Power-to-Gas Market size was valued at USD 36.68 billion in 2023 and is set to cross USD 129.66 billion by 2036, registering more than 10.2% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of Power-to-Gas is evaluated at USD 39.67 billion. Increase in emissions of greenhouse gases across the globe, and rising industrial and household usage of energy are expected to drive significant market growth in the forthcoming years. Furthermore, reduction in capital expenditure (CAPEX) costs for electrolysis process, and escalating number of initiatives to decline carbon foot print around the world are crucial factors projected to offer ample opportunities to the market in the near future.
Along with these, the growth of the market can be attributed to the growing utilization of renewable energy resources for electricity generation, and integrated management of power-to-gas technology. According to the International Energy Agency, the share of wind energy in world electricity generation increased up to 6.7 percent in 2021, up from 5.9 percent and 5.3 percent in 2020 and 2019 respectively.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
10.2% |
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Base Year Market Size (2023) |
USD 36.68 billion |
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Forecast Year Market Size (2036) |
USD 129.66 billion |
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Regional Scope |
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The market is segmented by end user into commercial, utilities, industrial, and others, out of which, the utilities segment is anticipated to hold the largest share in the global power-to-gas market. This can be accounted to the increasing initiatives in this industry to effectively produce hydrogen by the integration of intermittent renewable power sources. Additionally, on the basis of technology, the segment for electrolysis is assessed to witness the highest growth during the forecast period, which can be credited to the rising solar and wind energy generation, predicted to reduce the price for electrolysis process. Apart from this, dynamic operations provided by electrolysis is also evaluated to boost the market segment’s growth in the imminent time.
Our in-depth analysis of the global power-to-gas market includes the following segments:
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By Technology |
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By End User |
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On the basis of geographical analysis, the global power-to-gas market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and the Middle East & Africa region. Asia Pacific industry is set to hold largest revenue share by 2036, driven by provision of incentives and subsidies such as special benefits in new car registration by the government in the region. Moreover, the market in Europe is projected to acquire the largest share during the forecast period owing to the increasing number of power-to-gas plants, especially in Germany, and high production of electric vehicles in the region. As per the data provided by Europe Environment Agency, about 550,000 units of electric cars were registered in Europe in 2019, up from 300,000 units in 2018. This represents an increase of 2 percent to 3.5 percent of the total car registrations in the time period. In addition, the technology plays a crucial role in stabilizing the energy supply in the region, which is another factor predicted to fuel the market progress of Europe in the coming years.
October 2021- German company Sunfire GmbH received an investment of USD 126 million of funding to expand its role in green hydrogen generation derived from sources such as solar or wind.
March 2020- GRT gaz successfully injected the first hydrogen into its network produced by the power-to-gas demonstrator JUPITER 1000, which is located in Fos-sur-Mer.
Author Credits: Dhruv Bhatia
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