The Natural Gas Storage Market is expected to reach USD 12.11 Billion by 2028, growing at a CAGR of 4.8% in between 2022 to 2028. Increasing demand for natural gas storage in the U.S. on account of the rising importance of depleted reservoir storage is anticipated to boost the market growth. Growing production of natural gas coupled with rising seasonal demand from various end-use applications and industrial sectors in the region is projected to spur market growth over the coming years. Moreover, favorable government regulations for low carbon content fuels as compared to other fossil fuels is anticipated to remain a promising factor for the rising demand for natural gas. In addition, technological advancements coupled with increasing awareness regarding natural gas being a clean fuel will spur the demand further.
- The depleted reservoirs segment is projected to expand at the significant CAGR over the forecast period owing to the increasing adoption as they are the oldest and most prominent forms of gas storage.
- The underground storage segment held a substantial market share in 2021. This share is owing to its several advantages over above-ground storage and a growing number of facilities due to low operational and infrastructural costs.
- Asia Pacific is the largest regional segment. This surge is attributed to the rising demand for Natural Gas Storage Market in developing economies such as China and India.
Some of the key players in the Natural Gas Storage Market Worley Parsons (Australia), Foster Wheeler (U.K.), Niska Gas Storage (U.S.), Centrica (U.K.), Samsung Heavy Industries (Korea), Spectra Energy (U.S.), E-on (Germany), Chiyoda Corporation (Japan), GDF SUEZ (France), and Technip (France)..
Decrease fossil fuel resources and growing energy security concerns are the major drivers for the Natural Gas Storage Market. The concerns about energy security play an important role in the storage enterprise as every country is focused on the uninterrupted and constant energy supply. The cost of establishing, processing units, and supervision costs are the major drivers for the Natural Gas Storage Market.
Asia Pacific expected to record the highest CAGR, owing to the increasing demand in countries, such as U.S., Canada, and Mexico. It is expected to retain its greatest position due to growing exploration and manufacturing activities in the region associated with rising seasonal requirements for natural gas.
COVID Impact Analysis
The COVID-19 outbreak has affected various industries worldwide. Governments across the world implemented strict lockdown measures and social distancing norms in order to restrict the swift spread of the pandemic. Manufacturing facilities around the world were shut down during the initial stages of the pandemic. Moreover, the economic crisis after the pandemic might lead to a significant delay in the commercial roll-out of the Natural Gas Storage Market. Small and medium-scale companies are the backbone of technology providers and are witnessing a steep drop in revenue since the emergence of the pandemic in 2020. Hence, market players faced numerous challenges as disruptions in the supply chain were observed. However, things will improve in the second half of 2022 as more supplies will come online.