The global natural gas storage market is estimated to grow at a CAGR of 3.8% during the forecast period 2016-2022. During the time of production and supply these storage facilities are used as a hypothetical tool in the market. Huge demand of natural gas and the global energy security issues are the major drivers for the global natural gas storage market. Moreover, the increasing consumption and usage in the end user segments such as industrial operations, transportation, and electricity generation is expected to boost the market growth over the next few years. Rapid urbanization along with increasing industrialization in developing economies like Latin America and Asia Pacific are anticipated to boost the market growth over the forecast period.
Owing to the huge demand for natural gas from across regions, the oil and gas exploration activities will further increase, creating a massive demand for storage facilities. Prevalence of strict government policies and regulations for lowering down the carbon footprints is also expected to positively impact the development of the global natural gas storage market during the forecast period. In addition to it, the growing demand for fuel power generator owing to its increased application in various sectors like commercial, residential and industrial is also anticipated to boost the global natural gas storage market over the forecast period.
Due to the growth of industries in various developing regions like Brazil, UAE, Russia, China and India, there has been increase in the demand of these storages, which fuels the global natural gas storage market. In countries such as China, India, Russia, Brazil, and UAE industrial sector is growing which is again complementing the growth of the market. Other major factors that are leading the growth of this market are the negative environmental effects that are caused due to coal and the fluctuating prices. These have lead to an increasing trend of usage of natural gas which will further boost the global natural gas storage market.
The global natural gas storage market is segmented on the basis of storage type and geography. On the basis of storage type, the market is categorized as underground storage and aboveground storage. Underground storage is further sub categorized as depleted reservoirs, salt caverns, and aquifers. The underground market is expected to generate maximum revenue in the global natural gas storage market. Aboveground storage is further bifurcated into the liquefaction capacity, regasification capacity, and floating LNG.
Some of the major challenges available in the global natural gas storage market are high cost of installation and low transmission capabilities which are expected to hinder the growth of global natural gas storage market in future.
Geographically, the global natural gas storage market is segmented into North America, Europe, Asia Pacific and Rest of the World. Owing to increasing natural gas exploration and production activities, North American region is projected to be the leading regional player in the global natural gas storage market. Huge growth in industries has been witnessed in countries such as India and China, which is expected to boost the consumption of natural gas in the Asia Pacific region. Asia Pacific is expected to showcase huge growth rate in the global natural gas storage market. Owing to the depletion of coal reserves and the availability of low cost natural gas in the region, increase in consumption by steel and petrochemicals industries, especially in regions like China and India is projected. Due to prevalence of stringent regulations and growing environmental awareness, Europe has witnessed an increase in the application and use of natural gas during the forecast period. In the European region, Russia is projected to drive the global natural gas storage market in the region. Similarly, Latin America, Middle East and Africa are anticipated to experience elevated growth rates due to growing energy needs.
Presence of stringent government rules and regulations, owing to high risk associated with these facilities. Governmental approval is required for a gas storage project that will serve as a certificate of public convenience and will reduce the environmental as well as financial loss. Natural gas storage facility operators are emphasizing more on safety, in order to maximize safety and operational efficiency.
Some of the major market players of the global natural gas storage market are GDF SUEZ, Samsung Heavy Industries, Foster Wheeler, and Spectra Energy. Other key companies include E-on Group, Worley Parsons, Centrica, Technip, Chiyoda Corporation, and Niska Gas Storage Samsung Heavy Industries. Acquisitions, collaborations, new product development, mergers and expansions, joint ventures, are the key strategies adopted by the market players to sustain in the market.