Europe Power-to-Gas Market Size, Share, and COVID-19 Impact Analysis, By Technology (Power-to-Hydrogen and Power-to-Methane), By End-User (Utilities, Industrial, and Commercial), and Europe Power-to-Gas Market Insights, Industry Trend, Forecasts to 2033

Europe Power-to-Gas Market Insights Forecasts to 2033

• The Europe Power-to-Gas Market Size is Growing at a CAGR of 6.11% from 2023 to 2033
• The Europe Power-to-Gas Market Size is Expected to Hold a Significant Share by 2033

The Europe Power-to-Gas Market Size is Anticipated to Hold a Significant Share by 2033, Growing at a CAGR of 6.11% from 2023 to 2033

Market Overview

The Europe power-to-gas (P2G) market aims to convert electrical energy into gaseous energy carriers like hydrogen or synthetic methane through processes like electrolysis or methanation. This technology enables energy storage and grid balancing, integrating renewable energy sources and building a decarbonized energy system. The increasing demand for renewable energy integration and decarbonization in sectors like transportation, heating, and industry drives the market. P2G addresses the cogency issues with wind and solar, converting surplus electricity into gas for various applications. The European Union has introduced programs and regulations to improve green hydrogen production and develop P2G. The European Green Deal and Hydrogen Strategy for a Climate-Neutral Europe provide a solid foundation for investment in clean hydrogen and related technologies, boosting innovation and market opportunities. National governments provide incentives and subsidies to accelerate the commercialization of P2G systems, aiming for long-term sustainability and peace across Europe.

Report Coverage

This research report categorizes the market for the Europe power-to-gas market based on various segments and regions forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the Europe power-to-gas market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the Europe power-to-gas market.

Driving Factors

The integration of renewable energy sources and sector-wide decarbonization initiatives are the main drivers of the power-to-gas (P2G) business in Europe. An energy system will face difficulties with energy storage and grid stability when more energy is extracted from renewable sources, like solar and wind. P2G converts surplus electricity into synthetic methane or hydrogen, which is then stored and used during periods when renewable energy is limited. However, the market is growing because of the much-anticipated green hydrogen production, which is necessary for its many applications in heating, transportation, and industry. The P2G advancements are further enhanced by government incentives and assistance for clean energy technology.  

Restraining Factors

The development of P2G infrastructure faces several constraints, including high capital costs, scalability issues, and a lack of a comprehensive regulatory framework. These factors limit the appeal of P2G technology, and the lack of a comprehensive standard can cause uncertainty for potential investors. Additionally, the high cost and need for large storage capacity may hinder the commercialization and proliferation of P2G technologies, potentially causing a slowdown in market uptake.

Market Segmentation

The Europe power-to-gas market share is classified into technology and end-user.

• The power-to-hydrogen segment accounted for the largest share in 2023 and is expected to grow at a significant CAGR during the forecast period.

The Europe power-to-gas market is segmented by technology into power-to-hydrogen and power-to-methane. Among these, the power-to-hydrogen segment accounted for the largest share in 2023 and is expected to grow at a significant CAGR during the forecast period. Hydrogen's clean fuel status and versatility in transportation, industrial processes, and energy storage are the main focus of its attention. As we move toward a low-carbon economy, hydrogen is one of the key components. It can be used to power cars with fuel cells, generate electricity when combined with renewable energy sources, or, on the other hand, aid in the decarbonization of heavy industries.

• The utilities segment accounted for the highest share in 2023 and is expected to grow at a significant CAGR during the forecast period.

Based on the end-user, the Europe power-to-gas market is divided into utilities, industrial, and commercial. Among these, the utilities segment accounted for the highest share in 2023 and is expected to grow at a significant CAGR during the forecast period. The integration of renewable energy into the grid is causing a ripple effect, with increased demand for energy storage solutions. Power-to-gas technologies, focusing on hydrogen production, help utilities balance supply and demand for renewable energy by providing surplus storage and a flexible source of energy when renewable generation declines. Injecting hydrogen or synthetic methane into the gas grid allows utilities to establish renewable energy goals, creating a crucial understanding for end-users of P2G technologies.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the Europe power-to-gas market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Siemens Energy
• Uniper SE
• Air Liquide
• ENGIE Group
• Thyssenkrupp AG
• Nel ASA
• Sempra Energy
• GRT Gaz SA
• Ineratec GmbH
• Electrochaea GmbH
• AquahydreX Inc.
• Others

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting And Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Recent Developments

• In January 2024, Siemens Energy reported the successful completion of a large-scale Power-to-Gas pilot project in Germany that produces green hydrogen using cutting-edge Proton Exchange Membrane (PEM) electrolysis technology. In line with the EU's green hydrogen targets outlined in the 2020 Hydrogen Strategy, this initiative is a component of the company's larger plan to increase green hydrogen production and aid in Europe's shift to a low-carbon economy.

Market Segment

This study forecasts revenue at Europe, regional, and country levels from 2020 to 2033. Spherical Insights has segmented the Europe power-to-gas market based on the below-mentioned segments:

Europe Power-to-Gas Market, By Technology

• Power-to-Hydrogen
• Power-to-Methane

Europe Power-to-Gas Market, By End-User

• Utilities
• Industrial
• Commercial