Buy Now
Natural Gas Market Size, Share, Growth & Industry Analysis, By Type (Conventional Natural Gas, Unconventional Natural Gas), By Application (Industrial Use, Power Generation, Residential & Commercial, Transportation, Petrochemical Industry), By Mode of Transport, and Regional Analysis, 2024-2031
Pages: 140 | Base Year: 2023 | Release: March 2025 | Author: Sharmishtha M.
The market involves the production, transportation, and consumption of natural gas as a commodity. It includes producers, transporters (via pipelines or LNG), and consumers such as industries and power plants.
Prices are influenced by supply-demand dynamics, geopolitical factors, and seasonal fluctuations, with both regional and global markets playing key roles in pricing and trade.
The global natural gas market size was valued at USD 401.2 billion in 2023, which is estimated to be USD 418.3 billion in 2024 and reach USD 579.4 billion by 2031, growing at a CAGR of 4.76% from 2024 to 2031.
Environmental concerns have driven the market, as it is considered a cleaner alternative to coal and oil. Its lower carbon emissions make it an attractive option for countries aiming to reduce environmental impact and transition to sustainable energy.
Major companies operating in the natural gas industry are Saudi Arabian Oil Co., Exxon Mobil Corporation, Chevron Corporation, Reliance Industries Limited, PetroChina Company Limited, Shell International B.V., TotalEnergies, ConocoPhillips, CNOOC, Oil and Natural Gas Corporation Limited, Indian Oil Corporation Ltd, Vedanta Limited, Devon Energy Corporation., Cairn Oil & Gas, and Expand Energy Corporation.
Natural gas is a crucial component of the global energy mix, balancing energy demand with sustainability goals. Its significant role in providing a cleaner alternative to more polluting fuels, such as coal and oil, positions natural gas as a preferred choice for many regions.
The market is characterized by evolving demand patterns, with increasing investments in infrastructure and transportation, particularly LNG. This presents growth opportunities, especially as countries continue to prioritize clean energy solutions for both domestic use and international trade.
Market Driver
"Increasing Global Energy Demand"
Increasing global energy demand, particularly in developing economies, is a significant driver of the natural gas market.
The need for reliable, affordable energy sources grows as these nations industrialize and urbanize. Natural gas, with its efficiency and lower carbon emissions compared to coal and oil, is increasingly favored for electricity generation, heating, and industrial use.
This rising demand not only boosts consumption but also encourages investments in infrastructure, technology and transportation to meet energy needs sustainably across emerging markets.
Market Challenge
"Price Volatility"
A significant challenge in the natural gas market is the volatility of prices, often influenced by geopolitical tensions, supply disruptions, and seasonal demand fluctuations. This unpredictability can lead to financial instability for producers and consumers. A potential solution lies in enhancing infrastructure for natural gas storage and diversifying supply sources.
Increasing storage capacity and investing in long-term contracts with multiple suppliers can aid in managing price fluctuations, ensuring more stable supply and pricing for both producers and consumers.
Market Trend
"Technological advancements"
Technological advancements in fracking, drilling, and transportation systems have significantly transformed the natural gas market. Innovations such as horizontal drilling and hydraulic fracturing (fracking) have unlocked previously inaccessible reserves, boosting production efficiency.
Additionally, improvements in pipeline technologies and liquefaction processes for LNG have enhanced transportation, reducing costs and expanding market access. These advancements have not only increased production but also made natural gas more competitive, enabling it to meet the growing global demand while maintaining cost-effectiveness and operational efficiency.
Segmentation |
Details |
By Type |
Conventional Natural Gas, Unconventional Natural Gas |
By Application |
Industrial Use, Power Generation, Residential & Commercial, Transportation, Petrochemical Industry |
By Mode of Transport |
Pipeline Gas, Liquefied Natural Gas (LNG), Compressed Natural Gas (CNG) |
By Region |
North America: U.S., Canada, Mexico |
Europe: France, UK, Spain, Germany, Italy, Russia, Rest of Europe | |
Asia-Pacific: China, Japan, India, Australia, ASEAN, South Korea, Rest of Asia-Pacific | |
Middle East & Africa: Turkey, UAE, Saudi Arabia, South Africa, Rest of Middle East & Africa | |
South America: Brazil, Argentina, Rest of South America |
Market Segmentation:
Based on region, the global market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and Latin America.
Asia Pacific accounted for a natural gas market share of around 34.09% in 2023, with a valuation of USD 136.8 billion. The region’s rapid industrialization, growing urbanization, and rising energy demand contribute to its leadership. Countries like China and India are major consumers of natural gas, driving investments in infrastructure like pipelines and LNG terminals.
Additionally, Asia Pacific’s focus on cleaner energy sources and reducing carbon emissions is pushing the shift towards natural gas, further solidifying its market dominance.
The market in Europe is poised for significant growth at a robust CAGR of 5.23% over the forecast period. The European Union's (EU) commitment to reducing coal dependency and transitioning to greener energy sources has led to a surge in the demand for natural gas.
With an increasing emphasis on energy security and diversification, the EU is investing in LNG terminals, infrastructure development, and natural gas imports. Moreover, Europe’s push toward sustainability, coupled with geopolitical factors, is accelerating the adoption of natural gas as a transition fuel in the region.
Companies in the natural gas market are focusing on expanding their portfolios and enhancing regional energy security. They invest in developing gas assets, forming joint ventures, and creating new platforms to meet the rising global demand.
These efforts aim to support energy transitions, improve infrastructure, and ensure a reliable, lower-carbon energy supply while contributing to economic growth and sustainable development.
Recent Developments (Agreement/Partnership/Expansion)