The Global Natural Gas Market was worth US$ 1020.81 billion in 2023 and is anticipated to reach a valuation of US$ 1540.58 billion by 2029 and is predicted to register a CAGR of 7.1% during 2024-2029.
Natural gas is a type of gas that is colorless, odorless, and flammable. It is typically found underground in rock formations, often alongside oil. It is composed mainly of methane as well as other hydrocarbons such as ethane, propane, and butane. This versatile energy source is used for a wide range of applications, including heating homes and buildings, generating electricity, and fueling vehicles. It is easy to transport through pipelines, making it a popular choice for many industries.
Natural gas is efficient, flexible, and complementary to renewable energy sources, making it a valuable resource for balancing the grid and ensuring the reliability of the power supply. As a result, the demand for natural gas in the power sector is expected to continue to increase in the coming years.
The natural gas market is also influenced by industrial growth, as natural gas is a key feedstock for a range of industries, such as fertilizers and plastics. As industrial production grows, the demand for natural gas as a feedstock is also expected to rise.
Natural gas is increasingly being used as a transportation fuel due to its affordability, abundance, and lower emissions compared to traditional fuels. The trend towards sustainable transportation and the increasing availability of natural gas refueling infrastructure is expected to continue to drive demand for natural gas in the transportation sector, contributing to the overall growth of the natural gas market.
The usage of natural gas is predicted to increase in the residential and commercial markets, mainly for heating and cooking purposes. With the growing population, there will be a corresponding rise in demand for natural gas in these sectors.
Environmental regulations and policies that promote cleaner energy sources can impact the natural gas market. For example, policies that encourage the use of natural gas as a transitional fuel to reduce greenhouse gas emissions can increase demand for natural gas.
Natural gas needs to be transported from the production site to the end-user through pipelines, which require significant investment in construction and maintenance. In some areas, the infrastructure is not sufficient to meet the demand, leading to constraints in the market.
The natural gas market is also restrained by competition from alternative energy sources, such as wind, solar, and hydroelectric power. These renewable energy sources are becoming increasingly cost-competitive with natural gas and are viewed as more sustainable and environmentally friendly. As a result, the demand for natural gas may decline in the long run, which could affect the market.
The natural gas market has growth opportunities through innovation and technology development. By investing in research and development, companies can improve their competitiveness and meet the changing needs of consumers while also reducing costs. For example, new technologies such as artificial intelligence, the Internet of Things, and advanced analytics can help optimize natural gas extraction, processing, transportation, and storage. These technologies can make natural gas operations more efficient and cost-effective, leading to greater profitability and competitiveness in the market.
The COVID-19 pandemic has had a significant impact on the natural gas market, with reduced demand leading to lower prices and production. The global lockdowns and economic slowdowns resulted in reduced demand for natural gas in various sectors, such as transportation, manufacturing, and electricity generation. This demand reduction led to a surplus of natural gas, causing prices to fall to record lows. Furthermore, with restrictions on travel and transport, the natural gas supply chain was disrupted, leading to delayed projects and reduced production. However, as countries begin to recover from the pandemic, demand for natural gas is expected to rebound, leading to a gradual increase in prices. Additionally, the shift towards cleaner energy sources and policies promoting renewable energy may also affect the long-term demand for natural gas.
|
REPORT METRIC |
DETAILS |
|
Market Size Available |
2023 to 2029 |
|
Base Year |
2023 |
|
Forecast Period |
2024 to 2029 |
|
CAGR |
7.1% |
|
Segments Covered |
By Type, End-User Type, Source Type, and Region. |
|
Various Analyses Covered |
Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview of Investment Opportunities |
|
Regions Covered |
North America, Europe, APAC, Latin America, Middle East & Africa |
|
Market Leaders Profiled |
Gazprom, Exxon Mobil Corporation, Royal Dutch Shell, BP, Chevron, TotalEnergies ConocoPhillips, and Others. |
The methane segment is leading with the dominant shares of the market. Methane has historically been the most dominant type of natural gas in the market due to its abundance and relatively low cost of extraction. It is widely used as a fuel for electricity generation, heating, and cooking. Propane and butane are also commonly used for heating and cooking applications, while ethane serves as a feedstock for the production of chemicals such as plastics.
The industrial sector dominates the natural gas market due to its high energy demands, the availability, and accessibility of natural gas, and it is used as a primary fuel which is cost-effective for industries.
The natural gas market was dominated by conventional sources in the forecast period of 2023-2028, it has been extracted for a longer period, and therefore, there is an established infrastructure for extraction, transportation, and distribution. This makes conventional natural gas more accessible and cost-effective.
The Asia-Pacific region dominates the natural gas market due to its growing population, fast economic development, and increasing energy demands. It has abundant natural gas reserves and a well-developed infrastructure for importing and distributing natural gas. North America has significant natural gas reserves, including shale gas, and a well-established infrastructure and regulatory framework. Technological advancements and favourable government policies have driven significant growth in natural gas production. Europe has a mature natural gas market with diverse supply sources but heavy dependence on Russia for imports. Diversification efforts may lead to increased imports from the Middle East and Africa. The Middle East and Africa are major natural gas producers, investing in infrastructure development to meet growing demand. Latin America has significant natural gas reserves, but regulatory challenges and a lack of infrastructure have hindered its market development. Brazil is the largest consumer, and demand is expected to increase in some years.
Companies playing a prominent role in the global natural gas market include Gazprom, Exxon Mobil Corporation, Royal Dutch Shell, BP, Chevron, TotalEnergies ConocoPhillips, and Others.
By Type
By End-User Type
By Source Type
By Region
Frequently Asked Questions
The Natural Gas Market is expected to grow with a CAGR of 7.1% during the forecast period.
Asia Pacific is the largest Region for the Natural Gas Market.
Natural Gas is primarily used as a fuel source for heating and electricity generation. It is also used as a feedstock in the production of a wide range of products, including chemicals, fertilizers, and plastics.
Natural gas prices are affected by a variety of factors, including supply and demand, weather conditions, geopolitical events, and changes in the global economy.
While natural gas is a cleaner-burning fossil fuel compared to coal and oil, its extraction and transportation can still have significant environmental impacts, including methane emissions, water pollution, and habitat destruction.
Related Reports
Access the study in MULTIPLE FORMATS
Purchase options starting from $ 2500
Didn’t find what you’re looking for?
TALK TO OUR ANALYST TEAM
Need something within your budget?
NO WORRIES! WE GOT YOU COVERED!
Call us on: +1 888 702 9696 (U.S Toll Free)
Write to us: [email protected]
Reports By Region