What Has Been the Growth of the Industrial And Commercial Natural Gas Distribution Market So Far?
The industrial and commercial natural gas distribution market has seen considerable growth due to a variety of factors.
• The market size of industrial and commercial distribution of natural gas has seen significant growth lately. It is projected to expand from $723.29 billion in 2024 to $783.68 billion in 2025, with a compound annual growth rate (CAGR) of 8.3%.
The historical growth is a result of economic growth, strategies for energy diversification, expansion of gas pipeline infrastructure, government policies and incentives, and environmental regulations.
What Is the Forecasted Market Size and Growth Rate for The Industrial And Commercial Natural Gas Distribution Market Size In The Coming Years?
The industrial and commercial natural gas distribution market is expected to maintain its strong growth trajectory in upcoming years.
• There is an anticipation for a significant rise in the industrial and commercial natural gas distribution market over the next couple of years. By 2029, it is projected to reach a market value of $1034.56 billion, growing at a compound annual growth rate of 7.2%.
The growth during the forecast period can be explained by factors such as the shift towards a low-carbon economy, advancements in shale gas and LNG, the emergence of distributed energy resources, rising use of cogeneration systems, and hydrogen production derived from natural gas. Key trends for the forecast period encompass digitalization and the development of smart gas networks, innovation within gas storage technologies, technological advancements in gas equipment, the adoption of renewable natural gas (RNG), and the integration of carbon capture and storage (ccs).
What Factors Are Driving Growth In The Industrial And Commercial Natural Gas Distribution Market?
The upward trajectory observed in the industrial and commercial natural gas distribution market is a result of an increase in disposable income, coupled with an intensified demand flow from commercial consumers. It is this heightened demand from these commercial entities that is predicted to fuel market growth further on. These consumers are typically engaged in the creation of a product or service that generates revenue for them. A widespread use of natural gas among these entities is observed for household functions such as cooking and refrigeration or cooling system operations. The American Gas Association (AGA), a nationwide non-profit body advocating for public and community-owned natural gas utilities, reported that in 2023, up to 5.62 million businesses or commercial customers depended on natural gas. So, it can be stated that the surging demand from these commercial entities is one of the prime drivers of the natural gas distribution market expansion.
What Are The Main Segments Of The Global Industrial And Commercial Natural Gas Distribution Market?
The industrial and commercial natural gas distribution market covered in this report is segmented –
1) By Type: Industrial Natural Gas Distribution, and Commercial Natural Gas Distribution
2) By Source: Associated Gas, Non Associated Gas, Unconventional Sources
3) By End User: Light Duty Vehicles, Medium Or Heavy Duty Buses, Medium Or Heavy Duty Trucks
Subsegments:
1) By Industrial Natural Gas Distribution: Manufacturing Facilities, Power Generation Plants, Chemical Processing Plants, Oil Refineries
2) By Commercial Natural Gas Distribution: Retail Stores, Office Buildings, Restaurants And Food Services, Hotels And Hospitality Venues
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What Trends Are Shaping The Industrial And Commercial Natural Gas Distribution Market?
The key trend gaining traction in the industrial and commercial natural gas distribution market is the initiation of new city gas distribution plants. To maintain their market share, primary corporations in the market are rolling out gas distribution facilities in every city. For example, in January 2022, Bharat Petroleum Corporation Ltd (BPCL), a petrol and gas distribution company based in India, unveiled city gas distribution networks in 6 Indian cities to streamline the supply of natural gas. Bharat Petroleum committed INR 10000 cores to the development of this project.
Who Are the Key Players In The Industrial And Commercial Natural Gas Distribution Market?
Major companies operating in the industrial and commercial natural gas distribution market include:
• Ultrapar Participacoes SA
• Air Liquide SA
• Korea Gas Corp.
• Sempra Energy
• National Grid plc
• Dominion Energy Inc.
• Enbridge Inc.
• Southern Company Gas
• Atmos Energy Corporation
• ONEOK Inc.
• CenterPoint Energy Inc.
• DTE Energy Company
• Xcel Energy Inc.
• Duke Energy Company
• Southwest Gas Holdings Inc.
• Spire Inc.
• New Jersey Resources Corporation
• Northwest Natural Holding Company
• South Jersey Industries Inc.
• Eversource Energy
• Chesapeake Utilities Corporation
• Black Hills Corporation
• AltaGas Ltd.
• Emera Incorporated
• Connecticut Natural Gas Corporation.
• Avista Corporation
• MDU Resources Group Inc.
• Summit Utilities Inc.
• UGI Utilities Inc.
What Is The Most Dominant Region In The Industrial And Commercial Natural Gas Distribution Market?
Asia-Pacific was the largest region in the industrial and commercial natural gas distribution market in 2024. The regions covered in the industrial and commercial natural gas distribution market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, the Middle East, Africa.
