Compressed Natural Gas Tank Market size is poised to cross USD 23 Billion by the end of 2035, growing at a rate of 9% during the forecast period, i.e., 2023 – 2035. In the year 2022, the industry size of the Compressed Natural Gas (CNG) Tank was USD 10 Billion. The reason behind the growth is impelled by the rising demand for clean fuel on a global level. Cleaner energy sources are becoming more popular globally since more renewable energy capacities are being installed.
Moreover, owing to its reduced carbon content, CNG burns cleaner than petroleum-based goods and could be used as an alternative energy source to help us get closer to a sustainable renewable energy system.
The strict government guidelines for pollution are believed to fuel market growth. The government is encouraging people to adopt green fuels owing to the growing pollution and educating them about the detouring environment, which would further boost the market growth. For instance, 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 over the following five years.
Growth Drivers
Challenges
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~9% |
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Base Year Market Size (2022) |
~ USD 10 Billion |
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Forecast Year Market Size (2035) |
~ USD 23 Billion |
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Regional Scope |
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Tank Type (Type 1, Type 2, Type 3, Type 4)
The type 1 segment in the CNG tank market is estimated to gain a robust revenue share of 38% in the coming years owing to increasing demand for these tanks from developing countries such as India, Brazil, Iran, and China. 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. Along with this, type 1 tanks are cheaper than their other counterparts, which is another factor evaluated to drive the growth of this market segment shortly.
Vehicle (Light, Medium, Heavy-Duty Vehicle)
CNG tank market from the light segment is set to garner a notable share shortly driven by a growing number of people expected to purchase cars, backed by their growing disposable income. 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. Since CNG is lighter than petrol, it burns cleaner and increases a vehicle's ability to navigate through dense urban traffic, and reduces transport and labor costs.
Our in-depth analysis of the global CNG tank market includes the following segments:
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Material Type |
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Vehicle |
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Tank Type |
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APAC Market Forecast
Compressed Natural Gas Tank market in Asia Pacific, is predicted to account for the largest share of 32% by the end of 2035 impelled by the high usage of CNG vehicles in countries such as India, China, and Pakistan, along with the growing sale of light-duty & commercial vehicles in this region. Moreover, the emission of carbon is growing in this region, which has made governments launch strict regulations in various countries.
Additionally, they are creating awareness among people to boost the adoption of CNG vehicles. Further, the preference for commercial vehicles such as buses is also growing in this region, which would also boost the CNG tank market growth in this region.
When CNG fuel is used in place of conventional fuel in public transportation and intermediate public 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 health issues connected to the respiratory and cardiovascular systems in particular.
North American Market Statistics
The CNG tank market in North America is estimated to be the second largest, during the forecast timeframe led by the presence of several big market players. Owing to its size and level of development, the U.S. natural gas industry is very competitive and has a wide range of producers. This may increase the availability of funds to devote to R&D, which could result in improvements in the region's CNG tank design technology.
Author Credits: Payel Roy, Dhruv Bhatia
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