Natural Gas Market Size to Reach USD 6.96 Trillion by 2034

Natural Gas Market, Demand, Production Capacity, Size and Price Range and Industry Outlook Report Till 2034

The latest market outlook reports that, the global natural gas market size is expected to be worth around USD 6.96 trillion by 2034 from USD 4.19 trillion in 2024, growing at a CAGR of 5.20% during the forecast period 2025 to 2034. 

Last Updated: 18 June 2025 Category: Advanced Materials Insight Code: 5634 Format: PDF / PPT / Excel

Natural Gas Market: Demand, Capacity, Size, Value, and Industry Outlook Report Until 2034

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.

Natural Gas Market Size 2025 to 2034 (USD Billion)

Key Takeaways 

  • By region, Asia Pacific dominated the global natural gas market with the largest share in 2024. The dominance of the region can be credited to the rapid economic growth, industrialization and surge in population in nations.
  • By region, North America is expected to grow at a significant 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.
  • By resource type, the unconventional segment dominated the market in 2024. The dominance of the segment can be attributed to the growing energy need and demand for cleaner energy sources.
  • By resource type, the liquified natural gas segment 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 for LNG export facilities. 
  • By end-use application, the power generation segment held the largest natural gas market share in 2024. The dominance of the segment can be linked to an increasing focus on cleaner energy sources and their low carbon emission property.
  • By end-use application, the residential segment is expected to grow at the fastest CAGR during the projected period. The growth of the segment can be driven by ongoing government initiatives, rising energy demand, and expansion of infrastructure.
  • By distribution method, the pipeline segment held the largest 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.
  • By distribution method, LNG carrier segment is 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) globally.

Growing Demand in Industrial Applications is Expanding Market Growth

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.

  • The growth in the market is due to a surge in global economic activity along with the rise in the utilization of electricity especially in developing nations. Natural gas is mainly used in gas turbines and steam turbines to generate electricity. This can be further used to generate electricity at lower costs.
  • Natural gas and crude oil extraction companies are making substantial renewable energy sources for the eco-friendly extraction of natural gas and crude oil from oil fields. Natural gas and crude oil production are energy intensive and technologies such as wind, solar, biomass and geothermal are increasingly being used in producing natural gas and crude oil.
  • Government initiatives that aim at expanding natural gas pipeline infrastructure and consumption of natural gas are another trend propelling market growth. The growth of LNG infrastructure optimizes the distribution and import of natural gas, promoting a stable supply to fulfil the extensive demand for natural gas.

Report Scope

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

How is the Government Supporting the Natural Gas Market?

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.

Market Opportunity  

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.

  • In January 2025, The Indian Gas Exchange (IGX) announced the expansion of long-duration contracts for 3-6 months. The launch further follows approval from the Petroleum and Natural Gas Regulatory Board (PNGRB). The LDCs are created to provide market participants with greater flexibility.(Source: energy.economictimes)

Market Challenge  

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.

Regional Insight

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. 

  • In March 2025, woodside signed a purchase agreement with China Resources Gas International Limited. The deal underscores the depth and length of demand for LNG in developing countries as this nation seeks to give sustainable energy supplies.(Source: lngindustry.com)

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.

Which are the Top Countries in Natural Gas Production in 2023?

Country Natural gas production (bcm)
United States 1,084
Russia 669
Iran 292
China 272
Canada 216

(Source:yearbook.enerdata.net)

Segmental Insight 

Resource Type Insight

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.

  • In May 2025, POSCO group unveiled its latest liquified natural gas carrier, stepping a major step towards its push to grow into the global market. The move is aimed at maintaining a stable energy transport network to improve the company's capability to navigate supply chain disruptions.(Source: chemanalyst)

End-Use Application Insight

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. 

Distribution Method Insight

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.

Recent Developments 

  • In May 2025, Amplify ETFs in partnership with Samsung Asset Management announced the launch of  Amplify Samsung U.S. Natural Gas Infrastructure ETF, providing exposure to companies empowering the U.S. natural gas market.(Source: globenewswire)
  • In December 2024, BP and XRG finalized the deal to launch a new natural gas platform called Arcius Energy. The new venture integrates technical expertise and has good track records for both companies, aiming to create a highly competitive natural gas portfolio.(Source: chemanalyst)

Top Companies List 

Natural Gas Market Companies

Segments Covered 

By Resource Type

  • Conventional Natural Gas
  • Unconventional Natural Gas (Shale Gas, Tight Gas, Coalbed Methane)
  • Liquefied Natural Gas (LNG)

By End-Use Application

  • Power Generation
  • Industrial Use
  • Residential
  • Commercial
  • Transportation

By Distribution Method

  • Pipelines
  • LNG Carriers
  • Compressed Natural Gas (CNG)

By Region  

  • North America  
    • U.S. 
    • Canada 
  • Europe  
    • Germany 
    • UK 
    • France 
    • Italy 
    • Spain 
    • Sweden 
    • Denmark 
    • Norway 
  • Asia Pacific  
    • China 
    • Japan 
    • India 
    • South Korea 
    • Thailand 
  • Latin America  
    • Brazil
    • Mexico
    • Argentina
  • Middle East and Africa (MEA)  
    • South Africa 
    • UAE 
    • Saudi Arabia 
    • Kuwait
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  • Report Covered: [Revenue + Volume]
  • Historical Year: 2021-2023
  • Base Year: 2024
  • Estimated Years: 2025-2034

Meet the Team

Saurabh Bidwai, a B.Tech Chemical Engineering graduate with 4+ years of experience, specializes in specialty chemicals, commodity chemicals, and engineered materials, offering valuable insights into market trends and emerging opportunities.

Learn more about Saurabh Bidwai

Aditi Shivarkar, with 14+ years in Chem and Materials market research, specializes in Chem and Materials. She ensures accurate, actionable insights, driving Towards Chem and Materials excellence in industry trends and sustainability.

Learn more about Aditi Shivarkar

Related Insights

FAQ's

The global natural gas market is projected to reach USD 6.96 trillion by 2034, up from USD 4.19 trillion in 2024, registering a CAGR of 5.20% (2025–2034). This growth is primarily driven by the increasing demand for cleaner energy sources, the global energy transition, and advancements in extraction technologies such as hydraulic fracturing.

Rising electricity demand in developing nations fueling gas-based power generation.Government initiatives supporting pipeline infrastructure and LNG facility expansions.

Asia Pacific leads in market share (2024) due to rapid industrialization in China and India.

Energy transition towards low-carbon sources. Government support and incentives for natural gas exploration and pipeline expansion.

The LNG segment is forecasted to experience the fastest CAGR within the resource types. Global investments in LNG export facilities and carrier infrastructure reflect robust long-term demand and growing trade routes, making it a highly attractive investment area.

Hydraulic fracturing and horizontal drilling enabling access to unconventional reserves.

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