Global Synthetic Natural Gas Market size and share is currently valued at USD 23.76 billion in 2024 and is anticipated to generate an estimated revenue of USD 194.53 billion by 2034, according to the latest study by Polaris Market Research. Besides, the report notes that the market exhibits a robust 23.4% Compound Annual Growth Rate (CAGR) over the forecasted timeframe, 2025 – 2034
Market Overview:
The synthetic natural gas (SNG) market is gaining momentum as industries and governments worldwide seek sustainable and cleaner energy alternatives. SNG, also known as substitute natural gas, is produced through processes like coal gasification, biomass gasification, and methanation of hydrogen and carbon dioxide. It offers similar properties and applications as conventional natural gas, making it a viable alternative for use in power generation, industrial processes, and transportation. The growing emphasis on decarbonization and energy security is driving the adoption of SNG as a renewable and flexible energy source.
Key Trends in the Synthetic Natural Gas Market:
The SNG market is evolving with several trends that are shaping its growth trajectory:
- Development of Carbon Capture and Utilization (CCU)
The integration of carbon capture and utilization technologies in SNG production is gaining traction. This approach helps in recycling CO2 emissions and contributes to a circular carbon economy. - Focus on Power-to-Gas (P2G) Technology
Power-to-gas technology, which converts surplus electricity into SNG via electrolysis and methanation, is emerging as a key enabler for energy storage and grid balancing. - Expansion of Green Hydrogen Projects
The increasing production of green hydrogen from renewable sources is supporting SNG production, making the process more sustainable and environmentally friendly. - Growth in Transportation Applications
SNG is being adopted as a clean fuel alternative in transportation, particularly in compressed and liquefied forms for heavy-duty vehicles and ships. - Increased Investment in Infrastructure Development
Investments in SNG production facilities, pipelines, and storage infrastructure are rising to meet the growing demand for this clean energy source. - Adoption in Remote and Off-Grid Areas
SNG is being deployed in remote and off-grid areas where conventional natural gas pipelines are not accessible, providing a reliable energy solution.
List of Key Companies in the Synthetic Natural Gas Market
- Air Liquide
- Air Products and Chemicals, Inc
- BASF SE
- Methanex
- Sasol
- Shell
- Synthesis Energy Systems, Inc.
- The Linde Group
- Yankuang Group
- Yara International
Recent Developments in the Synthetic Natural Gas Market:
- June 2023: Naturgy and Greene announced a collaboration to produce synthetic (syngas) bio-methanation for injection into the distribution network or use in mobility applications. This project, unique in Spain, stands out for utilizing a specific type of waste to produce bio-synthetic natural gas, showcasing innovation in sustainable energy production.
- June 2023: TotalEnergies partnered with Tree Energy Solutions to establish a synthetic natural gas plant in the United States. The facility will utilize green hydrogen and biogenic CO2, with a production target of up to 200,000 metric tonnes annually, contributing to the growth of clean energy solutions.
- November 2022: Tokyo Gas, Osaka Gas, Toho Gas, and Mitsubishi Corporation entered into an agreement to conduct a feasibility study for a synthetic methane production project in Texas or Louisiana. This initiative aims to explore the potential for large-scale production of synthetic methane, advancing sustainable energy strategies.
𝐆𝐞𝐭 𝐄𝐱𝐜𝐥𝐮𝐬𝐢𝐯𝐞 𝐒𝐚𝐦𝐩𝐥𝐞 𝐏𝐚𝐠𝐞𝐬 𝐨𝐟 𝐓𝐡𝐢𝐬 𝐑𝐞𝐩𝐨𝐫𝐭:
𝐒𝐞𝐠𝐦𝐞𝐧𝐭𝐚𝐥 𝐎𝐯𝐞𝐫𝐯𝐢𝐞𝐰:
The Synthetic Natural Gas Market segmentation divides the market into several segments. The industry segmentation is primarily based on product type, application, end-use, and geographic factors. Besides, the research study covers several sub-segments of the market. An in-depth examination of each market segment and sub-segment has been provided, covering the industry size, growth prospects, industry drivers, and challenges. The detailed market segmentation helps stakeholders identify the diverse needs of different consumer groups in the market. Also, it pinpoints opportunities for targeted marketing and product development strategies.
Synthetic Natural Gas Market, Source Outlook (Revenue – USD Billion, 2020-2034)
- Coal
- Biomass
- Renewable Energy
Synthetic Natural Gas Market, Applications Outlook (Revenue – USD Billion, 2020-2034)
- Transportation
- Power Generation
- Industrial
- Grid Injection
Synthetic Natural Gas Market, Technology Outlook (Revenue – USD Billion, 2020-2034)
- Anaerobic Digestion & Fermentation
- Thermal Gasification
- Power to Gas
- Fluidized Bed Gasifier
- Entrained Flow Gasifier
The synthetic natural gas market is poised for significant growth as industries transition toward low-carbon energy solutions. With advancements in hydrogen economy, carbon capture technologies, and renewable energy integration, SNG is emerging as a vital component of the global energy transition. As sustainability and energy security remain top priorities, the SNG market is set to play a crucial role in shaping a cleaner and more resilient energy future.