Market Size of Power to Gas Industry
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 50.00 % |
| Fastest Growing Market | Europe |
| Largest Market | Europe |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Power to Gas Market Analysis
The Power-to-Gas market size is estimated at about USD 36.2 million by the end of this year, registering a CAGR of more than 50% during the forecast period.
COVID-19 negatively impacted the market in 2020. Presently, the market has reached pre-pandemic levels.
- Over the long term, the major driving factors of the market were increasing decarbonization to reduce the impact of greenhouse gases on the climate and reduction in the cost of electricity with the advent of renewable energy sources.
- On the flip side, high initial costs to set up power-to-gas plants and the need for additional transportation pipeline infrastructure in underdeveloped and developed economies for methane or hydrogen is expected to slow down the market growth.
- Increasing initiatives in developing the infrastructure of green hydrogen in the emerging markets are expected to create vital opportunities for the power-to-gas market players soon.
- Europe is expected to dominate the power to gas market, with most of the demand coming from countries like Germany, France, and Spain.
Power to Gas Industry Segmentation
Power-to-Gas (P2G or PtG) is a technology that enables the conversion of electricity to gas (hydrogen or methane) through the process of electrolysis.
The Power-to-Gas Market is Segmented by Technology (Power-to-Hydrogen, and Power-to-Methane), Capacity (More than 1000 KW, 100 to 1000 KW, and Less than 100 KW), End-User (Utilities, Industrial, and Commercial), and Geography (North America, Europe, Asia-Pacific, South America, and Middle East and Africa). The report also covers the market size and forecasts for the power-to-gas market across major regions. The report offers the market size and forecasts in revenue (USD Million) for all the above segments.
| By Technology | |
| Power-to-Hydrogen | |
| Power-to-Methane |
| By Capacity (Qualitative Analysis Only) | |
| More than 1000 KW | |
| 100 to 1000 KW | |
| Less than 100 KW |
| y End-User | |
| Utilities | |
| Industrial | |
| Commercial |
| By Geography | |
| North America | |
| Europe | |
| Asia-Pacific | |
| South America | |
| Middle East and Africa |
Power to Gas Market Size Summary
The power-to-gas market is experiencing significant growth, driven by the increasing emphasis on decarbonization and the reduction of greenhouse gas emissions. The market has rebounded to pre-pandemic levels after the initial negative impact of COVID-19. The decline in electricity costs due to renewable energy sources has further propelled the market. However, challenges such as the high initial costs of setting up power-to-gas plants and the need for additional infrastructure in both developed and developing regions may hinder growth. Despite these challenges, the development of green hydrogen infrastructure in emerging markets presents substantial opportunities for market players. Europe is anticipated to lead the market, with substantial demand from countries like Germany, France, and Spain.
The power-to-hydrogen segment is poised for rapid expansion, supported by advancements in electrolyzer technologies and the decreasing costs of renewable energy. The technology's ability to store, transport, and utilize renewable energy through green hydrogen is a key advantage, offering long-term storage and grid-balancing services. Europe remains a dominant force in the market, bolstered by government investments and strategic initiatives aimed at reducing reliance on fossil fuels. Notable projects, such as those in Germany and the Netherlands, underscore the region's commitment to developing zero-carbon fuels. The EU's hydrogen accelerator strategy further emphasizes the importance of renewable hydrogen in achieving energy transition and industrial decarbonization goals. The market is moderately consolidated, with key players like Nel ASA, Sempra Energy, and Sunfire GmbH driving innovation and expansion.
Power to Gas 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 million till 2027
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1.3 List of Existing Power-to-gas Plants by Region and Capacity
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1.4 Recent Trends and Developments
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1.5 Government Policies and Regulations
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1.6 Market Dynamics
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1.6.1 Drivers
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1.6.2 Restraints
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1.7 Supply Chain Analysis
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1.8 Porter's Five Forces Analysis
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1.8.1 Bargaining Power of Suppliers
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1.8.2 Bargaining Power of Consumers
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1.8.3 Threat of New Entrants
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1.8.4 Threat of Substitute Products and Services
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1.8.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION
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2.1 By Technology
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2.1.1 Power-to-Hydrogen
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2.1.2 Power-to-Methane
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2.2 By Capacity (Qualitative Analysis Only)
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2.2.1 More than 1000 KW
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2.2.2 100 to 1000 KW
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2.2.3 Less than 100 KW
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2.3 y End-User
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2.3.1 Utilities
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2.3.2 Industrial
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2.3.3 Commercial
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2.4 By Geography
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2.4.1 North America
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2.4.2 Europe
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2.4.3 Asia-Pacific
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2.4.4 South America
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2.4.5 Middle East and Africa
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Power to Gas Market Size FAQs
What is the current Power to Gas Market size?
The Power to Gas Market is projected to register a CAGR of greater than 50% during the forecast period (2024-2029)
Who are the key players in Power to Gas Market?
Sempra Energy, GRT Gaz SA, MAN Energy Solutions, Sunfire GmbH and Nel ASA are the major companies operating in the Power to Gas Market.
