Methane Hydrate Extraction Market - Forecast(2024 - 2030)

Report Code: CMR 19618 Report Format: PDF + Excel

Methane Hydrate Extraction Market Overview

The methane hydrate extraction market size is forecast to reach US$11.2 billion by 2027 after growing at a CAGR of 6.1% during 2022-2027. Methane hydrate, also known as methane clathrate, fiery ice or the natural gas hydrate is a solid compound in which methane gas is trapped. According to data by the U.S. Department of Energy, one cubic meter of methane hydrate releases 164 cubic meters of natural gas, making it a future source of energy. The market is in a nascent stage as the commercialization of methane hydrate is still under process. Increasing R&D activities are carried out in selected countries and this is expected to contribute to the market’s growth in the forecast period. For instance, as per the data by the National Institute of Advanced Industrial Science and Technology (AIST), Energy Process Research Institute (EPRI) was established in April 2020 for R&Ds in exploring energy resources like methane hydrate in Japan. Furthermore, advancement in technologies for efficient extraction of methane hydrate is increasing and this, in turn, is expected to propel the market’s growth in the forecast period. For instance, as per the January 2020 report by National Energy Technology Laboratory (NETL), multiple techniques for the production of natural gas from methane hydrate are evaluated with a simple depressurization technique indicating the most promise for yielding viable production rates. Methane hydrates reside in sea-floor sediments and permafrost and their extraction involves a risky procedure that might affect the market’s growth in the forecast period.

COVID-19 Impact 

The methane hydrate extraction market was affected due to the COVID-19 pandemic as multiple challenges such as supply chain scarcity and the idling of factories surfaced. The players in the market adopted several measures to maintain a steady extraction operation during the pandemic. For instance, as per the April 2020 COVID-19 report by INPEX, the company had to mobilize the necessary workforce to carry out standard and safe operations. Going forward, the market is expected to exhibit significant growth owing to increasing R&D activities. 

Report Coverage 

The report: “Methane Hydrate Extraction Market Report - Forecast (2022-2027)”, by IndustryARC, covers an in-depth analysis of the following segments of the Methane Hydrate Extraction Industry.

By Source: Seabed, Permafrost, Others.
By Geography: North America (USA, Canada, Mexico), Europe (UK, Germany, France, Italy, Netherlands, Spain, Russia, Belgium, Rest of Europe), Asia Pacific (China, Japan, India, South Korea, Australia, and New Zealand, Indonesia, Taiwan, Malaysia, Rest of Asia Pacific), South America (Brazil, Argentina, Colombia and Rest of South America), and RoW (Middle East and Africa). 

Key Takeaways:

  • Seabed dominated the methane hydrate extraction market in 2021. Methane hydrates are found in large quantities in seabed globally and that makes it a suitable source for extracting methane hydrate. 
  • The increasing R&D is projected to contribute to the market’s growth in the forecast period. For instance, as per the November 2020 report by scienceline.org, Japan and US announced the plan to extract gas from methane hydrate in 2021 in Prudhoe Bay, Alaska. 
  • The Asia-Pacific region is expected to witness the highest demand for methane hydrate extraction in the forecast period owing to the region’s increasing R&D activities. For instance, as per the June 2020 journal by cgsjournals, China extracted 861,400 cubic meters of natural gas from methane hydrates in the South China Sea in 2020

Figure: Asia-Pacific Methane Hydrate Extraction Market Revenue, 2021-2027 (US$ Billion)

 Methane Hydrate Extraction Market

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Methane Hydrate Extraction Market - By Source 

Seabed dominated the methane hydrate extraction market in 2021. The majority of methane hydrate in the world occurs in continental slopes in the sea with sufficient organic matter accumulating on the bottom. This allows governments and companies to explore and expand methane extraction at a large scale. Many countries are actively taking steps forward for the extraction of methane hydrate from the seabed. For instance, as per the June 2020 journal by Oxford Academic, China is prioritizing technological development aspects to explore offshore methane clathrate present under the mud of the seabed. Such increasing exploration and utilization of seabed is projected to increase its demand as the primary source for extracting methane hydrate in the forecast period. 

Methane Hydrate Extraction Market - By Geography 

The Asia-Pacific region held the largest market share in the methane hydrate extraction market in 2021, up to 32%. The high demand for methane hydrate extraction is attributed to the region’s increasing R&D activities towards natural gas production from natural gas hydrate. China is one of the leading markets in methane hydrate extraction and going forward, the country is all set for the commercial exploitation of methane hydrate. For instance, as per the November 2021 report by Eos.org, China is leading the way with the possibility of commercial extraction of methane expected to start between 2030 to 2040. Japan is another large market that is projected to witness robust demand for methane hydrate extraction in the forecast period owing to the rising activities related to natural gas production from methane hydrate extraction. The country has set its eyes on conducting more tests and expanding its methane hydrate extraction portfolio in the coming years. The report by Eos.org states that Japan is expected to play an important role in taking methane hydrate extraction to a commercial level in the future. Such increasing R&D activities in the region is expected to increase the demand for methane hydrate extraction during the forecast period. 

Methane Hydrate Extraction Market Drivers 

Increasing R&Ds will contribute to the market’s growth 

The methane hydrate extraction is yet to achieve the commercial level status and accordingly many countries are actively expanding their research and development activities to make the extraction of natural gas hydrate or fiery ice, commercially viable and this is expected to drive the market’s growth in the forecast period. For instance, as per the Vision 2030 report by Petroleum and Natural Gas Regulatory Board, research and studies are being undertaken in the Indian Ocean for the establishment of potential natural gas hydrates. Similarly, as per the September 2019 report by the United States Geological Survey (USGS), USGS scientists participated in the methane gas hydrate pressure coring project in the Gulf of Mexico. Such increasing activities by multiple research organizations and governing bodies is expected to pave the path for the efficient extraction of methane hydrates, contributing to the growth of the market in the forecast period. 

Advancement in technology will drive the market’s growth 

Technological advancement is shaping up quite strongly to locate and perform enhanced extraction of methane hydrates in the world. Methane clathrate reservoirs are entirely different from conventional gas reservoirs and require advanced technology to produce natural gas from methane hydrates. Many countries are developing advanced technology systems to achieve the goal of making methane hydrate extraction commercially viable and this is expected to drive the growth’s market in the forecast period. For instance, as per the March 2021 article by ScienceDaily, members at the U.S. Naval Research Laboratory and Sandia National Laboratories developed a new system for finding methane hydrate in a region of North Carolina. Similarly, as per the August 2019 science journal by Nature, researchers at the Indian Institute of Technology in Madras developed an advanced methane hydrate extraction technique for use in shallow sediments along continental coastlines. Such development of technologies regarding the safe extraction of methane hydrate is expected to contribute to the growth of the market during the forecast period. 

Methane Hydrate Extraction Market Challenges 

Risky methane hydrate extraction procedure might hamper the market’s growth 

The extraction of methane hydrate involves a risky and complicated process which has been a key challenge and this might hamper the market’s growth in the forecast period. Methane hydrate extraction tests conducted by multiple governing bodies revealed drilling issues and environmental hazards related to the process. Research organizations and market players are constantly looking for a safe way of extracting methane hydrates to avoid such challenges. As per the December 2020 methane hydrate advisory committee report by the U.S. Department of Energy, borehole stability issues while drilling through and operational hazards of gas flow are some of the key challenges that need to be addressed in international field tests. Such a critical and risky extraction process might hamper the market’s growth during the forecast period. 

Methane Hydrate Extraction Market Industry Outlook

Investment in R&D activities, acquisitions, product and technology launches are key strategies adopted by players in the methane hydrate extraction market. Global methane hydrate extraction top 10 companies include: 

  1. Schlumberger Limited
  2. Anadarko Petroleum Corporation
  3. ConocoPhillips
  4. Equinor ASA
  5. China National Petroleum Company
  6. Japan Petroleum Exploration Company Limited
  7. INPEX Corporation
  8. Indian Oil Corporation Ltd
  9. Oil and Natural Gas Corporation
  10. Woodside Inc
  11. Others 

Recent Developments 

  • In February 2019, the government of Japan revised its plan of developing technologies to enable commercial production of methane hydrate to which JAPEX responded by announcing its plan to contribute to the government’s efforts for commercializing methane hydrate by participating in the offshore production tests. Through this agreement, JAPEX aims to develop its own methane hydrate extraction technology. 

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1. Methane Hydrate Extraction Market- Market Overview
    1.1 Definitions and Scope
2. Methane Hydrate Extraction Market- Executive Summary
    2.1 Key Trends by Source
    2.2 Key Trends by Geography
3. Methane Hydrate Extraction Market- Comparative analysis
    3.1 Market Share Analysis- Major Companies
    3.2 Product Benchmarking- Major Companies
    3.3 Top 5 Financials Analysis
    3.4 Patent Analysis- Major Companies
    3.5 Pricing Analysis (ASPs will be provided)
4. Methane Hydrate Extraction Market- Startup companies Scenario Premium Premium 
    4.1 Major startup company analysis:
        4.1.1 Investment
        4.1.2 Revenue
        4.1.3 Product portfolio
        4.1.4 Venture Capital and Funding Scenario
5. Methane Hydrate Extraction Market– Industry Market Entry Scenario Premium Premium
    5.1 Regulatory Framework Overview
    5.2 New Business and Ease of Doing business index
    5.3 Successful Venture Profiles
    5.4 Customer Analysis - Major companies
6. Methane Hydrate Extraction Market- Market Forces
    6.1 Market Drivers
    6.2 Market Constraints
    6.3 Porters five force model
        6.3.1 Bargaining power of suppliers
        6.3.2 Bargaining powers of customers
        6.3.3 Threat of new entrants
        6.3.4 Competitive Rivalry
        6.3.5 Threat of substitutes
7. Methane Hydrate Extraction Market-Strategic analysis
    7.1 Value chain analysis
    7.2 Opportunities analysis
    7.3 Product/Market life cycle
    7.4 Distributors Analysis - Major Companies
8. Methane Hydrate Extraction Market Segment Analysis– By Source (Market Size -US$ Million, Billion)
    8.1 Seabed
    8.2 Permafrost
    8.3 Others
9. Methane Hydrate Extraction Market Segment Analysis - By Geography (Market Size -US$ Million / Billion)
    9.1 North America
        9.1.1 USA
        9.1.2 Canada
        9.1.3 Mexico
    9.2 Europe
        9.2.1 UK
        9.2.2 Germany
        9.2.3 France
        9.2.4 Italy
        9.2.5 Netherlands
        9.2.6 Spain
        9.2.7 Russia
        9.2.8 Belgium
        9.2.9 Rest of Europe
    9.3 Asia Pacific
        9.3.1 China
        9.3.2 Japan
        9.3.3 India
        9.3.4 South Korea
        9.3.5 Australia and New Zealand
        9.3.6 Indonesia
        9.3.7 Taiwan
        9.3.8 Malaysia
        9.3.9 Rest of Asia Pacific
    9.4 South America
        9.4.1 Brazil
        9.4.2 Argentina
        9.4.3 Colombia
        9.4.4 Chile
        9.4.5 Rest of South America
    9.5 ROW
        9.5.1 Middle East
            9.5.1.1 Saudi Arabia
            9.5.1.2 UAE
            9.5.1.3 Israel
            9.5.1.4 Rest of Middle East
        9.5.2 Africa
            9.5.2.1 South Africa
            9.5.2.2 Nigeria
            9.5.2.3 Rest of Africa
10. Methane Hydrate Extraction Market-Entropy
    10.1 New Product Launches
    10.2 M&A’s, Collaborations, JVs and Partnerships
11. Methane Hydrate Extraction Market- Industry/Segment Competition Landscape Premium
    11.1 Company Benchmarking Matrix- Major Companies
    11.2 Market Share at Global Level- Major companies
    11.3 Market Share by Key Region- Major companies
    11.4 Market Share by Key Country- Major companies
    11.5 Market Share by Key Application - Major companies
    11.6 Market Share by Key Product Type/Product category- Major companies
12. Methane Hydrate Extraction Market- Key Company List by Country Premium Premium 
13. Methane Hydrate Extraction Market Company Analysis- Business Overview, Product Portfolio, Financials, and Developments
    13.1 Company 1
    13.2 Company 2
    13.3 Company 3
    13.4 Company 4
    13.5 Company 5
    13.6 Company 6
    13.7 Company 7
    13.8 Company 8
    13.9 Company 9
    13.10 Company 10 and more
"*Financials would be provided on a best efforts basis for private companies"

LIST OF TABLES

LIST OF FIGURES

1.US Methane Hydrate Extraction Market Revenue, 2023-2030 ($M)
2.Canada Methane Hydrate Extraction Market Revenue, 2023-2030 ($M)
3.Mexico Methane Hydrate Extraction Market Revenue, 2023-2030 ($M)
4.Brazil Methane Hydrate Extraction Market Revenue, 2023-2030 ($M)
5.Argentina Methane Hydrate Extraction Market Revenue, 2023-2030 ($M)
6.Peru Methane Hydrate Extraction Market Revenue, 2023-2030 ($M)
7.Colombia Methane Hydrate Extraction Market Revenue, 2023-2030 ($M)
8.Chile Methane Hydrate Extraction Market Revenue, 2023-2030 ($M)
9.Rest of South America Methane Hydrate Extraction Market Revenue, 2023-2030 ($M)
10.UK Methane Hydrate Extraction Market Revenue, 2023-2030 ($M)
11.Germany Methane Hydrate Extraction Market Revenue, 2023-2030 ($M)
12.France Methane Hydrate Extraction Market Revenue, 2023-2030 ($M)
13.Italy Methane Hydrate Extraction Market Revenue, 2023-2030 ($M)
14.Spain Methane Hydrate Extraction Market Revenue, 2023-2030 ($M)
15.Rest of Europe Methane Hydrate Extraction Market Revenue, 2023-2030 ($M)
16.China Methane Hydrate Extraction Market Revenue, 2023-2030 ($M)
17.India Methane Hydrate Extraction Market Revenue, 2023-2030 ($M)
18.Japan Methane Hydrate Extraction Market Revenue, 2023-2030 ($M)
19.South Korea Methane Hydrate Extraction Market Revenue, 2023-2030 ($M)
20.South Africa Methane Hydrate Extraction Market Revenue, 2023-2030 ($M)
21.North America Methane Hydrate Extraction By Application
22.South America Methane Hydrate Extraction By Application
23.Europe Methane Hydrate Extraction By Application
24.APAC Methane Hydrate Extraction By Application
25.MENA Methane Hydrate Extraction By Application
26.Anadarko Petroleum Corporation, Sales /Revenue, 2015-2018 ($Mn/$Bn)
27.Schlumberger Limited, Sales /Revenue, 2015-2018 ($Mn/$Bn)
28.BP p.l.c., Sales /Revenue, 2015-2018 ($Mn/$Bn)
29.ConocoPhillips, Sales /Revenue, 2015-2018 ($Mn/$Bn)
30.EQUINOR ASA, Sales /Revenue, 2015-2018 ($Mn/$Bn)
31.Petro Company Limited, Sales /Revenue, 2015-2018 ($Mn/$Bn)
32.Petroleum Exploration Co., Ltd., Sales /Revenue, 2015-2018 ($Mn/$Bn)
33.INPEX Corporation, Sales /Revenue, 2015-2018 ($Mn/$Bn)
34.Oil Natural Gas Corporation, Sales /Revenue, 2015-2018 ($Mn/$Bn)
35.n Oil Corporation Ltd., Sales /Revenue, 2015-2018 ($Mn/$Bn)