Global Power-To-Gas Market Size By Technology (Methanation, Electrolysis), By End-User (Commercial, Utilities), By Geographic Scope And Forecast

Power-To-Gas Market Size And Forecast

Power-To-Gas Market size was valued at USD 42 Million in 2022 and is projected to reach USD 99.03 Million by 2030, growing at a CAGR of 10% from 2023 to 2030.

As our world gets more populated and economies expand, get ready for electricity demand to climb! Businesses are scrambling to find cheaper, more efficient ways to make power. And guess what? They're really pushing for eco-friendly options too. That's where power-to-gas tech steps in – it's a cool way to harness renewable sources like wind and solar, and store that energy for later! Plus, it's a win for the planet because it doesn't release nasty gases. Want the full scoop on this game-changing tech? The Global Power-To-Gas Market report dives deep, giving you a holistic view of the market. It's packed with analysis on key segments, trends, what's driving the market, what's holding it back, who the big players are, and all the juicy factors making a difference.

Global Power-To-Gas Market Definition

The term “power-to-gas” describes a method of converting electrical energy into methane or hydrogen syngas (synthetic gas). The hydrogen produced by the power-to-gas sector is subsequently used as a chemical or fuel in other industries. Excess energy from renewable resources such as wind and solar energy is stored in power-to-gas systems and used for a variety of applications. These systems employ stored energy for transportation, heating, and industrial purposes. The power-to-gas industry’s efforts are a positive step toward merging renewable resources with electricity-producing sources.

So, in the world of power-to-gas (also called P2G and PtG), we use electrolysis to make hydrogen gas. Basically, we're taking that extra, or green, electricity and turning it into H2 from water – pretty cool, right? This synthetic hydrogen (H2) can then be used for all sorts of things. We can transform it into methane, synthesis gas, electricity, liquid fuels, or chemicals. Or, even better, we can use it directly as an energy source. And to get methane, we just take that hydrogen and react it with carbon dioxide in a second step.

Think of a power-to-gas system as a smart way to link up green energy (like solar and wind) with our tried-and-true power plants. The big idea? Instead of electricity, we store energy for the long haul by turning it into something easier to keep around, like gas. This also helps take some of the stress off the power grid by carefully managing energy use. We can achieve this by converting electricity. Then, when we need it, we can turn that hydrogen or methane back into power! This gas can either be used to create chemicals, or burned in traditional generators, like gas turbines, to create electricity. Essentially, power-to-gas lets us store and move electricity as compressed gas, making use of our existing pipelines and storage for natural gas. That's why P2G is often seen as a promising technology for when we need to store renewable energy for longer stretches of time.

Global Power-To-Gas Market Overview

We're expecting the market to grow, mainly because everyone wants more renewable hydrogen. It's a great way to cut down on carbon emissions in all sorts of industries! What's really fueling this growth? It's the fact that electrolyzer technology is getting cheaper. The International Energy Agency says that the electrolyzer stacks themselves make up 50-60% of what you spend to get started. The rest – things like power electronics, how you condition the gas, and the other plant components – account for the remaining 40-50% of the investment. On top of all this, a growing population and economy mean the world needs more and more electricity.

Companies want cost-effective energy sources. They are also exploring ways to generate electricity that are not harmful to the environment. Power-to-gas technology can store wind and solar energy for a long time. Power-to-gas technology doesn’t emit dangerous gases, thus it’s environmentally friendly. The Power-To-Gas Market is driven by the transportation sector, residential and industrial energy use, and chemical production. Decreased electrolysis Capex costs are projected to be a primary signal of power-to-gas technology growth. Every day, more and more people are becoming aware of environmental issues and demanding that the rate at which carbon emissions are produced be lowered.

We're running out of nonrenewable resources like coal and natural gas, and let's face it, they're messy! They create pollution and waste. That's why we're seeing a big shift towards cleaner, non-conventional energy. This move could really boost the economy, pushing growth beyond what we thought possible. Lots of countries are aiming to seriously ramp up electricity production soon, which should also increase the market value. And with the way things are changing, especially with advancements in hydrogen-powered transportation, the next few years look incredibly promising for market growth – exciting times ahead! For more information, click here.

Okay, so, we're expecting this growth to happen right in the middle of the action. You know, the market. And yeah, when COVID-19 hit, it messed with the whole power-to-gas conversion scene globally. Basically, everyone stopped going to offices and factories, so energy use dropped. But get thisthe money the market made didn't really suffer because everyone started wanting green energy to power their homes! So, we leaned less on those nasty fossil fuels, which is good news for the planet, and it's gonna make the market even bigger.

Global Power-To-Gas Market Segmentation Analysis

The Global Power-To-Gas Market is segmented on the basis of Technology, End-User, And Geography.

Power-To-Gas Market, By Technology

• Methanation
• Electrolysis

Based on Technology, The market is segmented into Methanation and Electrolysis. In the power-to-gas sector, hydrogen is the most often generated gas. Hydrogen produced by Electrolysis in power-to-gas plants is usually regarded as an energy vector because it produces no greenhouse emissions or hazardous pollutants. Countries must include hydrogen in their power generation systems, construction industry, and transportation sector, among other things, in order to meet the lofty targets, set by various countries to become energy-efficient economies.

The Electrolysis category is projected to dominate the market. This is owing to its adaptability and ability to successfully integrate electricity from intermittent renewable energy sources such as wind and solar. These are the primary factors driving the Electrolysis segment’s growth in the global market over the predicted period.

Power-To-Gas Market, By End-User

• Commercial
• Utilities
• Industrial
• Others

Based on End-User, The market is segmented into Commercial, Utilities, Industrial, and, Others. The Utilities segment had the biggest market share in the Power-To-Gas Market. Growing measures to minimize reliance on fossil fuel-based power generation and promote hydrogen consumption are propelling the market forward.

The Industrial segment is predicted to develop significantly over the forecast period, owing to companies’ growing desire for cleaner energy sources in order to minimize their reliance on fossil fuel-based power generation. In order to be less carbon-intensive and more energy efficient in the future, enterprises are also investing in research and development for the manufacture of novel technology.

Power-To-Gas Market, By Geography

• North America
• Europe
• Asia Pacific
• Rest of the world

On the basis of Geography, The Global Power-To-Gas Market is classified into North America, Europe, Asia Pacific, and the Rest of the world. Europe is thought to be the largest market in the world. This is because power-to-gas technology is projected to play a key role in securing the region’s energy supply and balancing out fluctuating renewable energy generation. With the growing demand for hydrogen from chemical, industrial, and fuel cell vehicles, Germany has experienced an increase in demand for power-to-gas technologies.

Due to a succession of projects, together with European ambitions for renewable electricity integration, the technical validation of power-to-gas has been witnessed at the pilot size in Europe. To minimize carbon emissions, the European energy sector is undergoing a substantial transformation. The need for power-to-gas technology is predicted to rise as a result of political RES integration and carbon reduction targets. To design a sustainable future in the power-to-gas industry, the area has implemented some of the world’s toughest environmental regulations and ambitious climate policies.

Key Players

The “Global Power-To-Gas Market” study report will provide valuable insight with an emphasis on the global market. The major players in the market are leading players in the market are Hydrogenics, ITM Power, McPhy Energy, Siemens, MAN Energy Solutions, Nel Hydrogen, ThyssenKrupp, Electrochaea, Exytron, GreenHydrogen.

Our market analysis also entails a section solely dedicated to such major players wherein our analysts provide an insight into the financial statements of all the major players, along with its product benchmarking and SWOT analysis. The competitive landscape section also includes key development strategies, market share, and market ranking analysis of the above-mentioned players globally.

Key Developments

• Mitsubishi Power and HydrogenPro inked a purchase agreement for a large-scale electrolyzer system in February 2022. The HydrogenPro electrolyzer system will produce green hydrogen and oxygen through electrolysis using wind and solar energy.
• Oracle Power and Power China International Group Ltd agreed to collaborate on a non-exclusive basis to establish a green hydrogen project in Pakistan in October 2021. The project’s overall cost would be around USD 2 billion, and it will be built 120 kilometers from the seaport and 130 kilometers from Karachi.
• On January 19, 2021, the Hydrogen Council, a CEO-led initiative of 92 worldwide companies working to create the hydrogen economy, released a paper claiming that low carbon hydrogen supply at scale is both economically and environmentally possible.
• ThyssenKrupp AG is constructing a new facility in Varennes, Québec, Canada, with the goal of producing 11,100 tons of green hydrogen per year.
• On January 13, 2021, Linde PLC Company announced that it will build the world’s largest electrolyzer plant by the third quarter of 2022.

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Reasons to Purchase this Report

We dive deep into the market with both qualitative and quantitative analysis, breaking it down using all sorts of factors, from the economy to social trends. You'll get the market value in USD Billion for every segment and sub-segment. We'll point out which region and segment are expected to be the fastest growing and the market leaders. Our geographical analysis highlights product/service consumption in each region, explaining what's driving the market there. Check out the competitive landscape, including market rankings of the big players, plus details on recent product launches, partnerships, expansions, and acquisitions over the last five years. We give you extensive company profiles with overviews, insights, product comparisons, and SWOT analysis for the major players. We'll share our take on the current and future market outlook, covering recent happenings, growth opportunities, and the challenges in both emerging and developed regions. Plus, we'll give you an in-depth look at the market from all angles using Porter's five forces analysis, and insight into the market through the Value Chain. Finally, we'll present the market dynamics scenario and highlight upcoming growth opportunities. As a bonus, you get 6 months of analyst support after your purchase.

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