The Global Natural Gas Storage Market Size collected USD 319.1 Billion in 2022 and is set to achieve a market size of USD 640.1 Billion in 2032 growing at a CAGR of 7.3% from 2023 to 2032.
Natural Gas Storage Market Report Statistics
The rising demand for natural gas along with energy security concerns is expected to drive the growth of the natural gas storage market over the next few years. The increasing utilization of natural gas in end-use industries such as transportation, electricity generation, and industrial operations is expected to propel the demand over the future years. Therefore, storage facilities are necessarily required for managing the natural gas supply in order to cater to the rising energy demand. Moreover, owing to the growing industrialization and urbanization in developing economies such as Latin America and Asia-Pacific, the global natural gas storage market growth is estimated to be fuelled significantly over the future years.
Global Natural Gas Storage Market Dynamics
Natural Gas Storage Market Report Coverage
|Natural Gas Storage Market
|Natural Gas Storage Market Size 2022
|USD 319.1 Billion
|Natural Gas Storage Market Forecast 2032
|USD 640.1 Billion
|Natural Gas Storage Market CAGR During 2023 - 2032
|Natural Gas Storage Market Analysis Period
|2020 - 2032
|Natural Gas Storage Market Base Year
|Natural Gas Storage Market Forecast Data
|2023 - 2032
|By Type, And By Geography
|North America, Europe, Asia Pacific, Latin America, and Middle East & Africa
|Key Companies Profiled
|Foster Wheeler, TransCanada Corp., Samsung Heavy Industries, Enbridge, Inc., GDF SUEZ, Royal Vopak N.V., Spectra Energy, Technip, Worley Parsons, Centrica, Chiyoda Corporation, NAFTA A.S., E-on Group, and Niska Gas Storage.
|Market Trends, Drivers, Restraints, Competitive Analysis, Player Profiling, Covid-19 Analysis, Regulation Analysis
Natural Gas Storage Market Growth Factors
The favorable governmental policies pertaining to low carbon content as compared to coal are expected to propel the market growth over the future years. At times of low production and supply in the market, these storage facilities are used as a speculative tool. Gas storage is also used to deal with price uncertainty as they maintain commodity liquidity at trading centers. High demand from the transportation industry owing to attributes such as extensive distribution infrastructure, low cost, and low emission rate is expected to fuel the demand over the next few years. The rapid industrial growth in various countries such as India, Brazil, China, Russia, and UAE is expected to further augment the market growth.
For reasons such as unforeseen accidents, natural disasters, and distribution or production malfunctions, gas storage facilities are necessary. High demand for fuel gas-fired electric generators owing to commercial, industrial, and residential cooling is expected to further augment the market growth. However, high installation costs along with transmission capacity restraints are expected to damage the market growth and challenge industry players over the future period. The infinite natural gas supply together with improved recovery technologies is expected to provide profitable opportunities to storage operators.
Natural Gas Storage Market Segmentation
The worldwide market for natural gas storage is categorized based on type, and geography.
Natural Gas Storage Type Outlook
According to the natural gas storage market forecast, underground natural gas storage is the market leader. According to the US Energy Information Administration, approximately 97% of natural gas storage capacity in the United States is in underground storage facilities (EIA). This is due to the fact that underground storage is more cost-effective and effective than aboveground storage.
Underground natural gas storage facilities typically store natural gas in depleted natural gas or oil reservoirs, aquifers, and salt caverns. These geological formations can hold large amounts of gas and are frequently located near major demand centres, ensuring a consistent supply of gas to meet demand. Furthermore, underground storage facilities can store gas for long periods of time while allowing for flexibility in terms of when and how the gas is withdrawn.
Although aboveground natural gas storage facilities such as LNG storage tanks and pressure vessels are used, they account for a smaller portion of the overall natural gas storage market. Aboveground storage is typically used in areas where geological conditions make underground storage impractical, or where demand for gas is low and the cost of constructing underground storage facilities is not justified.
Natural Gas Storage Market Regional Outlook
The Middle East & Africa
Natural Gas Storage Market Regional Analysis
North America is estimated to hold a huge market share in both aboveground and underground storage facilities owing to increasing production and exploration activities. Rising awareness pertaining to natural gas being clean fuel is further expected to drive growth in this region. However, in the future years, Asia-Pacific is expected to display rapid growth due to high domestic demand from end-use industries in countries such as India and China. The availability of low-cost labor along with decreasing coal reserves is expected to propel the usage of natural gas in end-use industries such as steel and petrochemicals in emerging countries. The growth of the industrial sector along with high per capita income in regions such as Thailand and Vietnam is expected to fuel the demand in this region.
Natural Gas Storage Market Players
Some of the natural gas storage companies include Foster Wheeler, TransCanada Corp., Samsung Heavy Industries, Enbridge, Inc., GDF SUEZ, Royal Vopak N.V., Spectra Energy, Technip, Worley Parsons, Centrica, Chiyoda Corporation, NAFTA A.S., E-on Group, and Niska Gas Storage.
The market size of natural gas storage was USD 319.1 Billion in 2022.
The CAGR of natural gas storage is 7.3% during the analysis period of 2023 to 2032.
The key players operating in the global market are including Foster Wheeler, TransCanada Corp., Samsung Heavy Industries, Enbridge, Inc., GDF SUEZ, Royal Vopak N.V., Spectra Energy, Technip, Worley Parsons, Centrica, Chiyoda Corporation, NAFTA A.S., E-on Group, and Niska Gas Storage.
North America held the dominating position in natural gas storage industry during the analysis period of 2023 to 2032.
Asia-Pacific region exhibited fastest growing CAGR for market of natural gas storage during the analysis period of 2023 to 2032.
The current trends and dynamics in the natural gas storage industry include increasing demand for natural gas, shift towards cleaner energy sources, and growth in industrial sectors.
The underground natural gas storage type held the maximum share of the natural gas storage industry.