The global high purity methane gas market size was USD 17.4 Billion in 2022 and is likely to reach USD 25.9 Billion by 2031, expanding at a CAGR of 5.1% during 2023–2031. The market is driven by the intensive use of high purity methane in a wide range of industrial applications.
High purity methane gas demand is fueled by the growing reliance on natural gas as a sustainable fuel. The market is further supported by the increasing need for high purity methane gas in the chemical and industrial sectors. Moreover, this gas is extensively used in the process of wafer fabrication in the semiconductor industry.
As a result, it is an integral part of the manufacturing processes of most of the electronic items available for consumers. The growth of these industries is expected to propel the high-purity methane market.
High purity methane is vital for a large number of industrial applications, including semiconductor manufacturing and electronics production, where the impurities can negatively impact the production quality. It enables a more accurate and reliable analysis in laboratory settings due to the consistent composition.
Moreover, the high purity methane gas is also used as a carbon source for manufacturing photoconductor drums, amorphous solar cells, cemented carbide tools, and several other products. Its extensive application in different industries is projected to provide the high purity methane gas market significant growth during the forecast period.
The research report finds that the COVID-19 pandemic hampered the high purity methane gas market, owing to the widespread lockdown imposed by the government all around the world. It led to an industrial slowdown by disrupting the supply and demand of various products across all verticals.
This caused a temporary production halt in various relevant industries, including power electronics, transistors & sensors, chemical synthesis, and heat detection, among others. However, since the supply chain activities have now resumed, there is likely to be steady growth in the market.
Impact of Artificial Intelligence on High Purity Methane Gas Market
The use of artificial intelligence is expected to propel the market. It helps in reducing the operational cost as well as the maintenance expenditures by using the predictive model of machine learning. It can alert in advance as to which part of the infrastructure is likely to develop a methane leak, thereby quickly addressing such issues before or right after its occurrence.
High Purity Methane Gas Market Dynamics
Major Drivers
Growth of the electrical and electronics industry is expected to drive the market during the projection period. There is a growing demand for high purity methane in advanced semiconductor manufacturing processes for the production of carbide tools, integrated circuits, and amorphous silicon solar cells.
Furthermore, the constant development in the field of automation and consumer electronics has propelled the requirement for methane with stringent levels of purity to ensure the performance and quality of electronic components. This is anticipated to provide a significant surge to the market in the coming years.
Rise in environmental awareness and the adoption of clean fuel sources is projected to boost the market. There is a rising shift towards the use of sustainable energy solutions. This is leading to advancements in hydrogen fuel technology and the development of fuel cells that utilize oxygen and hydrogen to produce electricity.
The awareness of environmental conservation is leading to active steps toward reducing the carbon footprint of vehicles. In addition, the introduction of environmentally sustainable government policies for managing vehicular emissions is expected to propel the demand for high purity methane.
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The report published by the International Energy Agency in 2022 revealed that the global carbon dioxide emissions from energy combustion increased by 423 Mt in 2022, whereas, the emission has decreased in industrial processes by 102 Mt.
Existing Restraints
High cost of processing methane gas is likely to hinder the market during the projection period. The production of hydrogen by processing methane through electrolysis is highly expensive as it requires high flow of electric current to separate the chemical compounds. This raises the cost of production of hydrogen gas, making it unaffordable for small-scale industries. Furthermore, the increased cost also hampers the adoption of hydrogen fuel cells, which potentially hinders the growth of the market.
Emerging Opportunities
Large investments in various green hydrogen projects are anticipated to provide substantial advancement opportunities for the market. The rising interest of investors in several green hydrogen projects is owing to the numerous applications of hydrogen in different industries. High purity methane finds its use in power generation, cement and steel production, and the manufacture of hydrogen fuel cells for electric vehicles.
In addition, the derivatives of hydrogen obtained by synthesizing methane also find their application in refrigeration, stabilization of electrical grids, and development of fertilizers and cleaning products.
Scope of High Purity Methane Gas Market Report
The market report includes an assessment of the market trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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High Purity Methane Gas Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016–2021
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Forecast Period
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2023–2031
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Segmentation
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Type (Hydrogen fuel, Chemical Synthesis, Heat Detection, Transistors & Sensors, Nanoparticle Diamond, and Others), Application (Chemical Manufacturing, Automotive, Medical, Defense, Electronics, and Others), and Distribution Channel (Cylinder via Merchant, Bulk via Liquid Gas Transportation, and On-site Distribution)
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, Market Trends, and Revenue Forecast
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Key Players Covered in the Report
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Abachy.com; Advanced Specialty Gases; Air Liquide; Air Products and Chemicals, Inc.; Airgas, Inc.; Iwatani Corporation; Linde plc; MATHESON TRI-GAS, INC.; PAO NOVATEK; Praxair Technology, Inc.; and Rosetti Marino.
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High Purity Methane Gas Market Segment Insights
Type Segment Analysis
Based on type, the high purity methane gas market is divided into hydrogen fuel, chemical synthesis, heat detection, transistors & sensors, nanoparticle diamond, and others. The chemical synthesis segment is projected to hold the major share of the market during the projection period, due to its vast utility in the chemical industry for producing Hydrogen gas.
Methane is a highly cost-effective natural gas that has abundant availability and can also be used for obtaining syngas, which is a great alternative to fossil fuels for use in the generation of electricity. Researchers are greatly invested in the functionality of methane gas as it can be oxidized using a catalyst to decrease its intrinsic reactivity. Its utilization in a wide range of industries for energy generation and other applications is likely to boost the market.
The Hydrogen fuel segment is projected to witness rapid growth owing to the massive adoption of high-purity methane gas in the near future. Methane is one of the primary sources for the production of hydrogen to be used in hydrogen fuel cells. It contributes to the reduction of greenhouse gases and global warming caused by vehicular pollution. While most automobiles still depend on fossil fuels, the use of hydrogen fuel cells as an alternative fuel source is projected to increase rapidly in the coming years.
Application Segment Analysis
On the basis of application, the global market is segregated into chemical manufacturing, automotive, medical, defense, electronics, and others. The chemical manufacturing segment is projected to register a robust CAGR during the forecast period, owing to the large number of applications of Methane in the chemical industry.
Highly purity methane obtained from natural sources helps in the production of a wide range of chemicals, including acetic acid, methanol, and various other hydrocarbons. Industries such as electronics, pharmaceuticals, and plastics heavily depend on high-purity methane for the production of various products.
Distribution Channel Segment Analysis
On the basis of the distribution channel, the high purity methane gas market is segmented into cylinder via merchant, bulk via liquid gas transportation, and on-site distribution. The on-site distribution segment is anticipated to register a robust growth rate during the forecast period as this facilitates the delivery of methane gas directly to the end-user’s location, such as industrial facilities and production sites.
on-site distribution eliminates the need for extensive transportation and availability of storage infrastructure on the part of end-users. Since most of the large-scale consumers of methane are industries that require constant supply, this channel makes the supply chain more efficient and is expected to have constant growth during the projection period.
Regional Analysis
In terms of region, the global high purity methane gas market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is expected to dominate the market during the projection period, owing to the highly advanced industrial infrastructure and the presence of several large-scale natural gas producers.
Other factors such as rising disposable income and large investments in industrial development are responsible for the high demand for methane gas in the region. Furthermore, the heightened environmental awareness has led to a high adoption of electric vehicles and hydrogen fuel cells, which is projected to propel the market in the region.
The market in Asia Pacific is likely to experience a significant propulsion due to the rising demand for natural gas in developing nations such as India and China. The tremendous upsurge in the electronics and semiconductor industry is one of the chief factors contributing to the market growth.
Moreover, with the increasing per capita income and expansion of consumer culture, several electronic end-products that involve the use of high purity methane in manufacturing have significantly raised in demand, which is expected to further propel the market.
Segments
The high purity methane gas market has been segmented on the basis of
Type
- Hydrogen fuel
- Chemical Synthesis
- Heat Detection
- Transistors & Sensors
- Nanoparticle Diamond
- Others
Application
- Chemical Manufacturing
- Automotive
- Medical
- Defense
- Electronics
- Others
Distribution Channel
- Cylinder via Merchant
- Bulk via Liquid Gas Transportation
- On-site Distribution
Region
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
- Abachy.com
- Advanced Specialty Gases
- Air Liquide
- Air Products and Chemicals, Inc.
- Airgas, Inc.
- Iwatani Corporation
- Linde plc
- MATHESON TRI-GAS, INC.
- PAO NOVATEK
- Praxair Technology, Inc.
- Rosetti Marino
Competitive Landscape
Key players competing in the global high purity methane gas market are Abachy.com; Advanced Specialty Gases; Air Liquide; Air Products and Chemicals, Inc.; Airgas, Inc.; Iwatani Corporation; Linde plc; MATHESON TRI-GAS, INC.; PAO NOVATEK; Praxair Technology, Inc.; and Rosetti Marino.
These companies adopt several development strategies such as product launches, mergers, acquisitions, collaboration, partnerships, and production expansion to tap into the untapped regions worldwide. These market players overcome constant obstacles such as fluctuating prices of raw materials and emerging new market competition, and make heavy investments in research & innovation to stay ahead of the curve. For instance,
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In August 2022, NOVATEK-Yurkharovneftegas, a Russia-based gas company, has recently announced its initiative to use unmanned aerial vehicles ("UAVs") to monitor methane leaks. This project is part of a comprehensive environmental and climate change targets program that includes constructing a multi-level leak detection system. The company is taking a step towards reducing its environmental impact.
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In February 2021, Rosetti Marino S.p.A., an Italian company providing engineering and construction services, acquired 60% of Green Methane s.r.l for an undisclosed amount, as part of its goal to present itself as an integrated contractor on the full Biogas treatment line. This acquisition will help the company achieve its aim.
- In October 2020, Samsung Electronics, one of the global manufacturers, collaborated with Linde Plc by establishing a long-term agreement for the supply of modern gases of a ‘high virtue’ nature to the latest semiconductor facilities of Linde Plc in Pyeongtaek, South Korea. Linde is currently the primary supplier of various industrial gases to the existing facilities of Samsung.
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