PUBLISHER: The Business Research Company | PRODUCT CODE: 1770104
PUBLISHER: The Business Research Company | PRODUCT CODE: 1770104
Tight gas refers to natural gas trapped within low-permeability rock formations, such as sandstone or limestone, which makes extraction challenging using conventional methods. It is primarily used as a fuel for electricity generation, heating, and industrial processes, and is extracted through advanced techniques like hydraulic fracturing and horizontal drilling.
The main types of tight gas include conventional tight gas, shale gas, and coal bed methane. Conventional tight gas is natural gas found in low-permeability rock formations, making extraction more difficult. Investments in the tight gas sector cover exploration and development, production and transportation, as well as storage and distribution. Key extraction methods involve hydraulic fracturing, horizontal drilling, and enhanced recovery techniques. Its applications span residential, commercial, industrial, transportation, and power generation sectors.
The tight gas market research report is one of a series of new reports from The Business Research Company that provides tight gas market statistics, including the tight gas industry global market size, regional shares, competitors with the tight gas market share, detailed tight gas market segments, market trends, and opportunities, and any further data you may need to thrive in the tight gas industry. This tight gas market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
The tight gas market size has grown strongly in recent years. It will grow from $40.90 billion in 2024 to $43.48 billion in 2025 at a compound annual growth rate (CAGR) of 6.3%. The growth during the historic period can be attributed to factors such as rising energy demand, high natural gas prices, government incentives, declining reserves of conventional gas, improvements in infrastructure, and heightened concerns over energy security.
The tight gas market size is expected to see strong growth in the next few years. It will grow to $54.98 billion in 2029 at a compound annual growth rate (CAGR) of 6.0%. The growth projected for the forecast period can be attributed to rising global energy demand, favorable government policies promoting unconventional gas development, increased investment in shale basins, enhanced gas pipeline infrastructure, carbon emission reduction initiatives encouraging cleaner fossil fuels, and volatility in global LNG prices. Key trends during this period include advancements in horizontal drilling, widespread adoption of hydraulic fracturing, progress in digital oilfield technologies, improved reservoir characterization, and the integration of AI-driven reservoir analytics.
The escalating energy demand is expected to drive growth in the tight gas market moving forward. Energy defined as the capacity to perform work or cause change exists in various forms, including thermal, electrical, chemical, nuclear, and mechanical. The rising demand for energy is fueled by population growth, which heightens the need for electricity, transportation, and heating. Tight gas plays a vital role in meeting this demand by offering a plentiful and reliable source of natural gas extracted from low-permeability rock formations. For example, in July 2024, the International Energy Agency (IEA), a France-based intergovernmental organization, reported that global electricity demand rose by 4% in 2024, compared to a 2.5% increase in 2023. Thus, the growing energy demand is propelling the tight gas market.
Key players in the tight gas market are concentrating on expanding unconventional production techniques to improve extraction efficiency, reduce costs, and access reserves previously considered unreachable, thereby addressing the growing global energy demand. Unconventional production refers to advanced methods used to extract oil and gas from difficult-to-reach underground formations that traditional drilling methods cannot exploit. For instance, in November 2023, Saudi Aramco, a petroleum company based in Saudi Arabia, initiated commercial-scale unconventional tight gas production from its South Ghawar operations. This milestone marks the company's entry into unconventional gas production, diverging from its traditional focus on oil. The project leverages advanced hydraulic fracturing and horizontal drilling technologies designed specifically for the challenging low-permeability rock formations of South Ghawar. This initiative supports Saudi Arabia's broader strategy of increasing gas use for domestic power generation, freeing more oil for export, and reducing carbon emissions.
In July 2024, Viaro Energy Limited, a UK-based energy company, acquired the UK Southern North Sea assets from Shell PLC and ExxonMobil for an undisclosed amount. Through this acquisition, Viaro Energy aims to boost its production capacity, take over operatorship responsibilities, and support the UK's energy transition by utilizing strategic offshore assets and infrastructure. Shell PLC is a UK-based oil and gas company, while ExxonMobil is a US-based manufacturer specializing in petroleum-based products.
Major players in the tight gas market are Saudi Arabian Oil Company, PetroChina Company Limited, China Petroleum & Chemical Corporation, Exxon Mobil Corporation, TotalEnergies SE, BP p.l.c., Chevron Corporation, Equinor ASA, ConocoPhillips Company, Repsol SA, EOG Resources Inc., Pioneer Natural Resources Company, Devon Energy Corporation, YPF S.A., Ovintiv Inc., Continental Resources Inc., Southwestern Energy Company, Range Resources Corporation, Valeura Energy Inc., and Chesapeake Energy Corporation.
North America was the largest region in the tight gas market in 2024. The regions covered in tight gas report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The countries covered in the tight gas market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The tight gas market consists of sales of natural gas liquids, condensates, and hydrogen sulfide. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values and are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Tight Gas Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on tight gas market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for tight gas ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The tight gas market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.