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The gasification market size is forecast to increase by USD 116.6 billion at a CAGR of 4.36% between 2023 and 2028. The market's expansion is driven by several key factors. Firstly, the rise in global energy demand is a significant driver, highlighting the growing need for reliable energy sources. Additionally, there is an increasing focus on cleaner energy solutions, driven by environmental concerns and regulatory pressures. Gasification, in particular, offers economic benefits, such as cost-effectiveness and efficiency, further fueling its adoption. These factors collectively indicate a shift towards sustainable energy practices and the increasing importance of technologies like gasification in meeting global energy needs.
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The market is driven by various factors, including the demand for syngas as a versatile fuel and feedstock. Technologies like fixed bed gasifiers, entrained-flow gasifiers, and fluidized-bed gasifiers are key players in converting organic or fossil-based raw materials into syngas. The market is influenced by the coal industry and initiatives like the Global Syngas Technologies Council (GSTC). Gasification plays a vital role in the chemical segment, producing ammonia, methanol, and other chemicals. Additionally, with a focus on carbon capture and storage (CCS), gasification is expected to support sustainable development in the industrialization and urbanization processes.
The rise in global energy demand is notably driving market growth. Owing to robust economic growth, there was significant growth in global energy demand over the past decade. According to the IEA, the demand for chemical products, driven by the demand for nitrogenous fertilizers and plastics, has been increasing substantially over the past two decades. Moreover, there has been significant growth in the demand for electricity across the world.
As disposable income increases, the demand for energy services such as air conditioning is also expected to increase, especially in the housing sector. This is supported by industrialization, urbanization, and the increasing use of electric motor systems in industry, all contributing to rising industrial energy demand. Additionally, the utilization of petroleum liquid feedstock in thermochemical conversion processes further enhances energy production capabilities. Thus, the overall increase in global energy demand is anticipated to drive the demand for hydrocarbon fuels such as coal, oil, biomass, and others. This heightened demand for energy resources, coupled with advancements in utilizing petroleum liquid feedstock for energy generation, is expected to fuel market growth during the forecast period as industries and households alike seek to meet their escalating energy needs efficiently.
The rise in global coal production is the primary trend in the market. This is one of the main sources of energy worldwide. Coal has been dominating the global energy mix due to its abundance, affordability and widespread distribution. Areas such as Asia and South Africa have significant coal reserves. As of 2021, China was the largest producer of coal in the world, followed by the United States. Other important coal-producing countries are Australia, India, and Russia.
China is the largest producer of coal and lignite in the world. The relaxation of import restrictions in China has also boosted global coal production, particularly in Indonesia and the United States. Coal production has also increased in, for example, Russia and India, which is consistent with the national government's focus on reducing dependence on coal imports. Thus, production growth is expected to boost the growth of the market during the forecast period.
High operating and maintenance costs is the major challenge impeding market growth. Waste-to-energy gasification, such as incineration, is widely used in various regions. However, incineration facilities require significant capital investment and incur high operating and maintenance costs. Costs vary depending on facility size, local infrastructure conditions, design, energy efficiency, and waste management options.
Therefore, incineration requires investments from foreign companies for the installation of the purifier and the initial installation and maintenance of the work cycle. Similarly, the disposal of solid household waste in a landfill generates considerable costs. Landfill costs depend on the geographic location of the landfill. Thus, the cost and complexity associated with landfill and incineration may limit the adoption of efficient gasification processes, thus limiting the growth of the focus market during the forecast period.
The market forecasting 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 market growth and forecasting strategies.
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.
Basin Electric Power Co. - The company offers gasification such as Underground Coal Gasification under the gasification segment.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market share growth of the coal segment will be significant during the forecast period. Coal plays a significant role in the global energy mix as countries direct their efforts toward achieving net-zero emissions. Gasification technology can help in reducing the environmental footprint by utilizing coal as a feedstock, thus boosting the market in focus during the forecast period.
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The coal segment was valued at USD 248.60 billion in 2018. Coal gasification provides a way of producing clean chemicals, liquid and gaseous fuels, power, and blends of products using indigenous carbonaceous feedstocks, thus enabling countries to meet their energy security and environmental objectives while using coal. In addition to the environmental benefits, the economic benefits of coal gasification are also boosting the growth of the market. For instance, the capital cost per kW of offshore wind power is 154% higher than coal gasification. Thus, coal gasification presents an attractive, clean energy technology in comparison to other technologies, such as renewables, thereby boosting segment growth during the forecast period, particularly in developing economies.
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APAC is estimated to contribute 48% 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.
APAC countries such as China and India rely extensively on coal to meet their energy demand. Moreover, China has been the largest coal producer in the world since 1985. Hence, coal plays a significant role in China energy mix. However, the commitments laid out in the 2015 Paris Climate Agreement, which has set emission limits, have encouraged China to opt for advanced carbon capture technologies, particularly through gasification. As coal gasification can also be carried out via bioenergy gasification, as biomass alone is not capable of producing enough energy efficiently, researchers in China have proposed a combination of coal and biomass energy.
A biomass proportion of at least one-third can lead to a reduction in CO2 emissions, thereby leaving a major share for the use of coal. Hence, the rising demand for energy, the presence of significant reserves, and rising demand for clean energy technologies will lead to the growth of the market in APAC during the forecast period.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The market is driven by various factors, including the demand for cleaner energy generation technologies and the need for feedstock diversification. Technologies like anaerobic digestion plants, integrated gasification combined cycle (IGCC), and thermochemical conversion play a crucial role in converting various feedstocks into valuable products such as hydrogen, carbon monoxide gas, and carbon dioxide.
Furthermore, this market is influenced by factors such as global population growth, rapid industrialization, and environmental awareness, leading to a shift towards sustainable practices in waste disposal and recycling. The market caters to various sectors including chemical manufacturing, power generation, and the municipal sector with solutions that reduce emissions and utilize biodegradable materials for a more sustainable future.
Market Scope |
|
Report Coverage |
Details |
Page number |
187 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.36% |
Market Growth 2024-2028 |
USD 116.6 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.1 |
Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
Performing market contribution |
APAC at 48% |
Key countries |
China, US, Germany, India, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Air Liquide SA, Air Products and Chemicals Inc., Andritz AG, Basin Electric Power Cooperative, CASE GROUP, China National Chemical Engineering Co. Ltd., Chiyoda Corp., EQTEC Plc, General Electric Co., KBR Inc., Larsen and Toubro Ltd., Linde Plc, McDermott International Ltd., Mitsubishi Heavy Industries Ltd., Oil and Natural Gas Corp. Ltd., Shell plc, Siemens AG, Synthesis Energy Systems Inc., ThermoChem Recovery International Inc., and thyssenkrupp AG |
Market dynamics |
Parent market analysis, Market forecast, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Feedstock
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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