ID: MRFR/CnM/5878-HCR | February 2021 | Region: Global | 140 pages
Gas hydrates, also called as fire ice, are a crystalline solid ice-like form of water that consists of gas molecules held under high pressure and low temperature. Large quantities of gas hydrates are found in the world’s continental margins. It is obtained in the seafloor sediments down to a depth of 200 m-400 m beneath the seafloor. It is largely formed in the sedimentary rocks beneath the Arctic permafrost, deep-water sediments of seas and inland lakes, and beneath Antarctic ice. The gas primarily consists of methane in large quantities and other gases such as H2S and CO2 in very less proportion. Methane from gas hydrates is a future source natural gas.
Various countries like the US, Canada, Japan, India, and China are adopting advanced research programs and technologies for manufacturing methane hydrates. Escalating demand of oil and gas across the world and growing automotive industry is expected to drive the market growth. Increasing investments on exploration and extraction is further augmented to favor the market growth in the coming years. Depleting fossil fuels and various initiatives taken by U.S. Department of Energy and International Energy Agency for exploration of gas hydrates is further anticipated to positively influence the market growth during the review period. Moreover, methane is the most prominent constituent of gas hydrates which is considered as the cleanest burning fossil fuel is further expected to provide lucrative opportunities to the oil and gas companies. The major challenge for the market players is accessing the gas hydrates from the seabed. In addition to this, alternative conventional fuels such as shale gas which is relatively cheap and easily accessible is likely to challenge the market players. Technical challenges to extract methane from the solid hydrates without methane leakage in the nearby surrounding further hinders the market growth. Nevertheless, various research projects launched by major oil and gas players to discover methods for safe and efficient extraction of gas hydrates is likely to offer lucrative opportunities to the market players.
However, high initial costs and complex extraction process are likely to restrain the market growth. In addition to this, methane escape in the ocean tends to cause cold seeps on the ocean floor which creates shift of tectonic plates and further causes climate warming.
Global Gas Hydrates Market Share, by Application, 2017 (%)
Source: MRFR analysis
The global gas hydrates market has been segmented into five key regions, namely Asia-Pacific, North America, Europe, Latin America, and the Middle East & Africa.
The Asia-Pacific market is expected to witness the largest market share in 2017 and is expected to register a robust CAGR in the coming years owing to rising government spending on gas exploration, surging demand from automotive and transportation industries, and large consumer base. Japan is the leading country in the region owing to its high oil and gas imports, increasing R&D investments, and availability of gas hydrate source in the Sea of Japan. China and India market have also gas hydrates exploration in the South China sea and the Bay of Bengal respectively. South Korea, Taiwan Malaysia are other regional contributors. The North American market is expected to register the second-largest market share in 2017 and is likely to grow at a significant CAGR in the following years due to large reserves of gas hydrates and advanced drilling technology. The US is the prominent country in the region owing to growing R&D facilities and surging demand for oil and gas in the region. The European market held a substantial market share in 2017 and is anticipated to grow at a healthy CAGR during the forecast period owing to rapid depletion of fossil fuels and surging demand for greener methane fuel in industrial and automotive applications. Germany is the prominent country in the region owing to the advanced technological expertise and large consumer base. The Latin American market accounted for a moderate market share in 2017 and is expected to register a healthy CAGR in the following years owing to growing research initiatives. Mexico is the leading country in the region followed by Brazil, Argentina, and Chile. The Middle East & Africa market is expected to grow at a steady CAGR during the forecast period owing to increasing pressure on oil fields and shift towards a greener fuel. Saudi Arabia is the major contributor in the region.
The global gas hydrates market has been segmented on the basis of type, origin, method of extraction, application, and region.
Based on type, the global gas hydrates market has been bifurcated into onshore gas hydrates and offshore/ marine gas hydrates.
By origin, the global gas hydrates market has been categorized into seabed, permafrost, and others.
Based on method of extraction, the global gas hydrates market has been divided into water circulation, depressurization, carbon dioxide injection, and inhibitor injection process.
On the basis of application, the global gas hydrates market has been classified into transportation fuel, commercial, industrial, and others.
The global gas hydrates market has been studied across five major regions, namely– Asia-Pacific, North America, Europe, Latin America, and the Middle East & Africa.
The key players operating in the global gas hydrates market are Japan Drilling Co., Ltd (Japan), Japan Petroleum Exploration Co., Ltd. (Japan), Chevron Corporation (US), Schlumberger Limited (US), ConocoPhillips Company (US); Japan Oil, Gas and Metals National Corporation (Japan), and China Petrochemical Corporation (China), Oil and Natural Gas Corporation Ltd. (India), PetroChina Company Limited (China), Royal Dutch Shell plc (The Netherlands), Total (France), and Fugro (The Netherlands).
Frequently Asked Questions (FAQ) :
It finds extensive applications in industrial, transportation fuel, and commercial sectors.
Growing automotive industry and increasing investments in extraction and exploration is driving market growth.
Complex extraction process and high cost may restrict market growth.
The APAC region will spearhead the gas hydrates market.
Different strategies adopted by industry players to maintain dominance in the gas hydrates market include acquisitions, mergers, joint ventures, and product development.