Natural Gas Utilities Market Size, Share, Growth, and Industry Analysis, By Type (Free Type, Dissolved Type, and Others), By Application (Household, Commercial and Others), Regional Forecast To 2031

Updated On: 22 April 2024

Natural Gas Utilities Market Report Overview

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The global natural gas utilities market size was USD 1292.6 million in 2022. As per our research, the market is projected to touch USD 1675 million by 2031, exhibiting a CAGR of 3.3% during the forecast period.

The global COVID-19 pandemic has been unprecedented and staggering, with the natural gas utilities market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels.  The sudden rise in CAGR is attributable to the market's growth and demand returning to pre-pandemic levels once the pandemic is over.

Customers and companies receive natural gas from natural gas utilities. The government regulates natural gas utilities, which are responsible for supplying customers with a safe, dependable, and cost-effective supply of natural gas. They are in charge of maintaining gas pipelines and infrastructure as well as ensuring natural gas delivery to clients. Customers can also receive invoicing and customer assistance from natural gas utilities. The natural gas utilities market is a sector of the energy industry that deals with the production, distribution, and sale of natural gas for a variety of applications such as residential, commercial, industrial, and power generating. Natural gas is a fossil fuel predominantly consisting of methane that is used for heating, cooking, electricity generation, and industrial applications.

COVID-19 Impact: The Pandemic Caused Lockdowns and Stay at Home Upsurged the Market Growth

The COVID-19 epidemic has had a substantial influence on a variety of economic sectors, including the natural gas utilities industry. During the epidemic, lockdowns, travel restrictions, and reduced economic activity caused variations in energy demand, notably natural gas. Demand in the industrial and commercial sectors fell as many enterprises cut back or temporarily stopped down operations. Residential demand for natural gas, on the other hand, remained relatively unchanged or even climbed as more people stayed at home. During the epidemic, lockdowns, travel restrictions, and reduced economic activity caused variations in energy demand, notably natural gas. Demand in the industrial and commercial sectors fell as many enterprises cut back or temporarily stopped down operations. Residential demand for natural gas, on the other hand, remained relatively unchanged or even climbed as more people stayed at home.

LATEST TRENDS

"Reducing Carbon Footprints and Greenhouse Gas Emissions is a Major Trend Boosting the Market Sales"

The increased emphasis on decreasing greenhouse gas emissions is expected to raise demand for natural gas utilities in the future years. Many natural gas utilities are looking at ways to minimise their carbon footprint by investing in systems that reduce methane emissions during the production, transmission, and distribution processes. Some businesses are also incorporating renewable natural gas (biogas) into their supplies to reduce overall emissions. Energy efficiency programmes are being implemented by natural gas companies to assist customers in reducing their energy consumption. Incentives for energy-efficient appliances, weatherization projects, and demand-side management tactics are examples of such programmes. RNG, which is made from organic waste, is gaining popularity as a more environmentally friendly alternative to conventional natural gas. Utilities are looking into incorporating RNG into their supply mix, which might reduce emissions and extend the life of natural gas infrastructure.

Natural Gas Utilities Market Segmentation

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• By Type

Based on type the natural gas utilities market is classified as free type, dissolved type and others.

• By Application

Based on application the natural gas utilities market is classified as household, commercial and others.

DRIVING FACTORS

"Applications in the Household and Commercial Sectors to Generate Demand and Inflate the Market Share"

Residential users utilise natural gas for heating and cooking, commercial businesses use it for heating and energy, industrial facilities use it for processes and energy, and power plants use it to generate electricity. Demand is expected to be driven by the increased usage of natural gas as a transportation fuel due to its lower emissions compared to other fossil fuels. The household sector was one of the largest consumers due to easy availability and low cost, combined with high efficiency, resulting in low energy costs, which are now being replaced by electricity bills at home as a result of increased use of diesel generators during power outages across various regions.

"Rising LNG Imports and Utilization in Power Generation will Decipher the Market Share"

With most countries' natural gas production nearing maturity, there has been a rise in LNG imports in recent years. This trend is likely to continue as countries strive to import more energy to fulfil their expanding needs. Natural gas has emerged as a favoured fuel for power generation due to its reduced emissions and lower cost when compared to other fuels such as coal and oil.

RESTRAINING FACTORS

"The Dependency on Global Market and Regulatory Challenges to Hinder the Market Growth"

Natural gas is frequently traded on the worldwide market, and its prices are impacted by global supply and demand dynamics. This can expose countries or regions that rely on imported natural gas to disruptions in the global energy market. The natural gas sector is governed by a plethora of complicated and ever-changing rules including safety, environmental effect, transportation, and distribution. Adapting to changing regulatory requirements can be difficult for organisations in this industry. Some regions rely substantially on natural gas imports, which can lead to geopolitical dependence and potentially undermine national security if supply disruptions occur as a result of political tensions or conflicts. However, the regulatory challenges and dependency on global market are impeding the natural gas utilities market growth.

Natural Gas Utilities Market Regional Insights

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"Asia Pacific Region to Lead With Increased Demand and Huge Consumption"

Because of rising demand for energy in emerging economies such as China and India, Asia Pacific is expected to expand at the fastest pace throughout the projection period. Natural gas utilities market share in China are concentrated in Asia Pacific's largest region. China is the world's largest natural gas consumption market. The country possesses the world's largest Natural Gas Distribution network, encompassing more than 340 cities.

KEY INDUSTRY PLAYERS

"Prominent Manufacturers to Contribute Towards Expansion of Market"

The report is a thorough investigation that details industry performance in the past and the future together with an analysis of the competitive landscape that takes into account well-known main players and revenue patterns. In-depth study of company profiles, growth trends, the supply-demand chain, production and consumption demand, and business expansion methods used by top key players are all provided in the report. The data combines recent technology advancements, trends, manufacturing line mergers and acquisitions, market research, and other elements.

List of Market Players Profiled

• PJSC Gazprom (Russia)
• Sempra Energy (U.S.A)
• PETRONAS (Malaysia)
• Centrica (U.K)
• Osaka Gas (Japan).

REPORT COVERAGE

The report anticipates a detailed analysis of the global market size at the regional and national level, the segmentation market growth and market share. The prime objective of the report is to help user understand the market in terms of definition, market potential, influencing trends, and the challenges faced by the market. Analysis of sales, the impact of the market players, recent developments, opportunity analysis, strategic market growth analysis, territorial market expansion, and technological innovations are the subject matter explained in the report.