June 2025
The global natural gas market size accounted for USD 4.19 trillion in 2024 and is predicted to increase from USD 4.41 trillion in 2025 to approximately USD 6.96 trillion by 2034, expanding at a CAGR of 5.20% from 2025 to 2034. Growing demand for cleaner energy sources is the key factor driving market growth. Also, the major transition towards sustainable energy solutions coupled with technological innovations in the extraction process can fuel market growth further.
The market includes the manufacturing, transportation, processing, distribution, and sale of natural gas a fuel composed of methane. It also involves different activities that are required for the extraction of gas. The market is distinguished by regional differences; some areas are highly developed and other depends on long-term contracts with totally different pricing mechanisms. The four major gas markets are European, North American, Asian, and Central and South (Latin) American. Natural gas is traded on both financial and physical markets. Physical markets include the actual delivery of gas and financial markets enable speculation and price hedging.
Report Attributes | Details |
Market Size in 2025 | USD 4.41 Trillion |
Expected Size by 2034 | USD 6.96 Trillion |
Growth Rate from 2025 to 2034 | CAGR 5.20% |
Base Year of Estimation | 2024 |
Forecast Period | 2025 - 2034 |
Dominant Region | Asia Pacific |
Segment Covered | By Resource Type, By End-Use Application, By Distribution Method, By Region |
Key Companies Profiled | ExxonMobil, Chevron, Royal Dutch Shell, TotalEnergies, BP, Gazprom, Qatar Petroleum, ONGC (Oil and Natural Gas Corporation), Reliance Industries Limited, Eni S.p.A., ConocoPhillips, Equinor, Petronas, Sempra Energy |
The Indian government is supporting the market through different initiatives meant to raise its share in expanding infrastructure, and energy mix, and optimizing domestic production. These efforts like supporting city gas distribution networks, growth in the natural gas grid, and providing incentives for natural gas exploration and production. The government has implemented a major initiative HELP to promote exploration and production via revenue-sharing contracts and open acreage licensing.
The U.S. government supports the market through different initiatives and policies aimed at improving infrastructure, fuelling production, and vacillating exports. These also include infrastructure development, deregulation, and diplomatic efforts to promote American LNG exports. The Federal Energy Regulatory Commission (FERC) is working on changing the approval process for Liquefied Natural Gas (LNG) export projects.
Surge in Role of Natural Gas as a Transition Fuel
The rising role of natural gas as a transition fuel across the globe is the major factor creating lucrative opportunities in the market. Various industries and governments are adopting natural gas as a sustainable and cleaner alternative to conventional fossil fuels, contributing to lower emissions of carbon. Furthermore, the growth of the liquefied natural gas (LNG) infrastructure is a substantial trend, improving the flexibility of global natural gas trade.
Regulatory and Environmental Pressures
The market is facing regulatory hurdles, especially around operational permits and methane emissions. The Environmental Protection Agency (EPA) has implemented stringent methane standards, impacting operators by needing updates to infrastructure for compliance. Moreover, these changing policies can challenge production and exploration efficiency, particularly if further regulations are introduced without stable and clear guidelines for compliance.
Asia Pacific dominated the natural gas market in 2024. The dominance of the region can be credited to the rapid economic growth, industrialization, and surge in population in nations such as China and India. Moreover, initiatives supporting cleaner energy sources and efforts to minimize air pollution contribute to the increasing use of natural gas. Improved infrastructure projects to expand LNG import terminals and pipeline networks play a crucial role in optimizing access to natural gas.
Natural Gas Market in China
In Asia Pacific, China dominated the market by holding a large market share due to the ongoing strategic goals for energy security and growing demand for low-carbon transition. The country is actively strengthening domestic production, especially of traditional sources such as shale gas, while also heavily depending on imports through LNG and pipelines. The Chinese government is working towards market-oriented solutions to transform the natural gas industry.
North America is expected to grow at the fastest CAGR over the forecast period. The growth of the region can be attributed to the raised emphasis on minimizing carbon emissions and supporting renewable energy integration. Demographic advantages like high population density and a strong industrial base in urban areas support this increased demand. In addition, countries such as the U.S. and Canada have well-established infrastructure and substantial natural gas resources for production and export.
Natural Gas Market in the U.S.
In North America, the U.S. led the market owing to the strong presence of major market players in the country like Chevron Corporation, Exxon Mobil, and Conoco Phillips. These players keep a competitive edge through substantial investments in LNG infrastructure along with strategic partnerships. Also, their emphasis on sustainable energy alternatives and carbon management initiatives helps to expand their market reach in the country.
Country | Natural gas production (bcm) |
United States | 1,084 |
Russia | 669 |
Iran | 292 |
China | 272 |
Canada | 216 |
(Source:yearbook.enerdata.net)
Which Resource Type Segment Held The Largest Natural Gas Natural Gas Market Share In 2024?
The unconventional segment dominated the natural gas market in 2024. The dominance of the segment can be attributed to the growing energy need and demand for cleaner energy sources. These unconventional sources need innovative extraction technologies such as horizontal drilling and hydraulic fracturing to be accessed. Also, unconventional gas encompasses many types such as tight gas, shale gas, and coalbed methane each having unique extraction methods and characteristics.
Liquefied natural gas is expected to grow at the fastest CAGR over the forecast period. The growth of the segment can be credited to the surge in investment and global demand in LNG export facilities along with its extensive adoption in both power generation and industrial applications. Additionally, LNG enables the smooth transportation of natural gas across large distances, joining supply sources with demand centres across the globe.
Why did power generation segment dominate the natural gas market in 2024?
The power generation segment led the market in 2024. The dominance of the segment can be linked to an increasing focus on cleaner energy sources and their low carbon emissions property. The extensive conversion of coal-fired plants to natural gas and ongoing government incentives have boosted the demand for natural gas in the market. Economic development and population growth have fuelled the demand for electricity.
The residential segment is expected to grow at the fastest CAGR over the forecast period. The growth of the segment can be driven by ongoing government initiatives, rising energy demand, and expansion of infrastructure. Enhancements in gas infrastructure and appliances are making natural gas more appealing and efficient for residential use. Natural gas is increasingly utilized for heating homes, especially during colder months.
How Did Pipeline Segment Dominate The Natural Gas Market In 2024?
The pipeline segment held the largest natural gas market share in 2024. The dominance of the segment is owning to the expansion of global and regional energy connectivity coupled with the rising demand for natural gas. Moreover, the ongoing shift towards natural gas as a sustainable energy source as compared to other fuels is also propelling the expansion of pipeline infrastructure. Governments across the globe are investing heavily in energy infrastructure such as natural gas pipelines.
LNG carriers are expected to grow at the fastest CAGR during the projected period. The growth of the segment is due to the increasing need for liquefied natural gas (LNG), growth in LNG trade routes, and an upsurge in investments in LNG infrastructure. Furthermore, the development of export facilities and new liquefaction in Qatar, Mozambique, the US, and Australia is expanding LNG across the world.
By Resource Type
By End-Use Application
By Distribution Method
By Region
June 2025
June 2025
June 2025
June 2025