Household Natural Gas Distribution Global Market Report 2025

The household natural gas distribution market size has grown strongly in recent years. It will grow from $205.84 billion in 2024 to $217.16 billion in 2025 at a compound annual growth rate (CAGR) of 5.5%. The growth in the historic period can be attributed to urbanization trends, population growth, energy efficiency concerns, government policies and incentives, consumer preferences.

The household natural gas distribution market size is expected to see strong growth in the next few years. It will grow to $273.61 billion in 2029 at a compound annual growth rate (CAGR) of 5.9%. The growth in the forecast period can be attributed to renewable natural gas integration, smart metering and IoT integration, decentralized energy systems, energy transition initiatives, hydrogen blending. Major trends in the forecast period include advancements in gas storage technologies, technological advancements, transition to renewable natural gas (RNG), demand response programs, infrastructure modernization.

The forecast of 5.9% growth over the next five years reflects a slight reduction of 0.1% from the previous projectiont. This reduction is primarily due to the impact of tariffs between the US and other countries. Tariff constraints on smart metering devices and control modules, primarily imported from European and Asian suppliers, may drive up costs for utility companies expanding household natural gas networks. The effect will also be felt more widely due to reciprocal tariffs and the negative effect on the global economy and trade due to increased trade tensions and restrictions.

The growing demand for natural gas is anticipated to fuel the expansion of the household natural gas distribution market. Natural gas is a naturally occurring mixture of gaseous hydrocarbons, primarily methane, along with smaller quantities of other higher alkanes. In households, natural gas is used for heating, cooking, clothes drying, and water heating when paired with the right appliances. The rise in household applications for natural gas will drive demand for natural gas distribution services, supporting market growth. For example, in May 2022, the US Energy Information Administration, a US-based government agency, reported that the United Kingdom produced 934,000 barrels per day (b/d) in total liquid fuels and 1.1 trillion cubic feet (Tcf) of natural gas in 2021. Thus, the increasing demand for natural gas is supporting the expansion of the household natural gas distribution market.

The growing focus on cleaner energy sources is expected to drive growth in the household natural gas distribution market in the coming years. Cleaner energy has a reduced environmental impact compared to traditional sources, primarily through lower greenhouse gas emissions and fewer pollutants. The shift towards clean energy sources has boosted the appeal of natural gas, viewed as a cleaner-burning fossil fuel, leading to increased demand for residential use as households prioritize environmentally friendly energy options. For instance, in June 2023, the Energy Information Administration, the primary US government entity for energy data, reported that renewable energy consumption in the United States increased to a record high of 13.2 quads in 2022 from 12.1 quads in 2021. The greater use of renewables for power generation, particularly wind and solar, was a significant factor in this rise. Consequently, the heightened emphasis on cleaner energy sources is advancing the household natural gas distribution market.

Premier companies in the household natural gas distribution market are concentrating on product innovation to solidify their market position. ABB Ltd., a Switzerland-based automation company, exemplifies this by launching the Sensi+ technological product for natural gas quality monitoring in December 2022. This innovative solution simplifies pipeline operation and maintenance, offering safer, easier, and more efficient monitoring and operations through a single device capable of real-time analysis of up to three contaminants in any natural gas stream. It features built-in self-diagnostics, automated laser line-locking, and real-time cross-interference compensation, enhancing the capabilities for natural gas pipeline operators.

Household natural gas distribution involves distribution systems with mains and services pipelines transporting gas from meter stations throughout the distribution systems. These systems are utilized for heating buildings and water, cooking, and drying clothes.

The primary household natural gas distribution types are pipelines and LNG vessels. Pipelines, large pipes transporting gas or oil over long distances, can be public or private operators and source conventional or unconventional gas.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The sharp rise in U.S. tariffs and the ensuing trade tensions in spring 2025 are having a notable impact on the utilities sector, particularly across power generation, grid modernization, and renewable energy initiatives. Increased duties on imported equipment such as turbines, transformers, solar panels, and battery storage systems are driving up both capital and operational expenses for utility companies, prompting many to delay projects or pass higher costs on to consumers through increased energy rates. The water and waste management sectors are similarly affected, as tariffs inflate the cost of essential machinery, piping, and treatment technologies. Moreover, retaliatory tariffs from key trading partners have disrupted the supply of critical raw materials - such as rare earth elements vital for clean energy technologies - posing further challenges to the shift toward sustainable energy. In response, the sector is increasingly focusing on domestic procurement, digital transformation, and efficiency-enhancing innovations to control rising costs while safeguarding energy reliability and meeting regulatory demands.

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

Premier companies in the household natural gas distribution market are adopting a strategic collaboration approach to distribute renewable natural gas. Strategic collaboration refers to a process in which companies leverage each other's strengths and resources to achieve mutual benefits and success. Vanguard Renewables, a US-based company producing renewable natural gas, announced a collaboration with AstraZeneca Plc in June 2023. AstraZeneca will procure Vanguard Renewables RNG for its Newark Campus, utilizing the Farm Powered method to create RNG from food and dairy cow waste. The RNG will be fed into existing natural gas pipelines for use in AstraZeneca's pharmaceutical research and production activities.

In December 2022, BP Plc., a UK-based oil and gas company, completed the acquisition of Archaea Energy Inc. for $4.1 billion. This acquisition strengthens BP's position in the US biogas market, enhancing its ability to support customers' decarbonization objectives and furthering its ambition to reduce the carbon intensity of the energy products it sells. Archaea Energy Inc. is a US-based biogas company engaged in the production and distribution of natural gas.

Major companies operating in the household natural gas distribution market include China Petroleum & Chemical Corporation, PetroChina Company Limited, China National Petroleum Corporation, PJSC Gazprom, Centrica plc, Tokyo Gas Co. Ltd., Osaka Gas Co. Ltd., Sempra Energy, Williams Companies Inc., Southwest Gas Corporation, Atmos Energy Corporation, New Jersey Resources Corporation, South Jersey Industries Inc., ONE Gas Inc., WGL Holdings Inc., National Fuel Gas Company, Spire Inc., Chesapeake Utilities Corporation, UGI Corporation, Northwest Natural Holding Company, CentralPoint Energy Inc.

Asia-Pacific was the largest region in the household natural gas distribution market in 2024. The regions covered in the household natural gas distribution market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the household natural gas distribution market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The household natural gas distribution market includes revenues earned by entities by providing services such as processing, transportation, and storage. 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.

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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