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The underground gas storage market size is estimated to grow at a CAGR of 5.36% between 2022 and 2027. The market size is forecast to increase by USD 9,797.35 million. The growth of the market depends on several factors including growing energy demand, ensuring energy security, and modernization of infrastructure.
This underground gas storage market report extensively covers market segmentation by type (depleted fields, salt caverns, and aquifer reservoir), product (natural gas, hydrogen, and others), and geography (Europe, North America, APAC, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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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.
One of the key factors driving the underground gas storage market growth is the growing energy demand. Factors such as the increasing need for a consistent supply of natural gas coupled with the increasing energy demand across the world significantly contribute to the growth of underground gas storage facilities. Additionally, it is essential to maintain a consistent supply as there is a growing demand for natural gas in the industrial, commercial, and residential sectors. industrial, commercial, and residential sectors. especially during times of variable demand or supply outages.
Furthermore, underground gas storage facilities offer an opportunity to store excess natural gas during periods of low demand and supply in order to maintain supply chain stability and provide energy security. As a result, several countries are able to overcome challenges such as seasonal changes, unanticipated supply disruptions, or geopolitical uncertainty due to this flexibility. Hence, such factors are expected to drive market growth during the forecast period.
A key factor shaping the underground gas storage market growth is the development of gas trading hubs. Gas trading hubs are essentially central marketplaces where buyers and sellers can meet and exchange natural gas contracts, thereby increasing market liquidity and pricing transparency. As a result of these transactions, the gas market becomes more flexible and dynamic and it facilitates market players to react quickly to shifting supply and demand conditions.
Hence, underground gas storage facilities are essential as it allows participants to balance swings by injecting surplus gas during times of low demand and removing gas during times of high demand. Netherlands TTF (Title Transfer Facility) is one of the major gas trading hubs exhibiting the efficiency of such market arrangements in maintaining supply security and streamlining gas flows. Hence, such factors are expected to drive market growth during the forecast period.
Competition from alternative storage technologies is one of the key challenges hindering the underground gas storage market growth. Some of the main alternatives to underground gas storage are emerging energy storage technologies like batteries and hydrogen storage. These alternatives can pose a significant threat to the global underground gas storage market growth.
Additionally, it has become essential for traditional petrol storage solutions to evolve as per the changing market conditions as there is a shift towards more sustainable energy sources. Furthermore, there is a growing popularity for batteries as a means of short-storage solutions as well as hydrogen storage for long-term and large-scale applications. Hence, such factors can hinder the market growth during the forecast period.
The market research 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 Underground Gas Storage 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.
Cardinal Gas Storage: The company offers solutions for underground gas storage that provide critical balancing needs for diverse markets and provide natural gas producers and shippers with much-needed working capacity.
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 depleted fields segment is estimated to witness significant growth during the forecast period. Depleted oil and gas reserves are the most widely used underground gas reservoirs. After extracting oil and gas from these reserves, these fields are geologically likely to contain natural gas in their formations. Geographic and geological factors determine whether a depleted field is capable of containing gas. These geographical factors include the proximity of the mine to the fuel consumption region. This proximity facilitates the transportation and distribution of gas.
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The depleted fields segment was the largest segment and was valued at USD 22,388.50 million in 2017. The use of a depleted field for underground gas storage has certain advantages, as it reduces environmental damage, the presence of several access points, and an understanding of geologic formations. The nature of the wells creates favorable conditions for gas storage. In addition, depletion means low exploration and well drilling costs, while the reuse of installed equipment reduces operating costs and reduces the need for periodic inspections. Due to these factors, the adoption of depleted fields type of underground gas storage is expected to grow thus boosting the growth of the market during the forecast period.
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North America is estimated to contribute 39% 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.
Another region offering significant growth opportunities to vendors is Europe. There is significant growth in the global underground gas storage market in Europe due to its dedication to energy security and supply flexibility. Several countries in Europe such as Germany, the Netherlands, and Italy are extensively using underground gas storage facilities that enables these countries to store surplus gas during periods of low demand and withdraw during periods of peak usage, resulting in a consistent reliable energy supply. Factors such as the large gas infrastructure in Europe and the requirement to balance fluctuating renewable energy sources have fuelled the growth of the market in the region. Hence, such factors are expected to drive market growth in the region during the forecast period.
In 2020, during the COVID-19 pandemic, the growth of the global underground gas storage market witnessed a significant slowdown due to the closure of most manufacturing facilities and production units, such as gas distribution companies, industrial facilities, and power plants, which adversely affected the volume of sales of underground gas storage in Europe. However, in 2021, the initiation of large-scale vaccination drives?lifted the lockdown and travel restrictions, which led to the restoration of manufacturing and business operations. Such factors are expected to drive the market during the forecast period.
The underground gas storage 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.
Underground Gas Storage Market Scope |
|
Report Coverage |
Details |
Page number |
166 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.36% |
Market growth 2023-2027 |
USD 9,797.35 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
4.55 |
Regional analysis |
Europe, North America, APAC, Middle East and Africa, and South America |
Performing market contribution |
North America at 39% |
Key countries |
US, Canada, Russia, Germany, and Ukraine |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Cardinal Gas Storage, Centrica Plc, China National Petroleum Corp., Chiyoda Corp., Costain Group Plc, EARTHWORKS, Enbridge Inc., ENGIE SA, HOT Engineering GmbH, Japan Petroleum Exploration Co. Ltd., KAPPA Engineering, Koninklijke Vopak NV, Mitsubishi Heavy Industries Ltd., NAFTA as, RPS Group Plc, Samsung Heavy Industries Co. Ltd., SGS SA, SNC Lavalin Group Inc., TC Energy, and Uniper SE |
Market dynamics |
Parent market analysis, 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 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 Type
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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