Compressed Natural Gas (CNG) Tank Market Segmentation by Material Type (Glass Fiber, Carbon Fiber, and Metal); by Vehicle (Light, Medium, and Heavy-Duty Vehicle); and by Tank Type (Type 1, Type 2, Type 3, and Type 4) – Global Demand Analysis & Opportunity Outlook 2023-2035
Buy Now Report ID: 3171 | Published Date: Mar 09, 2023
The global compressed natural gas (CNG) tank market is estimated to garner a revenue of ~USD 23 Billion by the end of 2035 by growing at a CAGR of ~9% over the forecast period, i.e., 2023 – 2035. Further, the market generated a revenue of ~USD 10 Billion in the year 2022. 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. Moreover, the growing advancement in the field of automobiles is also estimated to boost the market growth over the forecast period.
Additionally, one of the cleanest fuel types for an automobile's engine is CNG. This is so since, in contrast to gasoline or diesel, it leaves a lot less residue. As a result, the engine's pipes and tubes sustain less damage, extending engine life. Also, the fact that CNG is not a liquid kind of fuel makes it one of the most visible distinctions between it and fuels such as gasoline or diesel. Being a gas, it immediately disperses in the rare occurrence of a leak, does not spill, and does not remain close to the car, raising the possibility of a fire danger. CNG would just get farther from the vehicle since it's lighter than air. Hence, the preference for CNG is growing among the population. Furthermore, strict government policies regarding the adoption of environment-friendly fuels in the transportation sector are also projected to offer lucrative opportunities for the market growth in the near future.
-market-scope.jpg )
|
Base Year |
2022 |
|
Forecast Year |
2023-2035 |
|
CAGR |
~9% |
|
Base Year Market Size (2022) |
~ USD 10 Billion |
|
Forecast Year Market Size (2035) |
~ USD 23 Billion |
|
Regional Scope |
|
Growth Drivers
Upsurge in CNG Station - India had approximately 2 million PNG connections and approximately 1025 CNG stations overall as of October 2015. In contrast, there were about 4012 CNG stations and more than 8 million PNG connections in March 2022.
Volatile Oil Prices - It is anticipated that oil prices would reach about USD 90/bbl in 2023 and about USD 79/bbl in 2024, falling from the anticipated price of approximately USD 99/bbl in 2022. Nonetheless, prices would continue to be substantially higher than about the USD 59/bbl , their recent five-year average across the globe. Hence, the demand for CNG is growing. Also, during COVID 19 lockdown people were travelling more in their personal vehicles. However, as fuel costs soar, an increasing number of individuals are installing CNG kits and converting their cars to run on the less expensive compressed natural gas. Moreover, CNG is almost half as expensive as gasoline and diesel. Hence, the primary driver behind the switch from conventional automobiles to CNG-powered vehicles is fuel cost savings.
Rising Carbon Emissions- In 2021, the amount of carbon dioxide released into the atmosphere by industry and fossil fuels grew globally by about 4 percent to a record-breaking approximately 36 billion metric tonnes (GtCO2).
Surge in Sales of CNG-Powered Vehicles - In India, among the Mumbai region, the number of CNG-powered vehicles increased by 9% in 2019–20 compared to the previous year. With this rise, the region had 2 out of every 10 vehicles running on CNG.
Strict Government Guidelines for Pollution- In India, the Council for Air Quality Management (CAQM) published a new strategy in 2022 that details sector-by-sector action plans to reduce air pollution in Delhi-NCR over the following five years. This regulation states that starting on January 1, 2023, only compressed natural gas (CNG) and electric vehicles would be allowed to be registered in the NCR. On January 1, 2023, gasoline pumps in Delhi-NCR would not dispense fuel to vehicles without a current pollution-under-check certificate.
Challenges
The global compressed natural gas (CNG) tank market is segmented and analyzed for demand and supply 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 global 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 were consumed in China. Approximately 6.4 exajoules of the fuel were 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. Moreover, growing bulky transportation is also estimated to boost the growth of the segment over the forecast period. Type 1 tanks are most commonly used in bulk transportation as they are known to be the safest owing to their thickness. Moreover, since Type 1 can withstand a range of pressures, it is perfect for long-term storage at CNG filling stations and in industries where CNG is required on-site, such as, for heating or to operate machinery.
The global compressed natural gas (CNG) tank market is also segmented and analyzed for demand and supply by vehicle into light, medium, and heavy duty vehicle. Out of these segments, the light segment is anticipated to garner the highest revenue by the end of 2035. The growth of the segment can be attributed to the growing number of people expected to purchase car, backed by their growing disposable income. Additionally, large number of key players are focusing on manufacturing CNG vehicles, which is also estimated to boost the growth of the market. Moreover, people’s preference for cost cutting solutions for fuel is growing, along with their growing awareness regarding the adverse effects of fuels on the environment. Hence, the demand for CNG is cars is estimated to boost. Further, the government is encouraging people to adopt green fuel owing to the growing pollution and educating them about the detouring environment, which would further boost the market growth.
Our in-depth analysis of the global compressed natural gas (CNG) tank market includes the following segments:
|
By Material Type |
|
|
By Vehicle |
|
|
By Tank Type |
|
The Asia Pacific compressed natural gas (CNG) market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2035, backed by a growing number of CNG tank manufacturing units and high usage of CNG vehicles in countries such as India, China, and Pakistan, along with growing sale of light duty vehicles in this region. In 2019, approximately 20.5 million natural gas vehicles were in use in the Asia Pacific region. Moreover, the emission of carbon is growing in this region, which has made governments to launch strict regulations in various countries in this region. Additionally, they are creating awareness among people in order to boost the adoption of CNG vehicles. In addition, rising dependency on imported fuel is also expected to expand market in the APAC. Further, the preference for commercial vehicle such as buses is also growing in this region, which would also boost the market growth in this region. When CNG fuel is used in place of conventional fuel in public transportation and intermediate public transportation vehicles, CO and PM emissions are reduced while HC and NO x emissions are increased. Reducing PM emissions is expected to have a significant positive influence on public health in general and on health issues connected to the respiratory and cardiovascular systems in particular. All these factors are anticipated to surge the growth of the market in the region.
The North America compressed natural gas (CNG) tank market, amongst the market in all the other regions, is projected to grow with the highest CAGR during the forecast period. The growth of the market in this region can be attributed to the high consciousness of the government regarding the adoption of cleaner fuels in the region. Additionally, the growing adoption of CNG vehicles is expected to influence the growth of the market. Apart from these, the presence of several big market players is also projected to boost market growth in the region. Also, a large number of CNG stations are estimated to be developed in this region, hence, the preference for CNG is estimated to increase.
-Market-regional.jpg )
Luxfer Holdings announced that it has acquired the “Structural Composites Industries” business of Worthington Industries in a deal worth USD 20 million. The aim of this acquisition enhances Luxfer's composite cylinder options and is in line with recent investments made to develop alternative fuel capabilities in order to take advantage of the expanding potential for compressed natural gas (CNG) and hydrogen.
Six of the industry-leading virtual pipeline trailers for natural gas have been delivered by Quantum Fuel Systems LLC (Quantum), a fully integrated alternative energy company, in partnership with Permian Global, Inc. d/b/a CORE Automatic Fueling Solutions (CORE).
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Author Credits: Payel Roy, Dhruv Bhatia
Ans: The major factors driving the growth of the market are volatile oil prices, rising carbon emission, surge in sale of CNG-powered vehicles, and others.
Ans: The market is anticipated to attain a CAGR of ~9% over the forecast period, i.e., 2023 – 2035.
Ans: Scarcity of CNG station, high initial cost, and boot space reduced are estimated to be the growth hindering factors for the market expansion.
Ans: The market in the Asia Pacific region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.
Ans: 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.
Ans: 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.
Ans: The market is segmented by material type, vehicle, tank type and by region
Ans: The type 1 segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.
Submit Your Request For Proposal (RFP)
