Compressed Natural Gas (CNG) Tank Market Size & Share, by Material Type (Glass Fiber, Carbon Fiber, Metal); Vehicle (Light, Medium, Heavy-Duty Vehicle); Tank Type (Type 1, Type 2, Type 3, Type 4) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2023-2035

  • Report ID: 3171
  • Published Date: Jul 27, 2023
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2023 - 2035

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.


CNG Tank Market
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CNG Tank Market: Key Insights

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

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)
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CNG Tank Market: Growth Drivers and Challenges

Market-Growth-Drivers

Growth Drivers

  • Volatile Oil Prices – It is anticipated that oil prices would reach about USD 90/bbl in 2023 and 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 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 traveling more in their vehicles.
    However, as fuel costs soar, an increasing number of individuals are installing CNG kits and converting their cars to run on less expensive compressed natural gas.
  • Growing number of natural gas vehicles (NGVs) – the increasing number of NGVs and the lower cost of natural gas over gasoline and diesel are the driving factors of market expansion.  The expansion of the development of type V tanks is two emerging trend that have a direct impact on the dynamics of the CNG tank market.

Challenges

  • Scarcity of CNG Stations - The absence of many CNG stations is the biggest drawback of CNG cars, which has discouraged many car owners from making this decision. There are only a few CNG pumps that are available in some states. It might be challenging for CNG customers to reach or find such stations, even in cities where CNG fuel is available, owing to the dearth of CNG-friendly stations. It may be exceedingly difficult to locate CNG stations, especially for frequent travelers. Hence, this factor is estimated to hinder the growth of the market.
  • High Initial Cost of Manufacturing These Tanks
  • Boot Space in Vehicles Gets Reduced


Compressed Natural Gas (CNG) Tank Segmentation

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:

     Material Type

     Vehicle

  • Light
  • Medium
  • Heavy Duty Vehicle

     Tank Type

  • Type 1
  • Type 2
  • Type 3
  • Type 4

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Compressed Natural Gas (CNG) Tank Industry- Regional Synopsis

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.

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CNG Tank Market Size
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Companies Dominating the CNG Tank Market

top-features-companies
    • Luxfer Holdings PLC
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Worthington Industries, Inc.
    • Quantum Fuel Systems LLC
    • Hexagon Composites ASA
    • Xinyi Beijing Tianhai Industry Co. Ltd.
    • Praxair Technologies Inc.
    • Lianyungang Zhongfu Lianzhong Composites Group Co. Ltd.
    • Avanco Group
    • Everest Kanto Cylinders Ltd.
    • Faber Industrie SpA

In-the-news

In The News

  • 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 to take advantage of the expanding potential for compressed natural gas (CNG) and hydrogen.
  • Quantum Fuel Systems LLC, a fully integrated alternative energy company, in partnership with Permian Global, Inc. d/b/a CORE Automatic Fueling Solutions (CORE) delivered six of the industry-leading virtual pipeline trailers for natural gas.

 


Author Credits:  Payel Roy, Dhruv Bhatia


  • Report ID: 3171
  • Published Date: Jul 27, 2023
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

Rising demand for clean fuel on a global level and the strict government guidelines for pollution are the major factors driving the growth of the market.

The market size of the Compressed Natural Gas (CNG) Tank is anticipated to attain a CAGR of 9% over the forecast period, i.e., 2023 – 2035.

The major players in the market are Luxfer Holdings PLC, Worthington Industries, Inc., Quantum Fuel Systems LLC, Hexagon Composites ASA, Xinyi Beijing Tianhai Industry Co. Ltd., and others.

The type 1 segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.

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.
CNG Tank Market Report Scope
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