Methane Global Market Opportunities and Strategies to 2033

This report describes and explains the methane market and covers 2018-2023, termed the historic period, and 2023-2028, 2033F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.

The global methane market reached a value of nearly $ 106.64 billion in 2023, having grown at a compound annual growth rate (CAGR) of 6.9% since 2018. The market is expected to grow from $106.64 billion in 2023 to $167.09 billion in 2028 at a rate of 9.4%. The market is then expected to grow at a CAGR of 10.4% from 2028 and reach $274.16 billion in 2033.

Growth in the historic period resulted from the increase in industrialization and increasing demand for the chemical industry. Factors that negatively affected growth in the historic period were long-term infrastructure challenges. Going forward, the increasing energy demand, rising urbanization and increasing demand for natural gas in various applications will drive the market. Factors that could hinder the growth of the methane market in the future include a shift towards hydrogen economy.

The methane market is segmented by source into natural and synthetic. The natural market was the largest segment of the methane market segmented by source, accounting for 90.8% or $ 96.81 billion of the total in 2023. Going forward, the synthetic segment is expected to be the fastest growing segment in the methane market segmented by source, at a CAGR of 11.1% during 2023-2028.

The methane market is segmented by production method into fermentation and gasification. The gasification market was the largest segment of the methane market segmented by production method, accounting for 80.1% or $85.45 billion of the total in 2023. Going forward, the gasification segment is expected to be the fastest growing segment in the methane market segmented by production method, at a CAGR of 9.6% during 2023-2028.

The methane market is segmented by application into fuel, natural gas, chemical feedstock, liquified natural gas, liquid-methane rocket fuel, power generation, residential and other applications. The power generation market was the largest segment of the methane market segmented by application, accounting for 23.6% or $25.13 billion of the total in 2023. Going forward, the liquified natural gas segment is expected to be the fastest growing segment in the methane market segmented by application, at a CAGR of 11.7% during 2023-2028.

The methane market is segmented by end users into automotive, aerospace and defense, electrical, chemical and other end users. The automotive market was the largest segment of the methane market segmented by end users, accounting for 35.9% or $38.25 billion of the total in 2023. Going forward, the electrical segment is expected to be the fastest growing segment in the methane market segmented by end users, at a CAGR of 11.5% during 2023-2028.

North America was the largest region in the methane market, accounting for 37% or $39.44 billion of the total in 2023. It was followed by Asia Pacific, Western Europe and then the other regions. Going forward, the fastest-growing regions in the methane market will be Asia Pacific and Eastern Europe where growth will be at CAGRs of 12.3% and 11.3% respectively. These will be followed by South America and Western Europe where the markets are expected to grow at CAGRs of 10.2% and 9.7% respectively.



The global methane market is highly fragmented, with a large number of small players operating in the market. The top ten competitors in the market made up 4.95% of the total market in 2022. Air Liquide S.A. was the largest competitor with a 1.28% share of the market, followed by Engie SA with 1.05%, Linde Plc with 0.88%, Osaka Gas Co Ltd with 0.58%, Gasum Ltd with 0.46%, VERBIO Vereinigte BioEnergie AG with 0.33%, EnviTec Biogas AG with 0.15%, Nippon Sanso Holdings Corporation, with 0.13%, Gasrec Limited with 0.05% and Sumitomo Seika Chemicals Co.Ltd with 0.04%.

The top opportunities in the methane market segmented by source will arise in the natural segment, which will gain $53.62 billion of global annual sales by 2028. The top opportunities in the methane market segmented by production method will arise in the gasification segment, which will gain $49.52 billion of global annual sales by 2028. The top opportunities in the methane market segmented by application will arise in the power generation segment, which will gain $16.35 billion of global annual sales by 2028. The top opportunities in the methane market segmented by end users will arise in the automotive segment, which will gain $20.36 billion of global annual sales by 2028. The methane market size will gain the most in USA at $13.87 billion.

Market-trend-based strategies for the methane market include use of digital technologies to reduce methane emissions, collaborative initiatives to combat methane emissions, innovation in compact methanation systems for efficient methane production and growing focus on carbon capture and storage (CCS) technologies.

Player-adopted strategies in the methane market include focus on strategic partnerships and collaborations to explore new business opportunities, new long-term supply agreements and enhancing business operations through securing new contract.

The Business Research company recommends the methane company to focus on advanced methane monitoring technologies, focus on compact methanation systems for sustainable growth, focus on carbon capture and storage (CCS) innovations for market leadership, focus on accelerating growth in the synthetic methane segment, focus on the flourishing fermentation segment for optimal growth, expand in emerging markets, continue to focus on developed markets, focus on expanding distribution channels for market penetration, provide competitively priced offerings, focus on strategic pricing for market competitiveness, participate in trade shows and events, continue to use B2B promotions, leverage digital platforms for targeted messaging, focus on power generation and liquefied natural gas for market domination and focus on automotive and electrical end-use sectors for unprecedented growth.