Synthetic Natural Gas Market Size

The global synthetic natural gas market size was valued at $25.31 billion in 2024 and is projected to reach $83.45 billion by 2030, growing at a CAGR of 22.0% during the forecast period.

Synthetic Natural Gas Market Overview

Synthetic natural gas (SNG) is a man-made alternative to traditional natural gas, produced through a process called gasification. This process involves converting various carbon-based feedstocks such as coal, biomass, or municipal solid waste into a gas composed primarily of methane, the main component of natural gas. The resulting SNG can be used in much the same way as natural gas, including for heating, electricity generation, and as a transportation fuel. SNG offers several benefits, including reduced greenhouse gas emissions compared to conventional fossil fuels and increased energy security by diversifying fuel sources. Additionally, SNG can be stored and transported through existing natural gas infrastructure, making it a versatile and potentially valuable component of the transition towards a more sustainable energy future.

Synthetic Natural Gas Market Dynamics

• The synthetic natural gas market is expected to witness significant growth in the future due to the increasing focus on reducing greenhouse gas emissions and the growing demand for clean and sustainable energy sources.

• Additionally, the advancements in gasification and synthetic fuel production technologies and government incentives and regulations favoring renewable energy adoption are the prominent factors driving the growth of the synthetic natural gas market.

• However, the high initial capital investment required for gasification plants and technical challenges and complexities in SNG production processes are restraining the market growth.

• On the contrary, the integration with carbon capture and storage (CCS) technologies to further reduce emissions and the rising potential for SNG exports to regions lacking natural gas resources are creating opportunities for market growth.

By Application, the Transportation Segment held the Larger Market Share, and it would continue on this Path during the Forecast Period

The transportation segment dominated the market share and is expected to maintain its leading position throughout the forecast period owing to the rising need to reduce emissions from vehicles to combat air pollution and address climate change. SNG offers a promising solution as it can be used as a cleaner alternative fuel compared to traditional fossil fuels like gasoline and diesel. Additionally, SNG can be produced from a variety of feedstocks, including renewable sources like biomass and waste materials, providing a more sustainable energy option. Moreover, SNG can leverage existing natural gas infrastructure, making it relatively easy to integrate into transportation systems. This versatility opens up opportunities for SNG to power a wide range of vehicles, including buses, trucks, and even ships, contributing to a cleaner and more sustainable future for the transportation industry. As governments worldwide implement stricter emissions regulations and incentivize the adoption of cleaner fuels, the demand for SNG in the transportation segment is expected to continue its upward trajectory.

By Geography, Europe Dominates by Being the Largest Market for Synthetic Natural Gas

Europe leads as the primary market for synthetic natural gas during the forecast period due to the region's energy and environmental priorities. With a growing emphasis on reducing greenhouse gas emissions and transitioning towards cleaner energy sources, SNG offers a compelling solution. Europe's ambitious climate targets, such as those outlined in the European Green Deal and the Paris Agreement, have spurred increased interest in renewable and low-carbon energy options. SNG, produced from renewable sources like biomass, waste, or through processes such as power-to-gas, aligns closely with these goals, providing a versatile and sustainable alternative to traditional natural gas. Additionally, Europe's dense population centers and extensive transportation networks make it a prime market for cleaner fuels, including SNG, which can be utilized across various sectors, including heating, industry, and transportation. Furthermore, the continent's well-established natural gas infrastructure and regulatory frameworks facilitate the integration and adoption of SNG, further driving its demand. As Europe continues its transition towards a greener and more sustainable energy landscape, the demand for SNG is poised to remain robust, contributing to the region's energy security and environmental objectives.

Key Target Audience:

• Energy Companies and Utilities

• Government Agencies and Policymakers

• Industrial Manufacturers and Operators

• Transportation Companies and Logistics Providers

• Investors and Financial Institutions

• Research Institutions and Technology Developers

• Environmental Organizations and Advocacy Groups

List of the Key Players Profiled in the Report Includes: 

• Air Liquide

• Ameresco

• Basin Electric Power Cooperative

• Chevron Corporation

• E. ON SE

• Brightmark

• EnviTec Biogas AG

• Kinder Morgan

• OPAL Fuels

• Shell

• TotalEnergies

• Verbio SE

• Waga Energy

Recent Developments:

• In April 2024, Brightmark RNG Holdings, collaboration between Chevron USA Inc. and Brightmark, inaugurated the Eloy Renewable Natural Gas (RNG) center. Situated in Arizona, this center is dedicated to producing pipeline fuel by harnessing methane from dairy operations. Specifically, Eloy RNG utilizes anaerobic digesters at the Caballero Dairy farm to generate RNG, contributing to sustainable energy practices.

Market Segmentation:

The research report includes in-depth coverage of the industry analysis with size, share, and forecast for the below segments:

Market by, Technology: 

• Power-to-gas

• Thermal Gasification

• Anaerobic Digestion & Fermentation

• Other Technologies

Market by, Application:

• Grid Injection

• Industrial

• Power Generation

• Transportation

Market by, Geography:

The synthetic natural gas market report also analyzes the major geographic regions and countries of the market. The regions and countries covered in the study include:

• North America (The United States, Canada, Mexico), Market Estimates, Forecast & Opportunity Analysis

• Europe (Germany, France, UK, Italy, Spain, Rest of Europe), Market Estimates, Forecast & Opportunity Analysis

• Asia Pacific (China, Japan, India, South Korea, Australia, New Zealand, Rest of Asia Pacific), Market Estimates, Forecast & Opportunity Analysis

• South America (Brazil, Argentina, Chile, Rest of South America), Market Estimates, Forecast & Opportunity Analysis

• Middle East & Africa (UAE, Saudi Arabia, Qatar, Iran, South Africa, Rest of Middle East & Africa), Market Estimates, Forecast & Opportunity Analysis

Scope of the Report:

The report oGlobal Synthetic Natural Gas Market: Industry Analysis, Opportunities and Forecast up to 2030o by Diligence Insights provides a detailed analysis of the present market and future outlook with market estimates and forecasts for all specified segments, encompassing both global and regional perspectives as outlined within the research framework. The study includes historical market data for the years 2022, 2023 and offers revenue estimations for 2024, and project forecasts spanning from 2025 to 2030. It places significant emphasis on the examination of market trends, key industry participants, supply chain developments, technological advancements, pivotal milestones, and prospective strategies. Comprehensive market assessments are carried out across major geographic regions, including North America, Europe, Asia Pacific, South America, and Middle East & Africa. As such, this report constitutes a valuable resource for current industry stakeholders, newcomers to the field, and potential investors.

The study offers an in-depth market analysis, drawing insights from industry experts across the value chain. A special focus has been made on 25 countries, including the United States, Canada, Mexico, the United Kingdom, Germany, Spain, France, Italy, China, Brazil, Saudi Arabia, and South Africa, among others. The market data has been meticulously collected through extensive primary interviews and comprehensive secondary research. Market size determination is rooted in the revenue generated from sales across all the specified segments and sub-segments as defined within the research scope. The market sizing analysis includes both top-down and bottom-up approaches for data validation and accuracy measures.

The report offers insights into the following aspects:

• Analysis of major market trends, factors driving, restraining, threatening, and providing opportunities for the market.

• Analysis of the market structure by identifying various segments and sub-segments of the market.

• Understand the revenue forecast of the market for North America, Europe, Asia-Pacific, South America, and Middle East & Africa.

• Analysis of opportunities by identification of high-growth segments/revenue pockets in the market.

• Understand major player profiles in the market and analyze their business strategies.

• Understand competitive developments such as joint ventures, alliances, mergers and acquisitions, and new product launches in the market.