Methane Market Size, Share, Growth, Trends, and Global Industry Analysis: By Transportation (Cylinders, Bottles, Others), By End-use (Automotive & Transportation, Oil & Gas, Chemicals, Electrical & Electronics, Medical), and Region Forecast 2020-2031

Methane Market size was valued at US$ 6,500 million in 2024 and is projected to reach US$ 9,400 million by 2031 at a CAGR of 5.5% from 2025-2031. Moreover, the U.S. Methane Market is projected to grow significantly, reaching an estimated value of US$ 3,200 million by 2031.

The market is a critical segment of the international energy and chemicals value chain as both a basic energy source and strategic industrial feedstock. As the main element of natural gas, methane is the basis for electricity and heat supply, hydrogen manufacture, and chemical production. It is applied across power plants and petrochemical facilities, residential and commercial buildings, and fuel transportation. But methane is a powerful greenhouse gas, too, and its dual role as economic commodity and environmental hazard has put the market at the center of changing regulatory, technological, and environmental debate. The strategic need to decarbonize has heightened interest in methane detection, capture, and low-emission uses models.

The modern methane environment is being transformed fundamentally, driven by policy realignments, infrastructure upgrades, and worldwide dedication to reducing emissions. While emerging economies continue to scale up methane-based energy systems to accommodate growing industrial demands, developed economies are focusing on preventing leakage, testing for carbon intensity, and converting methane to value. Increased satellite monitoring, blue hydrogen routes, and biogenic methane add complexity to the market's measurement and use of this fuel. In addition, investor attitudes are shifting towards firms that have quantifiable methane responsibility and reporting cultures. As methane moves from an untraced byproduct to a traced commodity, its market path is no longer controlled by supply and price but by growing climate credibility, traceability, and innovation integration.

Facts & Figures

• More than 40% of global methane emissions derive from energy use, and therefore oil and gas production are amongst the most closely audited sources, driving the industry towards more sophisticated leak detection and prevention equipment.
• Methane constitutes almost 70–90% of natural gas composition, which again emphasizes its status as a commercial fuel source and focus of decarbonization policy contest globally.
• Over 150 nations, through the Global Methane Pledge, have made commitments to lower methane emissions by no less than 30% by 2030, having a direct impact on the patterns of working, tracking, and reporting in the methane value chain.
• Satellite monitoring has revealed vast amounts of unreported methane emissions in more than 30 nations, influencing regulatory actions and creating new requirements for disclosures by energy firms and national reporting agencies.

Key Developments

• In May 2025, six satellites were launched into space by China LandSpace Technology using a rocket powered by methane, further solidifying the position of methane as a cleaner spaceflight fuel in the emerging reusable space economy.
• In January 2025, CH4 Global made a strategic partnership with Mitsubishi Corporation to accelerate deployment of its methane-reducing cattle feed in key Asia-Pacific markets with a mission for climate-smart agriculture.
• In January 2024, CH4 Global launched Phase One of its initial vast EcoPark comprising 10 2 million litres' capacity ponds, enabling production of 80 metric tonnes of Asparagopsis seaweed per annum for methane emissions mitigation in livestock in January 2024.

Methane Market Segmentation

Based on the transportation

• Cylinder
• Bottles
• Others

Cylinders are becoming a widely demanded transport vehicle in the methane market, particularly for decentralized and mobile energy purposes. They are light, CNG-compatible, and hence optimally designed for localized industrial use and small commercial deployment. In areas where pipeline infrastructure is limited or too expensive, cylinders enable effective delivery of methane for fuel, heating, and power backup. New composite cylinder technologies have further enhanced safety, strength, and pressure control, keeping up with evolving regulatory guidelines. Growth in CNG-fueled vehicles and off-grid power is also driving demand for cylinder-based transport, especially in emerging economies where maneuverability and affordability are more desirable than infrastructural reliance.

Based on the end user

• Automotive & Transportation
• Oil & Gas
• Chemical
• Electrical & Electronics
• Medical
• Others

In the end-use markets, the oil & gas sector is the largest user and processor of methane, using it both as a product and a process fuel. Methane serves two functions: as a commodity product extracted from the ground, and at the same time as a fuel for operational savings in midstream and upstream operations. Methane is used by refineries and gas processing facilities for burning to provide heat, power, and steam. Methane is also at the heart of combined energy plans for improved oil recovery and the production of hydrogen. With increasing pressure to decrease Scope 1 emissions, most oil & gas producers are investing in methane recovery units, flaring minimization technology, and satellite monitoring to balance production economics with environmental responsibility without jeopardizing production economics.