PUBLISHER: Global Industry Analysts, Inc. | PRODUCT CODE: 1739269
PUBLISHER: Global Industry Analysts, Inc. | PRODUCT CODE: 1739269
Global Synthetic Methanes Market to Reach US$225.2 Million by 2030
The global market for Synthetic Methanes estimated at US$112.9 Million in the year 2024, is expected to reach US$225.2 Million by 2030, growing at a CAGR of 12.2% over the analysis period 2024-2030. Direct Air Capture Source, one of the segments analyzed in the report, is expected to record a 10.6% CAGR and reach US$142.9 Million by the end of the analysis period. Growth in the Hydrogen & Carbon Dioxide Source segment is estimated at 15.4% CAGR over the analysis period.
The U.S. Market is Estimated at US$30.8 Million While China is Forecast to Grow at 16.2% CAGR
The Synthetic Methanes market in the U.S. is estimated at US$30.8 Million in the year 2024. China, the world's second largest economy, is forecast to reach a projected market size of US$46.6 Million by the year 2030 trailing a CAGR of 16.2% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 9.0% and 10.7% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 9.6% CAGR.
Global Synthetic Methanes Market - Key Trends & Drivers Summarized
Why Are Synthetic Methanes Emerging as a Decarbonization Lever Across Energy and Industrial Systems?
Synthetic methanes-also referred to as e-methane or renewable methane-are chemically identical to fossil-derived methane but produced using captured carbon dioxide and green hydrogen via methanation processes. These fuels are attracting increasing interest as part of broader decarbonization strategies in sectors where electrification is difficult or infrastructure is already built around natural gas. Synthetic methanes offer a drop-in replacement compatible with existing pipelines, storage facilities, and end-use equipment, enabling low-disruption transitions to low-carbon energy systems.
Their appeal is further reinforced by the ability to close the carbon loop: when produced using CO2 from industrial emissions or direct air capture (DAC), synthetic methane serves as a carbon-neutral energy carrier. This makes it valuable for hard-to-abate sectors such as long-haul transport, chemical manufacturing, and high-temperature industrial heating. As net-zero commitments become operational targets, synthetic methanes are gaining traction as versatile tools to reduce scope 1 and 2 emissions in both energy and industrial value chains.
How Are Production Technologies and Power-to-Gas Integration Advancing Commercial Viability?
The production of synthetic methane relies on power-to-gas (PtG) systems that convert renewable electricity into hydrogen through electrolysis, which is then combined with CO2 in catalytic or biological methanation reactors. Recent improvements in electrolyzer efficiency, catalyst durability, and heat integration are reducing energy losses and production costs-bringing synthetic methane closer to economic competitiveness with fossil natural gas and biomethane. Pilot projects in Europe and Asia are demonstrating technical scalability and grid compatibility under real-world conditions.
Integration with renewable energy sources is another key driver. Surplus solar and wind power can be stored as synthetic methane, which acts as a long-duration energy storage medium while also supporting grid balancing. By leveraging existing gas infrastructure, PtG systems using synthetic methane offer dual benefits of energy system flexibility and infrastructure reuse. As electrolyzer costs fall and renewable penetration rises, synthetic methane is positioned to play a pivotal role in seasonal storage and energy sector coupling.
Which End-Use Segments and Geographic Regions Are Pioneering Synthetic Methane Adoption?
Natural gas utilities, district heating providers, and heavy industrial users are among the early adopters exploring synthetic methane as a decarbonization pathway. Its compatibility with combined heat and power (CHP) systems, industrial boilers, and gas turbines enables substitution without retrofitting existing hardware. The transportation sector-especially maritime and heavy-duty vehicles-is also evaluating synthetic methane as a cleaner drop-in alternative to LNG and CNG, with lifecycle emissions benefits under renewable sourcing scenarios.
Europe leads the market in synthetic methane project deployment, with countries like Germany, Switzerland, and the Netherlands integrating it into national hydrogen strategies and PtG initiatives. Japan and South Korea are exploring synthetic methane imports to decarbonize gas grids while securing energy independence. North America, though still in early-stage development, is witnessing growing interest from gas utilities and hydrogen developers aiming to diversify their clean fuel portfolios. These regional dynamics are setting the foundation for global supply chain development and cross-border trade in synthetic fuels.
How Are Policy Frameworks, Carbon Pricing, and Renewable Energy Markets Shaping Demand Trajectories?
Government policies supporting renewable gas mandates, carbon-neutral fuel standards, and subsidies for PtG infrastructure are accelerating synthetic methane commercialization. The European Union’s Fit for 55 package and REPowerEU plan explicitly promote synthetic fuels as part of energy security and climate targets. Similarly, clean fuel standards in California and Canada offer credit-generating opportunities for low-carbon gas alternatives, incentivizing early investment in e-methane production facilities.
Carbon pricing is another crucial enabler. As the cost of emitting CO2 rises under emissions trading schemes (ETS) and carbon border adjustment mechanisms (CBAM), the relative attractiveness of synthetic methane improves. Renewable energy markets, including green power purchase agreements (PPAs) and guarantees of origin (GoOs), are facilitating traceable and verifiable low-carbon inputs for methane synthesis. As corporate buyers seek to decarbonize gas usage without operational overhaul, synthetic methane’s role as a flexible, certifiable solution is becoming increasingly strategic.
What Are the Factors Driving Growth in the Synthetic Methanes Market?
The synthetic methanes market is gaining momentum as a scalable, infrastructure-compatible solution to decarbonize gas-reliant sectors while enabling energy storage and sector coupling. Advancements in electrolyzer and methanation technologies, alignment with existing gas logistics, and growing support from climate policy frameworks are reinforcing its commercial prospects. As companies and governments confront carbon neutrality targets, synthetic methane offers an adaptable route to reduce emissions without overhauling established energy systems.
Going forward, the market’s growth will hinge on the ability to scale cost-effectively, secure renewable electricity inputs, and align with evolving carbon accounting standards. Whether synthetic methane can transition from pilot scale to mainstream adoption-while maintaining environmental integrity and economic viability-will determine its impact on shaping future low-carbon energy ecosystems globally.
SCOPE OF STUDY:
The report analyzes the Synthetic Methanes market in terms of units by the following Segments, and Geographic Regions/Countries:
Segments:
Source (Direct Air Capture, Hydrogen & Carbon Dioxide); Application (Fuel, Hydrogen Transport Carrier, Industrial, Other Applications)
Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.
Select Competitors (Total 37 Featured) -
TARIFF IMPACT FACTOR
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