The global Power-To-Gas market size is projected to reach approximately $ 56.55 Billion by 2030, at a CAGR of 10.2% from 2022 to 2030. Power to gas, also known as P2G, is a technology that converts electrical power to gas fuel primarily through the electrolysis process. Power-to-gas systems are deployed as alternatives to wind parks or solar electric generation systems. The excess power that is generated by wind generators or solar arrays is used in the future for load balancing in the energy grid. P2G involves low or high-temperature electrolysis of water to produce hydrogen as a final product injected into the gas grid or directly fuelling applications.
COVID-19 Impact Analysis
The Coronavirus pandemic has been severely impacting the economic and health welfare of people worldwide. During this period of lockdown, there was a decline in energy consumption and demand for global energy which has had adverse effects on the economy. As a result of the lockdown, demand for fossil fuel-based power generation had significantly dropped. Yet, because renewable energy doesn’t rely on carbon sources, it remained unaffected by the incident. In addition, the Power-to-Gas market was also least affected by the pandemic. The rising demand for advanced options for reducing CO2 emissions as well as the global adoption of renewable energy shares in the power mix has contributed to the growth of this market.
The factors driving the growth of the global Power-to-Gas market include the effective utilization of renewable energy resources along with the integrated management of power and gas networks. Moreover, the growth in the capacity of renewable energy as well as the need to lower carbon emissions further contributes to the growth of the market.
⮚ Increasing Demand for Clean Energy
The global energy demand has resulted in the exploration of new sources of energy. The power to gas technology is an alternative source for fuel generation. In addition to this, it also aids in decreasing the environmental emission of gases. This in turn helps to tackle the issue of global warming. Therefore, this factor is expected to propel the growth of the market.
- COVID-19 Restricted the Growth of the Market
The global power-to-gas market was affected by COVID 19: during the pandemic, electricity consumption declined mainly because residential areas were mostly using it rather than commercial or industrial areas. The market revenue decreased the least because of an increase in demand for renewable energy sources. The use of fossil fuel-based sources reduced to a greater extent which will cause the size of the market to increase.
⮚ Increased Awareness of Clean Energy Sources
Awareness of environmental concerns has been on the rise over the last few years, and demand for a reduction in carbon emissions is growing. Non-renewable sources of energy like coal and natural gas emit hazardous gases and waste while renewable energy creates much less pollution. Due to that, it would be beneficial to make a switch to clean, renewable resources. The increased rate of growth for this market will push it to new limits. Different governments have set targets for the electricity production capacity to fuel the demand in this market. This will result in rapid growth and increasing values. The transportation industry is continuing to grow and the use of hydrogen will likely push this growth further in the future. This will create new opportunities in the market as a result.
Based on the Technology, the Power-To-Gas market is segmented based on Electrolysis and Methanation. The Electrolysis Segment is anticipated to account for the large market share. This growth is being fuelled by the increased utilization of renewable sources of energy for carbon emissions, as well as the increasing demand for fuel cells in electric vehicles. The use of hydrogen in fuel cells is constantly on the increase because it is less polluting and provides much higher efficiency.
Based on Capacity, the global Power-To-Gas market has been divided into Less than 100 kW, 100–999kW, and 1000 kW & above). The 1000 kW & above segment is expected to hold the largest market share. This increased use in Power-to-Gas conversion projects can be attributed to the increasing commercialization and implementation of high MW level projects. Utilities and industrial end-users tend to prefer the 1000 kW and above capacity generators, so as a result this preference is reflected in the conversion as well.
Based on End-Use, the global Power-To-Gas market has been divided into Commercial, Utilities, and Industrial. The Utility Industry segment is expected to hold the largest market share. To keep up with the changes in power distribution, Utilities are looking for ways to increase the efficiency and versatility of hydrogen production. They plan to combine renewable energy sources with reliable systems to provide clean and efficient power for the future.
Global Power-To-Gas Market Share, by Segmentation
Based on region, the global Power-To-Gas market has been divided into North America, Europe, Asia-Pacific, and the Rest of the World. Europe is projected to dominate the use of the Power-To-Gas market followed by the Asia-Pacific and North America regions.
Europe is expected to lead the Power-to-Gas market, with power-to-gas technology expected to stabilize an unstable region’s energy supply. The fluctuating power generation from renewable sources of electricity will also be offset by this technology. Germany has been investing in power-to-gas technology lately to address its fuel demand. This technology creates more hydrogen which can be used for chemical and industrial processes, as well as fuel cells from newer transportation methods.
The power-to-gas market in Asia-Pacific is expected to grow moderately over the next several years. This can be attributed to the introduction of state incentives and subsidies such as special benefits, tax reliefs, and investment support. The Asia-Pacific region has been a major driver of the global gas market in recent years and it is expected that this trend will continue going forward.
The market comprises tier-1, tier-2, and local players. With their wide product portfolios, tier-1 and tier-2 players have a global reach. Because of their strategic innovations and broad regional presence, companies such as ITM Power, McPhy Energy S.A., ThyssenKrupp AG, Electrochaea GmbH, Hydrogenics, TKI Gas, AEG Power Solutions, Solarplaza International BV, Alliander, and Energinet. DK, lead the global Power-To-Gas business. To increase their market position and attract a wide consumer base, the businesses are employing various strategies, such as growth, product releases, and alliances.
- ITM Power
- McPhy Energy S.A.
- ThyssenKrupp AG
- Electrochaea GmbH
- TKI Gas
- AEG Power Solutions
- Solarplaza International BV
In February 2019, the board members of the Open Grid Europe (OGE) announced that the OGE along with Amprion plans to build a 100MW power-to-gas plant, which is capable of converting renewable energy output into hydrogen.
Scope of the Report
Global Power-To-Gas Market, by Technology
Global Power-To-Gas Market, by Capacity
- Less than 100 kW
- 100–999 kW
- 1000 kW & Above
Global Power-To-Gas Market, by End-Use
Global Power-To-Gas Market, by Region
- North America
- THE US
- The UK
- Rest of Europe
- The Asia Pacific
- South Korea
- Rest of Asia Pacific
- Rest of the World
|Market Size||2030: $ 56.55 Billion|
|CAGR||10.2% CAGR (2022-2030)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Key Segmentations||Technology, Capacity, and End-Use|
|Geographies Covered||North America, Europe, Asia-Pacific, Latin America, Middle East, Africa|
|Key Vendors||ITM Power, McPhy Energy S.A., ThyssenKrupp AG, Electrochaea GmbH, Hydrogenics, TKI Gas, AEG Power Solutions, Solarplaza International BV, Alliander, and Energinet.dk|
|Key Market Opportunities||Increased Awareness about Clean Energy Sources|
|Key Market Drivers||Increasing Demand for Clean Energy|
REPORT CONTENT BRIEF:
- High-level analysis of the current and future Power-To-Gas market trends and opportunities
- Detailed analysis of current market drivers, restraining factors, and opportunities in the future
- Power-To-Gas market historical market size for the year 2020, and forecast from 2021 to 2028
- Power-To-Gas market share analysis at each product level
- Competitor analysis with a detailed insight into its product segment, financial strength, and strategies adopted.
- Identifies key strategies adopted including product launches and developments, mergers and acquisitions, joint ventures, collaborations, and partnerships as well as funding taken and investment done, among others.
- To identify and understand the various factors involved in the global Power-To-Gas market affected by the pandemic
- To provide a detailed insight into the major companies operating in the market. The profiling will include the financial health of the company past 2-3 years with segmental and regional revenue breakup, product offering, recent developments, SWOT analysis, and key strategies.
Global Power-To-Gas Market FAQs
1. What is the study period of this market?
● The study period of the global Power-To-Gas market is 2020 – 2030
2. What is the growth rate of the global Power-To-Gas market?
● The global Power-To-Gas market is growing at a CAGR of ~ 10.2% over the next 7 years
3. Which region has the highest growth rate in the global Power-To-Gas market?
● Asia Pacific is expected to register the highest CAGR during 2022-2030
4. Which region has the largest share in the global Power-To-Gas market?
● Europe holds the largest share in 2021
5. Who are the key players in the global Power-To-Gas market?
● ITM Power, McPhy Energy S.A., ThyssenKrupp AG, Electrochaea GmbH, Hydrogenics, TKI Gas, AEG Power Solutions, Solarplaza International BV, Alliander, and Energinet.DK is the major company operating in the global Power-To-Gas market.
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● Yes, we offer 16 hours of analyst support to solve the queries
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● Yes, we provide regional as well as country-level reports. Other than this we also provide a sectional report. Please get in contact with our sales representatives.