The global power-to-gas market size accounted for USD 32.1 million in 2022 and is projected to hit around USD 80.01 million by 2032, growing at a CAGR of 10.1% during the forecast period from 2023 to 2032.
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A technique known as "power-to-gas" converts electrical energy into methane or hydrogen syngas (synthetic gas). The hydrogen produced by the power-to-gas industry is used by other businesses as a chemical or fuel. Energy from renewable resources like wind and solar is stored in power-to-gas systems and used for a variety of uses. These systems utilize stored energy for transportation, heating, and industrial applications. The power-to-gas industry's operations are a positive step toward combining renewable resources with electricity-generating sources.
Growth in the demand for renewable hydrogen, which may lower carbon emissions in a range of different industries, is predicted to be the main factor driving the market's expansion. The primary element fueling the industry's expansion is the decline in the cost of electrolyzing technology. According to the International Energy Agency, electrolyze stacks represent between 50 and 60 percent of the capital investment. The remaining 40 to 50 percent of the investment is made up of components for the plant, power electronics, and gas conditioning. Global demand for power will increase due to population and economic expansion.
The rise in the effective use of renewable energy sources and the joint management of power and gas networks are two important factors that are anticipated to promote the growth of the power-to-gas market over the forecast period.
Report Scope of the Power-To-Gas Market
|Market Size in 2023||USD 33.74 million|
|Market Size by 2032||USD 80.01 million|
|Growth Rate from 2023 to 2032||CAGR of 10.1%|
|Forecast Period||2023 to 2032|
Key Market Drivers
Key Market Challenges
Key Market Opportunities
On the basis of technology, the electrolysis segment is expected to have the largest market share in the coming years period, this segment has dominated the market in the past with the maximum share in terms of revenue and it will continue to grow well in the coming years. The segment is growing as a result of rising demand for energy and fossil fuels, more public awareness of greenhouse emissions, and increased market penetration.
Because of the increased usage of renewable energy sources to cut down on carbon emissions, the market is growing. Additionally, one of the elements propelling the growth of this market is the increasing need for fuel cells in electric vehicles. Since hydrogen produces fuel cells more efficiently and with fewer emissions, it is now used more frequently in their manufacture.
End User Insights
On the basis of end-user, the utility segment is expected to have the highest market share in the last year, in terms of revenue. The utility sector is expanding as gas and electric utilities aim to produce hydrogen more effectively by combining intermittent renewable energy sources and preserving the flexibility of the power grid. These are the main factors fueling the utilities segment's expansion in the global market during the course of the projection.
Due to the increasing desire of industries for cleaner forms of energy in order to lessen their dependence on fossil fuel-based power generation, the industrial segment is anticipated to experience considerable expansion over the course of the forecast period. In order to become less carbon-intensive and more energy-efficient in the future, industries are also spending money on research and development.
On the basis of geography, the Europe region has held the highest revenue share in 2022. Some European nations, like Germany and Denmark, are in the midst of significant development of renewable electricity production, and it is anticipated that this will happen to a greater extent throughout Europe throughout the projected period. Low spot prices of electricity are anticipated to result from high power generation from intermittent sources. Additionally, it presents a chance for the creation of adaptable electro-intensive processes. Due to a number of programs and goals for integrating renewable electricity in Europe, power-to-gas has been technically validated at the pilot scale. In order to cut carbon emissions, the European energy sector is going through a significant transformation. The need for power-to-gas technology is anticipated to rise as a result of political RES integration and carbon reduction goals.
To create a sustainable future in the power-to-gas market, the region has implemented some of the highest environmental standards and aggressive climate policies in the world. The maintenance of environmental pollution, and climate change and reducing greenhouse gas emissions through effective renewable energy systems are top priorities.
The government policies of various countries are expected to cause the power-to-gas market in Asia Pacific to grow significantly. In addition, it is projected that the region's economic recovery from the COVID-19 epidemic will further fuel the rise of the power-to-gas business in the ensuing years.
Key Market Players
Segments Covered in the Report
By End User
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