ID: MRFR/E&P/7149-CR | October 2020 | Region: Global | 155 pages
Power to Gas Market is projected to be worth USD 68.95 Million by 2027, registering a CAGR of 12.82% during the forecast period (2021 - 2027), The market was valued at USD 29.95 Million in 2020.
The term power-to-gas refers to a technology that converts electrical energy into methane or hydrogen syngas (synthetic gas). The hydrogen turning out in the power-to-gas industry is then utilized as a chemical in industries or fuel. The power-to-gas systems reserve excessive energy from renewable resources such as wind and solar energy and utilize it for several operations. These systems use the stored in transportation, heat supply, and for industrial purposes. The work of the power-to-gas industry is a constructive step in combining renewable resources with sources of power generation.
The market is creating an upsurge in terms of growth, and soon it will expand the power-to-gas market size to another level. The rising demand for power-to-gas systems is the consequence of the elevation of power generation sources integrating with renewable resources. The electricity demand worldwide is growing at a faster rate due to population size increase, rapid urbanization, access to electricity, and infrastructure development. The usage of thermal energy, gas, and diesel for power generation leads to carbon emissions which is extremely hazardous. So, the stakeholders in the power-to-gas industry are focusing on sharing renewable resources with power generation for curtailing carbon footprints. The increased awareness for environmental issues has led to adopting methods that reduce pollution and lower the dependence on electricity generation by fossil fuels.
The concern for growing carbon emission and the procedures in curbing it acts as a booster for power-to-gas market growth. Many countries like Germany, India, UAE, and Saudi Arabia have aimed to increase renewable energy sources in order to increase the market size. The Saudi Arabian government in 2019 has set goals to produced 60 GW of electricity from renewable resources by 2030. In 2017, the UAE government released Energy Strategy 2050 to escalate renewable resources energy generation by 50 percent by 2050. In the same year, the government of Germany set the target to attain 98 GW of solar energy capacity by the end of 2030. In 29019, the government of India aimed to reach 100 GW of solar power capacity by 2022. All these advanced developments will result in fueling the potential of the power-to-gas market.
The usage of hydrogen for transportation facilities boosts the need for the power-to-gas industry. The fuel cell electric automobiles, reduced weight, greater efficiency compared to the internal combustion engine, zero-emission has led to heavy demand of the market for transportation purposes. Several countries and their government are taking a lot of initiatives to increase the application of hydrogen in the sector of transportation. Such advanced steps will lead to taking the market value to the optimum level in the next few years.
The report describes the in-depth insights of the market and provides an analysis of the impact of COVID 19 in the power-to-gas industry. It elaborates on the market dynamics and market value in the forecast period. It provides a clear picture of the market players and the market segmentation along with the influence of different regions on the market.
The coronavirus pandemic is impacting severely in terms of both health as well as economic growth. Many industries and working sectors remained closed, and the global economy slowed down like never before. During the lockdown, the energy consumption rate declined to a greater extent which subsequently affected the demand for global energy. The demand for fossil fuel-based power generation was strongly hit during the lockdown. However, the energy generation through renewables did not affect that much. Moreover, the power-to-gas market value was also least affected by the pandemic. The rising demand for advanced options for curtailing CO2 emissions and global adoption of renewable energy sharing with power mix contribute to the growth of the market.
During the lockdown, the requirement for electricity in residential areas was way higher than in commercial and industrial areas. The shape of demand shifted more towards renewables with a power supply mix, and the market growth constantly improved. However, the demand for coal-based, gas-based, and nuclear power-based energy consumption fell off quickly and, in turn, act as a helping hand for the growth of power-to-gas market value in the near future.
Segmentation: Global Power-to-Gas Market
The power-to-gas market is booming at a faster rate and will achieve its momentum in the forecast years. The increasing need for renewables with a power supply mix is the primary factor for driving the market. Global electricity generation is increasing rapidly and will continue to grow in the upcoming years due to urbanization, infrastructure development, population size increase, and improved access to electricity. The industrial sectors are enhancing their methods for clean energy generation and implementing steps for declining the rate of carbon emissions which escalates the adoption of power-to-gas systems.
The power-to-gas industry provides processes that help in the reduction of carbon footprint and over-dependence on fossil fuel-based power resources. The power-to-gas market outlook provides a clear insight into immense market growth due to the advanced development in the field of renewables with a power generation mix.
Many countries and their governments are taking huge steps or initiatives in support of the power-to-gas industry. Different countries have set targets for increasing the electricity generation capacity through renewable resources. The utilization of hydrogen in the transportation sector is also a major reason for driving the growth. The fuel cell automobiles provide power to the motors using hydrogen, and the increase in usage of hydrogen for the transport sector will be an efficient option. Reduced weight and zero-emission rates make the power-to-gas system highly beneficial. The numerous advantages will fuel the market potential to the next level in the forecast period.
The awareness for environmental concerns is rising day by day, and demands for a reduction in the rate of carbon emission. Non-renewable resources like coal and natural gas emit hazardous gases and waste. So, the dependence on renewable sources of energy production is increasing. It will take the economic growth rate of the power-to-gas market to higher limits. The government of different countries has set a target to increase the capacity of electricity generation in the near future, which will lead to an increase in the market value. The market trends are continuously developing, and the further growth of the transportation sector for utilizing hydrogen will behave as great opportunities for market growth in the upcoming years.
The global power-to-gas market was impacted during the outbreak of the COVID 19 pandemic. Overall consumption of electricity declined as residential areas mostly used it rather than the commercial or industrial areas. However, the power-to-gas market revenue was least affected due to the rising demand of utilizing renewable sources for electricity generation. The dependence on fossil fuel-based sources reduced to a greater extent which will increase the market size.
The market trends are rapidly developing and will soon acquire their estimated value for the forecast period. However, the challenges of the market can restrict its growth rate. The loss of energy in the working of processes is a major constraint for power-to-gas market growth.
Value Chain Analysis
The market revenue is constantly increasing at a rapid pace, and by the end of 2025, it would have surpassed its previous historical growth rate. The power-to-gas market analysis suggests that the automobile industry and initiatives for curtailing carbon emission will increase the market value in the forecast years.
The power-to-gas market is separated into different parts on the basis of capacity, end-user, technology, and region. On the basis of capacity, the market size is fragmented into power less than 100 kilo-watts, 100-1000 kilo-watt, and power more than 1000 kW. The end-user includes utilities, commercial and industrial sectors. The market segmentation on the basis of technology comprises methanation and electrolysis. The region segmentation of the market includes areas like North America, Europe, Asia-Pacific, South America, the Middle East, and Africa.
The power-to-gas market analysis is studied in different regions such as North America, Europe, Asia Pacific, Middle East, and Africa. Europe holds the most market share as there is a high demand for hydrogen generation and renewable energy sources. In Spain, 42 billion is invested for solar park development, and Germany targets to generate 20 percent hydrogen at least by the end of 2030. These projects will fuel the market growth in the forecast period.
Competitive Landscape of power-to-gas market
The key players in the market are:
|Market Size||2027: USD 68.95 Million|
|CAGR||12.82% CAGR (2020-2027)|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Technology, Methanation, Capacity, End User|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Thyssenkrupp AG, Siemens, Mcphy Energy S.A., Engie, Exytron Vertrieb GmbH, Man Energy Solutions, Hydrogenics, NEL ASA, ITM Power, Uniper SE, Hitachi Zosen Inova AG, Green Hydrogen Ineratec|
|Key Market Opportunities||Measures to promote hydrogen production technologies|
|Key Market Drivers||
Frequently Asked Questions (FAQ) :
The power-to-gas market is presumed to mark 12.82% CAGR.
The power-to-gas market is assessed to value at USD 68.95 Million by 2027.
The end-use segments are utilities, industrial, and commercial.
The segments profiled based on capacity are 100 KW – 1000 KW, less than 100 KW, and above 1000 KW.
The key participants are Engie (France), Siemens (Germany), McPhy Energy S. (France), NEL (Norway), Hydrogenics (Canada), ThyssenKrupp AG (Germany), ITM Power (UK), Hitachi Zosen Inova AG (Switzerland), GreenHydrogen (Denmark), Ineratec GmbH (Germany), MAN Energy Solutions (Germany), Uniper SE (Germany), Power-to-Gas Hungary Kft. (Hungary), Electrochaea GmbH (Germany), MicroPyros GmbH (Germany), and Avalon (Germany).