United States Natural Gas Market Size (2024 - 2029)

US Natural Gas Market Analysis

The US natural gas market is projected to register a CAGR of over 5% during the forecast period.

The market was negatively impacted by COVID-19 in 2020. Presently the market has reached pre-pandemic levels.

• The growing demand for cleaner energy sources and the use of natural gas to generate electricity, heat buildings, heat water, drive industrial furnaces, etc., as well as the need to reduce carbon emissions and subsidies provided by governments for using natural gas, are driving the market to grow.
• On the other hand, the risk of leaks during transportation and storage and the high cost of storing natural gas are among other factors that could limit the market's growth.
• Nevertheless, decarbonization policies have been proposed or introduced in several parts of the United States as part of the transition to a low-carbon society. By implementing renewable portfolio standards, setting net carbon-neutral clean energy standards, setting economy-wide targets for carbon reduction, and mandating the use of certain technologies, these policies rely on a range of actions. These factors can open up new opportunities for the market.

US Natural Gas Industry Segmentation

Natural gas is a naturally occurring mixture of gaseous hydrocarbons consisting primarily of methane and a variety of smaller amounts of other higher alkanes. It is common for trace gases such as carbon dioxide, nitrogen, hydrogen sulfide, and helium to be present at low levels. Since natural gas is colorless and odorless, odorizers such as mercaptan, which smells like sulfur, are commonly added to natural gas supplies in order to detect leaks. Natural gas formation occurs when layers of organic matter (mostly marine microorganisms) decompose in anaerobic conditions and are subjected to intense heat and pressure underground for millions of years under anaerobic conditions. Through photosynthesis, decayed organisms acquire energy from the sun that is then stored chemically in molecules of methane or other hydrocarbons. As well as being a fuel for vehicles, natural gas is also used for heating, cooking, and generation of electricity, as well as a chemical feedstock for the manufacture of plastics and other commercially significant organic chemicals.

The United States natural gas market is segmented by type and end use. By type, the market is segmented into wet natural gas and dry natural gas. By end use, the market is segmented into power generation, automotive, residential, and industries. The report also covers the market size and forecasts for the natural gas market across the country. For each segment, the market size and forecasts have been done based on consumption (billion cubic meters).