2.2 Type
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2.2.1 Compressed Natural Gas (CNG)
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2.2.2 Pipeline Natural Gas (PNG)
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2.3 Geography
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2.3.1 North America
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2.3.2 Asia-Pacific
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2.3.3 Europe
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2.3.4 South America
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2.3.5 Middle-East and Africa
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City Gas Distribution Market Size FAQs
What is the current City Gas Distribution Market size?
The City Gas Distribution Market is projected to register a CAGR of greater than 3.20% during the forecast period (2024-2029)
Who are the key players in City Gas Distribution Market?
Enel SpA, Enbridge Inc. , Dominion Energy Inc., TC Energy Corporation and Southern Co. are the major companies operating in the City Gas Distribution Market.