Gas Utilities Market Analysis Europe, North America, APAC, South America, Middle East and Africa - US, Germany, Russia, China, France - Size and Forecast 2024-2028

Gas Utilities Market Size 2024-2028 

The gas utilities market size is estimated to grow by USD 475.8 billion at a CAGR of 5.35% between 2023 and 2028. Natural gas is experiencing significant growth in global demand due to its role as a cleaner alternative to coal and oil in power generation and industrial processes. This trend is driving an expansion of gas pipeline infrastructure to meet increasing demand and ensure reliable energy supply. Governments worldwide are providing favorable support through policies and investments to encourage the development of new pipelines and the modernization of existing ones. For instance, the United States has seen a surge in domestic production and infrastructure development, making it a key player in global gas markets. These factors are contributing to a robust outlook for the natural gas industry, with continued growth expected in the coming years.

What will be the size of the Market During the Forecast Period?

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Market Segmentation

By Type

The market share growth by the industrial gas segment will be significant during the forecast period. This term is used to describe gases that are produced and used in a variety of industries for a variety of purposes, including the production of electricity. Based on their physical and chemical characteristics, these can be classified into a variety of groups, including inert, fuel, specialty, and medical gases.

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The industrial gas segment was valued at USD 583.50 billion in 2018.  A wide range of goods, including hydrogen, oxygen, nitrogen, argon, carbon dioxide, helium, and others, are available on the market. These are typically sold in bulk to industrial clients who use them for welding, refrigeration, manufacturing processes, and other uses. Since industrial processes like the production of steel, chemicals, and electronics heavily rely on these, the manufacturing sector is largely responsible for the demand. Consequently, the market is anticipated to expand steadily owing to the rising demand from emerging economies and the expanding use of these in a variety of applications, both of which will contribute to the segment's expansion during the forecast period.

By Region

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Europe is estimated to contribute 42% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Due to its size and reliance on these for energy, Europe is a sizable market. This is now preferred over other fossil fuels for power generation as a result of the growing emphasis on clean and the phase-out of coal and nuclear power plants across Europe. For example, the German commission declared that all coal-fired power plants would be shut down by 2038. In a similar vein, France has pledged to completely phase out coal-fired power plants by the end of 2023. As a result, it has enormous growth potential as a fuel for electricity production. Low prices, a modest increase in the production of renewable energy, and the carbon price set by the EU Emissions Trading System all contributed to this growth. The expansion of this power generation in Europe is also being fueled by increased flexibility and full-load efficiency.

With pipelines connecting different nations, Europe's infrastructure is well-developed and enables the movement from one area to another. The Netherlands, the United Kingdom, Germany, Italy, and Austria are the region's primary hubs. The development of green or biogas is a result of the recent increased emphasis on renewable sources. Utility companies in Europe are anticipated to invest in renewable projects as this trend is likely to continue. All these factors will fuel the market growth in the region during the forecast period. 

Market Dynamics and Customer Landscape

The market is experiencing a transformation with the integration of renewable energy resources and a focus on reducing carbon emissions. Electrolysis and methanation segments are gaining prominence, offering solutions for hydrogen production and emissions reduction. They are adopting inorganic strategies to enhance their capacity and offerings, particularly in the power-to-gas system. These developments aim to provide customers with safe, dependable, and cost-effective solutions. The market encompasses a wide range of customers, including homes, apartments, and businesses, rely on pipelines and infrastructure for the distribution of electricity.

Key Market Driver

The expansion of gas pipeline infrastructure is notably driving market growth. The availability and accessibility of these play crucial roles in their demand and utilization. The development of these pipelines facilitates the transportation to previously inaccessible areas. This expansion enhances the efficiency of distribution, reducing transportation costs and ensuring a more reliable supply. It also contributes to the integration of renewable energy resources into the power and gas network, leading to emissions reduction. This development benefits customers, companies, and governments by providing a safe, dependable, and cost-effective source. Consequently, the increased availability can lead to its greater use as a primary source, especially in sectors like power generation, heating, and transportation.

In addition, the construction of new pipelines can stimulate economic growth by creating jobs and attracting investment to local communities. It also enhances infrastructure, benefiting homes, apartments, and businesses. Additionally, it increases capacity and supports inorganic strategies for growth. Overall, the expansion of pipeline infrastructure is a major driver of the global market, improving distribution efficiency and supporting market growth in the forecast period.

Significant Market Trends

Technological advances in gas distribution are an emerging trend in market growth. The implementation of smart distribution systems has been one of the most important recent developments. These systems make use of cutting-edge technologies like artificial intelligence (AI), big data analytics, and the Internet of Things (IoT) to optimize distribution operations and boost delivery efficiency. They can remotely monitor and control distribution networks with smart distribution systems, find leaks and other anomalies, and plan the best routes for delivery. They can also increase the precision and timeliness of their operations, cut waste and inefficiencies, and raise overall customer satisfaction by utilizing real-time data and advanced analytics.

Furthermore, long-distance transportation using LNG is becoming more common. They can be transported by waterways in the compressed, cooled form known as LNG, which makes it a desirable option looking to source gas from foreign suppliers. The global market for gas utilities is, in general, going through significant technological and regulatory changes, with an emphasis on enhancing customer satisfaction, reducing environmental impact, and increasing efficiency. Therefore, such factors will drive growth in the market during the forecast period.

Major Market Challenge

Competition from alternative sources of energy, such as renewable energy and nuclear power is a major challenge impeding market growth. There is a rising trend toward renewable sources like wind, solar, and hydropower as the need to reduce greenhouse emissions and combat climate change becomes more widely recognized. Aside from that, nuclear energy is gaining popularity due to its low carbon emissions and capacity to deliver dependable baseload power. Hence, they face a big challenge owing to this shift toward alternative sources because they have to compete with these technologies on price, dependability, and environmental impact. Renewable sources are becoming increasingly cost-competitive with traditional fossil fuels, particularly as the cost of solar and wind power continues to fall.

However, the global initiatives to combat climate change by reducing carbon emissions are primarily responsible for the increase in the share of renewable energy sources. Clean energy sources, such as renewable energy has grown in importance and also support international efforts made by various governments to cut GHG emissions. The adoption of renewable energy in the heat, electricity, and transportation sectors is thus anticipated to increase to meet long-term climate and other sustainability goals. Additionally, as the self-consumption of energy is made possible by renewable energy sources like solar and wind, the demand for utilities will decline. Hence, such factors will restrict the growth of the market during the forecast period.

Customer Landscape

The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Global Market Customer Landscape

Who are the Major Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

China Gas Holdings Ltd. - The company focuses on the investment, construction, and operation of gas pipeline infrastructure facilities, gas terminals, storage and transportation facilities, gas logistics systems, and transmission of natural gas and liquefied petroleum gas. The key offerings of the company include gas utilities solutions for fertilizer, power, petrochemicals, glass, and steel sectors.

The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

• Atmos Energy Corp.
• China National Petroleum Corp.
• CMS Energy Corp
• Duke Energy Corp.
• E.ON SE
• Electricite de France SA
• Enel Spa
• ENGIE SA
• ENN Energy Holdings Ltd.
• Gazprom International Ltd.
• Iberdrola SA
• National Grid Plc
• Nextera Energy Inc.
• Origin Energy Ltd.
• PG and E Corp.

Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.

Segment Overview

The market research and growth research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.

• Type Outlook 
  • Industrial gas
  • Special gas
  • Bio gas and synthetic gas

• End-user Outlook 
  • Residential and commercial
  • Power generation
  • Industrial
  • Others

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Chile
    • Brazil
    • Argentina

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Market Analyst Overview

The market is crucial in addressing energy efficiency programs and reducing greenhouse gas emissions, notably methane, a potent greenhouse gas. It encompasses the distribution of renewable natural gas (RNG) to residential users, commercial businesses, and industrial end-users. LNG imports play a significant role in meeting demand dynamics, reducing geopolitical dependence, and enhancing national security amidst political tensions and conflicts. Technological advancements in green hydrogen production by companies like Hydrogenics, ITM Power, and Nel Hydrogen are pivotal in commercializing MW-size projects such as Project Centurion. Integrated energy firms and pipeline operators collaborate to ensure efficient distribution and storage facilities for alternative fuels, including hydrogen and RNG. As institutions and governments emphasize carbon capture technologies, gas utilities contribute to sustainable energy solutions, supporting a transition towards cleaner energy sources globally.

In addition, the market is evolving with a focus on energy efficiency programs and technological advancements. Companies like McPhy Energy, ThyssenKrupp, Electrochaea, and Exytron are pivotal in the commercialization of MW-size projects, particularly in green hydrogen production. Institutions such as Centrica and Osaka Gas play significant roles in the institutional sector, driving innovations in gas distribution and storage. These efforts aim to enhance energy efficiency and reduce reliance on oil while promoting sustainable practices. As the market continues to expand, collaborations among industry leaders and advancements in technology are crucial for meeting global energy demands while mitigating environmental impacts through the adoption of alternative fuels and carbon capture technologies.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2024 and 2028
• Precise estimation of the size of the market  and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming market growth and trends and changes in consumer behavior
• Growth of the market across APAC, Europe, North America, Middle East and Africa, and South America
• Thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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