Power Gas Market Size

Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

P2G is a new market that is destined to grow rapidly. The P2G market is estimated to reach $1.66 billion in 2023, and to rise to $ 7.25 billion by 2032. This phenomenal growth rate represents a CAGR of 25.29 % between 2024 and 2032. The P2G market is expanding because P2G technology is proving a viable solution for energy storage and conversion, especially in the context of integration of intermittent renewable sources and decarbonisation policies. Among the factors contributing to this growth is the efficiency of the electrolysis process, which increases the efficiency of the hydrogenation of surplus electricity from intermittent sources. Also, the rising demand for green hydrogen as a clean fuel in various sectors, such as transport and industry, is fuelling the market. Meanwhile, the major market players, such as Siemens Energy, ITM Power, and NEL ASA, are investing heavily in research and development, forming strategic alliances, and launching new products to take advantage of this growing market. These initiatives not only foster technological development but also contribute to the development of a sustainable energy system.

Regional Market Size

Regional Deep Dive

The power-to-gas market is growing around the world, and each region has its own dynamics and growth potential. In North America, for example, the market is driven by a combination of technological advancements, rising investment in renewable energy, and supportive policy frameworks. In Europe, the combination of ambitious climate goals and innovation is driving the industry forward. In the Asia-Pacific region, the market is booming due to rising energy needs and government efforts to improve energy security. Middle East and Africa are gradually embracing power-to-gas, driven by the need to diversify their energy sources. Latin America is emerging as well, driven by its own growing energy needs and the need to find sustainable solutions to meet those needs.

Europe

• Germany continues to lead the Power-to-Gas market with projects like the 'AquaVentus' initiative, which aims to produce green hydrogen from offshore wind energy.
• The European Union has introduced the 'Fit for 55' package, which includes regulations to promote hydrogen and Power-to-Gas technologies as part of its broader climate strategy.

Asia Pacific

• Japan is actively pursuing Power-to-Gas solutions, with companies like Toshiba developing hydrogen production technologies to support its energy transition.
• Australia's government has announced funding for Power-to-Gas projects, recognizing the potential of hydrogen as a key export commodity and a means to decarbonize its energy sector.

Latin America

• Chile is leading the way in Latin America with its 'Green Hydrogen Strategy', which aims to leverage its abundant renewable resources for Power-to-Gas applications.
• Brazil is exploring Power-to-Gas technologies as part of its energy transition, with initiatives to integrate hydrogen into its existing energy infrastructure.

North America

• The U.S. Department of Energy has launched initiatives to support research and development in Power-to-Gas technologies, aiming to enhance energy storage and grid stability.
• Several companies, including Air Products and Chemicals, are investing in large-scale Power-to-Gas projects, such as the development of hydrogen production facilities that utilize renewable energy sources.

Middle East And Africa

• The UAE is exploring Power-to-Gas technologies as part of its 'Energy Strategy 2050', aiming to diversify its energy mix and reduce carbon emissions.
• Saudi Arabia's NEOM project includes plans for a green hydrogen facility, which will utilize Power-to-Gas technology to support its vision of a sustainable future.

Did You Know?

“Did you know that Power-to-Gas technology can convert excess renewable energy into hydrogen, which can then be stored and used as a clean fuel or converted back to electricity when needed?” — International Renewable Energy Agency (IRENA)

Segmental Market Size

The power-to-gas sector plays a key role in the energy transition by enabling the conversion of surplus renewable energy into hydrogen or synthetic gas. This sector is growing, driven by the growing need for storage solutions and the need to decarbonise in many different industries. The main reasons for this growth are the tightening of regulations on greenhouse gas emissions and the technological developments in hydrogen electrolysis, which are reducing costs and increasing efficiency. At the moment, the deployment of power-to-gas technology is at the stage of commercial operation, with the leading projects being HyBalance in Denmark and the AquaVentus initiative in Germany. The main applications are the integration of renewable energy into the gas grid, the provision of hydrogen for fuel cell vehicles and the decarbonisation of industrial processes. This growth is being accelerated by macro-economic trends such as the drive towards carbon neutrality and the rise in the number of sustainable initiatives. These developments, which are being driven by the introduction of new products such as proton-exchange membranes and power-to-methane systems, are leading to the emergence of more efficient energy conversion and storage solutions.

Future Outlook

Power-to-gas (PtG) is expected to increase from $99 million in 2023 to $7.5 billion in 2032, a CAGR of 25.29%. This growth is due to the increasing demand for clean energy and the urgent need for energy storage solutions to support the transition to a low-carbon economy. PtG technology is expected to increase in importance as governments and industries worldwide continue to strive to meet their climate goals. The penetration rate of PtG in the energy system is expected to reach 15-20% in the key markets by 2032. PtG is mainly driven by the development of electrolysis technology, which has greatly improved the efficiency and cost of hydrogen production from renewable sources. In addition, government policies and regulations have also been formulated to support the promotion of green hydrogen and the decarbonization of the energy system. PtG can also be used as a combination of carbon capture and use (CCUS) technology, which will have a positive impact on the development of hydrogen fuel cell vehicles and industrial hydrogen. Strategic alliances and investments in R & D are necessary to overcome technical barriers and optimize the integration of PtG into the energy system.