Power-To-Gas Market (By Technology: Electrolysis, Methanation; By End User: Commercial, Utilities, Industrial; By Capacity: Less than 100 kW, 100–999 kW, 1000 kW and Above) - Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2023-2032

The global power-to-gas market size was exhibited at USD 36.9 million in 2022 and is projected to hit around USD 107.16 million by 2032, growing at a CAGR of 11.25% during the forecast period 2023 to 2032.

Key Pointers:

• By technology, the electrolysis segment is expected to have the largest market share from 2023 to 2032.
• In 2022, By end user, the utility segment is expected to have the biggest market share, in terms of revenue.
• In 2022, By geography, the Europe region held the highest revenue share.

Power-To-Gas Market Report Scope

Power-to-gas technology adopts the electrolysis process to produce hydrogen gas from renewable or excess electricity that is available. The first step in the process is to produce synthetic hydrogen (H2) from water and renewable power via electrolysis. This hydrogen can be used directly as a final energy carrier or converted to methane, synthesis gas, electricity, liquid fuels, or chemicals during the second stage process. Under the second stage process, hydrogen reacts with carbon dioxide to produce methane.

Power to gas system is an effective way of integrating renewables sources with power generation sources. The aim of this technology is to store energy for long term by converting it to other easily storable energy carriers, and at the same time reduces the load on the electricity grid by controlling operations. The converted hydrogen and methane can also be converted back into electricity, as it can be used as backup power source.

The increase in demand for renewable hydrogen, which has the potential to decarbonize multiple sectors is expected to drive the market growth. The driver for the growth of the market is the cost reduction of the electrolyzer technology. According to the International Energy Agency, the electrolyzer stacks are responsible for 50% and 60% of the capital expenditure, and remaining factors like power electronics, gas-conditioning, and plant components are accounting for the remainder of the expenditure, which is a factor hampering the power-to-gas market growth.

Air quality regulations are increasing the need for hydrogen as a clean fuel for clean transport emissions across the globe. Energy storage provision has started to become an obligatory requirement in areas, including California. The grid balancing and rapid response demand-side services are offering high proportion of integration of renewable energy supply. Also, auto OEMs are rolling out Fuel Cell Electric Vehicles (FCEVs), which require high purity hydrogen fuel. The Global Hydrogen Refuelling Station infrastructure programmes are underway with remarkable deployment plans. In addition, the price volatility of fossil fuels is driving an industrial substitution to more sustainable chemical processes, which is the major factor augmenting the growth of the power to gas market.

The presence of the latest development in the hydrogen production technology, and hydrogen engine technology is expected to have a positive impact on the growth of the market. For instance, The Hydrogen Council, a CEO-led Initiative of 92 global companies to develop the hydrogen economy, published report on January 19, 2021, which says that low carbon hydrogen supply at scale is economically and environmentally feasible. ThyssenKrupp AG is currently setting up a new facility in Varennes, Québec, Canada, with an aim to generate 11,100 metric tons of green hydrogen per year. On January 13, 2021, Linde PLC Company announced that it plans to build the world‐™s largest electrolyzer plant by the third quarter of 2022. According to the EU member states, the target for complete hydrogen mobility is expected to be completed by 2030. Majority of hydrogen required is anticipated to be supplied by power-to-gas companies.

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, followed by North America and Asia-Pacific.

Some of the prominent players in the Power-To-Gas Market include:

• Hydrogenics
• ITM Power
• McPhy Energy
• Fuelcell Energy
• Nel Hydrogen
• ThyssenKrupp
• Electrochaea
• Carbotech
• Power-to-gas Hungary
• Aquahydrex
• Ineratec
• Exytron
• GreenHydrogen
• Hitachi Zosen Inova Etogas
• Siemens
• MAN Energy Solutions
• Uniper
• Micropyros
• Socalgas

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2032. For this study, Nova one advisor, Inc. has segmented the global Power-To-Gas market.

By Technology

• Electrolysis
• Methanation

By End User

• Commercial
• Utilities
• Industrial

By Capacity

• Less than 100 kW
• 100–999 kW
• 1000 kW and Above

By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa (MEA)