Compressed Natural Gas (CNG) Market Size, Demand Insights
The global compressed natural gas market size was worth US$ XX million in 2023 and is estimated to reach US$ XX million by 2029, growing at a CAGR of XX% during the forecast period (2024-2031).
Compressed Natural Gas (CNG) Market Scope and Summary
| Metrics | Details |
| Market CAGR | High |
| Segments Covered | By Type, By Source, By Application, and By Region |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, and Other vital insights. |
| Fastest Growing Region | Asia Pacific |
| Largest Market Share | North America |
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Compressed Natural Gas (CNG) is a hydrocarbon mixture of gases, mainly methane, and small amounts of ethane, propane, and butane compressed to within 1% of its original volume at standard atmospheric pressure. It is generally stored in a spherical or cylindrical container under a pressure of 3,000 psi.
CNG is a fuel gas that is mainly utilized as an alternative to gasoline and diesel in internal combustion engine vehicles. An existing vehicle can be converted to run on CNG and standard conversion kits are widely available. CNG can also be used for power generation and domestic cooking applications.
Source: DataM Intelligence Analysis (2023)
Market Dynamics and Trends
The compressed natural gas market is mainly driven by the rising demand for clean fuels to reduce carbon emissions. The difficulty in the transportation and storage of compressed natural gas is one of the key challenges to the market's growth.
Increasing demand for clean fuels
Traditional vehicle fuels such as gasoline and diesel emit pollutants such as nitrogen oxides and particulate matter and unburned hydrocarbons. It causes massive air pollution along with a rise in carbon emissions. The use of coal for power generation also causes smog. Persistent air pollution leads to respiratory distress, emphysema, and other heart and lung diseases.
Natural gas is a relatively cleaner fuel. The combustion of natural gas for energy leads to fewer air pollutants and carbon dioxide emissions than coal and petroleum products to obtain an equivalent amount of energy. Therefore, it has generated great demand for compressed natural gas as global governments look to mitigate air pollution and carbon emissions. Electric vehicles and renewable energy sources are either unavailable or very expensive. The increasing demand for clean fuels is driving the compressed natural gas market.
Difficulty in transportation and storage of compressed natural gas
Compressed natural gas is incredibly difficult to transport and store since it must be stored under pressure. Vehicles need to be modified extensively to convert them to run on CNG. CNG also takes up more storage than petrol or diesel per gallon. It reduces the available boot space and increases vehicular weight, thereby reducing fuel efficiency.
Compressed natural gas is stored in pressurized containers and is transported using special pipelines. Therefore, high cost is incurred in the storage and transportation of compressed natural gas. CNG is transported over long distances using the sea route using special CNG carriers. The difficulty in storage and transportation of compressed natural gas is one of the key challenges in the market's growth.
COVID-19 impact on Compressed Natural Gas (CNG) Market Growth
The global compressed natural gas experienced uneven impacts on value chains due to the COVID-19 pandemic. Global production of compressed natural gas remained almost constant in 2020. However, the decline in demand was observed across some sectors. Transportation applications saw steep declines since government-imposed lockdowns and restrictions brought a prolonged halt to global transport activities from early to mid-2020. A moderate increase was observed from late 202o onwards. Other applications such as power generation and heating remained relatively unaffected by the pandemic.
The COVID-19 pandemic has had a relatively mild impact on the compressed natural gas market in the short term. The pandemic will have little effect on the global compressed natural gas market's medium to long-term growth because gas-producing companies are expected to gradually ramp up capacity utilization as economic activity returns to pre-pandemic levels. Compressed natural gas demand remains high and is expected to rise gradually in the coming years.
Market Segment and Shares Analysis
The global compressed natural gas market is segmented into type, source, application, and region. The compressed natural gas market is segmented into passenger vehicles, light commercial vehicles, heavy commercial vehicles, heavy-duty trucks, and others based on application. Passenger vehicles are leading in the application segmentation since passenger vehicles far outnumber commercial vehicles. The per-gallon running costs are lower for CNG than for petroleum fuels. It makes them an attractive option for middle-income households.
Source: DataM Intelligence Analysis (2023)
Market Geographical Analysis
Asia-Pacific is leading in the global compressed natural gas market. The region accounts for the largest market share, primarily due to major emerging markets in China, India, Malaysia, and Indonesia. Some of the largest compressed natural gas consumers are located in this region.
Compressed natural gas vehicles are mainly used on a large scale in China, Malaysia, Pakistan, Indonesia, and Thailand. The relatively high costs of petroleum fuels, along with increased rates of urbanization and lower running costs, make CNG vehicles an attractive option for middle-income households. China also utilized CNG, LPG, and other gaseous fuels for power generation and heating purposes.
The use of dirty fuels like coal for power generation and heating led to thick smog and extremely high levels of air pollution in all major Chinese cities. Hence, China is switching to cleaner fuels like CNG to mitigate pollution and improve urban air quality. India is also experiencing the rising adoption of CNG for vehicle fuels. The Asia-Pacific will continue to have the largest market share in the global compressed natural gas market in the coming years.
Source: DataM Intelligence Analysis (2023)
Companies and Competitive Landscape
The global compressed natural gas market is competitive due to the availability of many companies that sell compressed natural gas. Some of the major players contributing to the growth in the segment are Gazprom, Rosneft, Lukoil, PAO Novatek, BP PLC, Royal Dutch Shell PLC, Saudi Arabian Oil Co., TotalEnergies, Exxon Mobil Corporation, and China National Petroleum Corporation. The significant players adopt several growth strategies such as new product launches, joint ventures, and collaborations, contributing to global growth in the industry.
Gazprom
Overview: Gazprom is an energy company interested in geological exploration, production, storage, transportation, and sale of natural gas, natural gas products, gas condensates, mineral oil, lubricants, and vehicle fuels. The company has the largest natural gas reserves globally, accounting for 16% of the global reserves. It is also the leading natural gas producer accounting for 12% of the global production and exports to 40 countries globally. The company was founded in 1989 and is headquartered in Saint Petersburg, Russia.
Product Portfolio
- Compressed Natural Gas (CNG) is produced by the company's Amur gas processing plant in Russia's far east. The gas is mainly extracted from the nearby Kovyktinskoye and Chayadinskoye gas fields. It mainly caters to the demands of the Asia-Pacific market. The production meets the CNG demand for domestic and European markets from the Kharasayevskoye field on the Yamal peninsula in the far north of the Arctic region.
Key Developments:
- In 2021, Gazprom extended its retail CNG station outlets to five Russian regions. The expansion was done to cater to the growing demand from the domestic market.
Why Purchase the Report?
- Visualize the composition of the compressed natural gas market segmentation by type, source, application, and region, highlighting the critical commercial assets and players.
- Identify commercial opportunities in the compressed natural gas market by analyzing trends and co-development deals.
- Excel data sheet with thousands of global compressed natural gas market-level 4/5 segmentation data points.
- PDF report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study.
- Product mapping in excel for the critical product of all major market players
The global compressed natural gas market report would provide approximately 58 market data tables, 58 figures, and 250 pages.
Target Audience 2023
- CNG manufacturers
- Vehicle CNG kit manufacturers
- Industry Investors/Investment Bankers
- Education & Research Institutes
- Research Professionals
Frequently Asked Questions
What is the Projected CAGR value of the Compressed Natural Gas (CNG) Market?
The Compressed Natural Gas (CNG) Market is expected to grow at a high CAGR during 2024-2031.
Which region controlled the global market during 2023-2029?
North America region Controls the Compressed Natural Gas (CNG) Market during 2024-2031.
Which is the fastest-growing region in the Compressed Natural Gas (CNG) Market?
Among all regions, Asia Pacific is the fastest-growing market share during the forecast period.
