The global gas hydrates market is expected to register substantial growth at a CAGR of 5.4% from 2023 to 2033. The global market is anticipated to be valued at US$ 2,571.2 million in 2023. It would further reach a valuation of US$ 4,350.5 million by the end of 2033. The global gas hydrates market was valued at US$ 2,455.1 million in 2022. The growth of the market is primarily driven by significant growth in end-use applications.
That is according to a report on the Gas Hydrates Market by Future Market Insights, which defined gas hydrates as potential materials for carbon capture and storage.
“They comprise unique properties including high storage capacity and stability under appropriate conditions. Gas hydrates are stable and safe when stored in suitable geological formations. These include deep-sea sediments and permanent storage. Attributed to high storage density, they are able to store large amounts of carbon dioxide in a small volume. It makes them a highly efficient storage material,” the report stated.
Over the last five years, significant progress has been made in the development of new technologies. Owing to these technological advancements, the extraction of gas hydrates will be even more efficient. A few of the latest extraction methods are thermal stimulation and depressurization methods. In carbon capture and storage, carbon dioxide is captured from large sources. These include power plants and industrial facilities.
Targeting new and latest applications is anticipated to have immense potential for gas hydrates consumption over the evaluation period. High investment returns are a key strategy adopted by manufacturers in the market. Gas hydrates hold promise as a potential material for carbon capture and storage. But, much work is still needed to fully realize their potential in this application.
”Carbon dioxide molecules are trapped inside a cage-like structure made of water molecules. Then it forms a solid substance called hydrate. This storage method is known to be efficient and has several advantages. Such advancements have improved significantly and consist of the viability of hydrate extraction. It would further make it a more attractive option for energy production. Increasing demand for clean energy sources would result in high interest in gas hydrates,” the Report elaborated.
According to estimations by FMI, it has been anticipated that the market will flourish in the next decade. The market will be driven by rising demand for fuel. It needs to be supplied for use in the transportation and automotive sectors. Gas hydrates can be a potential source of enormous energy. Gas hydrates are a viable alternative for the storage of bulk gas. They can be used later owing to their quality as a sustainable resource.
Recent Developments
The energy sector is showing significant interest in the gas hydrates market. They are naturally occurring frozen mixtures of gas and water molecules. Gas hydrates are found in large quantities under the ocean floor and in permafrost regions. They have high potential as a new source of energy. In the near future, the exploration and production activities of gas hydrates would become increasingly attractive to companies in the energy sector.
The global gas hydrates market is predicted to expand due to increasing demand for clean and renewable energy sources. Furthermore, recognition of the potential of gas hydrates as a valuable resource would also aid the demand. The rising demand for natural gas is one of the primary components of gas hydrates.
Gas hydrates are difficult to extract from the seafloor. Its production needs specific technology which further makes the production costs high. The lack of pipelines, storage facilities, and other infrastructure for transporting & storing gas hydrates is a key challenge for the market. Extraction and use of gas hydrates can have adverse environmental impacts. These include the release of methane into the atmosphere. It is a potent greenhouse gas. The global market may face competition from other energy sources. These include conventional natural gas and renewable energy sources.
Competitive Landscape
The global gas hydrates market is a drastically evolving field. Numerous trends have emerged over recent years. Exploration and production of gas hydrates is a key trend in the industry.
Companies are increasingly investing in research and development activities. They aim to extract gas hydrates from deposits found on the ocean floor. The development of new technologies such as hydraulic fracturing and horizontal drilling can be seen in the market. Key players are investing substantial capital to improve their gas hydrates extraction methods. They are aiming to meet the growing needs of end consumers.
