Global Unconventional Gas Market Overview
The Unconventional Gas Market Size was estimated at 1,386.72 (USD Billion) in 2022. The Unconventional Gas Industry is expected to grow from 1,444.13(USD Billion) in 2023 to 2,079.6 (USD Billion) by 2032. The Unconventional Gas Market CAGR (growth rate) is expected to be around 4.14% during the forecast period (2024 - 2032).
Key Unconventional Gas Market Trends Highlighted
The unconventional gas market is driven by the increasing demand for energy and the need to reduce carbon emissions. The market is expected to grow significantly in the coming years due to the increasing adoption of unconventional gas technologies, such as hydraulic fracturing and horizontal drilling.
Key market drivers include the rising demand for energy, the increasing awareness of the environmental benefits of unconventional gas, and government support for the development of unconventional gas resources. Opportunities for growth in the unconventional gas market include the development of new technologies, the expansion of exploration and production activities, and the increasing investment in infrastructure.
Recent trends in the unconventional gas market include the increasing use of hydraulic fracturing and horizontal drilling, the development of new technologies for the exploration and production of unconventional gas, and the increasing investment in infrastructure. The market is also expected to be driven by the growing demand for natural gas as a cleaner and more efficient fuel source.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Unconventional Gas Market Drivers
Rising Demand for Natural Gas
The unconventional gas market is primarily driven by the increasing demand for natural gas as a cleaner and more efficient energy source. Natural gas is increasingly being used for power generation, heating, and industrial applications due to its lower emissions and higher efficiency compared to traditional fossil fuels. The growing demand for natural gas is expected to continue in the coming years, driven by population growth, urbanization, and economic development, particularly in emerging markets. This rising demand for natural gas is a major factor propelling the growth of the unconventional gas market.
Technological Advancements in Unconventional Gas Extraction
The increased viability and cost-effectiveness of unconventional gas resources raise from the introduction and the development of advanced technologies in the sphere of gas extraction. To be more particular, the technologies of hydraulic fracturing and horizontal drilling were employed due to the intention to gain access to formerly unattainable shale and tight gas formations. The innovative methods of gas extraction were found rather beneficial and continued to develop with the time.Thus, the production cost has been reduced to encourage further development and the activities at unconventionally unconventional gas projects. As a result, the high rate of development of efficient technologies accelerates the growth of the unconventional gas market.
Government Policies and Regulations
Government policies and regulations play a crucial role in shaping the unconventional gas market. Governments worldwide are increasingly recognizing the importance of natural gas as a transition fuel in the shift towards a low-carbon economy. Supportive government policies, such as tax incentives, subsidies, and streamlined permitting processes, can encourage investment in unconventional gas exploration and production. Additionally, environmental regulations aimed at reducing greenhouse gas emissions can further drive the adoption of natural gas as a cleaner energy source, positively impacting the growth of the unconventional gas market.
Unconventional Gas Market Segment Insights:
Unconventional Gas Market Gas Type Insights
The unconventional gas market is expected to witness steady growth in the coming years, driven by increasing demand for natural gas and the depletion of conventional gas reserves. The market is segmented based on gas type, including shale gas, coalbed methane, tight gas, and biogas. Shale gas is the largest segment of the unconventional gas market, accounting for over 50% of production. The United States is the largest producer of shale gas, followed by China and Argentina. Shale gas production is expected to continue to grow in the coming years, as new technologies make it more economical to extract gas from shale formations.Coalbed methane is another significant segment of the unconventional gas market. Coalbed methane is produced from coal seams, and it is a major source of energy in countries such as China, the United States, and Australia. Coalbed methane production is expected to grow in the coming years, as new technologies make it more economical to extract gas from coal seams. Tight gas is a type of natural gas that is trapped in tight rock formations. Tight gas production is more challenging and expensive than conventional gas production, but it is becoming increasingly important as conventional gas reserves are depleted.Tight gas production is expected to grow in the coming years, as new technologies make it more economical to extract gas from tight formations. Biogas is a type of renewable energy that is produced from the decomposition of organic matter. Biogas can be used to generate electricity, heat, or transportation fuels. Growth in the market will be driven by increasing demand for natural gas, the depletion of conventional gas reserves, and the development of new technologies that make it more economical to extract gas from unconventional sources.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Unconventional Gas Market Extraction Method Insights
The Unconventional Gas Market is sub-divided based on the Extraction Method, Horizontal Drilling, Hydraulic Fracturing, In-Situ Combustion, and Enhanced Gas Recovery. Horizontal Drilling was the dominant segment of the Unconventional Gas Market by Extraction Method, in 2023, with more than 50% share of the market revenue. Horizontal Drilling is the most cost-effective and efficient method to extract gas from unconventional reservoirs. Hydraulic Fracturing is another widely used extraction method that involves pumping high-pressure fluid into the rock formation to create fractures and release gas. Enhanced Gas Recovery methods, such as CO2 injection and water flooding have the potential to increase the gas recovery rates from existing unconventional reservoirs.
Unconventional Gas Market Application Insights
The Unconventional Gas Market is segmented into various applications such as power generation, industrial, commercial, and residential. Among these, the power generation segment is anticipated to account for the largest market share during the forecast period. In 2023, the power generation segment held a dominant share of 47.8% of the Unconventional Gas Market, which is expected to reach USD 980.2 billion by 2032. The growth of this segment is driven by the increasing demand for electricity, particularly in developing economies. Additionally, government initiatives and policies aimed at promoting the use of unconventional gas for power generation are further driving the segment's growth.
Unconventional Gas Market Source Insights
The Unconventional Gas Market is segmented by source into onshore and offshore. The onshore segment is expected to hold a larger market share in 2023, accounting for approximately 62.4% of the market. The offshore segment is expected to grow at a faster CAGR of 4.5% during the forecast period, owing to the increasing exploration and production activities in deep-water areas. Onshore unconventional gas sources are primarily located in North America, particularly in the United States, where shale gas production has revolutionized the energy landscape.The Permian Basin in Texas and New Mexico is a major hub for onshore unconventional gas production, accounting for a significant portion of the supply. Offshore unconventional gas sources are in various regions, including the Gulf of Mexico, the North Sea, and the South China Sea. The development of offshore unconventional gas resources requires specialized technologies and expertise, as well as significant capital investment. However, the potential rewards are substantial, as offshore unconventional gas reserves can be vast and have the potential to contribute significantly to the energy supply.
Unconventional Gas Market Technology Insights
The unconventional gas market is segmented by technology into stimulated reservoirs, enhanced recovery techniques, and advanced drilling methods. Stimulated reservoirs accounted for the largest share of the market in 2023, and this trend is expected to continue in the future. The growth of this segment is attributed to the increasing adoption of hydraulic fracturing and horizontal drilling technologies, which enable the extraction of gas from unconventional reservoirs such as shale and tight gas formations. Enhanced recovery techniques are expected to witness significant growth in the coming years, owing to the increasing need to improve the recovery of gas from existing reservoirs.
Unconventional Gas Market Regional Insights
The regional segmentation of the Unconventional Gas Market offers valuable insights into the market's geographical distribution and growth dynamics. North America dominates the market with a significant share, primarily due to the presence of abundant unconventional gas reserves and well-established infrastructure. The region is expected to maintain its dominance throughout the forecast period, with the United States leading the market growth. Europe holds the second-largest market share, driven by increasing demand for natural gas and government initiatives to reduce carbon emissions.Key markets in Europe include the United Kingdom, Norway, and Russia. The APAC region is poised for significant growth, with China and India emerging as major consumers. The region's growing population and industrialization are driving the demand for unconventional gas. South America and MEA have relatively smaller market shares but offer potential growth opportunities due to the presence of untapped unconventional gas resources.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Unconventional Gas Market Key Players And Competitive Insights:
Unconventional Gas Market major players focus on reducing the cost of production and improving the efficiency of unconventional gas extraction. Leading players also focus on research and development to find new unconventional gas resources and develop new technologies for extracting gas from these resources. In addition, the Unconventional Gas Market industry is expanding significantly in the next couple of decades based on the increased demand for natural gas as well as the increased use of unconventional gas as a cleaner and greener alternative to traditional fossil fuels Unconventional Gas Market Competitive Landscape is expected to stay competitive. Major players are expected to compete in terms of technology, cost, and efficiency.
There are a few intrinsic leaders in the market one of which is ExxonMobil. ExxonMobil is one of the world’s largest oil and gas companies and has business operations in the United States, Canada, and Argentina in the unconventional gas market. The company has invested a considerable amount of money in developing technologies for extracting gas from unconventional resources. ExxonMobil is also a leading player in the use of hydraulic fracturing and horizontal drilling. The company is also a prominent player in the liquefied natural gas market and is expanding its export capacity of LNG to meet growing demand in Asia and Europe.
A direct competitor of ExxonMobil in the unconventional gas market is Chevron Another one of the world’s largest oil and gas companies, Chevron has business operations in the United States, Canada, and Australia in the unconventional gas market. The company has invested a considerable amount of money in developing technologies for extracting gas from unconventional resources. The company is also a leading player in the use of hydraulic fracturing and horizontal drilling. The company is also a major player in the LNG market and is expanding its export capacity of LNG to meet growing demand in Asia and Europe.
Key Companies in the Unconventional Gas Market Include:
Unconventional Gas Market Industry Developments
The unconventional gas market is projected to reach USD 2079.6 billion by 2032, exhibiting a CAGR of 4.14% during the forecast period (2024-2032). Rising concerns over energy security, coupled with increasing demand for natural gas as a cleaner alternative to coal and oil, are driving market growth. Technological advancements, including horizontal drilling and hydraulic fracturing, have unlocked vast reserves of unconventional gas, making it a cost-effective and reliable energy source.Recent developments in the market include the commissioning of new liquefied natural gas (LNG) terminals, such as the Golden Pass LNG terminal in the United States, to facilitate the export of unconventional gas to markets. Governments worldwide are implementing supportive policies, such as tax incentives and subsidies, to encourage the development and production of unconventional gas. The market is also witnessing collaborations between oil and gas companies and technology providers to optimize exploration and production processes.
Unconventional Gas Market Segmentation Insights
Unconventional Gas Market Gas Type Outlook
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Shale Gas
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Coalbed Methane
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Tight Gas
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Biogas
Unconventional Gas Market Extraction Method Outlook
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Horizontal Drilling
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Hydraulic Fracturing
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In-Situ Combustion
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Enhanced Gas Recovery
Unconventional Gas Market Application Outlook
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Power Generation
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Industrial
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Commercial
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Residential
Unconventional Gas Market Source Outlook
Unconventional Gas Market Technology Outlook
Unconventional Gas Market Regional Outlook
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North America
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Europe
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South America
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Asia Pacific
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Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
1386.72(USD Billion) |
| Market Size 2023 |
1444.13(USD Billion) |
| Market Size 2032 |
2079.6(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
4.14% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Hess Corporation, ConocoPhillips, CNPC, Chesapeake Energy Corporation, PetroChina, Devon Energy Corporation, ENI S.p.A., Exxon Mobil Corporation, EQT Corporation, Gazprom, Royal Dutch Shell, Marathon Petroleum Corporation, Chevron Corporation, TotalEnergies SE, PETRONAS, Equinor, BP Plc |
| Segments Covered |
Gas Type, Extraction Method, Application, Source, Technology, Regional |
| Key Market Opportunities |
Expanding natural gas infrastructure Development of unconventional gas reserves in China Growing demand for LNG Technological advancements in unconventional gas production Increasing environmental awareness |
| Key Market Dynamics |
Rising demand for energy technological advancements environmental concerns geopolitical risks government incentives |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The unconventional gas market is valued at approximately USD 1,444.13 billion in 2023 and is projected to reach USD 2,079.6 billion by 2032, exhibiting a CAGR of 4.14% during the forecast period.
North America currently dominates the unconventional gas market and is expected to maintain its dominance throughout the forecast period. The region's vast shale gas reserves, particularly in the United States, contribute significantly to its market share.
The major application segments of the unconventional gas market include power generation, industrial use, and residential and commercial heating. Power generation accounts for the largest share of unconventional gas consumption, followed by industrial applications.
Key players in the unconventional gas market include ExxonMobil, Chevron, Shell, BP, and TotalEnergies. These companies are actively involved in exploring, developing, and producing unconventional gas resources worldwide.
The increasing demand for energy, coupled with the need for cleaner energy sources, is driving the growth of the unconventional gas market. Technological advancements in extraction techniques, such as horizontal drilling and hydraulic fracturing, have also made unconventional gas production more economically viable.
Challenges faced by the unconventional gas market include environmental concerns related to water usage and methane emissions during extraction. Regulatory uncertainties and fluctuations in natural gas prices can also impact the market's growth.
Key trends shaping the unconventional gas market include the adoption of cleaner technologies to reduce environmental impact, the integration of renewable energy sources with unconventional gas, and the increasing demand for natural gas in developing economies.
The unconventional gas market is projected to grow at a CAGR of approximately 4.14% during the forecast period from 2023 to 2032, driven by increasing energy demand and technological advancements.
Countries with significant unconventional gas reserves, such as the United States, Canada, China, and Argentina, are expected to drive the growth of the unconventional gas market.
Growing investments in clean energy infrastructure, favorable government policies, and technological innovations present potential opportunities for the unconventional gas market.
