The Power-to-Gas Market is projected to grow from USD 37.10 Mn in 2024 to USD 81.01 Mn by 2032, at a CAGR of 10.25% during the forecast period from 2024 to 2032. Power-to-Gas Market Size was valued at USD 33.7 Mn in 2023. The term Power-to-Gas refers to a technology that converts electrical energy into methane or hydrogen 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 energy for transportation, heat supply, and industrial purposes.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The work of the power gas industry is a constructive step in combining renewable resources with sources of power generation. The rising demand for power-to-gas systems is the consequence of the elevation of power generation sources integrated with renewable resources. The demand for electricity worldwide is growing at a faster rate due to population size increases, rapid urbanization, access to electricity, and infrastructure development.
The use of thermal energy, gas, and diesel for power generation leads to carbon emissions, which are extremely hazardous. So, the stakeholders in the power-to-gas industry are focusing on sharing renewable resources with power generation to curtail carbon footprints. The increased awareness of environmental issues has led to adopting methods that reduce pollution and lower the dependence on electricity generation by fossil fuels.
Power-to-hydrogen encompasses many technologies that employ electricity to carry out electrolysis, which involves the separation of water into hydrogen and oxygen. Hydrogen produced through the usage of renewable energy sources is referred to as green hydrogen. This type of hydrogen can be employed to store, transport, and utilize renewable energy.
This technology reduces the amount of renewable energy that is wasted from sources like wind and solar power. It achieves this by using electrolyzers to store energy for long periods of time and balance the electricity grid. Additionally, it utilizes the existing gas transmission infrastructure to transmit energy in the form of green hydrogen over great distances.
In addition, around 350 projects are currently being developed with a combined capacity of 54 GW, and these projects are projected to be operational by 2030. The electrolyzers produce green hydrogen, which can be immediately utilized as a fuel for transportation, substituting oil in light vehicles, trains, and maritime uses. Additionally, it can serve as a raw material for industrial purposes.
Green hydrogen fuel cells can serve as a means of storing energy as well. The system provides superior benefits compared to existing energy storage methods, including increased power storage capacity and extended discharge durations.
The Power-to-Gas Market is primarily segmented based on technology, capacity and end-users.
Based on technology, the Power-to-Gas Market is further divided into electrolysis and methanation. The electrolysis segment owes the major market share to its highly efficient methods of creating hydrogen and its capacity to effectively utilize excess renewable energy for hydrogen production. The total efficiency of the electrolysis process is predominantly influenced by the choice of materials, as well as the specific temperature and pressure conditions at which it is conducted.
There exist three distinct methods for electrolyzing water: alkaline water electrolysis, PEM technology, and SOEC. Alkaline water electrolysis is the current leading and widely adopted technology for the process of water electrolysis. This method is highly established and reliable, utilizing an aqueous alkaline solution as the electrolyte. It is an advanced technology that has reached a high level of development and is available at a relatively affordable price.
Based on capacity, the power-to-gas market is further sub-segmented into less than 100 kW, 100 to 1000 kW and more than 1000 kW. Out of these, the more than 1000 kW segmentation owes the major market share to the significant initiatives that prioritize the production of hydrogen on a wide scale through power-to-gas technology in industrial sectors. Furthermore, there is significant investment and advancement of power-to-gas technology in this particular range of capacity. These power-to-gas facilities predominantly utilize Proton Exchange Membrane (PEM) technology for the process of electrolysis.
Based on end-user, the said market is further divided into industrial, commercial and utilities segmentation. Out of these, utilities segmentation dominates the global market share. The utilities segment is projected to expand due to the increasing demand for hydrogen usage and its integration into the gas network to decrease natural gas consumption. Moreover, it is necessary to efficiently incorporate surplus renewable energy electricity into green hydrogen for diverse applications.
Industry experts assert that the adoption of power-to-gas technology can assist utilities in incorporating clean hydrogen into natural gas, leading to a substantial reduction in greenhouse gas emissions. This reduction is contingent upon the production of hydrogen from low-carbon energy sources such as biomass, solar, wind, nuclear, or fossil resources with Carbon Capture and Storage (CCS).
The Power-to-Gas Market is primarily studied across four major regions, namely North America, Europe, Asia-Pacific and the Rest of the World. Out of which, the European region dominates the global market share owing to the largest number of power-to-methane plants. Moreover, the rising demand for hydrogen generation and renewable energy sources would drive the expansion of the power-to-gas market in the region over the projected timeframe.
Europe has shown a growing inclination toward the advancement of P2G (Power-to-Gas) initiatives that adopt a cross-sectoral strategy, incorporating renewable gasses into businesses beyond only electricity generation. The region is experiencing progress in electrolysis technologies, which are facilitating the production of environmentally friendly hydrogen for industrial and transportation applications.
Apart from Europe, a significant trend in the North American region is the growing emphasis on power-to-gas (P2G) as a solution for balancing the electrical grid. This movement focuses on using P2G technology to improve the stability of integrating renewable energy sources. Furthermore, there is an increasing fascination with P2G applications for the production of hydrogen, which aligns with the region's goals of achieving a more environmentally friendly energy combination and sustainable mobility solutions.
A notable development in the Asia-Pacific region is the swift growth of Power to Gas initiatives, especially in nations such as Japan and South Korea that are giving priority to power-to-gas technology to effectively manage the power grid, store renewable energy, and produce environmentally friendly hydrogen to meet increasing energy needs and promote sustainable development objectives.
Major key competitors in the said market segment employ crucial strategies, including partnerships, joint ventures, mergers and acquisitions, product launches and business expansion deals to expand their business operations across the globe and have a strong command over a certain region in the market.
February 2022 -
In February 2022, Mitsubishi Power signed a deal with HydrogenPro to purchase a large-scale electrolyzer system to produce green hydrogen and oxygen through the electrolysis process.
By June 2022, the United States Department of Energy had revealed a USD 504.4 million investment for Advanced Clean Energy Storage, which is a clean hydrogen and energy storage facility that will be capable of enabling long-term energy storage. Situated in Delta, Utah, this plant will combine two salt caverns with 220 MW alkaline electrolysis systems to store clean hydrogen. At their launch, they would be aimed at capturing excess renewable energy, storing it as hydrogen and utilizing it for Intermountain Power Agency’s (IPA) Renewed Project – a gas turbine combined cycle power plant that is designed to run on 100 clean hydrogen by 2045 gradually.
Mitsubishi Power signed a contract of purchase from HydrogenPro for the system of big-scale electrolyzers in February 2022. The HydrogenPro electrolyzer system uses wind and solar power to produce green hydrogen as well as oxygen through electrolysis.
In January 2022, ThyssenKrupp Uhde Chlorine Engineers entered into a supply agreement with Shell about the biggest project Hydrogen Holland I situated at Rotterdam port in Netherlands. In line with these terms, ThyssenKrupp Uhde will design, procure and construct a 200 MW electrolyzing plant based on its large-scale modular alkaline water electrolyzing units of 20 MW each. It is expected by the end of next year after Shell’s FID announcement for building this project marked commencement of construction works involving electrolysers while its first production may begin around year twenty four.
On May 8th, 2019 Siemens announced the spin-off of its power division and merger with Siemens Gamesa Renewable Energy (SGRE), an independently listed wind turbine manufacturer creating a new global multi-tech energy giant. This newly formed company plans to have approximately eighty thousand employees who would generate thirty-three billion six hundred million dollars annually.
| Report Attribute/Metric | Details |
| Market Size 2023 | USD 33.7 Mn |
| Market Size 2024 | USD 37.10 Mn |
| Market Size 2032 | USD 81.01 Mn |
| CAGR | 10.25% CAGR (2024-2032) |
| Base Year | 2023 |
| Forecast Period | 2024 to 2032 |
| Historical Data | 2019 & 2021 |
| 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 | Increasing share of renewable energy in the power generation mix Increasing demand for hydrogen in transportation |
Power Gas Market Highlights:
Frequently Asked Questions (FAQ) :
The power-to-gas market is presumed to mark 10.25% CAGR.
The power-to-gas market is assessed to value at USD 81.01 Mn by 2032.
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).
The segments profiled based on capacity are 100 KW – 1000 KW, less than 100 KW, and above 1000 KW.
The end-use segments are utilities, industrial, and commercial.
Team Lead - Research Anshula mandaokar holds an academic degree in chemical engineering and has been contributing to the field for more than 5 years. she has expertise in market research and business consulting and serves as a team lead for a reputed market research firm under the chemicals and materials domain spectrum. she has worked on multiple projects, generating explicit results in a quick turnaround time. her understanding of data interpretation justifies her role as a leader.
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