Compressed Natural Gas (CNG) Market Forecast 2023 - 2030
Report ID : CBI_1042 |
| Published Date:
| Format :
| Base Year: | 2022 |
|---|---|
| CAGR: | 8.4% |
| Forecast Year: | 2023 - 2030 |
| Revenue 2022: | $11,262.27 Mn |
| Revenue 2030: | $21,068.66 Mn |
Compressed Natural Gas (CNG) Market Forecast 2023 - 2030
Market Overview :
Compressed Natural Gas (CNG) Market is estimated to reach over USD 21,068.66 Million by 2030 from a value of USD 11,262.27 Million in 2022, growing at a CAGR of 8.4% from 2023 to 2030.
Market Definition :
CNG is known as a cleaner-burning fuel compared to gasoline and diesel as it produces lower emissions of pollutants including carbon dioxide (CO2), nitrogen oxides (NO2), sulfur dioxide (SO2), particulate matter and toxic compounds. Compressed natural gas (CNG) is considered as a substitute fuel primarily composed of methane gas (CH4) that is compressed to less than 1% of the volume at standard atmospheric pressure. Moreover, CNG is used as a fuel in internal combustion engines, particularly in automotive vehicles including cars, buses, and trucks.
Market Dynamics :
Drivers :
-
Stringent government regulations to curb CO2 emissions
Government and regulatory bodies worldwide are implementing stricter emission standards and regulations to reduce air pollution and combat climate change. Burning fossil fuels including diesel and gasoline releases carbon dioxide into the atmosphere. As a result, the accumulation of harmful greenhouse gases such as nitrous oxide (NO2), carbon dioxide (CO2), and hydrofluorocarbons (HFCs) is leading to warm atmospheric temperature, resulting in significant climate change. For instance, according to United States Environmental Protection Agency (EPA), Greenhouse Gas (GHG) emissions from transportation sector in the United States is the largest contributor for approximately 29% of total greenhouse gas emissions. Moreover, government and regulatory bodies across the world are providing subsidies, tax benefits and incentives to promote the adoption of CNG gas, resulting in the growth of compressed natural gas market.
-
Adoption of CNG as transportation fuel in automobiles
The rise in the adoption of CNG-powered vehicles due to low operational cost and environment friendliness is driving the growth of compressed natural gas market. CNG cars are cost-effective due to the low operational costs in comparison to conventional fuel types such as petrol and diesel. Moreover, CNG cylinders are non-toxic in comparison to gasoline and diesel tanks due to their structure, size, and location within the vehicle. Additionally, CNG cars produces less emissions to the environment, thereby accounting for the environment-friendliness of CNG gas. For instance, in January 2022, Maruti Suzuki India Limited launched Celerio with S-CNG Technology to strengthen its green vehicles portfolio in India. In conclusion, compressed natural gas is considered as a clean transportation fuel and is widely used in light-duty and heavy-duty vehicles, resulting in the growth of compressed natural gas market.
Restraint :
-
Limited refueling infrastructure for CNG vehicles
CNG refueling infrastructure is vital to the expansion of consumer adoption of CNG vehicles. However, the infrastructure required for refueling CNG-vehicles is limited in comparison to diesel and petrol stations. Therefore, the lack of convenient access to CNG refueling infrastructure is hindering the growth of compressed natural gas market.
-
Reduction in performance of CNG vehicles
The lower energy density of compressed natural gas provides less power and acceleration, thereby accounting for the reduced performance of CNG vehicles. Moreover, based on aforementioned factor, CNG produces less energy per unit of fuel, resulting in low power output by vehicles.
Opportunities :
-
Application of Bio-CNG in transportation sector
The application of Bio-CNG in the transportation sector is expected to present potential opportunities for the growth of Compressed Natural Gas Market. Bio-CNG (Compressed Natural Gas) is the refined biogas made from animal manure, agricultural waste, food waste, and sewage water. As a result, Bio-CNG is a cleaner fuel that is expected to provide numerous advantages such as high calorific value and cost savings over conventional fuels. Therefore, further application of Bio-CNG as a renewable vehicle fuel is expected to drive the market growth during the forecast period.
Compressed Natural Gas (CNG) Market Report Coverage:
| Report Attributes | Report Details |
| Study Timeline | 2017-2030 |
| Market Size in 2030 | USD 21,068.66 Million |
| CAGR (2023-2030) | 8.4% |
| By Source | Associated Gas, Non-Associated Gas, and Unconventional Sources |
| By End-User | Light Duty vehicles, Medium/Heavy Duty Trucks, Medium/Heavy Duty Buses, and Others |
| By Region | North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa |
| Key Players | Cabot Oil & Gas Corporation, Indraprastha Gas Limited, ConocoPhillips Company, ENGIE Group, Exxon Mobil Corporation, Chevron Corporation, J-W Power Company, National Iranian Gas Company, Shell group of companies, Trillium Transportation Fuels |
Get More Information
Download Sample ReportMarket Segmentation :
By Source :
Based on the source, the market is trifurcated into associated gas, non-associated gas, and unconventional sources. The non-associated gas segment accounted for the largest revenue share of 46.09% in the year 2022. Non-associated gas is natural gas that is extracted from a natural gas well, rather than an oil well. Non-associated gas is produced through drilling techniques and then processed to remove impurities from recovered natural gas. Furthermore, non-associated gas is further compressed to be utilized as a transportation fuel in CNG vehicles. The majority of United States natural gas production is from non-associated gas. For instance, according to the U.S. Energy Information Administration, U.S. dry natural gas (non-associated gas) production was approximately 10.8% greater than total U.S. natural gas consumption in 2022. Therefore, the utilization of non-associated gas to power CNG vehicles is propelling the growth of the market.
The unconventional sources segment is anticipated to register fastest CAGR growth during the forecast period. Unconventional natural gas requires advanced production methods such as hydraulic fracturing for extraction from shale gas, tight gas, coalbed methane (CBM), and gas hydrates. The extraction of unconventional gas by hydraulic fracturing is cost-effective as the gas is highly dispersed in the rock, rather than occurring in a concentrated underground location. Therefore, the utilization of unconventional gas for the production of compressed natural gas is cost-effective and is further expected to drive market growth during the forecast period.
Get More Information
Download Sample ReportBy Application:
Based on the end-user, the market is segregated into light duty vehicles, medium/heavy duty trucks, medium/heavy duty buses, and others. Light duty vehicles accounted for the largest revenue share in the year 2022. The increasing demand for environmentally friendly fuels in automobiles is driving the growth of this segment. Several light-duty vehicles manufacturers such as Toyota, Honda, General Motors, and Suzuki introduced in-built CNG fuel tanks owing to the low maintenance and increased efficiency of the vehicle.
Medium/heavy duty buses is expected to witness fastest CAGR growth during the forecast period. Several public transportation vehicles such as medium and heavy-duty buses specifically in countries including India are being converted to CNG based fuel systems owing to low maintenance costs and environment-friendliness of CNG fuels. For instance, in November 2021, Ashok Leyland India launched ultra-low floor CNG BS VI Buses for IndiGo Airlines. Therefore, the growing adoption of CNG fuels in medium and heavy-duty buses is driving the growth of compressed natural gas market and is further projected to grow during the forecast period.
By Region :
The regional segment includes North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Regional Growth Insights
Download Sample ReportAsia-Pacific accounted for the largest revenue share of USD 4,169.29 Million in 2022 and is expected to reach USD 7818.58 Million by 2030, registering a CAGR of 8.4% during the forecast period. In addition, in the region, China accounted for the maximum revenue share of 29.7% in the same year. The presence of abundant natural gas resources in Asia-Pacific region is driving the growth of Compressed Natural Gas (CNG) Market. Countries including India, China and Australia have abundant natural resources and are constantly discovering opportunities to explore the production of Compressed Natural Gas (CNG). Moreover, with the growing transportation and automotive sectors in the region for application including light and medium duty vehicles movement is propelling the demand for CNG. Moreover, rising government initiatives and policies to reduce carbon emissions from transportation sector is further propelling the growth of the market.
North America is expected to register fastest CAGR growth of 8.8% during the forecast period. The shale gas revolution in North America, particularly in the United States, has significantly increased natural gas production and expanded the availability of CNG as an alternate fuel option. For instance, according to the TC Energy Corporation, U.S. natural gas demand is expected to grow over 27% by 2030. Therefore, the increasing demand for compressed natural gas in automobiles in North America is proliferating the growth of the compressed natural gas market.
Details Countries Growth Insights
Download Sample ReportCompressed Natural Gas (CNG) Market Competitive Landscape:
The compressed natural gas (CNG) market is highly competitive with major players providing Compressed Natural Gas (CNG) to the national and international markets. Key players are adopting several strategies in research and development (R&D), product innovation, and application launches to hold a strong position in Compressed Natural Gas (CNG) market. Key players in the Compressed Natural Gas (CNG) market include -
- Cabot Oil & Gas Corporation
- Indraprastha Gas Limited
- ConocoPhillips Company
- ENGIE Group
- Exxon Mobil Corporation
- Chevron Corporation
- J-W Power Company
- National Iranian Gas Company
- Shell group of companies
- Trillium Transportation Fuels
Recent Developments :
- In November 2022, Toyota Kirloskar Motor launched Toyota Glanza and Urban Cruiser Hyryder model line-up fitted with CNG kits to cater mobility needs of Indian consumers.
- In January 2023, Maruti Suzuki India Limited launched Grand Vitara S-CNG featuring 1.5-litre, Dual Jet, Dual VVT engine to provide high driving performance.
Frequently Asked Question
What is Compressed Natural Gas (CNG)?+
Compressed Natural Gas (CNG) is derived from natural gas mainly comprised of methane that is stored under high pressures. CNG is an eco-friendly alternative to gasoline and petrol as it produces less carbon emissions in the environment.
What specific segmentation details are covered in the Compressed Natural Gas (CNG) report, and how is the dominating segment impacting the market growth?+
The report consists of segments including source and end-user. Each segment has key dominating sub-segment being driven by the industry trends and market dynamics. For instance, by source has witnessed non-associated gas as the dominating segment in the year 2022, as non-associated gas is utilized for the production of CNG gas to power automotive vehicles.
What specific segmentation details are covered in the Compressed Natural Gas (CNG) market report, and how is the fastest segment anticipated to impact the market growth?+
The report consists of segments including source and end-user. Each segment is projected to have the fastest-growing sub-segment being fueled by industry trends and drivers. For instance, by end-user segment has witnessed medium and heavy duty buses as the fastest-growing segment during the forecast period due to the low-cost and environment-friendliness of CNG fuels for public transportation such as buses.
Which region/country is anticipated to witness the highest CAGR during the forecast period, 2023-2030? +
North America is expected to register fastest CAGR growth during the forecast period due to the shale gas revolution in North America for the product of natural gas.
Select Licence :
| Single User | : $4200 |
|---|---|
| Multi User | : $6200 |
| Corporate User | : $7400 |
- Online PDF access to 1 user
- Unlimited analyst support
- 20% or 48 hours of free customization
- No expiry to the report
- Online PDF access upto 10 Users
- Unlimited lead analyst support
- 35% or 72 hours of free customization
- No expiry to the report
- Access to downloadable excel data sheet
- All multi user license features plus
- Unlimited user access(within the organization)
- 40% or 96 hours of free customization
- Unlimited download, print & forwards allowed
- 25% discount on your next purchase
