Global Gasification Market: By Feedstock (Biomass, Coal, Natural gas and Petroleum), Application (Chemicals, Gas fuels, Power and liquid fuels), and Region - Market Perspective, Market Intelligence, Comprehensive Analysis, Historical Data, and Forecast for 2023-2032

Market Perspective

The global Gasification Market is valued at approximately USD 442.34 billion in 2022 and is projected to reach USD 760.16 billion by 2032, at a CAGR of 6.2% from 2023 to 2032. The increasing demand for energy generation, both conventional and clean, in manufacturing plants, and industrial, commercial, and household applications, is driving the growth of the market. Gasification is an efficient method for generating electricity as it optimizes energy utilization.

Several methods of power generation tend to waste energy through combustion processes, while the gasification process converts fossil fuel-based carbon-positive materials or organic waste into hydrogen, with traces of carbon and carbon monoxide, through thermo-chemical means. The produced gas contributes more energy compared to direct combustion.

The majority of gasification is still done using coal as the feedstock to generate energy. Countries such as the USA, Russia, China, India, South Africa, and Australia are among the major users of coal resources for the process. Recent data indicates that there are 117 fully functional gasification plants worldwide, with approximately 40 plants under development. 36% of the operational facilities are used to generate fuels, 20% generate electricity, and 42% produce chemical feedstock.

Key Insights

• Based on source, the coal segment held the largest market share
• Based on application, the chemicals segment dominated the market
• On the basis of region, Asia Pacific held the largest market share

Demand for Clean Energy Driving Growth of the Gasification Market

The implementation of environmental regulations by various countries has led to an increase in the production of clean and green energy. Gasification of biogas or renewable natural gas has minimal environmental impact due to its carbon-neutral properties. Many countries are transitioning from traditional sources like fossil fuels to renewable sources to reduce dependence on non-renewable resources. There is a significant increase in investments in plants that produces gas through anaerobic processes. In thermal applications, gasifiers are a reliable, flexible, and more efficient option. Furthermore, the gasification process is also used to generate electricity from methane, ammonia, liquid fuels, and fossil fuels.

High Capital Expenditures to Impede Market Growth

The establishment of a gasification plant requires significant capital investments, operational expenses, and other costs, which pose challenges for developing countries in the market. The cost of setting up a functional gasification plant is approximately 40% higher than other forms of energy generation. The technology used in gasification for power generation costs twice as much as that required to generate electricity from solar plants or other renewable energy sources. These high costs may inhibit market growth during the forecast period.

Despite the high costs, gasification plants have been able to reduce the reliance on fossil fuels, and have been able to generate energy in a cleaner, greener way. In addition, with the advancements in technology, the costs of gasification plants are expected to decline over time, making it more accessible to developing countries. Therefore, it's important for governments to provide incentives and subsidies to promote the development and deployment of gasification technology.

Segmentation Analysis

Based on applications, the chemical segment accounted for the majority of the market share with revenues slightly over 35%. This dominance is due to the high demand for gas at chemical plants for the production of ammonia, methanol, and hydrogen. Power efficiency, low operational costs, and the availability of feedstock at chemical plants for producing high-value chemicals through the gasification process are key factors contributing to the expansion of this segment.

In terms of feedstock, the coal segment held the largest market share. Coal is widely used to produce gas due to its ability to generate maximum heat for longer periods, compared to petroleum and other feedstock. It also reduces various processes such as handling, mining, and stocking. However, with increasing concerns over carbon emissions and environmental sustainability becoming a core aspect of businesses, it is anticipated that the market growth will be driven by biomass or natural gas during the forecast period.

Recent Development

In November 2021: A long-term contract was signed between Air Liquide and Total Energies to produce renewable and low-carbon hydrogen at Total Energies’ site of Grandpuit. According to the contract, Air Liquide will be investing over EUR 130 million for the set up and operation of the project. The hydrogen production unit will produce more than 20,000 of hydrogen.

In April 2021: Shell PLCs acquired Solenergi Power and Sprng Energy group at a value of USD 1.55 billion. Agreement took place with Actis. The acquisition would help boost Shell’s renewable capacity and further help Shell’s strategy.

In February 2021:  An agreement was signed by EQTEC and Scott Bros subsidiary to set up a gasification plant at Haverton Hill, Billingham. The value is stated as approximately GBP 8.6 million. The plant will produce 25MWe sustainable energy. 

Asia Pacific is Dominating the Market Share Due to the Immense Requirement for Energy

Asia Pacific dominated the gasification market share in 2022 as there is a continuous rise in demand for power from impending countries like India, China, and Japan amongst other countries in the region. The market is attracting participants due to the abundance of coal reserves, feedstock for biogas production, and increasing urbanization and industrialization. One of the major factors influencing potential growth in Asia Pacific is the low costs of manufacturing due to the availability of feedstock. 

Natural gas consumption in India is anticipated to increase by 25bcm (billion cubic meters) owing to the rising population, capital investments to improve in this market, and the need for more energy. In 2021, 29.7MMT crude oil production was recorded by India. Asia Pacific recorded around 71% of total coal production in 2021. The average consumption of oil in the Asia Pacific accounted for 36.23M oil barrels per day.

North America and Europe Lead the Way with Biomass and Renewable Energy Growth

North America and Europe are expected to experience significant growth in the production of biomass and the use of clean energy sources over the forecast period, driven by factors such as strong infrastructure and the availability of capital. In 2021, Europe had a gasification capacity of over 45,000 MW, with over 40% of the production capacity of gas coming from Europe.

However, due to ongoing conflicts in the region, such as the Russia-Ukraine conflict, the United States has become a major exporter of gas to Europe, with 42% of Europe's gas imports coming from the US. This shift in trade dynamics highlights the importance of political stability and the security of supply in the energy sector. Additionally, the increasing adoption of clean energy technologies and the phasing out of fossil fuels in these regions will likely drive further growth in the renewable energy sector in the coming years.

 Competitive Landscape

• Air Liquide
• Aker Solutions
• HCS CONTROL SYSTEMS LTD
• Larson & Toubro Limited
• Shell
• Dakota Gasification Company
• Cameron International
• General Electric
• SEDIN Engineering Co., Ltd.
• EQTEC

The global gasification market is segmented as follows:

By Feedstock

• Biomass
• Coal
• Natural gas
• Others

By Application

• Chemicals
• Gas fuels
• Gas grid
• Others

By Region

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Nordic countries
    • Denmark
    • Finland
    • Iceland
    • Sweden
    • Norway
  • Benelux Reunion
    • Belgium
    • The Netherlands
    • Luxembourg
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • New Zealand
  • Australia
  • South Korea
  • Southeast Asia
    • Indonesia
    • Thailand
    • Malaysia
    • Singapore
    • Rest of Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America