Power-to-Gas Market

Power-to-Gas Market is Expected to be Flourished by Rising need for Energy Storage Solutions


Power-to-gas technology involves the conversion of excess electrical power from renewable sources like solar, wind into hydrogen or methane gas that can be stored, transported through gas pipelines, and used for various end uses. The technology helps store surplus renewable energy in times of high generation that can be used later when the demand is high. Power-to-gas systems use electrolyzers to split water into hydrogen and oxygen using electricity. The hydrogen can be directly used or further processed through methanation to produce methane. Power-to-gas provides an efficient solution for large-scale energy storage needs and helps balance the fluctuations and intermittency associated with renewable power sources. It enables the conversion of excess renewable electricity into a transportable and storable energy carrier that can be easily integrated into existing gas infrastructure.

The global power-to-gas market is estimated to be valued at US$ 39.13 billion in 2024 and is expected to exhibit a CAGR of 15% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:
The rising need for large-scale energy storage solutions for renewable energy is a key factor driving the growth of the global power-to-gas market (as referred in the heading). Power-to-gas technologies help store excess renewable energy which can later be used as per demand. This enables greater flexibility and cost-effectiveness in renewable energy management by mitigating issues related to intermittency and fluctuations. Another key driver referred from the heading is the increasing focus on developing hydrogen infrastructure. Many countries are investing heavily in building hydrogen pipelines and establishing hydrogen fueling stations to promote the utilization of hydrogen as an alternative energy vector. This growing hydrogen economy and infrastructure are fueling the adoption of power-to-gas technologies.

Segment Analysis
The power-to-gas market share is segmented based on technology into electrolysis and methanation. Among these, the methanation segment dominates and holds around 65% share of the overall market. Methanation technology uses a catalytic process to convert surplus renewable electricity and CO2 from the air or industrial emissions into methane. It is widely adopted due to its ability to leverage the existing natural gas infrastructure for energy storage and transportation.

PEST Analysis
Political: Supportive policies and regulations around renewable energy and carbon emission reductions in major markets like Europe drive the adoption of power-to-gas technology. For instance, the EU has set a binding renewable energy target of 32% by 2030.
Economic: Cost of equipment required for power-to-gas plants is high, hindering wider adoption. However, declining prices of renewables and energy storage make power-to-gas more economically viable.
Social: Growing environmental concerns and demand for cleaner sources of energy are pushing the development and use of sustainable options like power-to-gas.
Technological: Advances in electrolysis and methanation processes have enhanced the efficiency and output of power-to-gas plants. R&D is ongoing to develop improved catalysts and lower the overall costs.

Key Takeaways
The global power-to-gas market is expected to witness high growth.

Europe dominates and holds around 60% share of the overall market. Strict environmental regulations and supportive policies around renewable energy in countries like Germany, France and the Netherlands have boosted regional adoption of power-to-gas solutions over the past decade.

Key players operating in the power-to-gas market are Codexis Inc., Abzena, Ltd., Enantis s.r.o, GenScript Biotech Corp., Waters Corporation, PerkinElmer, Inc., Bruker Corporation, Agilent Technologies, Bio-Rad Laboratories Inc., and Thermo Fisher Scientific Inc., among others. Key players like ThyssenKrupp and Linde engineer are focusing on developing improved electrolysis units and integrated power-to-gas plants.

1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraaged AI tools to mine information and compile it