Global Compressed Natural Gas (CNG) Market – Industry Trends and Forecast to 2030

Global Compressed Natural Gas (CNG) Market, By Source (Associated Gas, Non-Associated Gas, Unconventional Sources), End-User (Light Duty Vehicles, Medium Duty/Heavy Duty Buses, Medium Duty/Heavy Duty Trucks) – Industry Trends and Forecast to 2030.

Compressed Natural Gas (CNG) Market Analysis and Size

In place of gasoline, diesel fuel, and propane/LPG, one can utilize compressed natural gas (CNG). CNG is frequently utilized in heavy-duty transport trucks because of its accessibility and environmental friendliness. Internal combustion engines originally designed for gasoline and diesel are now utilized with CNG, and it is anticipated that this will fuel the industry's expansion.

Data Bridge Market Research analyses that the global compressed natural gas (CNG) market which was USD 147.16 billion in 2022, would rocket up to USD 377.6 billion by 2030, and is expected to undergo a CAGR of 12.50% during the forecast period. “Non-associated gas” dominates the source segment of the global compressed natural gas (CNG) market due to the increasing number of gas exploration.

In addition to the insights on market scenarios such as market value, growth rate, segmentation, geographical coverage, and major players, the market reports curated by the Data Bridge Market Research also include in-depth expert analysis, geographically represented company-wise production and capacity, network layouts of distributors and partners, detailed and updated price trend analysis and deficit analysis of supply chain and demand.

Compressed Natural Gas (CNG) Market Scope and Segmentation

Market Definition

Methane and trace amounts of light hydrocarbons, nitrogen, and carbon dioxide are found in compressed natural gas (CNG), which is produced during the geological conversion of peat to anthracite coal. Due to the depletion of oil and coal supplies and the limited emission capabilities of gas fuel, it is crucial for the industrial sector's ability to develop sustainably. For specialized end-uses in a variety of applications that demand more performance or stability, specific CNG is created.

Global Compressed Natural Gas (CNG) Market Dynamics

Drivers

• Use of Global Compressed Natural Gas as a Fuel for Transportation

The proliferation of CNG-powered natural gas cars is a significant factor in the expansion of the worldwide global CNG market. Natural gas is compressed to less than 1% of the volume it typically occupies under normal climatic circumstances to create compressed natural gas (CNG).  Around the world, CNG is often utilized as a clean transportation fuel in both light- and heavy-duty vehicles. Due to CNG's reduced emissions as compared to gasoline and diesel, its use is expanding.

During the projected period, market participants active in the global CNG market are more likely to benefit from the acceptance of CNG as a car fuel. The quantity of CNG-powered natural gas cars on the road directly affects the world's CNG consumption.

• An Increase in the Popularity of Sources of Non-Associated Gas

Non-associated gas, associated gas, and unconventional gas are the three main sources of compressed natural gas. During the projection period, non-associated gas is anticipated to account for the greatest share of the worldwide market. It is believed that the source of CG and natural gas is the same. The global decline in crude oil output and the depletion of oil wells are some of the causes causing a rise in the use of non-associated gas. Unconventional and non-associated gas are anticipated to dominate the production of compressed natural gas in the next years. The production of compressed natural gas from non-associated gas is enormous in the Middle East and Russia, two important nations.

• Global Increase in the Number of Light-Duty Vehicles

Increased disposable income, quick urbanization, and the expansion and development of the auto industry are all factors in the increased demand for light duty cars across the world. This is a key aspect influencing the demand for compressed natural gas as a light-duty vehicle transportation fuel. Due to the increased usage of CNG in emerging nations worldwide, the light duty vehicle segment of the global compressed natural gas market is the most lucrative and offers the most investment opportunity. This is mostly being done to combat the air pollution brought on by fossil fuels.

Opportunity

• Rising Energy Demand and Improvements to Storage Cylinders and Tanks

Compressed natural gas (CNG), derived from cleansed biomethane (renewable natural gas), and is becoming more and more popular with trash firms. CNG is stored on board in cylinders. Fleets faced difficulties storing this high-pressure gasoline on trucks for a while; nevertheless, the industry has already overcome substantial obstacles, and new advancements for improved efficiency are now being developed. Particularly, three technologies are getting a lot of attention. The major areas of concentration for current research and development include technologies including casting, continuous carbon fiber wrapping, and adsorbed natural gas.

Reforming container shapes to alleviate pressure difficulties and enable the tank to fit more comfortably is the casting solution. Continuous carbon fiber uses a lengthy extrusion to wrap carbon around the storage system. With this set up, portions of the gas storage system may be snagged around various car parts for improved fit and pressure maintenance. Ted Barnes, research and development manager for the Gas Technology Institute (GTI), which is studying this and other technologies, explains that with adsorption, gas molecules soak into the surface of a porous material in the vessel, getting closer together and ultimately lowering pressure, which is intended to have advantages.

Restraint/Challenge

• Automobiles with a Small Number of CNG Fuelling Stations must pay Substantial Initial Investment, Installation, and Maintenance Expenses for CNG Storage Tanks

The placement and cost of CNG storage tanks in cars, together with the scarcity of filling stations, are projected to continue to be major obstacles for market players. Traditional gasoline vehicles need more space in their trunks to store CNG tanks, frequently using the extra room. The initial cost of installing storage tanks is more than the typical gasoline engines that are already present in cars.

This global compressed natural gas (CNG) market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the global compressed natural gas (CNG) market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.

Recent Developments

• In April 2023, the availability of lower carbon fuels for use in heavy-duty vehicles has increased in California thanks to the opening of a new retail CNG station by Chevron Corporation
• In August 2022, ExxonMobil Lubricants Pvt Ltd has partnered with Think Gas Distribution Pvt Ltd to sell its assortment of CNG offers and make its products available in several Indian states

Global Compressed Natural Gas (CNG) Market Scope

The global compressed natural gas (CNG) market is segmented on the basis of source and end-user. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Source

• Associated Gas
• Non-Associated Gas
• Unconventional Sources

End-user

• Light Duty Vehicles
• Medium Duty/Heavy Duty Buses
• Medium Duty/Heavy Duty Trucks

Compressed Natural Gas (CNG) Market Regional Analysis/Insights

The global compressed natural gas (CNG) market is analysed and market size insights and trends are provided by country, source and end-user as referenced above.

The countries covered in the global compressed natural gas (CNG) market report are U.S., Canada, Mexico, Brazil, Argentina, Rest of South America, Germany, France, Italy, U.K., Belgium, Spain, Russia, Turkey, Netherlands, Switzerland, Rest of Europe, Japan, China, India, South Korea, Australia, Singapore, Malaysia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific, U.A.E., Saudi Arabia, Egypt, South Africa, Israel, Rest of Middle East and Africa.

Asia-Pacific dominates the market in terms of market share and market revenue and will continue to flourish its dominance during the forecast period from 2023 to 2030. This is due the increasing middle class disposable income along with rising consumption of the product and majority of the public transportation fleet is being converted to CNG fuel systems supported by government regulations in the region.

The country section of the report also provides individual market impacting factors and changes in regulation in the market domestically that impacts the current and future trends of the market. Data. points such as down-stream and up-stream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.   

Competitive Landscape and Global Compressed Natural Gas (CNG) Market Share Analysis

The global compressed natural gas (CNG) market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the company’s focus related to global compressed natural gas (CNG) market.

Some of the major players operating in the global compressed natural gas (CNG) market are

• National Iranian Gas Company (Iran)
• Indraprastha Gas Limited – IGL (India)
• Shell (U.K.)
• J-W Power Company (U.S.)
• ENGIE SA(France)
• Exxon Mobil Corporation. (U.S.)
• BP p.l.c. (U.K.)
• TotalEnergies (France)
• Chevron Corporation (U.S.)
• Eni S.p.A. (Italy)
• ANGI Energy Systems, Inc. (U.S.)
• Greka (China)
• TGT Fuel Technologies India Pvt. Ltd (India)