Industry Insights

Natural gas is one of the fastest growing energy forms and has been gaining market share significantly in the global energy basket. Due to its cleaner existence, natural gas has been rapidly catching up to crude oil as a fuel alternative, with the latter not feasible for producing clean energy. Natural gas is slowly evolving as the primary global fuel with increasing penetration in transportation and domestic application markets.

By 2040, natural gas is expected to be on par with crude oil in the global energy landscape. However, depleting conventional natural gas reserves raise questions on its sustainable status, due to which there is an increased focus towards the use of unconventional gas sources such as CBM, shale gas, and tight gas.

Application insights

Power generation emerged as the leading application market for tight gas and accounted for 35.3% of total CBM produced globally in 2013. Power generation along with being the largest market is also expected to be the fastest growing application markets for CBM at an estimated CAGR of 8.5% from 2014 to 2020.

The increase power generation market share can be attributed to the fact that other applications, such as residential and commercial usage, are expected to decrease in share by 2020. Power generation from CBM is cheaper and hence preferred in developed as well as developing countries. The power generation process converts methane from coal mines into carbon dioxide and water and reduces greenhouse gases significantly. To earn carbon credits, developing countries are now shifting focus towards CBM for power generation. Companies such as Essar Oil and Caterpillar are investing in large CBM projects for power generation.

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Regional insights

U.S. dominated CBM production, accounting for 61.8% of total CBM produced globally in 2013. Canada followed U.S. in the global market and accounted for 11.5% of total production in 2013. The growth of North American market is primarily driven by the growing demand for sustainable fuel in the country and to reduce reliance on conventional sources of natural gas. However, Asia Pacific on account of growing drilling activities mainly in coal-rich countries such as China, India, Indonesia and Australia is expected to be the fastest growing CBM market at an estimated CAGR of 14.9% from 2014 to 2020.

Report Scope

Attribute & Details

Base year for estimation

2014

Actual estimates/Historical data

2012-2014

Forecast period

2014- 2020

Market representation

Revenue in USD million and CAGR from 2014 to 2020

Regional scope

North America, Europe, Asia Pacific,

Country Scope

U.S., Canada, Russia, China, India, Indonesai, Australia

Report coverage

Revenue forecast, company share, competitive landscape, and growth factors and trends

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