The global Power-to-Gas Market is estimated to be valued at US$ 33.96 Bn 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.
Power-to-gas technology allows the conversion of excess renewable electric power into a gas fuel, like hydrogen or methane, by means of electrolysis. This synthesized gas can then be used directly as a fuel or injected into the existing natural gas grid and transportation system. The power-to-gas technology provides an effective solution for surplus renewable energy from intermittent sources like wind and solar. It helps in utilizing this excess renewable energy that cannot be stored or fed back into the electric grid.
Market key trends:
One of the major trends in the power-to-gas market is rising funding and investments in projects focusing on power-to-gas infrastructure and technology. For instance, in 2020, European Union funded around €62 million in 13 power-to-gas projects under the EU’s Fuel Cells and Hydrogen Joint Undertaking program. Similarly, increasing energy transition away from fossil fuels towards renewable sources is also contributing to the market growth. Power-to-gas technology helps in integrating more renewable energy sources into the energy system by allowing excess renewable power to be stored and transported through existing natural gas infrastructure. It facilitates large-scale energy storage supporting increased renewable penetration and decarbonization of various sectors like industries, mobility, and buildings.
Threat of new entrants: The threat of new entrants is moderate due to capital-intensive nature and requirement of advanced technologies in power-to-gas market.
Bargaining power of buyers: The bargaining power of buyers is high due to presence of numerous players offering similar power-to-gas solutions in the market.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as there are few component providers and switching costs are low.
Threat of new substitutes: The threat of new substitutes is low as there are limited alternatives for power-to-gas market.
Competitive rivalry: The competitive rivalry in power-to-gas market is high due to presence of numerous international players.
The Global Power-to-gas Market Size is expected to witness high growth, exhibiting a CAGR of 12.2% over the forecast period, due to increasing demand for green energy storage solutions.
Regional analysis: Europe dominates the global power-to-gas market and is expected to continue its dominance over the forecast period. This is attributed to increasing support from governments to adopt renewable sources of energy along with presence of key players in the region. Asia Pacific is expected to grow at the fastest rate during the forecast period owing to rising investment towards renewable energy integration.
Key players: 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. Power-to-gas technology enables conversion of excess renewable electric power into hydrogen or methane via electrolysis and methanation.