USD 204.61 billion
Report ID:
SQMIG10D2052 |
Region:
Global |
Published Date: May, 2025
Pages:
199
|Tables:
118
|Figures:
72
Global Unconventional Gas Market size was valued at USD 204.61 billion in 2023 and is poised to grow from USD 217.5 billion in 2024 to USD 354.59 billion by 2032, growing at a CAGR of 6.3% during the forecast period (2025-2032).
The global unconventional gas market growth is driven by increasing energy requirements and carbon emission reduction demands. The market will significantly expand in the next few years with the increasing application of unconventional gas technologies such as hydraulic fracturing and horizontal drilling.
The dominant market drivers include increasing energy demand, increased knowledge of the environmental benefits of unconventional gas, and government support for exploration and production of unconventional gas resources. Growth in the market opportunities includes finding new technologies, increasing exploration and production activities, and increasing infrastructure investment. In addition, recent key trends driving the growth of the global unconventional gas market include increased uses of horizontal drilling and hydraulic fracturing, emerging technologies to explore and produce unconventional gas, and increased infrastructure investment. The market is also expected to be driven by increased demand for natural gas as an efficient and cleaner fuel.
Can Advanced Fracturing Techniques Boost Gas Yields Sustainably?
The global unconventional gas industry is rapidly embracing high-end technology to improve efficiency, reduce the environmental impact, and increase gas recovery rates. Technologies such as automated hydraulic fracturing machinery, real-time subsurface monitoring, and electric fracking fleets are transforming exploration and production. These technologies reduce the operation cost, render operations safer, and enable precise drilling and stimulation, in accordance with global calls for cleaner energy resources.
Market snapshot - 2025-2032
Global Market Size
USD 204.61 billion
Largest Segment
Onshore
Fastest Growth
Offshore
Growth Rate
6.3% CAGR
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Global Unconventional Gas Market is segmented by Type, Application and region. Based on Type, the market is segmented into Shale gas, Tight gas, CBM and Others. Based on Application, the market is segmented into Industrial, Power generation, Residential, Commercial, Transportation and Others. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
As per the 2024 global unconventional gas market analysis, at approximately 47.8% market share, the power generation category is the most prevalent use of unconventional gas. It is fueled by the move towards sustainable energy sources and increasing demands for power globally, especially in emerging economies. As a testament to the importance that gas plays in satisfying peak power needs, the intense heatwaves in India throughout the summer of 2024 led to a 32% year-over-year rise in May, June, and July's gas-fired power generation.
The industrial category is predicted to have the highest global unconventional gas market share. Industrial consumption in 2024 accounted for roughly 65% of the increase in world demand, primarily driven by economic growth in rapidly developing Asian countries. As more and more businesses are opting for unconventional gas to supply their energy demands while minimizing their carbon footprint, the trend is likely to continue.
Based on the 2024 global unconventional gas market forecast, with an estimated 62.4% market share, the onshore segment now dominates most of the sector. This is due to the fact that onshore drilling operations are relatively simple and cost-effective. For instance, major onshore development is ongoing at Saudi Arabia's Jafurah gas field, which is the largest unconventional non-oil associated gas resource in the country. The target is to boost gas production by over 60% by 2030 from levels in 2021.
Whereas the offshore category growth is forecast at a 4.5% compound annual growth rate (CAGR) throughout the forecasting period, and that is going to be healthy growth. Increasing exploration and production in deep sea waters are driving this most prominently. Offshore resources played a key role in guaranteeing energy security back in 2024 when the Australian government added more offshore gas exploration permits to relieve long-term deficits in supply.
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As per the 2024 unconventional gas market regional forecast, with cutting-edge technologies such as hydraulic fracturing, North America continues to be the largest and most dynamic market. Shale gas production is still on the rise in the United States, and Texas leads the pack. By 2025, as exploration expands and new technology facilitates production, the region will remain at the leading edge. To improve production, ExxonMobil and Chevron are making significant investments in new-age extraction methods.
The U.S. is now the world's leading producer of shale gas and has transformed the unconventional gas industry, particularly by hydraulic fracturing. Over 70% of worldwide shale production was poised to stay within the United States in 2024, and with enhanced automation and artificial intelligence (AI) to enhance productivity, this number is poised to increase in 2025. To improve location and production rates, for instance, EOG Resources is blending AI and large data analysis.
Canada possesses enormous amounts of unconventional gas, most notably in the Duvernay and Montney reservoirs. As extraction processes continue to be enhanced in efficiency by technology, its production will increase. In 2024, Encana announced it will invest USD 1.5 billion in Alberta to increase Alberta's shale gas production. With growing domestic demand and exports to the United States, the Canadian market will continue to expand and remain an important part of North American gas production through 2025.
Relative to North America, the European unconventional gas sector has expanded at a slower pace. Though Poland and the UK are plausible sites, big-ticket manufacturing has been held back by political opposition and regulatory challenges. However, a review of fracking laws by the UK government may encourage small-scale growth. Poland is stepping up its efforts to utilize its shale assets in the meantime, however public opinion uncertainty will continue to be a barrier until 2025.
Although the UK is rich in shale gas reserves, especially in the Bowland Basin, hydraulic fracturing has been suspended because of protests and fear of environmental damage. In 2024, the UK government made an offer that if shale gas production safety could be proven by science, it would relax regulations. If fracking is less controversial by 2025, IGas Energy is set to resume exploratory drilling soon, possibly boosting shale output.
France has prohibited hydraulic fracturing since 2011, thus shutting its unconventional gas market. Having huge shale gas reserves, the country is choosing to turn towards renewable energy to minimize its dependency on fossil fuels. The France's unconventional gas market will not grow as the country's focus is drawn towards green technology and energy transition programs such as the Energy Transition Law.
Germany can produce a little shale gas, but it has been hindered by environmental issues and legal restrictions. The government has taken a balanced step, preferring renewable energy projects over fossil fuels. Germany's unconventional gas market will be stagnant due to limited development and production. In a bid to significantly minimize its use of fossil fuels, the nation is instead trying to construct E. ON's clean energy projects.
With China and Australia taking a lead in the exploration work, Asia-Pacific is increasingly playing a key role in the unconventional gas market. The market is growing as a result of the region's massive untapped reserves of gas in coal seam gas and shale gas and increasing demand for electricity. Asia-Pacific will supply much of the world's unconventional gas by 2025, with continued investment in extraction techniques, such as those being developed by firms like Santos in Australia.
Australia possesses large reserves of unconventional gas, especially coal seam gas (CSG) in basins such as the Surat and Bowen Basins. Australia has emerged as a leading player in the international energy market through investment in infrastructure to meet its own energy requirements as well as LNG exports. Santos spent heavily at USD 3 billion to drive CSG production in 2024. Australia will expand its unconventional gas production through to 2025 because of innovation in drilling technologies to make regional energy security a possibility.
China is home to the world's biggest unconventional gas reserves, including coal bed methane (CBM) and shale gas. China is developing its unconventional gas resources aggressively in reaction to growing domestic energy demand and efforts to decrease the use of coal. China National Petroleum Corporation (CNPC) is spearheading large-scale shale gas drilling in 2024 with the aim of enhancing production. With drilling and extraction technology, China will significantly improve its production of unconventional gas by 2025, lowering imports and increasing its energy security.
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Increasing Global Energy Demand
Government Support for Unconventional Gas
Environmental Issues and Challenges
High Costs of Production
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The market leaders in the highly competitive global unconventional gas industry are looking to create new technology, reduce costs, and reach out geographically. Some of the major initiatives include investing in eco-friendly techniques, group efforts to adopt technology, and aggressively exploring as-yet untapped reserves. Firms such as ExxonMobil and Chevron, for example, are concentrating on high-tech shale gas extraction techniques in an effort to increase output with less environmental impact.
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, the unconventional gas market is increasing over time due to increased energy demand, especially in developing countries, and due to improvements in technologies such as horizontal drilling and hydraulic fracturing. With immense contributions of shale gas, the United States is the leading market, with North America being the leading market. Nonetheless, environmental concerns, most notably fracking and water usage issues, and the high cost of production remain challenges for the industry. As nations such as China and Australia are heavily investing in the production of unconventional gas to address their growing energy demands and decrease their reliance on coal, Asia-Pacific is set for quick growth.
Report Metric | Details |
---|---|
Market size value in 2023 | USD 204.61 billion |
Market size value in 2032 | USD 354.59 billion |
Growth Rate | 6.3% |
Base year | 2024 |
Forecast period | 2025-2032 |
Forecast Unit (Value) | USD Billion |
Segments covered |
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Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
Companies covered |
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Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
Methodology
For the Unconventional Gas Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Unconventional Gas Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Unconventional Gas Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Unconventional Gas Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
Global Unconventional Gas Market size was valued at USD 204.61 Billion in 2023 and is poised to grow from USD 217.5 Billion in 2024 to USD 364.82 Billion by 2032, growing at a CAGR of 6.3% in the forecast period (2025-2032).
The market leaders in the highly competitive global unconventional gas industry are looking to create new technology, reduce costs, and reach out geographically. Some of the major initiatives include investing in eco-friendly techniques, group efforts to adopt technology, and aggressively exploring as-yet untapped reserves. Firms such as ExxonMobil and Chevron, for example, are concentrating on high-tech shale gas extraction techniques in an effort to increase output with less environmental impact. 'ExxonMobil Corporation', 'Chevron Corporation', 'Royal Dutch Shell', 'BP', 'TotalEnergies', 'ConocoPhillips', 'Eni S.p.A.', 'Halliburton', 'Schlumberger', 'Baker Hughes', 'Occidental Petroleum', 'Devon Energy', 'Apache Corporation', 'EQT Corporation', 'Pioneer Natural Resources'
The growing global energy demand, particularly in the developing world of China and India, is driving the unconventional gas industry. Tight gas and shale gas are vital sources of energy to satisfy increasing household and industrial demands. Governments are investing heavily in natural gas infrastructure as part of efforts to lower their reliance on coal, enhance energy security, and shift towards cleaner fuels, which is fueling the production and uptake of unconventional gas.
Integration of AI, IoT, and Automation: The production of unconventional gas is becoming more efficient with the increase in digital technologies such as automation, artificial intelligence, and the Internet of Things. Smart drilling technologies are being employed by companies to reduce costs, boost production, and minimize their impact on the environment. For instance, companies such as Halliburton are employing autonomous hydraulic fracturing technology in 2024 to reduce emissions and enhance stage efficiency.
What Drives Unconventional Gas Production Growth in North America?
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Report ID: SQMIG10D2052
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