Energy and power

Power-to-gas Market: Growing Demand for Renewable Energy Sources to Drive Market Growth

The global power-to-gas market is estimated to be valued at US$ 30.27 billion in 2022 and is expected to exhibit a CAGR of 12.2% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
The power-to-gas market involves the conversion of excess renewable electricity into hydrogen or methane, which can be stored and used in various applications. This technology enables the storage of renewable energy and its utilization when there is a high demand, contributing to the stability of the energy grid. The advantages of power-to-gas technology include long-term energy storage, reduction in carbon emissions, and the ability to integrate with existing gas infrastructure. With the increasing demand for renewable energy sources and the need for energy storage, the power-to-gas market is expected to witness significant growth.

Market Key Trends:
A key trend in the power-to-gas market is the integration of electrolyzers with renewable energy sources. Electrolyzers play a crucial role in the conversion of excess electricity into hydrogen or methane. The use of renewable energy sources such as solar and wind power in conjunction with electrolyzers ensures a sustainable and green energy conversion process. The integration of electrolyzers with renewable energy sources not only helps in the efficient utilization of excess energy but also reduces dependency on fossil fuels. This trend is expected to drive the growth of the power-to-gas market in the forecast period.
Porter’s Analysis

Threat of New Entrants: The power-to-gas market presents a moderate threat of new entrants due to the high capital requirements and technological expertise needed to enter the market. The establishment of distribution networks and partnerships with existing players also pose challenges for new entrants.

Bargaining Power of Buyers: The bargaining power of buyers in the power-to-gas market is moderate. Buyers have the ability to switch suppliers if they find better terms or prices. However, the limited number of suppliers and the necessity of power-to-gas solutions create some dependence on existing players.

Bargaining Power of Suppliers: The bargaining power of suppliers in the power-to-gas market is moderate to high. The market relies on suppliers for key components and technologies, giving suppliers some leverage in negotiating prices and terms. However, the growth of the market provides opportunities for multiple suppliers to enter and increase competition.

Threat of New Substitutes: The threat of new substitutes in the power-to-gas market is low. Power-to-gas solutions offer unique capabilities and advantages, such as long-term energy storage and the conversion of excess renewable energy, which are difficult to replicate with other technologies.

Competitive Rivalry: The power-to-gas market is highly competitive, with several major players vying for market share. The presence of established companies, such as Aquahydrex Inc., MAN Energy Solutions, and Electrochaea GmbH, along with emerging players, contributes to intense competition in terms of innovation, pricing, and market reach.

Key Takeaways

The global Power-to-gas Market Demand is poised for high growth, exhibiting a CAGR of 12.2% during the forecast period of 2023-2030. The increasing focus on renewable energy integration and the need for long-term energy storage are primary drivers of this market growth. Power-to-gas solutions enable the conversion of excess renewable energy into hydrogen or methane, which can be stored and utilized during peak demand or when renewable energy generation is low. This technology addresses the intermittent nature of renewable energy sources and allows for a smoother and more reliable energy supply.

In terms of regional analysis, Europe is expected to be the fastest growing and dominating region in the power-to-gas market. The region’s strong renewable energy integration efforts, supportive government policies, and initiatives to decarbonize the energy sector contribute to its leadership position. Countries like Germany, Denmark, and the Netherlands are at the forefront of adopting power-to-gas solutions, creating significant market opportunities.

Key players operating in the power-to-gas market include Aquahydrex, Inc., MAN Energy Solutions, Electrochaea GmbH, ITM Power PLC, EXYTRON GmbH, Hydrogenics Corporation, and Hitachi Zosen Corporation. These companies are actively involved in research and development activities to enhance their product offerings and expand their market presence. They are also engaging in strategic collaborations and partnerships to gain a competitive edge in the market. As the demand for power-to-gas solutions continues to rise, these key players are well-positioned to capitalize on the market opportunities and maintain their leadership positions.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it

Money Singh

Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc.