POWER-TO-GAS MARKET ANALYSIS

Power-to-Gas MarketSize and Trends

The global power-to-gas market size was valued at US$ 30.27 billion in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 12.2% from 2023 to 2030. The global power-to-gas market is expected to gain major growth in the coming years, owing to factors such as growing market share of renewable energy in power generation, regulations promoting technologies in hydrogen production, and rise in use of CNG and hydrogen in transportation sector.

Increasing shift to renewable energy sources to boost market growth

Countries around the world are capitalizing on the renewable resources and are involved in major investments through R&D in order to make a significant shift toward decarbonization. As the fossil fuel reserves are limited resources, they cannot cater the ever-growing demand for energy around the world. Thus, demand for technological creativity is increasing to cater the growing need for energy. This increasing shift toward renewable energy sources is therefore expected to drive growth of the global power-to-gas market over the forecast period.

Government initiatives toward reducing emission of CO₂ to fuel the market growth

Due to the concept of carbon footprint, awareness regarding amount of carbon dioxide emitted and its impact on the environment is increasing among producers and consumers. There is a rise in emphasis on carbon footprint due to which, the demand for environmentally friendly products is increasing. As a result, the demand for power-to-gas technology is increasing all over the world to reduce the emissions of carbon dioxide. Thus, this in turn is expected to drive growth of the global power-to-gas market over the forecast period.

Market Drivers:

Growing shift to renewable energy sources to boost the market growth

Countries around the world are capitalizing on the renewable resources and are involved in major investments through R&D in order to make a significant shift toward decarbonization. As the fossil fuel reserves are limited resources, they cannot cater the ever-growing demand for energy around the world. Thus, demand for technological creativity is increasing to cater the growing need for energy. This increasing shift toward renewable energy sources is therefore expected to drive growth of the global power-to-gas market over the forecast period.

Government initiatives toward reducing emission of CO₂ to fuel the market growth

Due to the concept of carbon footprint, awareness regarding amount of carbon dioxide emitted and its impact on the environment is increasing among producers and consumers. There is a rise in emphasis on carbon footprint due to which, the demand for environmentally friendly products is increasing. As a result, the demand for power-to-gas technology is increasing all over the world to reduce the emissions of carbon dioxide. Thus, this in turn is expected to drive growth of the global power-to-gas market over the forecast period.

Market Opportunities:

Increasing demand for hydrogen is expected to create multiple growth opportunities in the global power-to-gas market over the forecast period. The momentum to reduce the greenhouse gas emissions around the world is increasing, due to which the use of hydrogen as a green transportation fuel is increasing globally. This in turn is creating opportunities for the development of a clean mobility sector. The amount of carbon dioxide emitted by the transportation sector is huge and curtailing this amount of emission, industry is widely adopting various alternatives. The use of power-to-gas technology is therefore increasing in this sector, which in turn is creating opportunities in the global market.

Increasing need for energy storage flexibility is likely to generate business opportunities in the global power-to-gas market over the forecast period. The need for transforming the energy system is increasing all over the world. The power-to-gas technology can develop sustainable, flexible, and efficient energy system. Thus, to cater the growing demand for synergic system capable of integrating the major components such as heat, gas, and electricity, the demand for power-to-gas is increasing, which is expected to drive the market growth in the near future.

Market Trends:

Stringent regulations promoting emission reduction is a major trend

The fossil fuel combustion for driving the energy utilized to power heavy industries is a major contributor of emissions of greenhouse gases. Several governments around the world are imposing regulations on such industries including steel, cement, and iron production, mining, construction, and food processing; for limiting their carbon footprint. This in turn is driving the demand for power-to-gas technology. Thus, this trend is anticipated to augment growth of the market in the near future.

Power-to-hydrogen gaining traction is a recent trend

Power-to-hydrogen comprises of various technologies that use electricity for performing electrolysis and split water into oxygen and hydrogen. The manufacturing of hydrogen with the use of renewable energy is called green hydrogen, which can be utilized for transporting, storing, and utilizing renewable energy. With this, the curtailment of variable renewable energy from sources such as solar and wind can offer grid-balancing and long-term storage through electrolyzers. Thus, the power-to-hydrogen sector is gaining traction in the global power-to-gas market. This trend is likely to continue over the coming years.