Power-to-Gas Market Outlook and Opportunities in Grooming Regions with Forecast 2032

Pune, India, August 2020, MRFR Press Release/- Market Research Future has published a Cooked Research Report on the Global Power-to-Gas Market.

Market Highlights

Power-to-gas is a process of converting electrical energy into hydrogen or methane syngas. The hydrogen gas produced through this is either used as fuel or chemicals in industrial processes.

The increasing share of renewable energy in the power generation mix is likely to drive the market during the forecast period. The global electricity demand is projected to grow at a notable rate in the next few years due to rapid urbanization, increasing population size, infrastructure development, and enhanced access to electricity. Power generation sources such as thermal energy, gas, and diesel contribute primarily to carbon emissions.

Browse In-depth Detailed Research Report [Table of Content, List of Figures, List of Tables] of Power-to-Gas Market Trends

Stakeholders in the energy generation industry are actively seeking opportunities to reduce their carbon footprint and have been focusing on raising the share of renewable energy sources in the total power generation mix. Renewable energy sources, especially solar and wind, are used for electricity generation. Moreover, the increasing concerns regarding global warming and reducing dependence on fossil fuel-based power generation have boosted the adoption of solar and wind energy sources to meet the growing energy demand. According to the Energy Transition, Outlook 2018 by DNV GL (Norway), the share of solar PV energy sources is expected to contribute nearly 39% in the total energy generation source by 2050 in the Middle East & North Africa. Such developments are expected to increase the share of renewable energy in the power generation mix.

Moreover, the energy generated from renewable energy sources is used to generate hydrogen through the power-to-gas technologies. Hydrogen is used for applications in various sectors, including power generation, transportation, and refineries. Such factors are expected to increase the demand for power to gas technologies. Thus, the increasing share of renewable energy in the power generation mix is expected to drive the growth of the global power-to-gas market during the forecast period.

Moreover, measures to promote hydrogen production technologies are expected to boost the growth of the global power-to-gas market. Many government bodies and companies across the world are focusing on introducing several initiatives such as programs, policies, measures, and incentives for the development of hydrogen production technology. Hydrogen, as a fuel source, offers several advantages such as high efficiency, lightweight, and zero-emission. Hydrogen is used in various applications, including ammonia production, refineries, transportation, and power generation. The US Department of Energy (DOE) launched H2@Scale in 2018 to promote the production, transportation, and storage of hydrogen. Moreover, in January 2020, the department announced plans to provide up to USD 64 billion for the H2@Scale initiative to boost the research & development for the production and storage of hydrogen. The Indian government, as per the National Hydrogen Energy Road Map, planned to have one billion hydrogen-fueled vehicles in the country by 2020. Similarly, in the UK, in February 2020, the British government announced funding initiatives to boost the production of hydrogen in the country. The Canadian government, along with the Canadian Hydrogen and Fuel Cell Association (CHFCA), is focusing on the development of hydrogen technologies. Such initiatives encourage consumers to boost the development of hydrogen production. Therefore, the measures to promote hydrogen power technologies are expected to create an opportunity for the players operating in the global power-to-gas market during the forecast period.

The global market for power-to-gas is segmented based on technology, capacity, end user, and region. By technology, the global power-to-gas market is segmented as electrolysis and methanation. By capacity, the global power-to-gas market is segmented as less than 100 kW, 100 kW–1,000 kW, and above 1,000 kW. By end user, the global power-to-gas market is segmented into commercial, utilities, and industrial.

Drivers: Global Power-to-Gas Market

Market Research Analysis

In terms of region, the power-to-gas market is segmented into Europe, Asia-Pacific, North America, the Middle East & Africa, and South America. Europe is expected to dominate the power-to-gas market during the forecast period. The increasing demand for renewable energy sources and the developments in hydrogen generation to drive the growth of the power-to-gas market in the region.

The increasing share of renewable energy in the power generation mix is one of the major drivers boosting the global power-to-gas market. The global electricity demand is projected to grow at a notable rate in the next few years due to rapid urbanization, increasing population size, infrastructure development, and enhanced access to electricity. Power generation sources such as thermal energy, gas, and diesel contribute primarily to carbon emissions. Stakeholders in the energy generation industry are actively seeking opportunities to reduce their carbon footprint and have been focusing on raising the share of renewable energy sources in the total power generation mix. Renewable energy sources, especially solar and wind, are used for electricity generation. Moreover, the increasing concerns regarding global warming and reducing dependence on fossil fuel-based power generation have boosted the adoption of solar and wind energy sources to meet the growing energy demand. According to the Energy Transition Outlook 2018 by DNV GL (Norway), the share of solar PV energy sources is expected to contribute nearly 39% in the total energy generation source by 2050 in the Middle East & North Africa. Such developments are expected to increase the share of renewable energy in the power generation mix.  

Furthermore, the concerns regarding the growing carbon emissions and the efforts to curb them result in the need to increase the share of renewable energy in the power generation mix. Wind, solar, biomass, and other renewable energy sources witness growth in demand as they help reduce carbon emissions. Renewable energy sources generate electricity without any polluting emissions, while non-renewable energy sources, such as coal and natural gas, emit harmful gases and wastes. Therefore, the awareness regarding environmental safety and security has fueled the market growth for renewable energy globally. Furthermore, countries across the world, such as India, Germany, Saudi Arabia, and the UAE, have set targets to increase the number of renewable energy generation sources to increase the share of renewable energy in the power generation mix. For instance, in 2019, the Saudi Arabian government set a target to generate 60GW of energy from renewables by 2030. In the UAE, in 2017, the UAE government launched Energy Strategy 2050 to increase the share of renewable energy to 50% by 2050 in the country’s total energy mix. Similarly, in the same year, the German government set a target to achieve 98 GW of solar electricity generation capacity by 2030. Additionally, in 2019, the Indian government set a goal to reach 100 GW solar power installation capacity by 2022. Such developments are expected to increase the share of renewable energy capacity in the total power generation mix across the globe.

Scope of the Report

This study provides an overview of the global power-to-gas market, tracking four market segments across five geographic regions. The report studies key players, providing a four-year annual trend analysis that highlights market size, and share for North America, Europe, and Asia-Pacific. The report also provides a forecast, focusing on the market opportunities for the next five years for each region. The scope of the study segments the global power-to-gas market by technology, capacity, end-user, and region.

By Technology

• Electrolysis


• Methanation

By Capacity

• Less than 100 KW


• 100 KW–1,000 KW


• Above 1,000 KW

By End-User

• Commercial


• Utilities


• Industrial

By Regions

• North America 


• South America


• Asia-Pacific 


• Europe


• Middle East & Africa

Key Players

The key industry participants of the global market for power-to-gas include Mcphy Energy S.A., Siemens, Thyssenkrupp AG, Man Energy Solutions, Engie, Exytron Vertrieb GmbH, Hydrogenics, NEL ASA, Green Hydrogen, Ineratec, ITM Power, Uniper SE, and Hitachi Zosen Inova AG.