Market Size of South America City Gas Distribution Industry
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | > 2.00 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
South America City Gas Distribution Market Analysis
The South American city gas distribution market is projected to register a CAGR of over 2% during the forecast period. The market was negatively impacted by the COVID-19 pandemic in 2020. Presently, the market has reached pre-pandemic levels.
Over the medium term, the growing demand for natural gas as an alternative fuel and the ability of city gas to emit low carbon particles compared to coal and oil are factors expected to drive the growth of the market studied. On the other hand, the increasing adoption of renewable fuels in the transportation sector is expected to restrain the growth of the market studied during the forecast period.
Nevertheless, projects using CNG to power will likely provide a vast market for the city gas distribution players. Additionally, the rapid urbanization in the region is expected to create considerable opportunities for the South American city gas distribution market in the coming years.
Brazil dominates the market and is also predicted to witness the highest CAGR during the forecast period. The growth is mainly driven by the increased demand for natural gas from the various sectors in the country.
South America City Gas Distribution Industry Segmentation
City gas distribution (CGD) refers to the interconnected network of pipelines that provide natural gas as piped natural gas (PNG) for household, industrial, and commercial purposes and compressed natural gas (CNG) for auto-fuel uses in specific vehicles. Through the CGD networks and other distribution channels, the city gas distribution system distributes gas to various segments of the city. The distribution of gas is a layout from the initial point of supply to the final point of application source via high pressure. It has pressure regulators to ensure that the initial pressure in the pipes and other components of the gas distribution system is at an acceptable level.
The South American city gas distribution market is segmented by type, end-user, and geography. By type, the market is segmented into compressed natural gas (CNG) and pipeline natural gas (PNG). By end-user, the market is segmented into industrial, power sector, residential and commercial, and transportation. The report also covers the market size and forecasts for the city gas distribution market across major countries in the region. For each segment, the market sizing and forecasts are provided in terms of value in USD billion.
| Type | |
| Compressed Natural Gas (CNG) | |
| Pipeline Natural Gas (PNG) |
| End-user | |
| Industrial | |
| Power Sector | |
| Residential and Commercial | |
| Transportation |
| Geography | |
| Brazil | |
| Argentina | |
| Chile | |
| Rest of South America |
South America City Gas Distribution Market Size Summary
The South American city gas distribution market is experiencing a resurgence, having recovered to pre-pandemic levels after the setbacks caused by COVID-19. The market is poised for growth, driven by the increasing demand for natural gas as a cleaner alternative to coal and oil, and the rapid urbanization in the region. Brazil stands out as a dominant player in this market, with significant growth anticipated due to rising natural gas demand across various sectors. The development of gas-fired power plants, known for their efficiency and lower emissions, is expected to further bolster the market. These plants, particularly combined cycle ones, utilize waste heat to enhance energy production, contributing to the region's energy mix. The ongoing projects and investments in natural gas infrastructure, such as the GNA II plant in Brazil, are set to play a crucial role in shaping the market landscape.
Despite the promising growth prospects, the market faces challenges from the increasing adoption of renewable fuels in the transportation sector. However, the expansion of compressed natural gas (CNG) projects and the growing number of natural gas vehicles in Brazil offer substantial opportunities for city gas distribution companies. The market is partially consolidated, with key players like Petroleo Brasileiro SA and Companhia de G√°s de S√£o Paulo (Comg√°s) leading the charge. Initiatives such as the Sustainable Corridor Project, which incorporates CNG technology to reduce emissions, highlight the industry's shift towards cleaner energy solutions. As the demand for natural gas continues to rise, supported by strategic investments and technological advancements, the South American city gas distribution market is expected to maintain its upward trajectory in the coming years.
South America City Gas Distribution Market Size - Table of Contents
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1. MARKET OVERVIEW
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1.1 Introduction
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1.2 Market Size and Demand Forecast in USD billion, till 2027
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1.3 Recent Trends and Developments
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1.4 Government Policies and Regulations
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1.5 Market Dynamics
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1.5.1 Drivers
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1.5.2 Restraints
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1.6 Supply Chain Analysis
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1.7 Porter's Five Forces Analysis
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1.7.1 Bargaining Power of Suppliers
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1.7.2 Bargaining Power of Consumers
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1.7.3 Threat of New Entrants
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1.7.4 Threat of Substitutes Products and Services
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1.7.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION
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2.1 Type
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2.1.1 Compressed Natural Gas (CNG)
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2.1.2 Pipeline Natural Gas (PNG)
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2.2 End-user
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2.2.1 Industrial
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2.2.2 Power Sector
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2.2.3 Residential and Commercial
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2.2.4 Transportation
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2.3 Geography
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2.3.1 Brazil
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2.3.2 Argentina
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2.3.3 Chile
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2.3.4 Rest of South America
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South America City Gas Distribution Market Size FAQs
What is the current South America City Gas Distribution Market size?
The South America City Gas Distribution Market is projected to register a CAGR of greater than 2% during the forecast period (2024-2029)
Who are the key players in South America City Gas Distribution Market?
Petroleo Brasileiro S.A., Companhia de Gás de São Paulo (Comgás), Ipiranga, Naturgy Energy Group S.A and Tecpetrol are the major companies operating in the South America City Gas Distribution Market.
