Synthetic Natural Gas Market by Source (Coal, Biomass, Renewable Energy), Technology (Anaerobic Digestion & Fermentation, Thermal Gasification, Power to Gas, Fluidized bed gasifier, Entrained flow gasifier), Application & Region - Global Forecast to 2029

Synthetic Natural Gas Market by Source (Coal, Biomass, Renewable Energy), Technology (Anaerobic Digestion & Fermentation, Thermal Gasification, Power to Gas, Fluidized bed gasifier, Entrained flow gasifier), Application & Region - Global Forecast to 2029

The global Synthetic natural gas market is estimated to grow from USD 23.9 billion in 2024 to USD 68.4 billion by 2029; it is expected to record a CAGR of 23.4% during the forecast period. Government mandates and incentives promoting renewable energy sources, including synthetic natural gas, drive the demand for synthetic natural gas infrastructure.

“Renewable Energy”: The fastest growing segment of the Synthetic natural gas market, by source “

Based on source, the synthetic natural gas market has been segmented into Coal, Biomass and Renewable Energy. The Renewable Energy segment is expected to be the fastest-growing segment during the forecast period. Global momentum towards achieving net-zero emissions is creating a powerful force for change in the energy sector. Synthetic natural gas (SNG) produced from renewable sources plays a crucial role in this by offering a clean alternative to conventional fossil fuel-based natural gas.

“By technology, the above Power-to-gas segment is expected to be the fastest growing segment during the forecast period.”

Based on technology, the synthetic natural gas market is segmented into anaerobic digestion & fermentation, thermal gasification, power-to-gas and others. The power-to-gas segment is expected to be the fastest-growing segment of the synthetic natural gas market during the forecast period. Power-to-gas facilities can help stabilize the electricity grid by absorbing excess energy during periods of low demand and releasing it during peak times. This grid-balancing capability contributes to the reliability and stability of the energy system.

“Europe is expected to be the largest region in the Synthetic natural gas market.”

Europe is expected to be the largest region in the synthetic natural gas market during the forecast period. European countries, bound by commitments like the EU's Renewable Energy Directive, are not only stimulated but legally obligated to ramp up the production of renewable energy sources. This directive sets ambitious targets for the proportion of energy to be generated from renewable sources by each member state.

Breakdown of Primaries:

In-depth interviews have been conducted with various key industry participants, subject-matter experts, C-level executives of key market players, and industry consultants, among other experts, to obtain and verify critical qualitative and quantitative information and assess future market prospects. The distribution of primary interviews is as follows:

By Company Type: Tier 1- 65%, Tier 2- 24%, and Tier 3- 11%

By Designation: C-Level- 30%, Director Level- 25%, and Others- 45%

By Region: North America- 10%, Europe- 25%, Asia Pacific- 35%, RoW – 30%

Note: Others include sales managers, engineers, and regional managers.

Note: The tiers of the companies are defined on the basis of their total revenues as of 2022. Tier 1: > USD 1 billion, Tier 2: From USD 500 million to USD 1 billion, and Tier 3: < USD 500 million

The synthetic natural gas market is dominated by a few major players that have a wide regional presence. The leading players in the Synthetic natural gas market are Basin Electric Power Cooperative (US), Air Liquide (France), EnviTec Biogas AG (Germany), Verbio SE (Germany), and Kinder Morgan (US). The major strategy adopted by the players includes new product launches, contracts, agreements, partnerships, joint ventures, acquisitions, and investments & expansions.

Research Coverage:

The report defines, describes, and forecasts the global synthetic natural gas by source, technology, application, and Region. It also offers a detailed qualitative and quantitative analysis of the market. The report comprehensively reviews the major market drivers, restraints, opportunities, and challenges. It also covers various important aspects of the market. These include an analysis of the competitive landscape, market dynamics, market estimates in terms of value, and future trends in the synthetic natural gas market.

Key Benefits of Buying the Report

Government initiatives at the national and international levels amplify the impact of investment on the synthetic natural gas market. Robust policy frameworks, often accompanied by financial incentives, subsidies, and regulatory support, encourage widespread adoption of synthetic natural gas. Factors such as high initial cost and lack of infrastructure restrain the growth of the market. The growing energy transition towards renewable energy sources and rapid urbanization are expected to present lucrative opportunities for the players operating in the synthetic natural gas.

Product Development/ Innovation: The synthetic natural gas market is witnessing significant product development and innovation, driven by the growing demand for environmentally friendly, safe and sustainable products. Companies are investing in developing advanced synthetic natural gas technologies for various applications.

Market Development: Air Liquide collaborated with Dentro il Sole (DIS) to operate as an electrical contractor for constructing two biomethane production units in Italy. These units have a production capacity of 50 GWh per year.

Market Diversification Basin Electric Power Cooperative plans to construct up to 583 megawatts of natural gas generation plant under its subsidiary Dakota Gasification Company near the existing Pioneer Generation Station, northwest of Williston, North Dakota..

Competitive Assessment: In-depth assessment of market shares, growth strategies, and service offerings of leading players, like include Basin Electric Power Cooperative (US), Air Liquide (France), EnviTec Biogas AG (Germany), Verbio SE (Germany), and Kinder Morgan (US), among others in the synthetic natural gas market. Show more