Synthetic Natural Gas Market Research Report By Feedstock (Natural gas, Coal, Biomass, Industrial waste gases), By Technology (Steam reforming, autothermal reforming, Tri-reforming, Plasma reforming), By End-Use Application (Power Generation, Heating, Industrial, Transportation), By Production Capacity (Small-scale (less than 10,000 tons per year), Medium-scale (10,000 to 100,000 tons per year), Large-scale (over 100,000 tons per year)), By Carbon Capture and Storage (CCS) (Pre-combustion CCS, Post-combustion CCS, Oxyfuel combustion) and By

Global Synthetic Natural Gas Market Overview:

As per MRFR analysis, the Synthetic Natural Gas Market Size was estimated at 16.61 (USD Billion) in 2022. The Synthetic Natural Gas Market Industry is expected to grow from 20.37(USD Billion) in 2023 to 127.9 (USD Billion) by 2032. The Synthetic Natural Gas Market CAGR (growth rate) is expected to be around 22.65% during the forecast period (2024 - 2032).

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Key Synthetic Natural Gas Market Trends Highlighted

The Synthetic Natural Gas (SNG) market is poised for significant growth, driven by increasing demand for cleaner energy sources, stringent environmental regulations, and the pursuit of energy security. Key market drivers include the reduction of carbon emissions, the depletion of fossil fuel reserves, and the development of advanced SNG production technologies.

Opportunities for growth lie in the exploration of innovative technologies that enhance SNG production efficiency and reduce production costs. There is also potential for capturing market share in emerging economies with growing energy demand.Recent trends in the SNG market include the development of cost-effective production processes, partnerships between energy companies and technology providers, and government incentives that promote SNG adoption. These trends are shaping the industry's landscape and creating opportunities for market participants.

Synthetic Natural Gas Market Drivers

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  Rising Demand for Cleaner Energy Sources

  
  

The driving force of the Synthetic Natural Gas Market Industry is the increasing global demand for clean energy. Synthetic natural gas is efficient, renewable and has a lower greenhouse gas production than conventional fossil fuels. Over the years, the maximum cleaner energy sources call for SNG has outmatched the novice energy. Nations and business corporations are investing vast resources in SNG production and its industry. The trend formulates a favorable market for the industry.

Technological Advancements in SNG Production

Another driver of the Synthetic Natural Gas Market Industry is recent advancements in SNG production technology. Extensive R D research is being devoted to making the production of the gas more efficient and competitive in terms of cost. Emerging technologies such as catalytic processes and plasma-based conversion are being developed to reduce the energy usage and operational costs of SNG production.

Government Policies and Incentives

Government policies and incentives have a major role in driving the growth of the Synthetic Natural Gas Market Industry. Many countries have already put in measures to promote the use of cleaner energy we may want to consider this as the practice. Among these policies are tax incentives, subsidies, and renewable portfolio standards. Governments are also investing in R to produce viable SNG technologies. These measures have created a conducive market environment for the industry, therefore spurring the production of SNG.

Synthetic Natural Gas Market Segment Insights:

Synthetic Natural Gas Market Feedstock Insights

Feedstock: The feedstock choice for synthetic natural gas development is paramount in terms of economic viability and environmental extremity. Thus, the use of natural gas remains predominant across the globe, owing to its abundance and cost competition. In 2023, the SNG market from natural gas was estimated at USD 20.37 billion. However, coal, the traditional fossil, still could be used due to its sufficient and relatively evenly distributed. 

However, the significant carbon footprint of coal use and its substantial negative impact on the environment hinder the further extension of that commodity. However, modern coal gasification became rather developed, improving the state and ecological conditions in its use and productivity. Finally, biomass, which incorporates all types of animal and vegetative waste, accounts to be novel and more promising. Sustainable biomass constitutes a valuable feedstock and has become a crucial tool of the circular economy and other attempts to redevelop the industry in that field. 

However, the appearance of greenhouse gases during the technology use should be averted. Many industrial and other types of waste gases could also be used, e.g., carbon dioxide and hydrogen.Nowadays, the recycled CO2 has become highly valued within the industrial circular economy efforts. Simultaneously, H2 could be received from the industrial efforts or using electrolysis. 

By heating the mix of H2 and CO2 to the temperature of 400-5000C, synthetic methane could be attained, according to the Sabatier reaction. However, the choice of the feedstock is predetermined primarily by its use circumstances and regional characteristics, while other factors become increasingly more important at the advanced stages of the technology, e.g., cost and legislative requirements.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Synthetic Natural Gas Market Technology Insights

Steam reforming is the leading technology in terms of the Synthetic Natural Gas Market revenue. Due to the high level of efficiency and cost-effectiveness, steam reforming will occupy over 60% of the market share in 2023. Autothermal reforming is another important technology that is going to be in high demand, with a possible increase over the forecast period. 

The demand for autothermal reforming is going to increase since it is associated with lower energy consumption and, as a result, lower emissions. Two more technologies, tri-reforming and plasma reforming, can emerge and, with time, gain significant popularity in the industry, making the process of synthetic natural gas production even more efficient and harmless to the environment.

Synthetic Natural Gas Market End-Use Application Insights

The Synthetic Natural Gas Market is segmented into various end-use applications, including power generation, heating, industrial, and transportation. Among these segments, power generation is projected to account for the largest revenue share in 2023, owing to the increasing demand for electricity and the need for cleaner and more efficient energy sources.

The industrial segment is also expected to witness significant growth, driven by the rising demand for synthetic natural gas as a feedstock in various industrial processes. Heating and transportation applications are also expected to contribute to the overall market growth, as synthetic natural gas offers advantages such as reduced emissions and improved fuel efficiency.

Synthetic Natural Gas Market Production Capacity Insights

The Synthetic Natural Gas Market is segmented by production capacity into small-scale (less than 10,000 tons per year), medium-scale (10,000 to 100,000 tons per year), and large-scale (over 100,000 tons per year). In 2023, the small-scale segment accounted for the largest share of the market, and this trend is expected to continue during the forecast period. This is primarily due to the increasing adoption of small-scale SNG production facilities by industrial and commercial end-users. 

These facilities are typically used to generate SNG from biomass, biogas, or other renewable feedstocks and offer a cost-effective and environmentally friendly alternative to fossil fuels. The medium-scale segment is also expected to witness significant growth during the forecast period, driven by the increasing demand for SNG from power generation and transportation applications. Large-scale SNG production facilities are typically used to produce SNG from natural gas or coal and are expected to account for a smaller share of the market during the forecast period.

Synthetic Natural Gas Market Carbon Capture and Storage (CCS) Insights

Carbon Capture and Storage (CCS) plays a crucial role in the Synthetic Natural Gas (SNG) market. CCS technologies capture carbon dioxide (CO2) emissions from SNG production processes, preventing their release into the atmosphere. This aligns with the growing emphasis on decarbonization and sustainable energy practices. Pre-combustion CCS involves capturing CO2 before combustion, typically through a gasification process. Post-combustion CCS captures CO2 from flue gases after combustion. Oxyfuel combustion utilizes pure oxygen instead of air for combustion, resulting in a concentrated CO2 stream that can be easily captured.

The Synthetic Natural Gas Market revenue for CCS is projected to reach USD 12.5 billion by 2024, exhibiting a significant growth potential. The increasing adoption of SNG as a low-carbon fuel source and the rising demand for carbon capture solutions drive this growth. Market players are actively investing in CCS technologies to meet regulatory requirements and enhance their sustainability credentials.

Synthetic Natural Gas Market Regional Insights

The Synthetic Natural Gas Market is segmented into North America, Europe, APAC, South America, and MEA, and the market in each of these regions is expected to witness significant growth in the coming years. The market in North America is expected to account for the largest share of the global market in 2023 and is projected to grow at a CAGR of 20.37% during the forecast period. The market in Europe is expected to account for the second-largest share of the global market in 2023 and is projected to grow at a CAGR of 18.97% during the forecast period.

The market in APAC is expected to account for the third-largest share of the global market in 2023 and is projected to grow at a CAGR of 22.65% during the forecast period. The market in South America is expected to account for the fourth-largest share of the global market in 2023 and is projected to grow at a CAGR of 19.23% during the forecast period. The market in MEA is expected to account for the smallest share of the global market in 2023 and is projected to grow at a CAGR of 17.56% during the forecast period.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Synthetic Natural Gas Market Key Players And Competitive Insights:

The primary objective of major players in the Synthetic Natural Gas Market industry is the development of innovative technologies aimed at reducing the cost of production and enhancing the efficiency of synthetic natural gas. In addition to this, leading players in the Synthetic Natural Gas Market will increase their investment in research and development to develop novel applications for synthetic natural gas, such as transportation and power generation. The Synthetic Natural Gas Market will experience substantial growth in the next years, resulting from the growing demand for cleaner and more sustainable sources of energy.

The first strong contender in the Synthetic Natural Gas Market is a US-based global energy corporation that is an important player in the process of development and commercialization of synthetic natural gas. It possesses a solid record of operations in the natural gas industry, and it appears to be one of the first companies to develop the corresponding gas. 

The corporation has an adequate number of capital resources, and it has established several strategic alliances with other companies that operate in the energy market, providing it with a considerable competitive advantage in the Synthetic Natural Gas Market. The second strong player that operates in the Synthetic Natural Gas Market is a multinational energy corporation from the US that is focused on the development and production of energy from renewable sources. 

It possesses a well-established position in the wind and solar energy markets, and it is now expanding its operations to the synthetic natural gas industry. The competitor in question is also in the process of developing a series of research and development projects aimed at the design of novel technologies for synthetic natural gas production.

Key Companies in the Synthetic Natural Gas Market Include:

• Phillips 66


• Haldor Topsoe


• ExxonMobil


• Chevron


• Baker Hughes


• Saipem


• Chart Industries


• Shell


• Linde Gas


• Siemens Energy


• TechnipFMC


• Air Liquide


• BP


• McDermott International

Synthetic Natural Gas Market Industry Developments

The global synthetic natural gas (SNG) market is projected to reach USD 127.9 billion by 2032, exhibiting a CAGR of 22.65% from 2024 to 2032. This growth is attributed to the increasing demand for clean and sustainable energy sources, coupled with government initiatives and regulations promoting the adoption of SNG. Technological advancements in SNG production, such as the development of more efficient and cost-effective processes, are also driving market expansion. 

Key players in the SNG market include Shell, BP, ExxonMobil, and Chevron. Recent developments include Shell's announcement of a new SNG plant in Qatar and BP's partnership with Equinor to develop SNG projects in the UK. These initiatives underscore the growing momentum in the SNG market as the world transitions towards a cleaner energy future.

Synthetic Natural Gas Market Segmentation Insights

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  Synthetic Natural Gas Market Feedstock Outlook

  
  
  
  
  • Natural gas
  
  
  • Coal
  
  
  • Biomass
  
  
  • Industrial waste gases
  
  
  
  


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  Synthetic Natural Gas Market Technology Outlook

  
  
  
  
  • Steam reforming
  
  
  • Autothermal reforming
  
  
  • Tri-reforming
  
  
  • Plasma reforming
  
  
  
  


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  Synthetic Natural Gas Market End-Use Application Outlook

  
  
  
  
  • Power generation
  
  
  • Heating
  
  
  • Industrial
  
  
  • Transportation
  
  
  
  


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  Synthetic Natural Gas Market Production Capacity Outlook

  
  
  
  
  • Small-scale (less than 10,000 tons per year)
  
  
  • Medium-scale (10,000 to 100,000 tons per year)
  
  
  • Large-scale (over 100,000 tons per year)
  
  
  
  


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  Synthetic Natural Gas Market Carbon Capture and Storage (CCS) Outlook

  
  
  
  
  • Pre-combustion CCS
  
  
  • Post-combustion CCS
  
  
  • Oxyfuel combustion
  
  
  
  


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  Synthetic Natural Gas Market Regional Outlook

  
  
  
  
  • North America
  
  
  • Europe
  
  
  • South America
  
  
  • Asia Pacific
  
  
  • Middle East and Africa