Global Natural Gas Market Assessment, By Source [Conventional Natural Gas Reservoirs, Unconventional Natural Gas Reservoirs], By Application [Utility, Transportation, Residential, Industrial and Commercial], By Region, Opportunities and Forecast, 2018-2032F

Global natural gas market is projected to witness a CAGR of 5.52% during the forecast period 2025-2032, growing from USD 1,186.56 billion in 2024 to USD 1,823.77 billion in 2032. 

Global Natural Gas Market Size, Share, Growth & Analysis 2032

Global natural gas market is projected to witness a CAGR of 5.52% during the forecast period 2025-2032, growing from USD 1,186.56 billion in 2024 to USD 1,823.77 billion in 2032. The market has experienced significant growth in recent years and is expected to maintain a strong pace of expansion in the coming years. The growth in the natural gas market is contributed by several factors such as the global shift towards cleaner energy solutions, increased utilization in industrial processes, technological advancements, and expansion of liquefied natural gas (LNG) infrastructure.
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Report Attribute
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Details
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Base Year of the Analysis
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2024
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Forecast Period
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2025-2032F
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Historical Period
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2018-2023
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Projected Growth Rate
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CAGR of 5.52% between 2025 and 2032
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Revenue Forecast in 2032
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USD 1,823.77 billion
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Natural gas is a cleaner alternative to coal and oil which drives its demand in various applications such as in power generation, residential, and industrial application. Natural gas is highly efficient and comes up with a lower emissions profile which fosters the natural gas market trend in industrial applications such as chemicals, and manufacturing. Globally, the power sector is mainly focused on producing more power with an emphasis on reducing carbon emissions which leads to increased demand for natural gas. In addition, several regions are adopting natural gas as a primary fuel to meet rising electricity needs while adhering to environmental regulations. The shift toward natural gas contributes to overall natural gas market growth in the coming years.
Furthermore, the rapid economic growth in the developing region is substantially driving energy demand which driving the need for natural gas in the market. The fast-growing markets in Asia account for a large amount of the growth while a rebound in Europe&rsquo;s industrial gas demand is also contributing to the market growth. In addition, the investment in natural gas extraction and distribution projects is increasing which is boosting the natural gas market growth in coming years.
For instance, global natural gas investment is expected to be around USD 9 trillion by 2050 in which upstream sector will get more than USD 8 trillion and midstream sector will be allotted remaining amount.
<h2>Transition to Cleaner Energy Sources Augmenting Market Growth</h2>
Natural gas has been identified as a transitional fuel that propels the nations to change from fossil fuels such as coal and oil to less carbon emission fuels for electricity generation. Nations are replacing coal with natural gas for electricity generation. Its lower carbon footprint makes natural gas a preferred fuel for nations seeking to cut greenhouse gas emissions while continuing to serve the energy needs in the nation. Natural gas is utilized in gas turbines and steam turbines to meet the growing need for electricity especially in developing countries.
Replacement of coal with advanced natural gas facilities reduced emissions by over 50% per unit of electricity produced. The trend is specifically relevant for major coal-consuming nations like China and India, where natural gas can have a decisive impact in powering a decarbonization process in the power sector. The United States consumption of natural gas used for power generation grew 9.4% (3.1 Bcf/d), and consumption in the industrial sector grew 4.4% (1.1 Bcf/d) during December 2024.
For instance, in October 2024, Dominion Energy introduced a new plan with aim of long-term electricity generation. The new plan will produce most of its energy from the resources such as natural gas. This plan will lead to the adoption of natural gas in the power generation sector. Similarly, in 2023, the United States natural gas consumption is accounted 40% in the electric power sector.
<h2>Rise in Use of Natural Gas in Residential Sector Driving Market Growth</h2>
The growing population and urbanization trend in developing countries contribute to the rise in energy demands in residential areas. The growth of urban areas and apartments fuels the demand for stable energy sources such as natural gas to service the new apartment complexes and energy requirements in future years. Further, natural gas is emerging as a major source of cooking and heating for the residential market in the Europe region that fuels the market growth. In addition, the housing sector is seeking to switch from oil and coal-fired heating equipment and appliances to natural gas sources to reduce carbon emissions in the atmosphere. Moving toward clean energy sources enhances the efficiency of heating systems and is also in line with governmental policies to minimize air pollution and greenhouse gases.
In several regions, governments and higher authorities are promoting the use of natural gas through incentives and subsidies aimed at reducing reliance on more polluting fuels. The policies encourage the residential sector to switch to natural gas for different applications which drives the demand for natural gas in the market. For instance, in 2023, the United States residential sector consumed around 14 % of natural gas and about 41% of the country residential sector end-use energy consumption was natural gas. Further about 60% of the United States homes use natural gas for space and water heating, cooking, and clothes drying.
Investment in Infrastructure Development Creates Market Opportunity
Globally, the investment in building natural gas infrastructure including investments in pipelines and distribution networks will improve the access of natural gas and facilitate the access of various sectors to natural gas. Good infrastructure promotes the efficient supply of natural gas, which encourages the use of natural gas in residential and power generation sectors. Investments in the natural gas infrastructure lead to an expansion of the market's capacity to deliver gas efficiently.
Both the government and private sector are trying to invest in the natural gas sector so that they increase its reliability and accessibility and try to improve efficiency in the transport and distribution of natural gas. The investments made are utilized in new pipeline network construction while refurbishing the existing one is equally important for transporting natural gas from its production sites to consumers. In addition, infrastructure development concerning the production and delivery of natural gas is also playing a crucial role in the growth of the natural gas market.
The growth of LNG infrastructure significantly increases the trade of natural gas between the region which creates the opportunity for the natural gas market. The pipeline infrastructure between the countries is able to export to regions with high demand of natural gas<a href="https://www.stlouisfed.org/on-the-economy/2023/jun/infrastructure-future-growth-global-natural-gas-market">.</a>&nbsp;However, investments in liquefaction capacity remain critical to avoid bottlenecks in supply chains. For instance, in December, 2024, Energy Transfer LP decided to invest in the construction of an intrastate natural gas pipeline connecting&nbsp;Permian Basin&nbsp;production to premier markets and trading hubs.&nbsp;The new large-diameter pipeline will be known as the Hugh Brinson Pipeline. This development will drive the demand for natural gas for different applications.
<h2>Conventional Natural Gas Reservoirs to Dominate the Market Share</h2>
Conventional natural gas reservoirs have the largest market share and dominate the market. Natural gas in conventional natural gas reservoirs occurs mainly in geologic formations having favorable characteristics for gas accumulation. Natural gas extracted from the conventional natural gas reservoir is easy compared with other types of unconventional reservoirs. Conventional reservoirs consist of rock formulations such as sandstone or limestone. These rock formulations have high porosity and permeability which allow natural gas to flow easily.&nbsp; Furthermore, conventional gas can be extracted from the natural pressure of the reservoir. Furthermore, the predictability of production from conventional reservoirs helps in maintaining a stable supply chain, which is critical for constant energy supplies in different sectors such as residential, commercial, and industrial applications.
Asia-Pacific Leads the Natural Gas Market
Asia-Pacific region is expected to dominate the natural gas market. Asia-Pacific is increasing the natural gas consumption due to the increasing power generation and rapid industrialization. Also with the increasing investment in the pipeline infrastructure projects and upstream activities, increase in the consumption of natural gas is taking place. Furthermore countries like China and India are expanding their manufacturing capabilities and rising focus on adoption of lesser polluting energy solutions, this in turn increase the demand of natural gas. Countries like China and India are particularly active in expanding their manufacturing capabilities and adopting clean energy solutions which drives up the demand for the natural gas market.
Furthermore, natural gas is becoming a preferred fuel for power generation in the region. The power generation sector accounts for a significant portion of natural gas demand in the region.&nbsp; Governments in the Asia-Pacific region are implementing policies that encourage the use of natural gas to lower carbon emissions in the region.
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Future Market Scenario (2025 &ndash; 2032F)
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<li>Massive investments in natural gas pipeline infrastructure projects across the region are driving the demand for natural gas in coming years.</li>
<li>Supportive government policies aimed at promoting cleaner energy sources are fostering an environment conducive to natural gas market growth.</li>
<li>Innovations and adoption of extraction technologies, such as hydraulic fracturing and horizontal drilling, are enhancing the efficiency and cost-effectiveness of natural gas production which increases the revenue in the market.</li>
<li>Asia-Pacific region is expected to be the fastest-growing market for natural gas due to rising power demands from industrialization and urbanization.</li>
</ul>
Report Scope
&ldquo;Global Natural Gas Market Assessment, Opportunities and Forecast, 2018-2032F&rdquo;,&nbsp;is a comprehensive report by Markets and Data, providing in-depth analysis and qualitative and quantitative assessment of the current state of the global natural gas market, industry dynamics, and challenges. The report includes market size, segmental shares, growth trends, opportunities, and forecast between 2025 and 2032. Additionally, the report profiles the leading players in the industry, mentioning their respective market share, business models, competitive intelligence, etc.
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Report Attribute
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Details
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Segments Covered
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Source, Application
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Regions Covered
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North America, Europe, South America, Asia-Pacific, Middle East and Africa
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Key Companies Profiled
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Exxon Mobil Corporation, Chevron Corporation, Shell plc, TotalEnergies SE, ConocoPhillips Company, Sinopec Group, Reliance Industries Limited, Saudi Arabian Oil Co., Equinor ASA, Oil and Natural Gas Corporation.
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Customization Scope
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15% free report customization with purchase
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Pricing and Purchase Options
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Avail the customized purchase options to fulfill your precise research needs
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Delivery Format
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PDF and Excel through email (subject to the license purchased)
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In the report,&nbsp;global natural gas market&nbsp;has been segmented into the following categories:&nbsp;
<ul>
<li>By Source
<ul>
<li>Conventional Natural Gas Reservoirs</li>
<li>Unconventional Natural Gas Reservoirs</li>
</ul>
</li>
<li>By Application
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<li>Utility</li>
<li>Transportation</li>
<li>Residential</li>
<li>Industrial and Commercial</li>
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<li>By Region
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<li>North America</li>
<li>Europe</li>
<li>Asia-Pacific</li>
<li>South America</li>
<li>Middle East and Africa</li>
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</li>
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Key Players Landscape and Outlook
Continuous innovation characterizes the landscape of natural gas globally, as the companies compete in terms of energy efficiency, product life, and unique features. The market outlook remains positive, owing to increased demand for the integration of renewable energy and automation in the industrial sector. Product launches, agreements, business expansions, collaborations, and developing technologies are projected to increase competition in the fast-paced market.
For instance, in September 2024, ConocoPhillips Company and Uniper SE decided to extend a long-term gas partnership for the supply of up to 10 billion cubic meters of natural gas over the next 10 years. This development will help the company to increase its revenue in the coming years.
Key Players Operating in Global Natural Gas Market are:
<ul>
<li>Exxon Mobil Corporation</li>
<li>Chevron Corporation</li>
<li>Shell plc</li>
<li>TotalEnergies SE</li>
<li>ConocoPhillips Company</li>
<li>Sinopec Group</li>
<li>Reliance Industries Limited</li>
<li>Saudi Arabian Oil Co.</li>
<li>Equinor ASA</li>
<li>Oil and Natural Gas Corporation</li>
</ul>
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Global Natural Gas Market Assessment, Opportunities and Forecast, 2018-2032F

Global natural gas market is expected to experience growth due to growing emphasis on reducing carbon emissions and rapid economic growth in regions which leads to high demand for natural gas for multiple applications in different end users sectors.

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