CNG Tank Cylinder Market

• Growing use of LNG vehicles is driving the market growth

Market CAGR for CNG tank cylinder is being driven by the rising use of LNG vehicles. A number of nations fight against climate change on a scale by establishing aggressive goals to lower GHG emissions. By 2030, the EU has established a legally enforceable goal to cut emissions by 40% below 1990 levels. The road transport industry in the EU is one of the most significant sectors that depend on fossil fuels.

By switching to CNG automobiles instead of petrol, energy consumption may be reduced by around 10% of what petrol uses. The public is turning to vehicles powered by inexpensive alternative fuels like compressed natural gas due to rising gas costs and the prohibitively high cost of electric vehicles for most people.

For a variety of uses, compressed natural gas (CNG) cylinders are offered in a variety of forms, weights, and sizes. Tank prices often rise as tank weight lowers. Tanks may occasionally be leased from petrol providers or car converters. Adsorbed Natural Gas (ANG) does not require high-pressure storage cylinders or tanks since it stores natural gas in a carbon honeycomb structure. As the gas enters the system, it is absorbed into the substance, which may be kept solid at extremely low pressure. This indicates that high-pressure cylinders are no longer necessary to hold the gasoline within the car.

As a result, the storage may be custom-molded into various forms and sizes while reducing weight. The fact that an ANG system is backward compatible is its main benefit. Although they may still utilize it, ANG systems do not require the 3,600 pounds per square inch (PSI) pressure needed for today's CNG automobiles. The current CNG network is still accessible to vehicles with ANG. Although the needed pressures for an onsite station may be significantly reduced, they wouldn't be left behind if the new technology was used.

The market demand for CNG tanks is anticipated to be hampered by the increased usage of storage technologies for adsorbed natural gas in vehicles. Thus, driving the CNG tank cylinder market revenue.

The Global CNG Tank Cylinder Market Industry is projected to experience substantial growth in the coming years. With a market value anticipated to reach 2.18 USD Billion in 2024 and further expand to 6.35 USD Billion by 2035, the industry is on a promising trajectory. This growth is underpinned by a compound annual growth rate (CAGR) of 10.2% from 2025 to 2035, indicating a robust demand for CNG tank cylinders. The increasing focus on sustainable energy solutions, coupled with supportive government policies and technological advancements, suggests a dynamic and evolving market landscape.

The growing adoption of CNG vehicles is a significant driver for the Global CNG Tank Cylinder Market Industry. As consumers and businesses increasingly recognize the economic and environmental benefits of CNG vehicles, the demand for CNG tank cylinders is expected to rise correspondingly. The cost-effectiveness of CNG as a fuel, coupled with lower emissions compared to gasoline and diesel, makes it an attractive option for fleet operators and individual consumers alike. This trend is further supported by the expansion of CNG refueling infrastructure, which facilitates the widespread use of CNG vehicles. Consequently, the market is poised for substantial growth in the coming years.

Various governments are actively promoting the use of CNG through initiatives and incentives, significantly impacting the Global CNG Tank Cylinder Market Industry. These initiatives include tax rebates, subsidies for CNG vehicles, and funding for infrastructure development. For instance, countries like India and the United States have introduced policies to encourage the adoption of CNG as a transportation fuel. Such measures not only facilitate the growth of the CNG market but also stimulate the demand for CNG tank cylinders, which are essential for storing and transporting this fuel. The cumulative effect of these initiatives is likely to contribute to a projected market size of 6.35 USD Billion by 2035.

The Global CNG Tank Cylinder Market Industry is experiencing a notable surge in demand for clean energy solutions, driven by increasing environmental concerns and the need for sustainable fuel alternatives. Governments worldwide are implementing stringent regulations to reduce greenhouse gas emissions, which has led to a shift towards compressed natural gas (CNG) as a cleaner alternative to traditional fuels. This transition is expected to propel the market, with projections indicating a market value of 2.18 USD Billion in 2024. As more countries invest in CNG infrastructure, the adoption of CNG tank cylinders is likely to rise, further enhancing the industry's growth prospects.

Investment in CNG infrastructure is a critical factor influencing the Global CNG Tank Cylinder Market Industry. As more countries recognize the importance of transitioning to cleaner fuels, there is a concerted effort to develop CNG refueling stations and distribution networks. This infrastructure development not only supports the growth of CNG vehicles but also drives the demand for CNG tank cylinders, which are essential for the storage and distribution of compressed natural gas. The ongoing investments in infrastructure are expected to create a favorable environment for the CNG market, contributing to its projected growth and expansion in the coming years.

Technological advancements in the manufacturing processes of CNG tank cylinders are playing a crucial role in shaping the Global CNG Tank Cylinder Market Industry. Innovations such as the development of lightweight composite materials and advanced manufacturing techniques enhance the safety and efficiency of CNG cylinders. These improvements not only reduce production costs but also increase the durability and performance of the cylinders. As manufacturers adopt these technologies, the market is expected to witness a compound annual growth rate (CAGR) of 10.2% from 2025 to 2035. This growth trajectory indicates a robust future for the industry, driven by enhanced product offerings.

By region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. The North American CNG tank cylinder market area will dominate this market; the increase in commercial and industrial transportation has led to the expansion of CNG tanks throughout the region, positively impacting the market landscape for CNG tanks. North America has implemented strict laws to reduce emissions and focuses more on renewable energy projects and energy-efficient sectors.

Further, the major countries studied in the market report are The US, Canada, the UK, Italy, German, France, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: CNG TANK CYLINDER MARKET SHARE BY REGION 2022 (USD Billion) Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Europe CNG tank cylinders market has the second-largest share. The growth of CNG tanks has benefited the market for CNG tanks because of the rise in commercial and industrial transportation in the area. Furthermore, the German CNG tank cylinder market dominated, while the UK CNG tank cylinder market grew fastest in Europe.

From 2023 to 2032, the Asia-Pacific CNG tank cylinder Market will develop at the quickest CAGR. By utilizing enormous volumes of gases in China, the move to zero-emission cars aims to enhance air quality, decrease CO2 emissions, and promote energy independence. Several businesses have already noticed an increase in the sales of LNG automobiles. In FY 2019–20, Maruti Suzuki India Limited had its highest-ever sales of CNG-powered, environmentally friendly vehicles. The firm in India sold over 106,443 CNG automobiles.

Furthermore, China's CNG tank cylinder market had the highest market share, while Asia-Pacific region's CNG tank cylinder market in India was the one that was growing the quickest.

Leading market companies are extensively spending R&D on increasing their product lines, which will help the CNG tank cylinder market grow even more. Important market developments include new product releases, acquisitions and mergers, contractual agreements, greater investments, and collaboration with other organizations. The CNG tank cylinder industry must produce cost-effective merchandise to flourish and thrive in a more competitive and increasing market climate.

Manufacturing locally to reduce operating costs is an effective business strategy manufacturers use in the worldwide CNG tank cylinder industry to serve clients and expand the market sector. The CNG tank cylinder industry has provided some of the most important benefits recently. Hexagon Composites business, and other major competitors in the CNG tank cylinder market are seeking to improve market demand by investing in R&D efforts.

Hexagon Agility provides various clean fuel options to deliver gaseous energy and commercial vehicles. The market's lightest and most versatile alternative is made possible by using Type 4 composite cylinders. All of our solutions are ready for deployment right now. Their technologies accelerate decarbonization, with more than 70,000 commercial vehicles deployed and traveling billions of kilometers. In May 2019, logistics delivery firm Ups has ordered CNG vehicles with Hexagon Composites business unit Hexagon Ability. This decree will pave the way for forming environmentally and economically sound fleets.

Faber Industrie, founded in 1969 and business since 1972, has expanded quickly to become the market leader in high-pressure gas cylinders and systems (Types 1, 2, 3 & 4). The finest reputation in the world belongs to Faber because of its high standards of quality and ability to meet the most exacting requirements imposed by international organizations, local governments, and its clients. With a total floor area of 100.000 m2, our plants in the North East of Italy have a yearly production capacity of over one million cylinders.

Faber is regarded as the market leader in high-pressure cylinders due to its high manufacturing capacity and commitment to quality. In April 2019, Faber Industries has attained the type-1 cylinder weight of 0.75kg/I. Due to the weight decrease, OEM is attempting to balance tank toughness and weight.