Underground Gas Storage Market
Report ID: SQMIG10F2023
Report ID: SQMIG10F2023
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Report ID:
SQMIG10F2023 |
Region:
Global |
Published Date: February, 2025
Pages:
194
|Tables:
92
|Figures:
68
Global Underground Gas Storage Market size was valued at USD 10.64 Billion in 2024 and is poised to grow from USD 11.1 Billion in 2025 to USD 15.54 Billion by 2033, growing at a CAGR of 4.3% during the forecast period (2026–2033).
Rising emphasis on improving energy security, efforts to improve gas supply chain stability, surge in demand for energy around the world, and high demand for strategic reserves for emergency preparedness are predicted to boost the adoption of underground gas storage over the coming years.
Rapidly increasing global population and subsequent hike in energy demand are expected to bolster the importance of underground gas storage facilities. Growing emphasis on improving energy security in countries and efforts to improve gas supply chain stability are also expected to boost the demand for underground gas storage solutions and services in the long run. Integration of underground gas storage solutions with renewable energy generation is also expected to offer new business opportunities for market players.
Increasing numbers of gas companies are focusing on maximizing their profits through price arbitrage strategies by purchasing gas at lower prices and storing it to sell during peak demand when prices are higher. Growing investments in the development of infrastructure for gas storage and rising use of natural gas to promote sustainability are also forecasted to drive the global underground gas storage market growth in the future.
Increasing frequency of natural disasters and man-made catastrophes around the world has bolstered the importance of emergency preparedness. Storing energy to be used in times of crises is becoming an essential part of emergency preparedness thereby driving the demand for underground gas storage facilities and solutions. However, requirement of high capital investments, competition from alternative energy storage solutions, geological limitations, environmental and safety concerns, and economic viability concerns are slated to impede the adoption of underground gas storage through 2032 and beyond.
Key Market Attributes
In January 2025, STORAG Etzel, a renowned company known for construction and operation of caverns for oil & gas industry announced the start of hydrogen filling of caverns. The Hydrogen pilot project H2CAST ETZE is the perfect example of how existing oil & gas caverns can be easily modified and used for hydrogen storage. Initially 90 tonnes of hydrogen was filled in the first tranche. Etzel is expected to focus on improving its hydrogen storage capacity as the hydrogen market is still in its nascent stages to maximize its business scope when demand for hydrogen picks up in the near future.
In August 2024, Uniper, a leading German multinational energy organization announced the opening of its new green hydrogen storage facility in Krummhörn. The Hydrogen Pilot Cavern (HPC) Krummhörn demonstrates how salt caverns can be used for the storage of hydrogen. It is expected to offer a storage capacity of 250 GWh of hydrogen in its first phase. The company has plans of developing salt caverns for the underground storage of hydrogen with a planned capacity of up to 600 GWh by the end of the year 2030.
In March 2024, the European consortium involving 17 companies announced the launch of FrHyGe* project. The project is aimed at validating the use of salt caverns for the underground storage of hydrogen on an industrial scale. The project is funded by the European Union through the Clean Hydrogen Partnership and coordinated by Storengy, a leading gas operator from France. The project has a budget of 43 million Euros.
Focusing on building storage for hydrogen is expected to be the hot trend for underground gas storage companies around the world. Advancements in hydrogen technologies and growing efforts to improve hydrogen production are slated to offer attractive new business scope for market players. Converting existing gas storage facilities to handle hydrogen and other gases is a popular trend for all types of underground gas storage providers. Europe is expected to remain the most opportune region for any underground gas storage company focusing on leveraging hydrogen storage for the future.
Market snapshot - 2026-2033
Global Market Size
USD 10.2 billion
Largest Segment
Natural Gas
Fastest Growth
Hydrogen
Growth Rate
4.3% CAGR
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Global Underground Gas Storage Market is segmented by Type, Product, Application and region. Based on Type, the market is segmented into Depleted Gas Reservoirs, Salt Caverns, Aquifers and Other Types. Based on Product, the market is segmented into Natural Gas, Hydrogen and Other Products. Based on Application, the market is segmented into Residential, Commercial and Other Applications. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
Analysis by Product
Natural gas is forecasted to account for the largest global underground gas storage market share over the coming years. Rapidly increasing use of natural gas in multiple industrial and residential applications is projected to help this segment bring in the most revenue. Increasing emphasis on use of natural gas to transition from fossil fuels to electric infrastructure and transportation is also helping this segment generate new opportunities. Rising awareness regarding sustainability and low environmental impact of natural gas are also promoting the use of natural gas in almost all parts of the world. High investments in natural gas supply and storage infrastructure development are also cementing the dominance of this segment.
On the other hand, the demand for hydrogen storage is slated to rise at a rapid pace in the long run. Growing use of hydrogen as an energy source in multiple applications and advancements in hydrogen generation technologies are helping this segment generate new business scope for market players. Launch of new decarbonization initiatives and adoption of clean energy sources are slated to bolster the construction of underground gas storage facilities for hydrogen. Rising investments in the development of new hydrogen generation technologies and facilities are also estimated to offer new opportunities for underground gas storage providers in the long run.
Analysis by Type
The depleted gas reservoir segment is anticipated to account for a notable share of the global underground gas storage industry going forward. High storage capacity and ready availability of depleted gas reservoirs are helping them hold sway over other segments. Extensive distribution of gas reservoirs and availability of supply infrastructure without additional investments are also helping this segment maintain its dominant stance. Utilizing depleted gas reservoirs is much cheaper than investing in building a new facility, which is why most gas companies prefer to invest in this segment. Depleted gas reservoirs are usually found in sandstone and carbonate formations that are porous and permeable in nature.
Meanwhile, the use of salt caverns for underground gas storage is expected to increase at an impressive CAGR in the future. High simplicity of salt caverns for storage and withdrawal of gas reserves is expected to boost their adoption in the long run. High structural integrity and stability offered by salt formations coupled with their high storage capacity are also helping generate new opportunities for underground gas storage companies focusing on this segment. Moreover, salt rock is naturally tight and resistant to gas seepage, which eliminates the need for additional sealing procedures to ensure no gas leaks occur thereby again reducing operational costs for underground gas storage companies.
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Europe is estimated to account for the biggest global underground gas storage market share across the study period. The presence of multiple gas reserves in this region, high emphasis on adoption of natural gas to promote sustainability, and growing investments in the development of new underground gas storage facilities are helping this region bring in the most revenue.
Germany is forecasted to emerge as a leader in terms of underground gas storage adoption. High reliance on gas imports, growing use of natural gas for energy generation, and efforts to improve energy security are helping Germany bring in the most revenue. Rising focus on sustainability is boosting the demand for underground gas storage in France, the United Kingdom, Russia, and Ukraine.
The Asia Pacific region is anticipated to emerge as the fastest expanding market for underground gas storage companies. Rapidly increasing natural gas consumption, high investments in the development of gas storage and supply infrastructure, and rapidly increasing energy demand from growing population are offering new moneymaking opportunities in this region.
China is expected to be the most lucrative country for underground gas storage providers in the Asa Pacific owing to its emphasis on managing fluctuations in natural gas supply, limited domestic production capabilities, and high import dependence. India is also expected to witness a robust hike in demand for underground gas storage through 2032 as the country focuses on improving grid stability and energy security for its citizens.
North America is predicted to offer attractive opportunities for market players across the global underground gas storage market forecast and beyond. High investments in natural gas exploration activities, seasonal fluctuations in gas demand, and increasing natural gas production are expected to bolster the construction of new underground gas storage infrastructure in this region.
High volume of natural gas production and presence of multiple depleted natural gas or oil reservoirs are helping the United States to emerge as the top country in the North American region going forward. High natural gas production in Canada and rising exports of the same are also expected to bolster the demand for underground gas storage in this region.
The presence of the world’s largest natural gas reserves in the Middle East and Africa region helps create new business scope for underground gas storage companies in the long run. Efforts of Gulf countries on energy diversification, high geopolitical instability in this region, and economic benefits of gas storage for countries are helping bolster the use of underground gas storage facilities in this region. Saudia Arabia, Qatar, Kuwait, the United Arab Emirates, and Iran are some of the most opportune markets for underground gas storage providers looking to make a mark in this region.
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Drivers
Emphasis on Emergency Preparedness
Government Policies and Initiatives
Restraints
Requirement of High Capital Investments
Geological Limitations
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Underground gas storage companies should focus on expanding their storage capacity to maximize their business scope in the long run. Providing storage for hydrogen and other gases is slated to boost revenue generation for all underground gas storage providers. Europe, the Middle East and Africa, and Asia Pacific are slated to be the most opportune regions for companies as per this global underground gas storage market analysis.
Top Player’s Company Profiles
Recent Developments
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, growing demand for energy security and rising emphasis on emergency preparedness are slated to primarily boost the demand for underground gas storage through 2032. On the contrary, the requirement of high capital investments and geological issues are expected to impede the adoption of underground gas storage going forward. Europe is estimated to spearhead the demand for underground gas storage on a global level owing to presence of multiple natural gas resources and emphasis on sustainability in countries such as Germany, France, and the United Kingdom. Aluminum containers are expected to be used extensively for the storage and transportation of underground gas storage. Targeting emerging countries and providing storage for hydrogen can help underground gas storage companies stand out from the competition through 2032 and beyond.
| Report Metric | Details |
|---|---|
| Market size value in 2024 | USD 10.64 Billion |
| Market size value in 2033 | USD 15.54 Billion |
| Growth Rate | 4.3% |
| Base year | 2024 |
| Forecast period | 2026-2033 |
| 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 Underground Gas Storage 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 Underground Gas Storage 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 Underground Gas Storage Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Underground Gas Storage 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.
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