Methane Hydrate Extraction Market Outlook - 2025
The methane hydrate extraction market is projected to reach 66,901.8 thousand cubic meter by 2025, growing at a CAGR of 6.3% from 2021 to 2025.Methane hydrate is a solid compound wherein large amount of methane is trapped within a crystal structure of water. It is also referred as fiery ice, methane clathrate, natural gas hydrate, and gas hydrate. The methane hydrates are found inside the seabed; therefore, the activities associated with their extraction are risky. As per the United States Geological Survey (USGS), one cubic meter of gas hydrate can release 164 cubic meters of natural gas.
Globally, there is surplus availability of Methane hydrate on the frozen deposits of the sea floor. However, as such the availability of Methane hydrate is confirmed only in China, Japan, India, South Korea, the U.S., Canada, and Russia. However, this market is totally studied based on the extraction activities undertaken over a particular year.
The methane hydrate extraction market is at a nascent stage as their extraction process is not yet commercialized. Some of the factors expected to drive the growth of this market include greater availability, rise in investments for the process of extraction, and several government initiatives to accelerate the extraction process to meet the growth in demand for energy. Methane hydrate releases larger amount of natural gas, which is expected to be used as a future source of energy. Countries such as China and Japan have already successfully extracted methane hydrate after conducting two tests. They are planning to commercialize methane hydrate by 2020, which can further accelerate the extraction activities, which in turn can contribute to the demand. In addition, technological development in the oil & gas mining vessels is expected to smoothen the gas hydrate extraction process. This factor is further expected to have a positive impact on the growth of this market.
On the other hand, high risk associated with the extraction activities is expected to hamper the growth of the overall market. Efficient extraction of methane hydrate can lead to serious damage as methane escapes when extracted from high pressure seabed, which causes real life damage. One of the major disadvantages of inefficient hydrate mining can cause sediment to slide, which creates probabilities of dangerous tsunamis. These factors are expected to restrain the growth of the market during the forecast period. Nevertheless, rise in interest of several countries in methane hydrate extraction linked with increase in R&D, and investments will provide new growth opportunities to this market. Technological advancements are expected to strengthen extraction capabilities by offering growth opportunities during the forecast period.
Based on the country, the methane hydrate extraction market is segmented into China, India, Japan, Russia, the U.S., and Canada. Apart from this, South Korea and other European countries are working continuously to confirm the availability of methane hydrates in their respective regions. China methane hydrate extraction market share dominated the overall market in 2017 with the largest extracted volume. China is the first country that successfully extracted methane hydrate in 2017. Two methane hydrate extraction tests and technical capabilities fostered successful extraction of the compound in 2017.
Japan is the second largest country to complete the successful extraction of methane hydrate in 2017. The country is engaged in the methane hydrate drilling activities since 2000 and has found breakthrough in 2017. In Canada, there is an increase in awareness among the key players, as there is a presence of highest number of methane hydrate reserves, and the favorable government initiatives to escalate the extraction, which will further impact the market in a positive manner. The U.S. is expected to exhibit the highest CAGR of 7.4% due to technologically robust capabilities and planned methane hydrate extraction activities after 2022.
The major key players operating in the methane hydrate extraction market include Anadarko Petroleum Corporation, Schlumberger, BP p.l.c., ConocoPhillips, EQUINOR ASA, PetroChina, Japan Petroleum Exploration Company Limited (JAPEX), INPEX Corporation, Oil and Natural Gas Corporation (ONGC), and Indian Oil Corporation Ltd. (IOCL). As of now, JAPEX, and INPEX are the two market players who have active participation in the extraction activities of methane hydrate. The methane hydrate extraction market trends include the rise in governmental support and better knowledge of technology, which will further lead more companies to participate in the extraction process during the forecast period.
Based on country, China dominated the methane hydrate extraction market in 2017. This is due to consistent efforts to conduct extraction tests, ample investments to support the overall campaign, and support from China government.
Key Benefits for Methane Hydrate Extraction Market:
- The report outlines the current trends and future scenario of the methane hydrate extraction market size from 2017 to 2025 to understand the prevailing opportunities and potential investment pockets
- Porter’s five forces analysis helps to analyze the potential of buyers & suppliers and the competitive scenario of the industry for strategy building
- Major countries in the region have been mapped according to their individual extraction volume contribution to the regional market
- The key drivers, restraints, and methane hydrate extraction market opportunities and their detailed impact analysis are elucidated in the study
- The profiles of key players along with their key strategic developments are enlisted in the report
Methane Hydrate Extraction Market: Opportunity Analysis and Industry Forecast, 2021-2025 Report Highlights
The methane hydrate extraction market is totally studied on the extraction activities undertaken by the various countries across the globe. Methane hydrate is successfully extracted by only two countries—China and Japan. Currently, this market is at a nascent stage, as the extraction process is not yet commercialized. As per the China Ministry of Land and Resources, commercially viable production of methane hydrates will not be possible until next 10 years, owing to the high cost associated with this process. However, China and Japan have successfully completed methane hydrate extraction but the industrial stage production still needs assistance of superior technology, which needs high investment.
The market lacks the active participation of key companies. Currently, only JAPEX and INPEX are directly involved in the extraction processes of the methane hydrate, and are investing a considerable amount and time in this process. Considering the rise in focus from various countries, the market is expected to be flooded by the several extraction activities over the coming years. The U.S. and Canada are expected to become key countries in this market, and are further projected to make strategic moves toward upcoming extraction plans, owing to the higher availability of resources.