Synthetic Natural Gas Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2025 - 2032)

Synthetic Natural Gas Market Size

Synthetic Natural Gas Market Trends & Growth Drivers

Integration of Power-to-Gas Technology Is Key Market Trend

• Power-to-gas technology is a key market trend that uses electricity to produce synthetic natural gas.
• PtG technology produces hydrogen through the electrolysis process, which is subsequently transformed into methane and other gases that may be utilized to create synthetic natural gas.
• Additionally, the PtG technology generates low-carbon fuels, which can be further used in industries such as transportation.
• This technology is also helpful in reducing carbon footprints and promoting green energy and sustainable development initiatives by various developing and developed countries.
• Moreover, it lowers the cost associated with the SNS production with the increased efficiency.

Government Initiatives to Promote SNG Is Driving Market Growth

• As cities and populations develop, there is a growing need for sustainable and greener energy sources to lower carbon emissions, which is fueling the market for synthetic natural gas.
• Additionally, governments are increasingly investing in the R&D to advance SNG production methods such as the integration of the CCUS technology.
• Countries such as China, the U.S., and Germany are shifting their coal-based industrial plants to synthetic natural gas-based plants to reduce carbon footprints from coal use.
• Moreover, the industry is expanding due to government policies in several countries that support SNG as a fuel on a global scale.
• In June 2023, Greene and Naturgy started working together on a proposal in Spain to create syngas biomethanation from dry waste.
• This innovative process transforms difficult-to-treat waste into bio-synthetic natural gas for injection into the network or use in mobility, supporting the circular economy.
• In August 2022, China produced SNG with a domestically manufactured catalyst that can outperform international methods, marking a significant advancement in green technology.
• This is a step toward China's goal of becoming technologically independent in its efforts to advance green transformation and bolster energy security.

Synthetic Natural Gas Market Analysis

Source Insights

• Renewable energy will grow at the highest CAGR, of 24%, during the forecast period due to the shift of the global economies towards renewable energy sources for production of the SNG.
• Additionally, the growth of renewable energy sources for SNG production has risen due to extensive renewable technologies such as power-to-gas, known for their sustainability and clean energy emissions.
• Furthermore, countries such as Japan, Germany, and Denmark are focusing on integrating renewable energy sources for their production.

The sources analyzed in this report are:

• Coal 
• Biomass (Largest-Category)
• Renewable Energy (Fastest-Growing Category)

Technology Insights

• Gasification category holds the largest market share, of 55%, in 2024.
• This technology is well-established for the SNG production due to its reliability and scalability in the production.
• Additionally, gasification is well suited for industries where production is on a large scale.
• Power-to-gas technology will grow at the highest CAGR, of 23.5%, during the forecast period due to its increased focus on renewable energy sources to reduce the carbon footprints in the production of the synthetic natural gas.
• Moreover, power-to-gas technology uses renewable energy such as solar and wind for the production of SNG.
• This technology can also be easily integrated into the existing infrastructure of natural gas pipelines and distribution systems, which reduces the cost associated with new infrastructure development.

The technologies analyzed in this report are:

• Gasification (Largest-Category)
  • Coal
  • Biomass
  • Plasma
  • Hydrothermal
  • Supercritical water
• Power-to-Gas Technology (Fastest-growing Category)
  • Electrolysis
• Methanation
  • Fixed-bed
  • Fluidized-bed
  • Thermo-catalytic
  • Plasma-assisted
  • Biological
• Steam Reforming
  • Catalytic steam
  • Autothermal
• Carbon Capture, Utilization, and Storage (CCUS)
  • Post-combustion
  • Pre-combustion
  • Others

Application Insights

The applications analyzed in this report are:

• • Industrial application holds the largest market share, of 45%, in 2024.
  • This is because companies have shifted away from conventional fuels such as coal and oil and toward clean fuels such as SNG fuel.
  • Additionally, industries such as chemical production, steel, and power generation use SNG as a fuel.
  • Energy storage will grow at the highest CAGR, of 25%, in 2024.
  • This is due to the growing advancement in technology, such as the power-to-gas integration into the energy storage system.
  • Transportation
  • Industrial Applications (Largest-Category)
  • Energy Storage (Fastest-Category)
  • Grid Injection
  • Others

Regional Analysis

• APAC is expected to grow at the highest CAGR, of 25%, during the forecast period.
• This is due to the rise in the rapid industrialization and urbanization in APAC which is increasing the demand for energy.
• The APAC is home to 60% of the world’s population, approximately 4.3 billion people, and includes the most populous countries, China and India.
• The increased environmental regulations by the regional governments is further driving this market growth.
• Moreover, the ongoing infrastructure development and the technological advancements in the SNG production propels the market.

The regions and countries analyzed for this report include:

North America

• U.S. (Larger and Faster-Growing Country Market)
• Canada

Europe (Largest Regional Market)

• Germany (Largest Country Market)
• U.K. (Fastest-Growing Country Market)
• France
• Italy
• Spain
• Rest of Europe

Asia-Pacific (APAC) (Fastest-Growing Regional Market)

• China (Largest Country Market)
• Japan
• India (Fastest-Growing Country Market)
• South Korea
• Australia
• Rest of APAC

Latin America (LATAM)

• Brazil (Largest and Fastest-Growing Country Market)
• Mexico
• Rest of LATAM

Middle East and Africa (MEA)

• Saudi Arabia (Largest Country Market)
• South Africa
• U.A.E. (Fastest-Growing Country Market)
• Rest of MEA

Synthetic Natural Gas Market Share

The SNG market is consolidated in nature, and dominated by a few major players because of the high capital investment and technological expertise required in developing SNG production facilities. This establishes an entry barrier for smaller firms in the market. Leading firms often merge to further build up their technological advancements and efficiency.

Synthetic Natural Gas Market News

• In August 2024, GAIL (India) Ltd. and Coal India Ltd. (CIL) established a joint venture to develop a coal-to-synthetic natural gas project in West Bengal. The shareholdings of CIL and GAIL will be 51% and 49%, respectively. The Cabinet Committee on Economic Affairs has authorized this proposal, which is in line with India's 2032 target of gasifying 100 MT of coal.
• In March 2024, Thermax Ltd. announced to conduct a commercial-scale trial of its high-ash coal gasification technology in the Eastern Coalfields Limited area. Coal India Limited (CIL) plans to establish a coal-to-SNG project in this region. The company claims to have patented technology in this field.