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Natural Gas Market

Natural Gas Market Size, Share, Competitive Landscape and Trend Analysis Report, by Type, by Application : Global Opportunity Analysis and Industry Forecast, 2021-2031

EP : Non Renewable/Conventional

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Author's: Mohd Arbaz | Eswara Prasad
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Natural Gas Market Research, 2031

The global natural gas market was valued at $300.4 billion in 2021, and is projected to reach $424.7 billion by 2031, growing at a CAGR of 3.4% from 2022 to 2031.

Natural gas is a colorless, extremely flammable gaseous hydrocarbon that is mostly composed of methane and ethane. It is also known as methane gas or natural methane gas. It is a kind of petroleum that frequently coexists with crude oil. Electric power, residential, commercial, petrochemical industry, and pharmaceuticals are major consuming end users of natural gas across the globe. The characteristics of natural gas such as clean burning, versatility, affordability, and good efficiency make it unique from other fossil fuels. Natural gas can be utilized in different ways, including for the production of electricity, the running of manufacturing plant, as a feedstock for a wide range of products, for heating and cooling, and as transportation fuel.

Natural Gas Market

According to the U.S. Energy Information Administration (EIA), natural gas consumption is around 87.9 billion cubic feet per day in the U.S. for fiscal year 2022, shimmering more consumption compared to other sectors. It is forecasted that the consumption will decrease. Particularly, in New England, owing to potential natural gas pipeline restrictions, decreased fuel inventories for power generation, and uncertainty over LNG shipments given the constrained global supply conditions during the assessment period.

The natural gas market is driven by rise in demand from residential and commercial sector. It is used for cooling and heating in household. Over one half of the U.S. homes used natural gas, with 12% of the gas being consumed in the U.S. in residential sector. In addition, developing electric power industry in North America region with increase in demand for electricity in U.S. is expected to drive the global natural gas market growth during the forecast period.  Moreover, it is used as a fuel in boilers and furnaces in several manufacturing industries such as chemical, petrochemical, refineries, and others. In a same line, it is a feedstock for petrochemical refineries and vehicle fuel in natural gas vehicles.

However, discontinuous power supply and power outages in rural areas, result in less consumption of power and electricity which can lower the market demand and is anticipated to hamper the growth of the natural gas market during the assessment period. Furthermore, Amidst COVID-19 there is decline in demand of natural gas in 2020 due to disruption in supply chain, halt in production, and restriction on transportation. This factor has slowdown the growth of global in 2020 and since, the market is fully recovered in third quarter of 2022, it is expected to boost the global market growth with a growing CAGR of 3.3% by the end of 2031. On the contrary, rise in investment downstream market such as oil & gas pipelines, import terminals is anticipated to create opportunity for key players that operate in the natural gas market during the forecast period.

The natural gas market analysis is segmented on the basis of type, application, and region. Depending on type, the market is segmented into methane, ethane, propane, and other. By application, it is divided into industrial, transportation, electric power, residential, commercial, and others. Region wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

On the contrary, China is anticipated to be a potential market and the fastest growing market in the near future for the industrial sector in Asia-Pacific. The United Nations estimates that the world population has likely surpassed 8.6 billion people because of rapid urbanization, which has significantly increased the size of the industrial sector. For instance, between 1990 and 2022, China's industrial production increased by an average of 11.43 %, with a record high of 35.10% in January 2021 and a record low of -21.10% in January 1990. Thus, growth of industrial sector will directly fuel the natural gas market demand over the forecast period.

The global natural gas market profiles leading players that include ConocoPhillips, Chevron Corporation, Exxon Mobil Corporation, Eni, General Electric, GAZPROM NEFT PJSC, Lukoil, Occidental Petroleum Corporation, Royal Dutch Shell Plc, and Total SE. The global natural gas market forecast in-depth competitive analysis as well as profiles of these major players. Other key players operating in global market includes Cabot, Range Resources, Ascent Resources Utica Holdings, Chesapeake, EQT, CNX Resources, China National Petroleum (CNPC), Saudi Arabian Oil Co, BP, Rosneft Oil Co., Gulfport Energy, Devon Energy, Anadarko, EOG Resources, Ultra Petroleum.

Natural Gas Market
By Type
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Methane segment is expected to offer optimistic opportunity for global market growth over the forecast period

By Type, the Methane segment is dominating the global market growth in terms of revenue during the fiscal year 2021, and this growth is expected to boost the natural gas market demand over the foreseeable period due to widening application of natural gas in the end-user market including the residential, commercial, and industrial. 

Natural Gas Market
By Application
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Electric power is the most lucrative segment over the foreseeable period.

On the basis of application, the industrial segment holds the largest share, in terms of revenue, and is expected to grow at a CAGR of 3.9%. Rapid urbanization is the key factor that exhibits the growth of industrialization by fulfilling the need of urban population such as electricity, food, and other application. This is expected to fuel the growth of the natural gas market during the forecast period.

Natural Gas Market
By Region
North America

Europe accounts for largest market share in 2021 and it is expected to maintain its growth over the upcoming future.

On the basis of region, the market is analyzed across four major regions, namely, North America, Europe, Asia-Pacific, and LAMEA. Europe garnered a dominant share in 2021, and is anticipated to maintain this dominance in the natural gas market during the forecast period. This is attributed to presence of key players and huge consumer base in the region.

Historical Trends:

As in early 2020, key gas markets are experiencing a decline in global demand or lethargic growth especially from China during the period. This has further declined the need for natural gas, which, in turn, has hampered the growth of the natural gas market in 2020. In the Europe region, economies such as Germany, France, Spain and, Italy follow stringent measures such as attaining social distance and limiting movements to prevent the spread of coronavirus. Europe is the prominent market which was expected to be impacted the most in 2020, with a loss of 7% year on year.

Furthermore, in 2021, Asia, led by China and India, will experience the majority of the world's growth. In these countries, gas has significant policy support. The industrial sector is the primary driver of demand growth in both of those nations, placing a heavy reliance on the rate of recovery of the local and export markets for industrial goods. The majority of new gas production comes from massive conventional projects in the Middle East and the Russian Federation as well as US shale, which pose a significant downside risk due to the current price fall. This further boost the growth of the market by the end of 2021.

Thus, all these factors collectively led to increased growth of the global natural gas market in starting 2022, and are expected to foster market growth by the end of 2022.

Key Benefits For Stakeholders

  • This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the natural gas market analysis from 2021 to 2031 to identify the prevailing natural gas market opportunities.
  • The market research is offered along with information related to key drivers, restraints, and opportunities.
  • Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders to make profit-oriented business decisions and strengthen their supplier-buyer network.
  • In-depth analysis of the natural gas market segmentation assists to determine the prevailing market opportunities.
  • Major countries in each region are mapped according to their revenue contribution to the global market.
  • Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
  • The report includes an analysis of the regional as well as global natural gas market trends, key players, market segments, application areas, and market growth strategies.

Natural Gas Market Report Highlights

Aspects Details
Market Size By 2031

USD 424.7 trillion

Growth Rate

CAGR of 3.4%

Forecast period

2021 - 2031

Report Pages


By Type
  • Methane
  • Ethane
  • Propane
  • Others
By Application
  • Industrial
  • Electric Power
  • Transportation
  • Residential
  • Commercial
  • Others
By Region
  • North America  (U.S., Canada, Mexico)
  • Europe  (Russia, Germany, Italy, UK, Netherlands, Rest of Europe)
  • Asia-Pacific  (China, Japan, India, South Korea, Australia, Thailand, Malaysia, Indonesia, Rest of Asia-Pacific)
  • LAMEA  (Iran, Brazil, Saudi Arabia, South Africa, Rest of Latin America)
Key Market Players

Eni, GAZPROM NEFT PJSC, Occidental Petroleum Corporation, Exxon Mobil Corporation, Shell Plc., Lukoil, Chevron Corporation, ConocoPhillips, General Electric

Analyst Review

According to the insights of CXOs of leading companies, demand for natural gas is fueled by increased residential and commercial sector, surge in use of heating & cooling purposes in the residential areas, replacement of old units, rapid growth of electric water heater sector.         

Rise in demand for natural gas from commercial applications such as restaurants, food processing, and others is driving the growth of the market, globally. However, fluctuating crude oil and gas prices with volatility nature of natural gas are expected to be major restraining factors for the global natural gas market growth. On the contrary, R&D activities for natural gas are growing and with rise in investments toward downstream market are anticipated to create opportunities in the global natural gas market during the forecast period.

Among the analyzed regions, Europe is expected to account for the highest revenue in the market during the forecast period, followed by North America, Asia-Pacific, and LAMEA. Europe accounted for 37% of the total global natural gas market share in 2021, and is expected to maintain its dominance during the forecast period.

Author Name(s) : Mohd Arbaz | Eswara Prasad
Frequently Asked Questions?

The industrial segment is the leading segment among application segments in global natural gas market

Europe is the largest segment in 2021 and this region is expected to acquire the maximum market share over the forthcoming years

Significant investment by key players in downstream infrastructure such as pipelines, import terminals, power plants, and others are expected to fuel the demand for liquified natural gas, which resulted in the growth of the natural gas market.

The global natural gas market is projected to reach $424.7 trillion by 2031, growing at a CAGR of 3.4% from 2022 to 2031.

ConocoPhillips, Chevron Corporation, Exxon Mobil Corporation, Eni, General Electric, GAZPROM NEFT PJSC, Lukoil, Occidental Petroleum Corporation, Royal Dutch Shell Plc, and Total SE are the top companies to hold the market share in Natural Gas.

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Natural Gas Market

Global Opportunity Analysis and Industry Forecast, 2021-2031