The synthetic methane market valued for $89.7 million in 2022 and is estimated to reach $334.5 million by 2032, exhibiting a CAGR of 14.1% from 2023 to 2032.
Synthetic methane refers to artificially produced form of methane gas (CH4) that closely resembles natural gas in its chemical composition and properties. It is generated through processes that utilize renewable energy sources or involve carbon capture and utilization technologies. The production of synthetic methane aims to provide a low-carbon alternative to natural gas, reducing greenhouse gas emissions and contributing to sustainability goals.
Using synthetic methane as a hydrogen transport carrier offers advantages such as compatibility with existing infrastructure, lower pressure requirements, higher energy density, and ease of conversion back to hydrogen at the point of use. However, it is important to note that the overall efficiency of the synthetic methane production and reconversion processes should be considered to ensure a sustainable and low-carbon energy system. This factor is the major trend in the synthetic methane market for hydrogen transport carrier applications.
Furthermore, energy storage and grid balancing are essential for the effective integration of renewable energy, ensuring grid stability, managing peak demand, optimizing grid operations, and facilitating the transition to a more sustainable and decentralized energy system.
Synthetic methane can be produced by converting renewable electricity into hydrogen through electrolysis and then combining it with carbon dioxide. This process, known as power-to-gas, enables the storage of excess renewable energy generated during peak periods and its subsequent conversion back into electricity or heat when needed. It provides a means for balancing the intermittent nature of renewable energy sources and ensuring a stable energy supply, which, in turn, boosts the growth of the synthetic methane market.
Furthermore, Decarbonizing gas infrastructure is crucial for achieving climate goals, promoting renewable energy integration, improving air quality, enhancing energy security, and driving innovation and job creation in the clean energy sector. It is an essential step in the transition toward a more sustainable and low-carbon energy system.
Synthetic methane can be injected into existing natural gas infrastructure, Including pipelines and storage facilities, without the need for significant modifications. This makes it an attractive option for decarbonizing the gas grid and utilizing the existing infrastructure for renewable energy distribution. This factor is expected to fuel the growth of the synthetic methane market.
Synthetic methane production can contribute to reducing greenhouse gas emissions by utilizing CO2 captured from industrial processes or directly from the atmosphere. It provides an opportunity to recycle carbon emissions and convert them into a useful energy source, thus minimizing environmental impact. This factor augments the growth of the synthetic methane market.
However, the production of synthetic methane is more expensive compared to natural gas extracted from fossil fuel sources. The process of converting renewable electricity into hydrogen through electrolysis, capturing carbon dioxide, and combining them to produce methane can be cost-intensive. As a result, the cost competitiveness of synthetic methane limits its widespread adoption. This acts as a significant constraint of the synthetic methane market.
On the contrary, Improvements in the process of synthetic methane production are anticipated to create lucrative opportunities for research and innovation. For instance, Advances in electrolysis, methanation, carbon capture, and other related processes can enhance efficiency, reduce costs, and Increase the scalability of synthetic methane production. These advancements can drive down production costs, making synthetic methane more economically viable and competitive. This factor is expected to boost the demand for synthetic methane, which, in turn, is likely to open new avenues for the expansion of the synthetic menthane market during the forecast period.
The global synthetic methane market is segmented into source, application, and region. On the basis of source, the market is categorized into direct air capture and hydrogen and carbon dioxide. Depending on application, it is divided into fuel, hydrogen transport carrier, industrial, and others. Region -wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA.
The global synthetic methane market profiles leading players that Include CLARIANT, Air Liquide, Terega, TransTech Energy, LLC, OSAKA GAS CO.,LTD, Zentrum für Sonnenenergie- und Wasserstoff-Forschung Baden-Württemberg, Dakota Gasification Company, Mitsubishi Corporation, KADATEC s.r.o., and MAN Energy Solutions.
The global synthetic methane market report provides in-depth competitive analysis as well as profiles of these major players.
Synthetic methane refers to artificially produced form of methane gas (CH4) that closely resembles natural gas in its chemical composition and properties. It is generated through processes that utilize renewable energy sources or involve carbon capture and utilization technologies. The production of synthetic methane aims to provide a low-carbon alternative to natural gas, reducing greenhouse gas emissions and contributing to sustainability goals.
Using synthetic methane as a hydrogen transport carrier offers advantages such as compatibility with existing infrastructure, lower pressure requirements, higher energy density, and ease of conversion back to hydrogen at the point of use. However, it is important to note that the overall efficiency of the synthetic methane production and reconversion processes should be considered to ensure a sustainable and low-carbon energy system. This factor is the major trend in the synthetic methane market for hydrogen transport carrier applications.
Furthermore, energy storage and grid balancing are essential for the effective integration of renewable energy, ensuring grid stability, managing peak demand, optimizing grid operations, and facilitating the transition to a more sustainable and decentralized energy system.
Synthetic methane can be produced by converting renewable electricity into hydrogen through electrolysis and then combining it with carbon dioxide. This process, known as power-to-gas, enables the storage of excess renewable energy generated during peak periods and its subsequent conversion back into electricity or heat when needed. It provides a means for balancing the intermittent nature of renewable energy sources and ensuring a stable energy supply, which, in turn, boosts the growth of the synthetic methane market.
Furthermore, Decarbonizing gas infrastructure is crucial for achieving climate goals, promoting renewable energy integration, improving air quality, enhancing energy security, and driving innovation and job creation in the clean energy sector. It is an essential step in the transition toward a more sustainable and low-carbon energy system.
Synthetic methane can be injected into existing natural gas infrastructure, Including pipelines and storage facilities, without the need for significant modifications. This makes it an attractive option for decarbonizing the gas grid and utilizing the existing infrastructure for renewable energy distribution. This factor is expected to fuel the growth of the synthetic methane market.
Synthetic methane production can contribute to reducing greenhouse gas emissions by utilizing CO2 captured from industrial processes or directly from the atmosphere. It provides an opportunity to recycle carbon emissions and convert them into a useful energy source, thus minimizing environmental impact. This factor augments the growth of the synthetic methane market.
However, the production of synthetic methane is more expensive compared to natural gas extracted from fossil fuel sources. The process of converting renewable electricity into hydrogen through electrolysis, capturing carbon dioxide, and combining them to produce methane can be cost-intensive. As a result, the cost competitiveness of synthetic methane limits its widespread adoption. This acts as a significant constraint of the synthetic methane market.
On the contrary, Improvements in the process of synthetic methane production are anticipated to create lucrative opportunities for research and innovation. For instance, Advances in electrolysis, methanation, carbon capture, and other related processes can enhance efficiency, reduce costs, and Increase the scalability of synthetic methane production. These advancements can drive down production costs, making synthetic methane more economically viable and competitive. This factor is expected to boost the demand for synthetic methane, which, in turn, is likely to open new avenues for the expansion of the synthetic menthane market during the forecast period.
The global synthetic methane market is segmented into source, application, and region. On the basis of source, the market is categorized into direct air capture and hydrogen and carbon dioxide. Depending on application, it is divided into fuel, hydrogen transport carrier, industrial, and others. Region -wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA.
The global synthetic methane market profiles leading players that Include CLARIANT, Air Liquide, Terega, TransTech Energy, LLC, OSAKA GAS CO.,LTD, Zentrum für Sonnenenergie- und Wasserstoff-Forschung Baden-Württemberg, Dakota Gasification Company, Mitsubishi Corporation, KADATEC s.r.o., and MAN Energy Solutions.
The global synthetic methane market report provides in-depth competitive analysis as well as profiles of these major players.
Key Benefits For Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the synthetic methane market analysis from 2022 to 2032 to identify the prevailing synthetic methane 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 synthetic methane 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 synthetic methane market trends, key players, market segments, application areas, and market growth strategies.
Key Market Segments
By Source
- Direct air capture
- Hydrogen and carbon dioxide
By Application
- Fuel
- Hydrogen Transport Carrier
- Industrial
- Others
By Region
- North America
- U.S.
- Canada
- Mexico
- Europe
- Germany
- UK
- France
- Spain
- Italy
- Rest of Europe
- Asia-Pacific
- China
- India
- Japan
- South Korea
- Australia
- Rest of Asia-Pacific
- LAMEA
- Brazil
- Saudi Arabia
- South Africa
- Rest of LAMEA
Key Market Players
- CLARIANT
- Air Liquide
- Terega
- TransTech Energy, LLC
- OSAKA GAS CO.,LTD
- Zentrum für Sonnenenergie- und Wasserstoff-Forschung Baden-Württemberg
- Dakota Gasification Company
- Mitsubishi Corporation
- KADATEC s.r.o.
- MAN Energy Solutions
Table of Contents
CHAPTER 1: INTRODUCTION
CHAPTER 2: EXECUTIVE SUMMARY
CHAPTER 3: MARKET OVERVIEW
CHAPTER 4: SYNTHETIC METHANE MARKET, BY SOURCE
CHAPTER 5: SYNTHETIC METHANE MARKET, BY APPLICATION
CHAPTER 6: SYNTHETIC METHANE MARKET, BY REGION
CHAPTER 7: COMPETITIVE LANDSCAPE
CHAPTER 8: COMPANY PROFILES
List of Tables
List of Figures
Executive Summary
According to a new report, titled, 'Synthetic Methane Market,' The synthetic methane market was valued at $89.7 million in 2022, and is estimated to reach $334.5 million by 2032, growing at a CAGR of 14.1% from 2023 to 2032.Synthetic methane, also known as methane gas or synthetic natural gas (SNG), is a renewable or synthetic form of methane that can be produced through various processes. It shares the same chemical formula as natural gas, which is CH4 (one carbon atom bonded to four hydrogen atoms). However, synthetic methane is produced from non-fossil fuel sources or through carbon capture technologies, making it a potential low-carbon alternative to natural gas.
Renewable energy transition refers to the process of shifting from dependence on non-renewable energy sources, such as fossil fuels (coal, oil, and natural gas), to utilizing renewable energy sources that are naturally replenished and have a lower environmental impact. The goal of this transition is to reduce greenhouse gas emissions, combat climate changes, and achieve a more sustainable and resilient energy system.
Renewable energy sources include solar power, wind power, hydropower, biomass, and geothermal energy. These sources are abundant and can be harnessed to generate electricity or produce heat without depleting finite resources or releasing significant amounts of carbon dioxide into the atmosphere.
As countries and industries strive to reduce their carbon footprint and shift toward renewable energy sources, the need for renewable alternatives to fossil fuels is expected to increase significantly. For instance, synthetic methane offers a viable solution for replacing natural gas, which is a major contributor to greenhouse gas emissions. This factor may act as one of the key drivers responsible for the growth of the synthetic methane market.
Moreover, using synthetic methane as a hydrogen transport carrier offers advantages such as compatibility with existing infrastructure, lower pressure requirements, higher energy density, and ease of conversion back to hydrogen at the point of use. However, it is important to note that the overall efficiency of the synthetic methane production and reconversion processes should be considered to ensure a sustainable and low-carbon energy system. This factor is the major trend in the synthetic methane market for hydrogen transport carrier applications.
Additionally, the use of synthetic methane in the industrial sector offers opportunities for decarbonization, energy efficiency, and sustainable operations. By replacing fossil fuel-based fuels with synthetic methane, industries can reduce their carbon emissions and contribute to a cleaner and more sustainable future. This factor may act as one of the key drivers responsible for the growth of the synthetic methane market
However, the process of converting renewable electricity into synthetic methane involves multiple energy conversion steps, such as electrolysis and methanation, which can result in energy losses. Thus, the overall efficiency of the conversion process needs to be improved to make synthetic methane production more energy-efficient. This factor has restrained customers from using synthetic methane over natural gas extracted methane, which hampered the growth of the global market. Moreover, the infrastructure required for large-scale production and distribution of synthetic methane is currently limited. Expanding the production capacity would require significant investments in methanation plants and associated infrastructure, which may not be feasible in all regions. This may hamper the growth of the synthetic methane market during the forecast period.
On the contrary, improvements in the process of synthetic methane production are anticipated to create lucrative opportunities for research and innovation. For instance, Advances in electrolysis, methanation, carbon capture, and other related processes can enhance efficiency, reduce costs, and increase the scalability of synthetic methane production. These advancements can drive down production costs, making synthetic methane more economically viable and competitive. This factor is expected to boost the demand for synthetic methane, which, in turn, is likely to open new avenues for the expansion of the synthetic menthane market during the forecast period.
The report segments the synthetic methane market on the basis of source, application, and region. On the basis of source, the market is categorized into direct air capture and hydrogen and carbon dioxide. Depending on application, it is divided into fuel, hydrogen transport carrier, industrial, and others. Region -wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA.
The global synthetic methane market profiles leading players that include CLARIANT, Air Liquide, Terega, TransTech Energy, LLC, OSAKA GAS CO.,LTD, Zentrum für Sonnenenergie- und Wasserstoff-Forschung Baden-Württemberg, Dakota Gasification Company, Mitsubishi Corporation, KADATEC s.r.o., and MAN Energy Solutions.
The global synthetic methane market report provides in-depth competitive analysis as well as profiles of these major players.
Key findings of the study
- By source, the hydrogen and carbon dioxide segment is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 14.2% from 2023 to 2032.
- By application, the fuel segment is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 14.4% from 2023 to 2032.
- By region, Asia-Pacific garnered the highest share of of around 50% in 2022, in terms of revenue, growing at a CAGR of 14.7%.
Companies Mentioned
- CLARIANT
- Air Liquide
- Terega
- TransTech Energy, LLC
- OSAKA GAS CO.,LTD
- Zentrum für Sonnenenergie- und Wasserstoff-Forschung Baden-Württemberg
- Dakota Gasification Company
- Mitsubishi Corporation
- KADATEC s.r.o.
- MAN Energy Solutions
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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