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The gas utilities market size is estimated to grow by USD 445.37 billion at a CAGR of 5.25% between 2022 and 2027. The growth is driven by factors such as increasing energy consumption, especially in developing countries, and the transition towards cleaner energy sources. The expansion of gas pipeline infrastructure is essential for transporting natural gas from production areas to consumption centers, enabling access in regions without direct production. Favorable government support, such as incentives for natural gas use and infrastructure development, can further boost market growth by creating a conducive environment for investment and development in the natural gas sector.
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This market report extensively covers market segmentation by type (industrial gas, special gas, and biogas and synthetic gas), end-user (residential and commercial, power generation, industrial, and others), and geography (Europe, North America, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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 575.52 billion in 2017. 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.
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Europe is estimated to contribute 34% 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.
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. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
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.
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.
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.
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.
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.
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
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 vendors, including:
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.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
The market plays a crucial role in meeting residential and industrial energy demands. With a focus on energy efficiency programs, the market aims to reduce carbon footprints and mitigate environmental effects. Renewable energy investments and smart grids are driving factors, alongside global population growth and economic sectors. They also address national security concerns and contribute to faster economic growth. However, challenges such as geopolitical dependence and methane emissions require strategic business decisions and market liberalization for sustainable growth.
The market is essential for providing energy to the commercial and household sectors, supporting industrial applications, and electric power generation. It encompasses distribution generation models and global utility mergers and acquisitions, ensuring efficient electricity generation and transmission. Power-to-gas technologies are driving innovations, along with battery storage for solar energy. The market addresses residential demand and community needs, offering fixed and variable rates. It also focuses on safety, customer assistance, and environmental sustainability through energy storage projects and smart meters.
The market plays a vital role in the commercial sector, providing energy for cooking, dishwashing, and industrial facilities. It involves electric power transmission and global market operations, including LNG imports. Fixed rates and invoicing are key aspects, along with operator types such as private and public operators. The market addresses water and sewage management, including sewage treatment facilities and wastewater management. Renewable natural gas (RNG) and solar tracking technologies contribute to its sustainability efforts.
Gas Utilities Market Scope |
|
Report Coverage |
Details |
Page number |
178 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.25% |
Market growth 2023-2027 |
USD 445.37 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
4.56 |
Regional analysis |
Europe, North America, APAC, South America, and Middle East and Africa |
Performing market contribution |
Europe at 34% |
Key countries |
US, China, Germany, Russia, and France |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Atmos Energy Corp., China Gas Holdings Ltd., 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., The Hong Kong and China Gas Co. Ltd., Tokyo Gas Co. Ltd., Bharat Petroleum Corp. Ltd., and Southern Co. |
Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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