Natural Gas Distribution Global Market Report 2024

The natural gas distribution market size has grown strongly in recent years. It will grow from $991.12 billion in 2023 to $1071.96 billion in 2024 at a compound annual growth rate (CAGR) of 8.2%. The growth observed in the historical period can be attributed to rapid economic growth in emerging markets, social security energy schemes, a rise in demand for gas in end-user industries, pipeline expansions, and government initiatives aimed at accessing cleaner energy.

The natural gas distribution market size is expected to see strong growth in the next few years. It will grow to $1446.91 billion in 2028 at a compound annual growth rate (CAGR) of 7.8%. The anticipated growth in the forecast period can be attributed to rising urbanization, increasing demand for automotive natural gas vehicles, alternate modes of natural gas distribution, and the development of new gas pipelines. Major trends in the forecast period include investing in advanced metering infrastructure (AMI) technology to streamline operations, focusing on energy efficiency programs to facilitate large-scale savings in energy and costs, adopting acoustic leak detection technology to monitor pipelines and optimize gas distribution, adopting Geographic Information System (GIS) technology to support various functions, and considering the use of thermal mass flow sensors for easy gas flow monitoring.

The natural gas distribution market is anticipated to experience growth propelled by an upswing in the construction of new gas pipelines. The delivery of natural gas from the transmission system to end-use consumers relies on the distribution system, and the surge in pipeline developments is expected to drive increased demand for distribution services. Data from the Global Gas Infrastructure Tracker's 2022 year-end survey indicates a global total of 210,400 kilometers (km) of gas pipelines in development, reflecting a 9% increase over the previous year. Noteworthy contributors to pipeline developments include China, Russia, India, Australia, and the United States, signaling substantial growth potential in the natural gas distribution market.

The burgeoning demand for natural gas is poised to be a significant driver of growth in the natural gas distribution market. Natural gas, primarily composed of methane, is a sought-after energy source for industrial, commercial, and residential applications, such as heating and power generation. According to a report from the Energy Information Administration (EIA) in March 2023, the United States witnessed a historic high in average daily natural gas consumption at 88.5 billion cubic feet per day in 2022, marking a 5% increase from the previous year. The uptick in natural gas demand, reaching 38% of total consumption in various end-user sectors, underlines the pivotal role it plays in driving the growth of the natural gas distribution market.

Innovations in the natural gas distribution industry involve investments in advanced technologies such as robotic wireless in-pipe leak detection systems, enabling quicker leak repairs. Traditional detection methods can be slow, and the new robotic technology significantly accelerates the detection process with enhanced accuracy. Robotic devices, such as the A6 OMD robot developed by SMP Robotics, utilize laser beams to identify potential gas leaks efficiently by analyzing gas concentrations in close proximity. This technological advancement not only ensures reliable results but also streamlines the data processing associated with leak detection, contributing to more effective gas leakage prevention.

Major players in the natural gas distribution market are strategically investing in the establishment of new city gas distribution plants to gain a competitive edge. These plants play a crucial role in supplying natural gas for various applications in households and industries, contributing to a cleaner and reliable energy source. For instance, in January 2022, Bharat Petroleum Corporation Ltd. (BPCL) initiated city gas distribution networks in six cities across India, demonstrating a commitment to facilitating the seamless delivery of natural gas. This substantial investment of INR 10,000 crores underscores the company's dedication to advancing city gas distribution infrastructure.

Major companies operating in the natural gas distribution market report are PJSC Gazprom, Uniper SE, Naturgy Energy Group S.A., Centrica PLC, Engie S.A., Tokyo Gas Co., Ltd., E.ON SE, GAIL (India) Limited, Iberdrola, S.A., Daigas Group, Italgas, Korea Gas Corporation, Novatek, Societe Togolaise de Gaz and Societe BenGaz SA, Gas Natural Fenosa, Beijing Enterprises Group Company Limited, Dominion Energy Inc., Natural Gas Distribution Company, GASAG, Cadent Gas Ltd., Enagás, Williams Companies Inc., National Iranian Oil Company, Indraprastha Gas, Chevron West African Gas Pipeline Ltd., Inc., ENN Group, Mahanagar Gas, Galea LG S.A, Centria Reti Gas, Integrated Gas Services Company LLC, Sede Central de la Compania de Gas de Montevideo, Sempra Energy, Gazprom, Oneok Inc., Southern Co., AGL Resources, G.EN. GAZ ENERGIA, TC Energy Corporation, Shell Overseas Holdings Ltd., , Enbridge Inc., Montevideo Gas, , Shenergy Group, Eni Gas & Power, NaftoGaz Group, KongWah Group, Hunt LNG, Southern Natural Gas Co and Aquila, Gujarat State Petronet, Omv petrom, Takoradi Power Co. Ltd., Kinder Morgan Inc., Abu Dhabi National Oil Company, Laheeb Gas Trading, Nigeria National Petroleum Corp., PGNiG, Aksa Cukurova Dogal Gaz Dagitim Anonim Sirketi, Petronet LNG, China Resources Gas Group, Planta Compresora Piedra del Aguila TGS, Total E&P Canada Ltd., Osaka Gas.

Eastern Europe was the largest region in the natural gas distribution market in 2023. Asia-Pacific was the second-largest region in the natural gas distribution market. The regions covered in the natural gas distribution market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the natural gas distribution market report are Australia, China, India, Indonesia, Japan, South Korea, Bangladesh, Thailand, Vietnam, Malaysia, Singapore, Philippines, Hong Kong, New Zealand, USA, Canada, Mexico, Brazil, Chile, Argentina, Colombia, Peru, France, Germany, UK, Austria, Belgium, Denmark, Finland, Ireland, Italy, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, Russia, Czech Republic, Poland, Romania, Ukraine, Saudi Arabia, Israel, Iran, Turkey, UAE, Egypt, Nigeria, South Africa. The natural gas distribution market includes revenues earned by entities by providing services such as processing, transportation, and storage. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The main types of natural gas distribution include industrial and commercial natural gas distribution, as well as household natural gas distribution. Natural gas is recognized as one of the most efficient and environmentally friendly modern fuels for both industrial and residential use. Its clean-burning nature and availability via pipeline connection, eliminating the need for local storage and other transit requirements, have contributed to its gradual increase in the energy portfolio of major countries. Different types of operators in the natural gas distribution sector include public operators and private operators.

The natural gas distribution market research report is one of a series of new reports that provides natural gas distribution market statistics, including natural gas distribution industry global market size, regional shares, competitors with a natural gas distribution market share, detailed natural gas distribution market segments, market trends and opportunities, and any further data you may need to thrive in the natural gas distribution industry. This natural gas distribution market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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