The compressed natural gas (CNG) tank market is estimated to grow at a CAGR of ~6% over the forecast period, i.e., 2022 – 2030. The growth of the market can be attributed to increasing prices of diesel and gasoline fuels, growing usage of CNG across the world, and rising demand for clean fuel on a global level. According to the U.S. Energy Information Administration, the prices of gasoline have increased by 0.876 million dollars per gallon from November 2020 to May 2021. Currently, the value is calculated to be 3.076 dollars per gallon. In addition, low cost of natural gas is expected to fuel the demand for CNG tanks in the upcoming years. Furthermore, strict government policies regarding the adoption of environment-friendly fuels in the transportation sector is also projected to offer lucrative opportunities for the market growth in the near future.
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The market is segmented by tank type into type 1, type 2, type 3, and type 4, out of which, the type 1 segment is anticipated to hold the largest share in the compressed natural gas (CNG) tank market on account of the increasing demand for these tanks from developing countries such as India, Brazil, Iran and China. In 2019, more than 307 million cubic meters of CNG was consumed in China. Approximately 6.4 exajoules of the fuel was produced in the country that year. Along with this, type 1 tanks are cheaper than their other counterparts, which is another factor evaluated to drive growth of this market segment in the near future. Additionally, on the basis of material type, the segment for metal is assessed to occupy a significant market share during the forecast period owing to its excellent properties such as high stiffness, superior durability and fatigue resistance.
Major Macro-Economic Indicators Impacting the Market Growth
In 2018, the world’s total energy supply was 14282 Mtoe, wherein the highest share in terms of source was captured by oil, accounting for 31.6%, followed by coal (26.9%), natural gas (22.8%), biofuels and waste (9.3%), nuclear (4.9%), hydro (2.5%), and other (2.0%). Where there was an increase in energy demand in 2018, the year 2019 witnessed slow growth as the energy efficiency improved owing to decline in the demand for cooling and heating. However, in 2020, the electricity demand decreased by 2.5% in the first quarter of 2020 due to the outbreak of Coronavirus resulting in government-imposed shutdowns in order to limit the spread of the virus, which was further followed by shutdown of numerous business operations impacting their growth. This also resulted in decline of 5.8% in the worldwide CO2 emissions which was recorded to be five times larger than the one recorded during the global financial crisis in 2009. However, in 2021, the demand for oil, gas and coal is estimated to witness growth, which is further projected to create opportunities for market growth. Moreover, rising environment degradation and awareness related to climate change is motivating many key players to employ sustainable energy strategies and invest significantly in environment-friendly power generation technologies with an aim to promote sustainable development among various nations around the world. Such factors are anticipated to promote the growth of the market in upcoming years.
On the basis of geographical analysis, the compressed natural gas (CNG) tank market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and the Middle East & Africa. The market in North America region is estimated to witness noteworthy growth over the forecast period on the back of high consciousness of the government for the adoption of cleaner fuels in the region. Apart from these, presence of several big market players is also projected to boost market growth in the region. Moreover, the market in Asia Pacific is anticipated to grab the largest market share over the forecast period, which can be credited to the growing number of CNG tank manufacturing units and high usage of CNG vehicles in countries such as India, China, and Pakistan. In 2019, approximately 20.5 million natural gas vehicles were in use in the Asia Pacific region. In addition, growing environmental awareness and rising dependency on imported fuel is also expected to expand market in the APAC.
The compressed natural gas (CNG) tank market is further classified on the basis of region as follows:
Our in-depth analysis of the compressed natural gas (CNG) tank market includes the following segments:
FREQUENTLY ASKED QUESTIONS
The major growth drivers for the market are rising prices of diesel and gasoline and stringent government regulations regarding use of eco-friendly fuels.
The market is anticipated to attain a CAGR of ~6% over the forecast period, i.e., 2022 – 2030.
Instability in the prices of compressed natural gas is estimated to hamper the market growth.
North America will offer more opportunities to the market owing to the high emphasis of the government to adopt of cleaner fuels in the region.
The major players in the market are Luxfer Holdings PLC, Worthington Industries, Inc., Quantum Fuel Systems LLC, Hexagon Composites ASA, and Xinyi Beijing Tianhai Industry Co. Ltd., and others.
The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
The market is segmented by material, vehicle type, tank type, and others.
The type 1 segment is anticipated to hold largest market size and is estimated to grow at a notable CAGR over the forecast period and display significant growth opportunities.
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