Gas Hydrates Market: Overview
The market size for gas hydrates was USD 2.3 billion in 2021, and throughout the forecast period, it is expected to expand at a CAGR of 4.5 percent. The main driver of the Gas Hydrates market's growth is the expanding automotive and transportation sectors. Greater accessibility, an increase in extraction-related investments, and several government attempts to speed up extraction to meet the rising energy demand are some of the factors anticipated to propel the growth of this market. The overall global energy supply in 2030 will be 16841.3 Mtoe, a 38.4% increase from the 2010 supply of 12168.0 Mtoe. These hydrates are becoming increasingly important in numerous businesses and energy-producing sectors due to their growing popularity as a sustainable energy source. An additional aspect anticipated to support the expansion of market revenue is the transportation of methane gas via gas hydrates.
One of the crucial factors fueling the expansion of the gas hydrates market is the rise in global spending on exploration and extraction. Global natural gas output was 4.04 trillion cubic meters in 2021, up 4.8 percent from the previous year. The global share of natural gas in energy sources is predicted to grow in the future. The market expansion is boosted by the rise in gas extraction activities in some areas. The market is expanding because of how much more energy people demand as their population grows. Additionally, the market is growing due to government activities to explore gas hydrates and the decline in the use of fossil fuels.
Furthermore, it is anticipated that technological advancement in oil and gas mining vessels would facilitate the extraction of gas hydrates. Technology developments that result in the creation of new tools and procedures, as well as the bolstering of the extraction capabilities of several significant businesses, are additional factors influencing the market's revenue growth throughout the projection timeframe. In April 2021, the China National Petroleum Corporation (CNPC) revealed a plan to consolidate its nine business lines into four new ones, including "oil and natural gas and new energy." (CNPC defines "new energy" as geothermal energy, gas hydrates, biomass, energy storage, hydrogen fuel, and uranium. This initiative is anticipated to have a favorable effect on the expansion of this market.
Gas Hydrates Market: COVID-19 Impact
The COVID-19 epidemic has affected several industries globally. Governments worldwide enacted stringent lockdown procedures and social segregation standards to slow the pandemic's rapid spread. Worldwide, factories were shut down in the early stages of the outbreak. The commercial launch of the chemicals industry may also be significantly delayed due to the economic collapse that followed the outbreak. Since the pandemic's emergence in 2020, small and medium-sized businesses—the backbone of technology providers—have witnessed a dramatic fall in revenue. The supply chain interruptions presented several challenges for market participants. However, things will get better as more supplies come online in the second half of 2022. Based on the following information, the impact of COVID-19 on market demand is taken into account when assessing market size and growth patterns for all regions and countries:
Gas Hydrates Market: Drivers
Increasing Demand from Automotive and Transportation Sector to Drive Market’s Growth
The future gas hydrate market will be driven by the requirement to supply the fuel required for use in the transportation and automotive sectors since it is a potential source of tremendous energy. Gas hydrate can also yield a significant amount of natural gas, and there are enormous quantities of it worldwide. The industrial sector and commercial applications drive the gas hydrate market. Transport and heavy industry are the two main industries dominating the gas hydrate market, yet these industries are still in their infancy. The primary development factors for the global market for gas hydrates include rising gas production operations in some regions. This is also a result of the decreased oil and gas production from the ore and the increased cost of these resources. The necessity for the Gas Hydrates Market is further fueled by the various initiatives taken by different Research and Development (R&D) institutes to discover better and more vibrant fuel substitutes. Additionally, this is anticipated to open up new prospects for the global gas hydrates market in the upcoming years.
Favorable Governmental Regulations for Gas Sector to Support Market’s Growth
The market data will be affected by favorable government policies toward conventional resources and the high demand for natural gas. The oil & gas infrastructure market will also benefit from increased investment in lease equipment and surface design with cutting-edge technological improvements throughout the upstream sector. The expansion of LNG transportation and storage infrastructure and energy security concerns will stimulate the industry. Improving refinery capacity through refurbishment, replacing and upgrading of existing refineries will drive the global oil & gas infrastructure market. Additionally, government initiatives to assist the gas-based economy will encourage business dynamics by offering subsidies and incentives from regulatory bodies toward adopting and using sustainable energy sources.
Gas Hydrates Market: Restraints
High Extraction Cost to Hamper Market’s Growth
Few businesses can afford to purchase the pricey technology needed to obtain gas hydrate. Therefore, gas hydrate is difficult to extract and is found in extremely harsh environments beneath the seafloor or in the crust. The high extraction costs hamper the potential expansion of the Gas Hydrates market. Additionally, it is thought that the extraction process has very high inefficiencies. Gas hydrate can therefore influence energy production, geological catastrophes, or global climate change
Gas Hydrates Market: Segment Overview
Offshore Gas Hydrates to Dominate market due to Increased Concentration of Minerals
Throughout the projection period, the off-shore gas hydrates category is anticipated to experience significant revenue growth. The high concentration of sediments, bacteria, and other accumulations in offshore gas hydrates is enhancing research & development activities at research centers, marine research institutions, and colleges. Huge quantities of offshore marine gas hydrates may be obtained via deep-sea extraction procedures, often utilized as fuel for numerous commercial and industrial sectors and transportation. At the Daini-Atsumi Knoll, a test location for the first offshore gas hydrate production was chosen in 2013. These crucial elements are anticipated to play a big role in this segment's revenue growth.
With Low Cost, Gas Hydrates are Suitable for Transportation
With the growing environmentally friendly practices and sustainability awareness, the transportation sector is anticipated to generate the biggest revenue share during the forecasted period. Hydrates can transport natural gas in solid or slurry form under equilibrium circumstances. Properties, including high safety, low transportation costs, and effective bulk natural gas transportation, have increased their usage globally and are anticipated to fuel this segment's revenue growth during the projection period.
Gas Hydrates Market: Regional Landscape
Asia Pacific to Acquire Major Market Share due to Increased Methane Extraction
The Asia Pacific region dominates the industry due to expanded production capacity. The expansion of manufacturing base facilities and the advancement of industrialization is further fueling the growth of the Gas Hydrates Market. With the largest extraction volume, China's market share for gas hydrate extraction controlled the whole market. China was the first country to successfully extract gas hydrate in 2021. In 2021, chemical extraction from gas hydrates was accomplished thanks to technical expertise and two extraction tests. In 2021, Japan was the second-largest nation to effectively recover gas hydrate. With its large oil and gas imports, expanding R&D expenses, and access to gas hydrate deposits in the Sea of Japan, Japan is the top-ranking country in the region. The Chinese and Indian markets have also looked at gas hydrates in the South China Sea and the Bay of Bengal. South Korea, Taiwan, and Malaysia are other contributors to the area.
Over the forecast period, Europe is anticipated to experience a considerable revenue CAGR. The increasing depletion of fossil fuels, such as coal, and rising demand for greener and cleaner fossil fuels, including methane fuel, in the European automotive and industrial sectors are some of the major drivers anticipated to propel market revenue growth. The presence of gas hydrate reserves, expanding R&D efforts, and adopting technologically cutting-edge extraction methods, technology, and equipment will all contribute to the region's gas hydrates market's revenue growth over the projection period. With its extensive consumer base and advanced technological know-how, Germany is a dominant nation in the area. Additionally, the availability of gas hydrate reserves prompted increased R&D activities, and cutting-edge extraction techniques, gear, and equipment will spur revenue growth in the region's gas hydrates business throughout the projected period.
Global Gas Hydrates Market: Competitive Landscape
In May 2022, Japan Petroleum Exploration Co., Ltd. (JAPEX) announced that JAPEX (U.S.) Corp. (JUS), it's an overseas consolidated subsidiary that holds tight oil interests in the United States, will invest approximately $500 million between 2022 and 2024 to develop tight oil interests in the southern United States that have already been acquired and those that will be acquired later this year. In January 2022, Bangladesh indicated the existence of 17 to 103 trillion cubic feet of methane-containing hydrate reserves in the Bay of Bengal. The government is committed to lowering its use of fossil fuels and needs natural gas for energy security and smooth operation over the next two decades. The newly discovered gas hydrates will generate electricity throughout the country.
Few of the players in the Gas Hydrates Market include Royal Dutch Shell, PetroChina, Total SA, Valero Energy, Japan Petroleum Exploration Co. Ltd., Schlumberger Limited, Japan Drilling Co. Ltd., Japan Oil, Gas & Metals National Corporation, and Sinopec.
Global Gas Hydrates Market is Segmented as Below:
Key Elements Included In The Study: Global Gas Hydrates Market
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