The Power-to-gas market is estimated to be valued at US$ 33.96 Bn in 2023 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:
Power-to-gas involves the conversion of surplus renewable electricity into hydrogen or methane. This facilitates the storage of renewable energy in the form of gases and enables renewable energy to be transported and utilized in various sectors like industry, transport, and buildings. Power-to-gas technologies help integrate more renewable energy sources into the energy system and promote decarbonization efforts.
Market Dynamics:
The growing adoption of renewable energy sources like solar and wind is one of the major drivers of the power-to-gas market. Many countries are targeting to increase the share of renewable energy in their electricity mix to reduce carbon footprint. However, the intermittent nature of renewable sources poses challenges in balancing power supply and demand. Power-to-gas offers an effective solution to store surplus renewable electricity and use it according to demand. Furthermore, power-to-gas enables renewable energy to be utilized in hard-to-abate sectors that cannot directly use electricity. As sectors like industry, transport and buildings aim for decarbonization, power-to-gas is expected to witness increasing demand over the forecast period.
SWOT Analysis
Strength: The power-to-gas market offers cost-effective renewable energy storage solutions. It helps balance the intermittent power supply from renewable sources like solar and wind. The technology aids in reducing greenhouse gas emissions significantly.
Weakness: High initial capital investments are required to set up power-to-gas plants. Limited electrolyzer capabilities and efficiencies pose challenges.
Opportunity: Rising demand for clean energy coupled with supportive government policies and initiatives will drive the adoption of power-to-gas solutions. Growing focus on developing hydrogen-based economies worldwide presents opportunities.
Threats: Slow conversion rates and roundtrip efficiencies of power-to-gas plants affect their commercial viability. Dependency on fossil fuel-based power supply poses threats to decarbonization goals.
Key Takeaways:
The Global Power-to-gas Market Size is expected to witness high growth, exhibiting CAGR of 12.2% over the forecast period, due to increasing demand for renewable energy storage solutions. Countries worldwide are investing heavily in renewable energy projects which is driving the need for efficient energy storage technologies like power-to-gas.
Regional analysis - Europe dominates the global power-to-gas market with the largest market share due to supportive regulatory frameworks and efforts to decarbonize energy systems. Germany is a major market in the region due to rising deployment of renewable power projects. Asia Pacific is expected to grow at the fastest pace during the forecast period due to the increasing investments in hydrogen-based economies especially in China, Japan and South Korea.
Key players operating in the power-to-gas market are Aquahydrex, Inc., MAN Energy Solutions, Electrochaea GmbH, ITM Power PLC, EXYTRON GmbH, Hydrogenics Corporation, and Hitachi Zosen Corporation. The industry players are focusing on developing advanced and efficient power-to-gas technologies through continuous research and development activities to gain a competitive edge in the market.
Get More Insights Here
https://www.trendingwebwire.com/power-to-gas-market-size-share-growth-outlook-2023/
Comments
0 comment