Methane Market Report 2026

The methane market size has grown strongly in recent years. It will grow from $126.37 billion in 2025 to $136.94 billion in 2026 at a compound annual growth rate (CAGR) of 8.4%. The growth in the historic period can be attributed to growth in natural gas production, expansion of chemical industries, development of power generation infrastructure, demand for residential energy, industrial heating requirements.

The methane market size is expected to see strong growth in the next few years. It will grow to $198.04 billion in 2030 at a compound annual growth rate (CAGR) of 9.7%. The growth in the forecast period can be attributed to investment in renewable gas technologies, growth in aerospace fuel demand, expansion of power to gas projects, energy security initiatives, rising demand for low carbon fuels. Major trends in the forecast period include growing use as a clean energy fuel, expansion of synthetic methane production, rising demand for power generation applications, increased use as chemical feedstock, growth in LNG and rocket fuel applications.

Rising demand in the automotive industry is expected to drive the growth of the methane market in the coming years. The automotive industry includes companies engaged in the manufacturing, sales, maintenance, and customization of motorized vehicles. This sector’s growing demand is fueled by the need for cost-effective and cleaner fuel alternatives that reduce emissions and comply with stricter environmental regulations. Methane supports automotive applications as a relatively low-cost, cleaner-burning fuel compared to conventional gasoline and diesel, producing fewer harmful particulates and greenhouse gases. For example, in April 2024, the International Federation of Robotics reported that manufacturing companies in the United States significantly increased automation investments, with total industrial robot installations rising 12% to 44,303 units in 2023. Installations in the automotive segment grew 1% to a record 14,678 units, following a sharp 47% increase in 2022, and automotive manufacturers accounted for 33% of all industrial robot installations in the U.S. in 2023. Consequently, rising demand in the automotive industry is fueling the growth of the methane market.

Major companies operating in the methane market are focusing on innovative products such as methane measurement instruments to expand their customer base, boost sales, and increase revenue. Methane measurement instruments are designed to quantify the concentration of methane gas in a given environment. For example, in October 2023, Schlumberger NV introduced the Methane Point Instrument, a self-installed continuous monitoring system equipped with IoT-enabled sensors. This advanced technology provides a rapid and cost-effective solution for detecting, locating, and quantifying emissions in oil and gas operations. The Methane Point Instrument's industry-leading leak detection sensitivity, combined with its compact and durable 'plug-and-play' design, represents a significant advancement in methane measurement technology, automating continuous monitoring processes and eliminating the need for manual data collection.

On May 3, 2024, ExxonMobil, a US-based energy company specializing in oil and gas, acquired Pioneer Natural Resources for an undisclosed amount. Through this acquisition, ExxonMobil intends to boost its production capacity in the Permian Basin, accelerate its environmental commitments, and generate long-term shareholder value by enhancing operational efficiency. Pioneer Natural Resources is a US-based company involved in hydrocarbon exploration and production.

Major companies operating in the methane market are BP plc, Oil and Natural Gas Corporation, IGas Energy plc, China National Petroleum Corporation, Senex Energy Limited, Shell plc, China National Offshore Oil Corporation, Metgasco Limited, G3 Exploration Ltd., Air Liquide SA, Bhuruka Gases Limited, Chengdu Taiyu Industrial Gases Co. Ltd., Linde plc, Osaka Gas Co. Ltd., Qingdao Guida Special Gas Co. Ltd., Primus Green Energy Inc., Gazprom Neft PJSC, Bharat Petroleum Corp. Ltd., Chevron Corporation, Exxon Mobil Corporation, Honeywell International Inc., TotalEnergies SE, Hess Corporation, Koch Minerals & Trading LLC.

North America was the largest region in the methane market in 2025. Europe was the second-largest region in the methane market. The regions covered in the methane market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the methane market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The methane market consists of sales of biomethane, fossil methane, compressed methane, and liquefied methane. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

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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