Industrial and Commercial Natural Gas Distribution Global Market Report 2024

The industrial and commercial natural gas distribution market size has grown strongly in recent years. It will grow from $812.85 billion in 2023 to $882.52 billion in 2024 at a compound annual growth rate (CAGR) of 8.6%. The growth observed in the historical period can be attributed to several key factors. This includes robust economic growth, strategies aimed at energy diversification, the expansion of gas pipeline infrastructure, government incentives and policies supporting the sector, as well as stringent environmental regulations. These combined elements played pivotal roles in driving growth during that period.

The industrial and commercial natural gas distribution market size is expected to see strongly grown in the next few years. It will grow to $ 1.20 trillion in 2028 at a compound annual growth rate (CAGR) of 8.1%. The anticipated growth in the forecast period can be traced to several key factors. This includes the shift towards a low-carbon economy, developments in shale gas and LNG (liquefied natural gas), the ascendancy of distributed energy resources, heightened adoption of cogeneration systems, and the utilization of natural gas for hydrogen production.

The growth observed in the industrial and commercial natural gas distribution market is a result of heightened disposable incomes and the escalating demand from commercial clientele. This rising demand, primarily from commercial customers, is projected to be a key driver in propelling the sector's expansion. Commercial customers, defined as entities generating revenue from services or product delivery, utilize natural gas for household functions like cooking and running refrigeration and cooling systems. As per the U.S. Electricity Information Administration's data from 2021, commercial usage accounted for approximately 11% of total U.S. Natural gas consumption, with natural gas constituting about 19% of its sources, indicating the significance of commercial demand in propelling market growth.

The anticipated growth in the industrial and commercial natural gas distribution market is further supported by the surge in urbanization. Urbanization, the concentration of population in urban areas due to migration and natural growth, significantly relies on natural gas distribution for various applications. This clean and efficient energy source supports the heating, cooling, and power requirements of commercial buildings, industries, and residential complexes, fostering the growth and development of urban centers. As per the World Bank's October 2022 report, over 50% of the global population resided in urban areas in 2022, with projections indicating a 1.5-fold increase to 6 billion by 2045, underscoring the driving force of urbanization in the natural gas distribution market. A notable trend in the industrial and commercial natural gas distribution sector is the establishment of new city gas distribution plants. Industry leaders are strategically introducing these plants across various cities to maintain their market position. For example, Bharat Petroleum Corporation Ltd (BPCL) launched city gas distribution networks in six Indian cities in January 2022, facilitating the seamless supply of natural gas. This substantial investment of INR 10000 crores contributed to the project's development.

Major market players in the industrial and commercial natural gas distribution arena are engaging in strategic agreements to fortify their positions. These agreements, forged with defined objectives and shared goals, offer mutual benefits. An instance of this is Entergy's announcement in October 2023 to sell its gas distribution business to Bernhard Capital Partners. This strategic transaction forms part of Entergy's broader strategy to focus on its regulated electric utility sector.

Major companies operating in the industrial and commercial natural gas distribution market report are Gas Natural Sdg SA, Ultrapar Participacoes SA, Air Liquide SA, Korea Gas Corp., Sempra Energy, National Grid PLC, Dominion Energy Inc., Enbridge Inc., Southern Company Gas, Atmos Energy Corporation, ONEOK Inc., CenterPoint Energy Inc., DTE Energy Company, Xcel Energy Inc., Duke Energy Company, Southwest Gas Holdings Inc., Spire Inc., New Jersey Resources Corporation, Northwest Natural Holding Company, South Jersey Industries Inc., Eversource Energy, Chesapeake Utilities Corporation, Black Hills Corporation, AltaGas Ltd., Emera Incorporated, Connecticut Natural Gas Corporation., Avista Corporation, MDU Resources Group Inc., Summit Utilities Inc., UGI Utilities Inc.

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

The countries covered in the industrial and commercial natural gas distribution market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain The industrial and commercial natural gas distribution market includes revenues earned by maintaining and operating gas pipeline and facilities up to the residential gas meter. 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.

These gas sources encompass associated gas, non-associated gas, and unconventional sources. These sources cater to diverse end users, including light-duty vehicles, medium or heavy-duty buses, as well as medium or heavy-duty trucks. Each of these end users relies on natural gas for specific operational needs within industrial and commercial contexts.

The industrial and commercial natural gas distribution market research report is one of a series of new reports provides industrial and commercial natural gas distribution market statistics, including industrial and commercial natural gas distribution industry global market size, regional shares, competitors with a industrial and commercial natural gas distribution market share, detailed industrial and commercial natural gas distribution market segments, market trends and opportunities, and any further data you may need to thrive in the industrial and commercial natural gas distribution industry. This industrial and commercial 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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