The global power-to-gas market size was valued at $30.3 million in 2021, and is projected to reach $84.4 million by 2031, registering a CAGR of 10.8% from 2022 to 2031.
Power-to-gas is a technology that uses electric power to produce a gaseous fuel, using surplus power from wind generation, and the concept is called wind-gas. Most power-to-gas systems use electrolysis to produce hydrogen. Hydrogen can be used directly or may convert hydrogen into syngas, methane or LPG. The gas may be used as chemical feedstock, or converted back into electricity using conventional generators, such as gas turbines. Power-to-gas allows energy from electricity to be stored and transported in the form of compressed gas, often using existing infrastructure for long-term transport and storage of natural gas. Power-to-gas is often considered the most promising technology for seasonal renewable energy storage.
Demand for electricity is expected to increase due to growth in population and economy of countries globally. Companies are seeking cost efficient and more effective methods of energy generation. They are also looking for methods of electricity generation that do not have any adverse effect on the environment. The power-to-gas technology can effectively integrate renewable energy sources, such as wind and solar, and store that energy for a considerable period of time. The power-to-gas technology has no adverse effect on the environment, as it does not lead to emission of harmful gases. Growth in the transportation sector, rise in household and industrial usage of energy, and increase in production of chemicals are key drivers of the power-to-gas market. Decrease in capital expenditure (capex) costs for electrolysis process is expected to be one of the major indicators of the increase in usage of the power-to-gas technology. The usage of hydrogen and methane in various industries and ability of these gases to reconvert the electricity also drive the growth of the power-to-gas market. Thus, all these factors collectively are expected to augment the growth of the power-to-gas market globally.
Mitsubishi Power signed a purchase contract with HydrogenPro for a large-scale electrolyzer system in 2022. The HydrogenPro electrolyzer system is expected to use wind and solar energy to produce green hydrogen and oxygen through electrolysis. In October 2021, Oracle Power and PowerChina International Group Ltd. signed a non-exclusive cooperation agreement to jointly develop a green hydrogen project in Pakistan. The project's total cost is expected to be around $2 billion, and the planned location is 120 kilometers away from the seaport and 130 kilometers away from Karachi.
The power-to-gas market is segmented on the basis of technology, capacity, use case, application, and region. On the basis of technology, the market is segmented into electrolysis and methanation. On the basis of capacity, the market is bifurcated into less than 100KW, 100-999KW, and 1000KW and above. On the basis of use case, the market is segmented into wind, solar, and biomass. On the basis of application, the market is segmented into residential, commercial, and utility. Region-wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA. Presently, Europe accounts for the largest share of the market, followed by North America and Asia-Pacific.
The major companies profiled in this report include, Hydrogenics, ITM Power, McPhy Energy, Siemens AG, MAN Energy Solutions, Nel Hydrogen, ThyssenKrupp, Electrochaea, Exytron, GreenHydrogen, Hitachi Zosen Inova Etogas, Fuelcell Energy, Avacon, Carbotech, and Aquahydrex. Due to rapid development of industrialization and modernization and exhaustion of fossil fuel resources have led to the innovation of alternative fuels, such as hydrogen. Increase in demand for hydrogen in various sectors has fuelled the growth of the power-to-gas market. In addition, growth strategies such as expansion of production capacities, acquisition, partnership, and research & innovation in the solar energy application led to attain key developments in the global power-to-gas market trends.
After the global vaccination, governments of various countries have taken initiatives to increase the investment in the renewable energy related industries, especially solar and wind power systems. Increase in investment is mostly to improve the national energy security during the pandemic and other crisis. The presence of above mentioned activities and change in policies due to the outbreak of the COVID-19 pandemic have positive impact on the development of the market during the forecast period.
Power-to-gas is a technology that uses electric power to produce a gaseous fuel, using surplus power from wind generation, and the concept is called wind-gas. Most power-to-gas systems use electrolysis to produce hydrogen. Hydrogen can be used directly or may convert hydrogen into syngas, methane or LPG. The gas may be used as chemical feedstock, or converted back into electricity using conventional generators, such as gas turbines. Power-to-gas allows energy from electricity to be stored and transported in the form of compressed gas, often using existing infrastructure for long-term transport and storage of natural gas. Power-to-gas is often considered the most promising technology for seasonal renewable energy storage.
Demand for electricity is expected to increase due to growth in population and economy of countries globally. Companies are seeking cost efficient and more effective methods of energy generation. They are also looking for methods of electricity generation that do not have any adverse effect on the environment. The power-to-gas technology can effectively integrate renewable energy sources, such as wind and solar, and store that energy for a considerable period of time. The power-to-gas technology has no adverse effect on the environment, as it does not lead to emission of harmful gases. Growth in the transportation sector, rise in household and industrial usage of energy, and increase in production of chemicals are key drivers of the power-to-gas market. Decrease in capital expenditure (capex) costs for electrolysis process is expected to be one of the major indicators of the increase in usage of the power-to-gas technology. The usage of hydrogen and methane in various industries and ability of these gases to reconvert the electricity also drive the growth of the power-to-gas market. Thus, all these factors collectively are expected to augment the growth of the power-to-gas market globally.
Mitsubishi Power signed a purchase contract with HydrogenPro for a large-scale electrolyzer system in 2022. The HydrogenPro electrolyzer system is expected to use wind and solar energy to produce green hydrogen and oxygen through electrolysis. In October 2021, Oracle Power and PowerChina International Group Ltd. signed a non-exclusive cooperation agreement to jointly develop a green hydrogen project in Pakistan. The project's total cost is expected to be around $2 billion, and the planned location is 120 kilometers away from the seaport and 130 kilometers away from Karachi.
The power-to-gas market is segmented on the basis of technology, capacity, use case, application, and region. On the basis of technology, the market is segmented into electrolysis and methanation. On the basis of capacity, the market is bifurcated into less than 100KW, 100-999KW, and 1000KW and above. On the basis of use case, the market is segmented into wind, solar, and biomass. On the basis of application, the market is segmented into residential, commercial, and utility. Region-wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA. Presently, Europe accounts for the largest share of the market, followed by North America and Asia-Pacific.
The major companies profiled in this report include, Hydrogenics, ITM Power, McPhy Energy, Siemens AG, MAN Energy Solutions, Nel Hydrogen, ThyssenKrupp, Electrochaea, Exytron, GreenHydrogen, Hitachi Zosen Inova Etogas, Fuelcell Energy, Avacon, Carbotech, and Aquahydrex. Due to rapid development of industrialization and modernization and exhaustion of fossil fuel resources have led to the innovation of alternative fuels, such as hydrogen. Increase in demand for hydrogen in various sectors has fuelled the growth of the power-to-gas market. In addition, growth strategies such as expansion of production capacities, acquisition, partnership, and research & innovation in the solar energy application led to attain key developments in the global power-to-gas market trends.
Covid-19 Analysis
COVID-19 has severely impacted the global economy with devastating effects on global trade, which has simultaneously affected households, business, financial institution, industrial establishments, and infrastructure companies. The novel coronavirus has affected several economies and caused lockdown in many countries, which has limited the growth of the market. The COVID-19 pandemic has had a severe impact on the power to gas market. There is a significant drop in demand in the global gas market. Chemical production, transportation, and industrial production industries were hampered for around four to six months due to the COVID-19 pandemic. The current expansion plans of electrolysis and methanation have been delayed by minimum one year. In the long term, the pandemic may prove to be beneficial to the power to gas market. Global governments are expected to focus on green gas and reduction of harmful emissions into the environment.After the global vaccination, governments of various countries have taken initiatives to increase the investment in the renewable energy related industries, especially solar and wind power systems. Increase in investment is mostly to improve the national energy security during the pandemic and other crisis. The presence of above mentioned activities and change in policies due to the outbreak of the COVID-19 pandemic have positive impact on the development of the market during the forecast period.
KEY BENEFITS FOR STAKEHOLDERS
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the power-to-gas market analysis from 2021 to 2031 to identify the prevailing power-to-gas market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the power-to-gas market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global power-to-gas market trends, key players, market segments, application areas, and market growth strategies.
Key Market Segments
By Technology
- Electrolysis
- Methanation
By Capacity
- Less than 100 kW
- 100-999 kW
- 1000 kW and Above
By Use Case
- Wind
- Solar
- Biomass
By Application
- Residential
- Commercial
- Utility
By Region
- North America
- U.S.
- Canada
- Mexico
- Europe
- Germany
- U.K.
- France
- Italy
- Spain
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- South Korea
- Rest Of Asia Pacific
- LAMEA
- Brazil
- Saudi Arabia
- South Africa
- Rest of LAMEA
Key Market Players
- Hydrogenics
- ITM Power
- McPhy Energy
- Siemens AG
- MAN Energy Solutions
- Nel Hydrogen
- ThyssenKrupp
- Electrochaea
- Exytron
- GreenHydrogen
- Hitachi Zosen Inova Etogas
- Fuelcell Energy
- Avacon
- Carbotech
- Aquahydrex
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Table of Contents
CHAPTER 1: INTRODUCTION
CHAPTER 2: EXECUTIVE SUMMARY
CHAPTER 3: MARKET OVERVIEW
CHAPTER 4: POWER-TO-GAS MARKET, BY TECHNOLOGY
CHAPTER 5: POWER-TO-GAS MARKET, BY CAPACITY
CHAPTER 6: POWER-TO-GAS MARKET, BY USE CASE
CHAPTER 7: POWER-TO-GAS MARKET, BY APPLICATION
CHAPTER 8: POWER-TO-GAS MARKET, BY REGION
CHAPTER 9: COMPANY LANDSCAPE
CHAPTER 10: COMPANY PROFILES
List of Tables
List of Figures
Executive Summary
According to the report, titled, “Power-to-gas Market," the power-to-gas industry was valued at $30.3 million in 2021, and power-to-gas market size is estimated to reach $84.4 million by 2031, growing at a CAGR of 10.8% from 2022 to 2031.Power-to-gas is the process of converting surplus renewable energy into hydrogen gas through the PEM electrolysis technology. Hydrogen can be injected into the natural gas grid. Hence; hydrogen can displace natural gas, reducing greenhouse gas emissions and reliance on high carbon fuels. Hydrogen manufactured from renewable energy is called green hydrogen, which can be used to store, transport, and utilize renewable energy. This technology helps to minimize variable renewable energy curtailment from sources, such as wind and solar, providing long-term storage and grid balancing services through electrolyzer.
According to the International Energy Administration (IEA), hydrogen demand stood at 90 million ton in 2020, almost all of which was made from fossil fuels. However, green hydrogen capacities have been growing steadily and have doubled over the last 5 years, reaching nearly 300 MW in mid-2021. In addition, nearly 350 projects with an aggregate capacity of 54 GW are currently under development and are expected to commercialize by 2030, while more than 40 other projects, which account for nearly 35GW capacity, are in the early stages of development that are expected to be commissioned by 2030.
The green hydrogen produced by electrolyzer can also be directly used as a fuel, either for transport, replacing oil in light vehicles, railways, and marine applications, or as a feedstock for industrial applications. Green hydrogen fuel cells can also be used for energy storage. Due to the falling costs of renewable energy technologies, such as solar and wind, energy storage technologies such as power-to-gas (PtG) technology are becoming increasingly attractive, and the installed capacity of commercial electrolyzer systems has been growing steadily over the past few years. There are only a few commercially viable water electrolysis technologies, and the two most widely used technologies are alkaline water electrolysis (AWE) and proton exchange membrane (PEM) electrolysis.
In 2020, according to the European Commission, the refinery sector accounted for 48% of the hydrogen consumption, followed by fertilizers and chemical sectors. Germany is one of the major countries in the Europe power-to-gas market. As of 2020, Germany was home to around 40 small power-to-gas pilot projects that harnessed surplus green power, mainly from wind and solar projects, to carry out electrolysis by splitting water into oxygen and hydrogen to produce zero-carbon fuel. Furthermore, in July 2020, the European Union unveiled its Hydrogen Strategy that aims to increase its electrolyzed capacity by 6 GW by 2024 and 40 GW by 2030. Furthermore, the strategy targets to increase the production of renewable hydrogen from 1 million ton to 10 million ton per year by 2030. The presence of above-mentioned initiatives and applications is expected to provide ample power-to-gas market growth opportunities for the development of the market.
The power-to-gas market forecast is segmented on the basis of technology, capacity, use case, application, and region. On the basis of technology, the market is segmented into electrolysis and methanation. On the basis of capacity, the market is bifurcated into less than 100KW, 100-999KW, and 1000KW and above. On the basis of use case, the market is segmented into wind, solar, and biomass. On the basis of application, the market is segmented into residential, commercial, and utility.
Region-wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA. Presently, Europe accounts for the largest power-to-gas market share of the market, followed by North America and Asia-Pacific.
The major companies profiled in this report include, Hydrogenics, ITM Power, McPhy Energy, Siemens AG, MAN Energy Solutions, Nel Hydrogen, ThyssenKrupp, Electrochaea, Exytron, GreenHydrogen, Hitachi Zosen Inova Etogas, Fuelcell Energy, Avacon, Carbotech, and Aquahydrex. Due to rapid development of industrialization and modernization and exhaustion of fossil fuel resources have led to the innovation of alternative fuels, such as hydrogen. Increase in demand for hydrogen in various sectors has fueled the growth of the power-to-gas market. Additional growth strategies, such as expansion of production capacities, acquisition, partnership, and research & innovation in the solar energy application led to attain key developments in the global power-to-gas market trends.
Key Findings of the Study
- Europe is expected to exhibit CAGR of 10.4% during 2022-2031.
- As per the global power-to-gas market analysis, by technology, the electrolysis segment accounted for the largest share in 2020.
- By capacity, 1000KW and above capacity power-to-gas was the leading segment in 2021.
- By use case, the solar segment was the highest revenue contributor in 2021.
- By application, the utility segment dominated the power-to-gas market and is expected to retain its dominance during the forecast period.
IMPACT OF COVID-19 ON THE GLOBAL POWER TO GAS MARKET
- Emergence of COVID-19 had a negative impact on the growth of the global power to gas market during this period.
- This impact is mostly attributed to the significant disruptions in the raw material transportation, presence of low-labor, led to shutdown of many manufacturing industries led to decline of demand for power to gas during this period.
- The decrease in demand for many non-essential products and shut down of construction and tourism related industries have created a negative impact on the development of global power to gas market.
- Thus, the abovementioned factors are expected to have negative impact the global power to gas market growth during the pandemic period.
Companies Mentioned
- Hydrogenics
- Itm Power
- Mcphy Energy
- Siemens AG
- Man Energy Solutions
- Nel Hydrogen
- Thyssenkrupp
- Electrochaea
- Exytron
- Greenhydrogen
- Hitachi Zosen Inova Etogas
- Fuelcell Energy
- Avacon
- Carbotech
- Aquahydrex
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 286 |
| Published | July 2022 |
| Forecast Period | 2021 - 2031 |
| Estimated Market Value ( USD | $ 30.3 million |
| Forecasted Market Value ( USD | $ 84.4 million |
| Compound Annual Growth Rate | 10.8% |
| Regions Covered | Global |
| No. of Companies Mentioned | 15 |
