Synthetic Methane Market Update: Applications, Drivers & Regional Analysis, 2032

The global synthetic methane market is projected to reach $334.5 million by 2032, growing at a CAGR of 14.1% from 2023 to 2032.

WILMINGTON, DE, UNITED STATES, October 8, 2025 /EINPresswire.com/ -- Allied Market Research published a report titled, "Synthetic Methane Market by Source (Direct Air Capture and Hydrogen and Carbon Dioxide), By Application (Fuel, Hydrogen Transport Carrier, Industrial, and Others): Global Opportunity Analysis and Industry Forecast, 2023-2032." According to the report, the synthetic methane industry generated $89.7 million in 2022 and is estimated to reach $334.5 million by 2032, exhibiting a CAGR of 14.1% from 2023 to 2032.The report offers a detailed analysis of changing market trends, top segments, key investment pockets, value chains, regional landscapes, and competitive scenarios.

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Prime Determinants of Growth-

The global synthetic methane market is driven by an increase in the transition to renewable energy, the decarbonization of gas infrastructure, grid balancing, and energy security, as well as a rise in methane use and a decrease in emissions. However, electrolyzing renewable electricity to create hydrogen, which can then be combined with carbon dioxide to create synthetic methane, is a process that can be used. By using this power-to-gas method, excess renewable energy produced during peak times can be stored and later converted back into electricity or heat as needed. It offers a way to counteract the erratic nature of renewable energy sources and guarantee a steady energy supply, which in turn makes the synthetic methane market grow rapidly. This technological advancement creates lucrative opportunities for market growth. However, expensive synthetic methane could constrain the growth of the synthetic methane market.

The hydrogen and carbon dioxide segment to maintain its lead position during the forecast period

Based on source, the hydrogen and carbon dioxide segment accounted for the largest share in 2022, contributing to more than four-fifths of the global synthetic methane market revenue and is projected to maintain its lead position during the forecast period. The same segment would also display the fastest CAGR of 14.2% from 2023 to 2032. This is due to the increased utilization of carbon and hydrogen for producing synthetic methane, which may enhance carbon capture activities, thus reducing the global carbon footprint. This factor is the major key market trend in the synthetic methane market for hydrogen and carbon dioxide sources.

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The fuel segment to maintain its dominance during the forecast period

Based on application, the fuel segment accounted for the largest share in 2022, contributing to nearly three-fifths of the global synthetic methane market revenue, and is expected to maintain its dominance during the forecast period. The same segment would also portray the fastest CAGR of 14.4% from 2023 to 2032. The use of synthetic methane as a fuel offers several advantages, including reduced greenhouse gas emissions, compatibility with existing natural gas infrastructure, and versatility across different sectors. However, it is important to ensure the production of synthetic methane is sourced from renewable energy and that proper infrastructure and safety measures are in place to support its utilization as a fuel. This factors drive the growth of the synthetic methane market for fuel applications.

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Asia-Pacific region to rule the roost by 2032

Based on region, Asia-Pacific held the highest market share in terms of revenue in 2022, accounting for around half of the global synthetic methane market and is projected to rule the roost by 2032. Simultaneously, the same region would also showcase the highest CAGR of 14.7% during the forecast period. China has a high demand for energy, and it is constantly seeking to diversify its energy sources to reduce dependence on imported fossil fuels. Synthetic methane, produced from renewable sources or through carbon capture and utilization (CCU) technologies, offers a domestically producible and sustainable energy option that can enhance China's energy security and reduce reliance on imported fuels. This drives the growth of the synthetic methane market in the Asia-Pacific region.

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Leading Market Players

Air Liquide

MAN Energy Solutions

OSAKA GAS CO. LTD.

TransTech Energy, LLC

Dakota Gasification Company

Mitsubishi Corporation

Terega

Zentrum für Sonnenenergie- und Wasserstoff-Forschung Baden-Württemberg

KADATEC s.r.o.

CLARIANT

The report provides a detailed analysis of these key players in the global synthetic methane market. These players have adopted different strategies, such as new product launches, collaborations, expansion, joint ventures, agreements, and others, to increase their market share and maintain dominant shares in different regions. The report is valuable in highlighting business performance, operating segments, product portfolios, and strategic moves of market players to showcase the competitive scenario.

For More Details: https://www.globenewswire.com/news-release/2023/06/15/2688954/0/en/Synthetic-Methane-Market-Size-Worth-334-5-Million-by-2032-CAGR-14-1-AMR.html

David Correa
Allied Market Research
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