The global Power-to-Gas Market is estimated to be valued at US$ 33.96 Bn or billion in 2023 and is expected to exhibit a CAGR of 12.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Power-to-gas technology utilizes renewable electricity especially from fluctuating resources like solar and wind to produce hydrogen or renewable natural gas through electrolysis. The gas can be used for energy storage, feeding natural gas grid and transportation.
Market key trends:
One of the key trends in the power-to-gas market is increasing investments in hydrogen infrastructure. Hydrogen has huge potential in decarbonizing industries which are hard to electrify like steel, chemical and long haul transportation. Many countries in Europe and Asia are coming up with hydrogen strategies and roadmaps to build the necessary hydrogen ecosystem including production facilities, distribution networks and refueling stations. This will drive the demand for power-to-gas electrolyzers in the coming years.
SWOT Analysis
Strength: Power-to-Gas technology enables generation and storage of renewable gas by converting renewable electricity into hydrogen or methane that can be transported and utilized like fossil gas in the existing natural gas infrastructure and appliances. This provides flexibility and storage capabilities to distributed energy resources.
Weakness: Power-to-Gas technology is still at an early development stage and the overall conversion process from electricity to gas involves several steps making it an expensive process. The efficiency of the overall process ranging from electrolysis to methanation is relatively low.
Opportunity: Increasing share of renewable electricity from solar PV and wind farms provides opportunities to utilize excess electricity generation through Power-to-Gas routes to balance the energy systems. Government support mechanisms like incentives and regulations are being introduced to promote renewable and low carbon gas.
Threats: Established fossil gas infrastructure and subsidies provide competitive advantage to pipeline natural gas over renewable gas. Technology advancements in battery storage and other electricity storage technologies can emerge as alternatives to Power-to-Gas for large scale long term storage of renewable energy.
Key Takeaways
The Global Power-to-gas Market Size is expected to witness high growth, exhibiting CAGR of 12.2% over the forecast period, due to increasing share of renewable electricity from intermittent resources like solar and wind farms. Power-to-Gas provides opportunity to utilize excess renewable electricity generation for energy storage and flexible usage of energy.
Regional analysis: Europe dominates currently with over 70% share primarily led by countries like Germany who have introduced supportive policies to promote Power-to-Gas routes. Asia Pacific is projected to be the fastest growing market for Power-to-Gas driven by increasing renewable capacity additions in China and government initiatives to develop hydrogen economy in countries like South Korea and Japan.
Key players operating in the Power-to-Gas market are Aquahydrex, Inc., MAN Energy Solutions, Electrochaea GmbH, ITM Power PLC, EXYTRON GmbH, Hydrogenics Corporation, Hitachi Zosen Corporation. The key players are involved in various activities from project demonstration, technology development to strategic partnerships to accelerate the Power-to-Gas market commercialization and deployment.
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