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City Gas Distribution Market Size, Share and Forecast 2026-2036

The global city gas distribution market is worth USD 568 bn in 2026 and is forecast to reach USD 693 bn by 2036, growing at a 2.0% CAGR. United States is the largest country market and Industrial and power is the largest by customer segment.

USD 568 bnMarket size 2026
USD 693 bnForecast 2036
2.0%CAGR 2026-2036
United StatesLargest country

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5 segmentation views25 countries2026 to 2036 yearly forecast

Market overview

The global city gas distribution market is worth USD 568 bn in 2026 and is forecast to reach USD 693 bn by 2036, growing at a 2.0% CAGR. United States is the largest country market and Industrial and power is the largest by customer segment.

ScopeGas distribution through city pipeline networks: natural gas sold to homes, shops, small industry and vehicles by utilities, including network charges.
IndustryOil and Gas
Value 2025USD 560 bn
Value 2026USD 568 bn
Value 2036USD 693 bn
CAGR 2026-20362.0%
Volume 20261,460 billion cubic metres
Volume 20361,644 billion cubic metres
Average price 2026USD 0.39 per cubic metre
Report priceStarts from USD 1,999
PublishedNovember 2026

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City Gas Distribution market size and forecast, 2026-2036

Exhibit 1The global city gas distribution market is forecast to grow from USD 568 bn in 2026 to USD 693 bn by 2036, a rise of 22%Global market value in USD: 2025 base year, 2026 estimate and forecast to 2036. CAGR 2026 to 2036: 2.0%
City Gas Distribution market value, 2025 to 2036Market value by year. 2025: USD 560 bn; 2026: USD 568 bn; 2027: USD 580 bn; 2028: USD 591 bn; 2029: USD 603 bn; 2030: USD 615 bn; 2031: USD 628 bn; 2032: USD 640 bn; 2033: USD 653 bn; 2034: USD 666 bn; 2035: USD 679 bn; 2036: USD 693 bn. Compound annual growth rate 2026 to 2036: 2.0%.2025568 bn2026628 bn2031693 bn20362.0% CAGR

Source: Compare Market Research analysis.
© 2026 Compare Market Research. All rights reserved.

YearMarket value
2026USD 568 bn
2027USD 580 bn
2028USD 591 bn
2029USD 603 bn
2030USD 615 bn
2031USD 628 bn
2032USD 640 bn
2033USD 653 bn
2034USD 666 bn
2035USD 679 bn
2036USD 693 bn

City Gas Distribution market segmentation

By customer

Exhibit 2Industrial and power is the largest segment by customer, with 38.0% of 2026 revenueEstimated share of 2026 global revenue, by customer
City Gas Distribution market share by customer, 2026Share of 2026 revenue by customer. Industrial and power: 38.0%; Residential: 34.0%; Commercial: 20.0%; Transport: 8.0%.Industrial and power38.0%Residential34.0%Commercial20.0%Transport8.0%

Source: Compare Market Research analysis.
© 2026 Compare Market Research. All rights reserved.

SegmentShare 2026Share 2036Value 2026CAGR 2026-36
Residential34.0%31.0%USD 193 bn1.1%
Commercial20.0%19.1%USD 114 bn1.6%
Industrial and power38.0%40.1%USD 216 bn2.5%
Transport8.0%9.8%USD 45.5 bn4.1%

By ownership

Exhibit 3Investor-owned utilities adds the most revenue by ownership, growing from USD 273 bn in 2026 to USD 328 bn by 2036Estimated revenue in USD by ownership, 2026 and 2036 forecast
City Gas Distribution market by ownership, 2026 and 2036Revenue by ownership in 2026 and 2036. Investor-owned utilities: USD 273 bn in 2026, USD 328 bn in 2036, change +20%; State and municipal utilities: USD 216 bn in 2026, USD 260 bn in 2036, change +20%; Private distribution companies: USD 79.6 bn in 2026, USD 105 bn in 2036, change +32%.20262036 forecastChangeInvestor-owned utilities+20%273 bn328 bnState and municipal utilities+20%216 bn260 bnPrivate distribution companies+32%79.6 bn105 bn

Source: Compare Market Research analysis.
© 2026 Compare Market Research. All rights reserved.

SegmentShare 2026Share 2036Value 2026CAGR 2026-36
Investor-owned utilities48.0%47.3%USD 273 bn1.9%
State and municipal utilities38.0%37.5%USD 216 bn1.9%
Private distribution companies14.0%15.2%USD 79.6 bn2.9%

By pipe material

SegmentShare 2026Share 2036Value 2026CAGR 2026-36
Steel38.0%35.0%USD 216 bn1.2%
Polyethylene52.0%56.0%USD 296 bn2.8%
Other materials10.0%9.0%USD 56.8 bn0.9%

By pressure tier

SegmentShare 2026Share 2036Value 2026CAGR 2026-36
Low pressure32.0%30.0%USD 182 bn1.3%
Medium pressure46.0%46.0%USD 261 bn2.0%
High pressure22.0%24.0%USD 125 bn2.9%

By revenue source

SegmentShare 2026Share 2036Value 2026CAGR 2026-36
Gas commodity sales66.0%62.0%USD 375 bn1.4%
Network charges24.0%26.0%USD 136 bn2.8%
Connection and metering services10.0%12.0%USD 56.8 bn3.9%

Top 25 countries for city gas distribution by revenue

Countries are ranked by revenue earned from sales in the country, not by where the product is made. The ten largest hold 72.6% of 2026 revenue and the 25 countries below together hold 92.3%.

Exhibit 4United States is the largest country market at USD 148 bn in 2026, and the three largest countries hold 45.0% of global revenueEstimated 2026 revenue in USD and share of the global market, ten largest countries
City Gas Distribution market, ten largest countries in 2026Ten largest countries by 2026 revenue. United States: USD 148 bn, 26.0%; China: USD 79.6 bn, 14.0%; Russia: USD 28.4 bn, 5.0%; Germany: USD 28.4 bn, 5.0%; Japan: USD 25.6 bn, 4.5%; United Kingdom: USD 25.6 bn, 4.5%; Italy: USD 21.6 bn, 3.8%; France: USD 19.9 bn, 3.5%; Canada: USD 18.8 bn, 3.3%; India: USD 17.1 bn, 3.0%.United States148 bn 26.0%China79.6 bn 14.0%Russia28.4 bn 5.0%Germany28.4 bn 5.0%Japan25.6 bn 4.5%United Kingdom25.6 bn 4.5%Italy21.6 bn 3.8%France19.9 bn 3.5%Canada18.8 bn 3.3%India17.1 bn 3.0%

Source: Compare Market Research analysis.
© 2026 Compare Market Research. All rights reserved.

#CountryValue 2026Share 2026Value 2036CAGR 2026-36
1United StatesUSD 148 bn26.0%USD 171 bn1.5%
2ChinaUSD 79.6 bn14.0%USD 112 bn3.5%
3RussiaUSD 28.4 bn5.0%USD 30.5 bn0.7%
4GermanyUSD 28.4 bn5.0%USD 29.8 bn0.5%
5JapanUSD 25.6 bn4.5%USD 27.0 bn0.6%
6United KingdomUSD 25.6 bn4.5%USD 27.0 bn0.6%
7ItalyUSD 21.6 bn3.8%USD 22.9 bn0.6%
8FranceUSD 19.9 bn3.5%USD 20.8 bn0.4%
9CanadaUSD 18.8 bn3.3%USD 20.8 bn1.0%
10IndiaUSD 17.1 bn3.0%USD 40.2 bn8.9%
11IranUSD 16.7 bn2.9%USD 19.1 bn1.3%
12NetherlandsUSD 12.4 bn2.2%USD 14.5 bn1.5%
13South KoreaUSD 10.2 bn1.8%USD 11.8 bn1.5%
14SpainUSD 8.8 bn1.6%USD 10.3 bn1.5%
15TurkeyUSD 7.9 bn1.4%USD 10.4 bn2.8%
16ArgentinaUSD 7.2 bn1.3%USD 9.5 bn2.8%
17PolandUSD 6.7 bn1.2%USD 8.8 bn2.8%
18UkraineUSD 6.3 bn1.1%USD 7.1 bn1.3%
19MexicoUSD 5.9 bn1.0%USD 7.8 bn2.9%
20BelgiumUSD 5.6 bn1.0%USD 6.5 bn1.6%
21PakistanUSD 5.3 bn0.9%USD 7.0 bn2.9%
22HungaryUSD 5.1 bn0.9%USD 6.7 bn2.8%
23RomaniaUSD 4.9 bn0.9%USD 6.4 bn2.8%
24AustraliaUSD 4.7 bn0.8%USD 5.5 bn1.5%
25Czech RepublicUSD 4.5 bn0.8%USD 5.3 bn1.5%
Rest of worldUSD 43.6 bn7.7%USD 53.9 bn2.1%
Exhibit 5China and United States account for 45% of the USD 124 bn the market is forecast to add by 2036Forecast revenue added between 2026 and 2036 by country, in USD
City Gas Distribution market, where the growth to 2036 comes fromRevenue added between 2026 and 2036. Market value 2026: USD 568 bn. China: +USD 32.7 bn; United States: +USD 23.4 bn; India: +USD 23.1 bn; Turkey: +USD 2.5 bn; Iran: +USD 2.3 bn; 20 other countries: +USD 30.2 bn; Rest of world: +USD 10.3 bn. Market value 2036: USD 693 bn.China+32.7 bnUnited States+23.4 bnIndia+23.1 bnTurkey+2.5 bnIran+2.3 bn20 other countries+30.2 bnRest of world+10.3 bn

Source: Compare Market Research analysis.
© 2026 Compare Market Research. All rights reserved.

Competitive landscape

Group 1: Global leaders

  • Engie
  • E.ON
  • Naturgy
  • Tokyo Gas
  • Centrica
  • National Grid
  • Sempra

Group 2: Regional and specialist players

  • Atmos Energy
  • ENN Energy
  • China Resources Gas
  • Osaka Gas
  • Italgas
  • NiSource
  • Spire
  • ONE Gas
  • Cadent
  • Hong Kong and China Gas

Group 3: Emerging and niche players

  • Indraprastha Gas
  • Mahanagar Gas
  • Adani Total Gas
  • Gujarat Gas
  • Sabarmati Gas
  • Torrent Gas
  • Wales & West Utilities
  • Northern Gas Networks

Research methodology

Every figure on this page comes from the research framework that we apply to all of the markets we cover. The 2025 base for the city gas distribution market is built from the volume sold and the price that buyers pay, and is cross-checked against the size of the wider industry the market belongs to. Where a market can be sized in more than one way, the routes are compared before a figure is set.

The forecast runs year by year from the 2025 base to 2036. Growth in each year reflects demand from the industries that buy the product, adoption of new technology, pricing, regulation and replacement cycles. Volume and price are modelled together, so revenue in each year equals volume multiplied by average price. The 2026 to 2036 compound annual growth rate of 2.0% is calculated from the resulting values.

The market is divided by customer, by ownership, by pipe material, by pressure tier, by revenue source. The 25 largest countries are ranked by revenue earned from sales to buyers in each country, not by where the product is made. Segment values and country values add up to the market total in every year, and every report is checked for consistency before it is published.

Companies are placed in three groups: global leaders, regional and specialist players, and emerging and niche players. The groups describe how companies compete in the market. They are not a ranking and they are not market shares.

Our analysts also carry out primary research. Customized reports add interviews with key opinion leaders, such as senior executives, technical specialists and buyers, to test the assumptions behind the numbers for the question being asked.

Read the full research methodology

Frequently asked questions

How big is the city gas distribution market?

The global city gas distribution market is estimated at USD 560 bn in 2025 and USD 568 bn in 2026.

How fast will the city gas distribution market grow?

It is forecast to reach USD 693 bn by 2036, a compound annual growth rate of 2.0% from 2026, an increase of USD 124 bn.

Which country is the largest market for city gas distribution?

United States is the largest market by revenue at USD 148 bn in 2026, 26.0% of the global total. The three largest countries together hold 45.0%.

Which country is growing fastest?

Among the ten largest markets, India is growing fastest at 8.9% a year from 2026 to 2036.

Which city gas distribution segment is largest?

In the by customer split, Industrial and power is the largest segment with 38.0% of 2026 revenue.

Who are the leading city gas distribution companies?

Global leaders include Engie, E.ON, Naturgy, Tokyo Gas.

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