CNG,RNG and Hydrogen Tank Market Size, Share, Industry, Forecast and outlook (2024-2031)

Global CNG, RNG and Hydrogen Tank Market is Segmented By Gas (Compressed Natural Gas (CNG), Renewable Natural Gas (RNG), Hydrogen), By Material (Metal, Carbon Fiber, Glass Fiber), By Tank (Type 1, Type 2, Type 3, Type 4), By Application (Fuel Tank, Transportation Tank), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2023-2030

CNG, RNG and Hydrogen Tank Market Overview

180 pages report analyses the CNG, RNG and Hydrogen Tank Market Share, Analysis and Demand. The global CNG, RNG and hydrogen tank market size is growing at a high CAGR during the forecast period (2023-2030). A gas tank is a vessel used to store pressurized fluids such as compressed natural gas and hydrogen. It is utilized in the automotive industry as fuel storage for alternative fuel vehicles. The Asia-Pacific region is expected to retain the largest share in the global CNG, RNG and hydrogen tank in the coming years. Competitive rivalry intensifies with Luxfer Holdings PLC, Worthington Industries, Inc., AVANCO GmbH and others operating in the market.

Lightweight, leakage protection and high impact resistance are some of the desirable properties of a gas tank. Gas tanks are mainly made from metal; however, composite materials such as carbon fiber and fiberglass are increasingly used due to their superior strength.

CNG, RNG and Hydrogen Tank Market Scope

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CNG, RNG and Hydrogen Tank Market Dynamics

The demand for the CNG, RNG and hydrogen tanks is driven by the more comprehensive and ever-growing transition away from fossil fuels as consumers become ever more climate-conscious and the drive to decarbonize transportation gathers pace. The high cost of CNG, RNG and hydrogen tanks hinders their adoption and represents a challenge for the growth of this market.

Growing transition away from fossil fuels

Consumers and governments worldwide are becoming aware of the ill effects of climate change. A major movement is underway to decarbonize various aspects of human life to avoid the most severe effects of man-made climate change. At Glasgow's 2021 COP26 climate conference, many governments pledged complete carbon neutrality by 2050. Adopting carbon neutrality is bound to accelerate the transition away from fossil fuels.

Natural gas is cleaner than other fossil fuels, petroleum and coal. The combustion of natural gas leads to fewer air pollutants and carbon dioxide emissions than petroleum and coal products to obtain the same amount of energy. Therefore, it has generated demand for compressed natural gas as governments and organizations look to mitigate air pollution and emissions. The mass adoption of electric vehicles and other renewable energy technologies is still years away. Compressed natural gas can serve as an effective stop-gap measure.

High cost of CNG, RNG and hydrogen tanks

CNG, RNG and hydrogen tanks are expensive, primarily due to the high capital expenditure incurred on the research and development of tanks. New innovative materials are used in production to ensure better safety, which further drives up the price. The use of carbon fiber and fiberglass, which cost more than metals, especially for hydrogen tanks, adds to the final cost.

Furthermore, after development, exhaustive testing by independent bodies is done to ensure safe operation under all parameters. The regulatory bodies then give final certification after conducting their tests. High costs are incurred in all these processes. Manufacturers tend to pass on the cost to end consumers. It keeps the prices for tanks high and prevents their wider adoption. The high cost of CNG, RNG and hydrogen tanks is a key challenge to growth.

COVID-19 impact On CNG, RNG and Hydrogen Tank Market

The global automotive industry experienced sharp declines in production and sales in 2020 due to the COVID-19 pandemic. Lockdowns and other forms of movement restrictions forced manufacturers to halt operations temporarily. The production of tanks resumed in a limited capacity after lifting the lockdowns in late 2020, although demand is not expected to reach pre-pandemic levels before the end of 2021.

Due to the pandemic, the knock-on effects on the global supply chains have caused shortages of essential components for various industries. It has disrupted the manufacturing of tanks, even as pandemic restrictions are being lifted and economic activity is picking up. The CNG, RNG and hydrogen tank will be unaffected by the pandemic in the long term since the demand for alternative fuel vehicles remains strong and will continue to grow significantly in the coming years.

CNG, RNG and Hydrogen Tank Market Segmentation Analysis

The CNG, RNG and hydrogen tank market is segmented on gas, material, tank type, application and region. The global CNG, RNG and hydrogen tank market is segmented into compressed natural gas, renewable natural gas and hydrogen based on the gas type. Compressed natural gas is leading in this segment since they make up most of the vehicle sales, far outpacing other forms of alternative fuel vehicles currently available on the market.

CNG, RNG and Hydrogen Tank Market Geographical Share

Asia-Pacific is leading in the global CNG, RNG and hydrogen tank market primarily due to the major adoption of compressed natural gas vehicles by several countries in the region. CNG vehicles are mainly used on a large scale by commercial vehicles in Pakistan, Bangladesh, Cambodia, Laos and Indonesia. The high costs of imported petroleum-based fuels are unaffordable for many commercial vehicle owners. Lower running costs and government subsidies make compressed natural gas (CNG) vehicles attractive for middle-income households. Japan and China are also leading in the adoption of hydrogen vehicles, although it is still a minor share of the alternative fuel vehicles. The Asia-Pacific region is expected to retain the largest share in the global CNG, RNG and hydrogen tank in the coming years.

CNG, RNG and Hydrogen Tank Companies and Competitive Landscape

The global CNG, RNG and hydrogen tank market is highly competitive due to a wide range of gas tanks suited for different applications. Some of the players contributing to the growth in the market are Luxfer Holdings PLC, Worthington Industries, Inc., AVANCO GmbH, Quantum Fuel Systems LLC, Faber Industrie SpA, CIMC ENRIC, Linde PLC, NPROXX, Beijing Tianhai Industry Co. Ltd and Lianyungang Zhongfu Lianzhong Composites Group Co. Ltd. The major market players adopt several growth strategies such as new product launches, improving existing products, joint ventures and government tie-ups to contribute to growth in the market.

Luxfer Holdings PLC

Overview: Luxfer Holdings PLC is a diversified company that designs and manufactures gas cylinders, medical technology, graphic arts and finished metal products. It has operations in 27 countries along with production sites in 7 countries. The company was founded in 1897 and is headquartered in Salford, Greater Manchester, U.K.

Product Portfolio

G-Stor H2 is a lightweight type 3 cylinder designed for storing hydrogen and intended for use in a hydrogen fuel cell vehicle.  

Key Developments:

• On 21st September 2021, Luxfer Holdings PLC entered into a multi-million-pound joint venture with Octopus Hydrogen, a hydrogen production company. The joint venture is expected to cater to the growing alternative fuel market in the UK.