Natural Gas - India

The Natural Gas market in India is witnessing a minimal increase, influenced by factors such as fluctuating global prices, regulatory challenges, and competition from renewable energy sources, which are reshaping the energy landscape and impacting overall growth rates.

Customer preferences: Consumers in India are increasingly favoring cleaner energy solutions, leading to a noticeable shift towards the adoption of natural gas as a transitional fuel. This trend is propelled by rising environmental consciousness among younger demographics, who prioritize sustainability in their lifestyle choices. Additionally, urbanization and the growing middle class are driving demand for reliable energy sources for cooking and heating, with natural gas emerging as a preferred option due to its lower emissions compared to traditional fossil fuels.

Trends in the market: In India, the Natural Gas market is experiencing a significant shift as consumers increasingly opt for cleaner energy alternatives. This trend is driven by the rise of environmental awareness among younger generations, who value sustainability in their energy choices. Moreover, rapid urbanization and the expansion of the middle class are creating higher demands for dependable energy sources for cooking and heating. Natural gas is emerging as a favored option due to its lower emissions compared to traditional fossil fuels, positioning it as a transitional fuel with promising implications for industry stakeholders, including energy suppliers and policymakers.

Local special circumstances: In India, the Natural Gas market is evolving rapidly, influenced by the country's diverse geography and regulatory landscape. The expansive pipeline infrastructure in urban areas facilitates the distribution of natural gas, while ongoing government initiatives, such as the Pradhan Mantri Ujjwala Yojana, aim to provide cleaner cooking fuel to rural households. Additionally, cultural shifts towards sustainability and environmental consciousness are prompting consumers to prefer natural gas over traditional fuels. These unique local factors significantly shape market dynamics, enhancing demand and encouraging investment in cleaner energy solutions.

Underlying macroeconomic factors: The Natural Gas market in India is significantly influenced by macroeconomic factors including global energy prices, national economic growth, and government policy frameworks. Fluctuations in international natural gas prices can impact domestic supply costs, affecting overall market pricing and accessibility. India's robust GDP growth encourages investment in energy infrastructure, enhancing demand for natural gas as a transitional fuel. Furthermore, supportive fiscal policies, such as subsidies for cleaner energy sources, facilitate the adoption of natural gas among industries and households. This interplay of global trends and national economic health underscores the strategic importance of natural gas in India's energy transition.

Data coverage:

The data encompasses B2B enterprises. Figures are based on the value of electricity production in the energy market.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as annual reports of the market-leading companies and industry associations, third-party studies and reports, national statistical offices, international institutions, and the experience of our analysts.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting electricity generation due to the non-linear growth of this market, especially because of the direct impact of climate change on the market.

Additional notes:

The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year.