Power to Gas Market Size –By Technology, By Capacity, By Application, Analysis, Share, Growth Forecast, 2025 – 2034

Power to Gas Market Size

The global power to gas market was valued at USD 38.1 million in 2024 and is expected to reach USD 74.3 million by 2034, growing at a CAGR of 6.9% from 2025 to 2034. Increasing investments in renewable energy infrastructure, government incentives to adopt green hydrogen and the rising demand for energy storage solutions to stabilize grids will proliferate industry penetration.
 

The integration of PtG systems with surplus renewable energy particularly from wind and solar in line with rapid expansion of hydrogen production technologies will positively sway the power to gas market outlook. For instance, in 2024, Canada has introduced CHITC (Clean Hydrogen Investment Tax Credit) legislation in Parliament, which is projected to deliver over USD 15 billion in tax incentives to support the sector through 2035, based on anticipated credit usage.
 

Power to gas is a renewable energy storage and conversion technology that transforms surplus electricity, often from renewable sources including wind or solar, into gaseous fuels such as hydrogen or methane. The process typically includes electrolysis, where water is separated into oxygen and hydrogen using electricity, and in some cases, hydrogen is combined with captured carbon dioxide through methanation to produce synthetic methane.
 

The adoption of PtG in hard-to-decarbonize sectors including heavy industry, transportation, and heating along with supportive regulatory frameworks promoting the green hydrogen and renewable methane will augment the industry landscape. The governments across emerging economies are emphasizing toward the reduction of carbon emission which in turn are creating a favorable business environment.
 

Continuous investments in hydrogen infrastructure and supportive government incentives will propel the industry potential. Increasing adoption of synthetic methane and hydrogen in various industrial processes in line with expansion of district heating network will encourage the business momentum. Ongoing development of PEM electrolysis technology and integration of biomethane production in industrial processes will drive the product adoption.
 

Power to Gas Market Trends

The industry has witnessed robust growth owing to rapid integration of these technology in existing natural gas infrastructure. Growing strategic collaboration between key industry stakeholders, utilities, and governments toward innovations in reducing CAPEX and OPEX for PtG systems coupled with surging demand for hydrogen production technologies will create favorable industry dynamics.
 

Continuous improvement in electrolyzers particularly solid oxide and proton exchange membrane technologies coupled with rapid expansion of green hydrogen projects will encourage the industry scenario. For instance, the UK government has established an ambitious target to achieve 10 GW of low-carbon hydrogen production capacity by 2030, with 6 GW specifically dedicated to green hydrogen.
 

The power to gas market is gaining traction fueled by rising adoption of sustainable alternative to fossil fuels and improved grid flexibility. Ongoing global and regional commitments to net zero carbon emission in tandem with increasing penetration of wind and solar energy infrastructure for efficient storage and conversion technologies will accelerate the business potential.
 

Industries including transportation, chemicals, and steel are focusing to reduce carbon footprint from their processes will positively impact the industry scenario. Surging cost-effectiveness and efficiency of electrolyzers in tandem with gas grid operators are continuously exploring hydrogen blending to produce P2G will strengthen the adoption of these technology.
 

Rapid development of infrastructure including hydrogen refueling station, storage facilities, and pipeline network will create an opportunity for the adoption of Power to Gas facility. In addition, stringent emission regulations and carbon pricing are the key prominent factors are accelerating industries to invest more in these technologies.
 

Power to Gas Market Analysis

• The power to gas industry was valued at USD 32.8, 36.7, and 38.1 million in 2022, 2023 and 2024 respectively. Based on technology, the industry is segmented into electrolysis and methanation. Surging investment in gas infrastructure and increasing hydrogen production capacity will energize industry penetration.
   
• The electrolysis power to gas market will exceed USD 60 million by 2034. These technology acts as a bridge for converting surplus electricity into hydrogen, ensuring grid stability and optimal utilization of renewable energy. Continuous technological innovation comprising of PEM, alkaline, and Solid Oxide Electrolysis coupled with growing focus to reduce costs, improve efficiency, and enables scalability will drive the industry expansion.
   
• For instance, in 2024, Hydrogène de France Energy has initiated operations at a manufacturing facility dedicated to 1 MW+ PEM fuel cells. These fuel cells are designed to decarbonize heavy maritime and rail transport and supply clean electricity to public power grids.
   
• The methanation power to gas market will project to at a CAGR of over 7% through 2034, driven by offering scalable and sustainable solutions for energy storage and distribution. Strong policy support including subsidies, tax benefits, and funding for hydrogen projects in association with rising demand for energy-intensive industries is bolstering the adoption of these solutions.
   

• Based on capacity, the industry is segmented into ≤ 100 kW, > 100 kW to 1,000 kW, and > 1,000 kW. The industry is set for robust growth fueled by increasing demand for energy storage and robust expansion of commercial projects. Escalating investment in advancing methane production and accelerating support to hydrogen based economy will drive the business expansion.
   
• The > 100 kW to 1,000 kW rated power to gas market has dominated 54.2% revenue share in 2024, on account of the need for decentralized hydrogen production, energy storage, and decarbonization solutions. Increasing penetration of intermittent renewable energy sources to address grid stability in line with ongoing government’s ambitious target to reduce net-zero emission will stimulate the business dynamics.
   
• For instance, in May 2023, TotalEnergies in collaboration with Belgian Energy start up is poised to construct a synthetic natural gas facility with an investment accounted USD 2 billion in U.S. This strategic investment is a paradigm shift toward clean energy infrastructure favoring supportive policy and financial support.
   
• The ≤ 100 kW rated power to gas market was crossed USD 10 million in 2024. Continuous innovations in scaling PtG systems, improving efficiency, and lowering operating costs coupled with increasing expansion of hydrogen pipelines, storage facilities, and fueling stations will boost the deployment of ≤ 100 kW rated capacity across key geographies.
   
• The > 1,000 kW rated power to gas segment will exceed USD 9 million by 2034. Ongoing cluster-based initiatives including hydrogen valleys, integrating production, storage, and usage will positively sway the business outlook. The electrolysis power to gas industry has observed substantial growth driven by the need for large-scale renewable energy storage, decarbonization of industries, and supportive government policies.
   
• Based on application, the industry is segmented into commercial, utility, and industrial. The commercial power to gas market will project to hit USD 20 million by 2034. Growing adoption of carbon-neutral strategies across commercial establishments including data centers, office buildings, retail chains, and logistic hubs will stimulate the business trend.
   
• The utility power to gas segment will witness a growth rate of over 6.5% from 2025 to 2034. Utility companies are heavily investing in scalable solutions to enhance gas storage and power conversion, thereby proliferating industry growth. Furthermore, incorporation of hydrogen production & distribution to cater sustainability goals and energy resilience will augment the technology adoption.
   
• The industrial power to gas market has dominated over 40% revenue share in 2024. Surging deployment of P2G technology to drive carbon capture and utilization efforts by convert CO₂ into synthetic methane through the methanation process will accelerate industrial processes. Ongoing collaboration between technology developers, energy providers, and industrial manufacturers are driving large scale P2G projects will sway the business penetration.
   

• U.S. power to gas market was reached USD 5.9, 6.5, and 6.7 million in 2022, 2023 and 2024 respectively. The country will exceed over USD 10 million by 2034. Surging renewable energy projects in the country in line with robust demand for energy storage technologies will escalate the business landscape. Favorable regulatory standards introduced by their respective authorities including Inflation Reduction Act (IRA) and the Bipartisan Infrastructure Law, which provide financial support and tax incentives for clean energy technologies will influence the industry scenario.
   
• The North America power to gas market will exceed over USD 15 million in 2034. Robust expansion of green hydrogen mega projects in line with integration of hybrid energy systems will stimulate the business dynamics. In addition, industries are spearheading the demand for high-capacity P2G systems, leveraging hydrogen for cleaner operations in sectors including ammonia production, refining, and synthetic fuels, thereby augmenting industry prospects.
   
• The Europe power to gas market will witness at a CAGR of over 7% through 2034. The region is poised for significant growth driven by robust decarbonization agenda, growing renewable energy capacity, and a strong commitment to hydrogen as an energy carrier. Rapid deployment of green hydrogen projects supported by both national and EU level initiatives in tandem with integration of PtG with renewable power generation will drive the industry landscape.
   
• The Asia Pacific power to gas market captured more than 25% revenue share in 2024. Ongoing development of hydrogen infrastructure including pipelines, storage, and refueling stations in conjunction with rising demand for these technologies across steelmaking, refining, and ammonia production will propel the demand in Asia Pacific region. Ongoing advancements and supportive policy frameworks toward adoption of hydrogen will positively influence business growth.
   

Power to Gas Market Share

• The top 5 players including Engie, Baker Hughes, Hitachi Zosen Inova Schmack, MAN Energy Solutions, and Siemens Energy together holds share of about 40% in the power to gas industry. The P2G technology is essential to stabilize the grids, and fostering hydrogen economy, and decarbonizing industries.
   
• In May 2024, Linde signed a strategic agreement with H2 Green Steel to deliver industrial gases for green steel production facility. In this agreement, Linde will invest over USD 150 million to construct, operate and own an air separation unit in Sweden.
   

Power to Gas Market Companies

• Baker Hughes has reported USD 25.5 billion revenue in 2023. The company’s revenue growth driven by leveraging capabilities to progress new energy and digital technology. In addition, surging focus to optimize the portfolio and acquisition has led the company market position in key emerging markets.
   
• Linde has reported USD 24.7 billion revenue in 2024 (Nine Months). The company’s operating profit was fueled by productivity initiatives and higher pricing along with continuous investment in new plant facilities.
   
• Engie has reported USD 52.6 billion revenue in 2024 (Nine Months). The company’s gross CAPEX accounted USD 7.22 billion in nine months of 2024 and growth CAPEX accounted USD 5.34 billion, in which 80% market in Flex Gen, renewable, and Energy Solutions.
   

Major players operating in the power to gas market are:

• AquaHydrex
• Baker Hughes
• Electrochaea
• Engie
• GRTgaz
• Hitachi Zosen Inova Schmack
• ITM Power
• John Cockerill
• Krajete
• Linde
• MAN Energy Solutions
• McPhy Energy
• NEL
• Ren-Gas
• Siemens Energy
• Thyssenkrupp
   

Power to Gas Industry News

• In September 2024, Hitachi Zosen Inova’s subsidiary Schmack Biogas has been chosen by AGR Biogás to deliver an advanced biogas plant following the completion of their first anaerobic digestion facility in Campillos, near Málaga, Spain. The upcoming La Calahorra plant will offer an innovative and sustainable biogas solution for processing challenging materials including olive pomace and other agricultural residues.
   
• In August 2024, Electrochaea has achieved a significant milestone by successfully completing the prestigious EIC Accelerator program. This initiative, co-funded by the European Innovation Council (EIC), supports breakthrough innovations by helping companies commercialize their cutting-edge products and services. With substantial support, including a USD 2.56 million grant and USD 15.41 million equity investment, Electrochaea has successfully scaled its biomethanation technology to industrial levels, unveiling a cutting-edge archetype design with a 10 MWe capacity.
   
• In August 2024, Linde Engineering signed a collaborative agreement with Shell Deutschland to develop a 100 MW hydrogen production facility as part of REFHYNE II project at Shell’s Energy and Chemical Park in Germany. As per the agreement, Linde will design construction, procurement, and engineering work of PEM electrolysis plant, which will play a pivotal role in green hydrogen production.
   
• In January 2023, AquaHydrex secured a new funding to accelerate the commercialization of its water electrolysis technology. This funding round was led by the AP Ventures along with Aramco Ventures, and True North Venture Partners. Moreover, the company has introduced alkaline water electrolysis technology to enable energy efficient and large scale green hydrogen production.
   

The power to gas market research report includes in-depth coverage of the industry with estimates & forecast in terms of volume (kW) & revenue (USD Million) from 2021 to 2034, for the following segments:

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Market, By Technology

• Electrolysis
• Methanation

Market, By Capacity

• ≤ 100 kW
• > 100 kW to 1,000 kW
• > 1,000 kW

Market, By Application

• Commercial
• Utility
• Industrial

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Denmark
  • Netherlands
  • Switzerland
• Asia Pacific
  • China
  • Japan
  • Australia