Power-To-Gas Market to Drive Growth at USD 91.97 Million by 2031 |SkyQuest Technology | Business Upturn
SkyQuest projects that the global power-to-gas market will attain a value of USD 91.97 Million by 2031, with a CAGR of 11.24% during the forecast period (2024-2031). The growth of the power-to-gas market is driven by many factors including the growing usage of renewable energy resources for power generation and the integrated management of power-to-gas technology. The increasing demand for green hydrogen across various sectors is also boosting market growth as it helps in minimizing carbon emissions. Additionally, the potential use of hydrogen in mobility solutions and as a substitute for natural gas offers immense opportunities for market growth. The necessity for efficient energy storage solutions to balance intermittent renewable energy sources further fuels the market expansion.
Power-To-Gas Market Overview
The growing concern over greenhouse gas emissions is significantly increasing the popularity of electrolysis within the power-to-gas market. Based on technology, the electrolysis segment is experiencing substantial growth due to its efficiency and widespread applicability. Rising public awareness regarding greenhouse emissions plays a crucial role in this segment’s growth, as does the increasing demand for carbon-neutral technologies in lieu of conventional methods. Furthermore, growing investments in research and development efforts aimed at energy efficient technologies that facilitate energy storage are also driving the expansion of this segment in the market.
Increasing Requirement of Fuel Production
According to a power-to-gas market analysis, the 100 kW to 1000 kW capacity range is leading the market with the largest share. This segment is growing due to the rising demand for fuel production, making it ideal for numerous industrial applications and energy systems as it maintains a balance between scalability, efficiency, and cost. Additionally, many industries are striving to reduce emissions and adopt cleaner fuels like hydrogen. Centralized P2G systems cater to the increasing need for energy storage, grid balancing, and hydrogen production. The 100 kW to 1000 kW segment plays a crucial role in the power-to-gas market by satisfying the demands of medium-sized applications, bridging the gap between smaller pilot projects and large-scale industrial systems.
Growing Necessity to Reduce Carbon Emission in Europe
Europe currently dominates the power-to-gas industry, driven by significant progress in renewable electricity production. Continued increase in power generation from intermittent sources is expected to contribute to lower spot electricity prices, fostering market growth and opportunities for adaptable electro-intensive processes. With an array of programs and objectives aimed at integrating renewable electricity, power-to-gas has seen substantial technical validation at a large scale. To address carbon emissions, the European energy sector is undergoing a major transformation, and the demand for power-to-gas technology is anticipated to rise due to political goals surrounding renewable energy integration and carbon reduction.
Market Insights
This report provides insights into key drivers (e.g., growing popularity of renewable energy and increasing electricity demand), restraints (such as rising price fluctuations in natural gases and high initial infrastructure costs), opportunities (the rise in environmental concerns), and challenges (emerging environmental concerns) that are influencing the power-to-gas market’s growth.
The power-to-gas market is set to witness transformative changes as the global energy landscape evolves towards more sustainable practices. By addressing the dual challenges of carbon emissions and energy storage, the sector presents significant growth opportunities. Stakeholders and industry players are encouraged to stay informed and consider the insights provided in this report as they navigate this emerging market.
