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Each year, there has been a rise in exploration and development of natural gas worldwide. This is changing the natural gas business in the US, even though the growth rate has slowed down in recent years. More shale gas development is to blame. Gasoline and diesel fuel are becoming expensive while natural gas prices are going down. More people in the Asia-Pacific area care about the environment, which is why this is happening. This means that compressed natural gas (CNG) is rising to the top as a fuel for cars.
Some fuels, like LPG and CNG, are cheaper, which is great for people who drive a lot. The money they save over a few years is enough to cover the cost of CNG or LPG, depending on how often they drive. It's crazy how much the price of oil has gone up in recent years. The cost of CNG and LPG have gone up even faster, though.
The market for CNG tanks is likely to drop in 2022 because COVID-19 has slowed down the world economy. So the world market for CNG tanks is expected to grow. They are useful in many ways in the car and public transportation businesses.
The industry is growing because more people are buying natural gas vehicles (NGVs) and they are less expensive than gasoline and diesel. Both the making of Type V tanks and the growth of the "green fleet" are new trends that are changing the business world.
Since natural gas is cleaner than other fuels, it is becoming more popular in the transportation business. This is one of the main market trends. Some people think that CNG is better for the environment than fuel and gasoline because it doesn't waste as much. This is why there is a huge need for cars that run on CNG. This has helped the market for CNG tanks. The rising number of users includes fleet owners, public transportation services, and people who own their own cars.
ASEAN is expected to have the biggest market for natural gas because China, Japan, and India are all using more of it. They need a lot of cars because they have a lot of people and are still growing. If more people knew how bad gasoline and diesel are for the environment, they would switch to better, cleaner energy for business and industrial transportation. This would help the CNG industry grow even more.
Better business and industrial traffic has made the CNG tank market grow even more in those places.
There are stricter rules on lowering pollution in North America and Europe. As a result, people are now paying more attention to green energy sources and methods. Gas that is compressed (CNG) is becoming more popular in developing countries like South Africa. This is because CNG is cheap, while other truck and car fuels are getting more expensive. Some people also believe that cars that run on CNG are a better way to fight climate change than cars that run on gasoline.
When the prices of regular fuels go up, people are more interested in cheaper alternative fuels like CNG. But if the price of oil stays the same or goes down, the market might slow down for a while because CNG isn't as good for the business. Since fuel prices are affected by the economy, the market for CNG tanks is also affected.
New technologies used to make CNG tanks are another big thing that affects market trends. CNG tanks are getting smaller, last longer, and cost less thanks to changes in materials, design, and production methods. These changes not only make CNG tanks safer and better at what they do, but they also make them more acceptable to a wider range of users. It's possible that changes in technology will have a big impact on the rise and competition in the CNG tanks market.
Also, the rise of infrastructure is a big factor in how the CNG tank market changes. A big reason why people don't trust CNG-powered cars is that there aren't many places to fill up. The market is steadily rising because both public and private companies are building a strong and wide-ranging CNG infrastructure. Improving facilities makes more people want to switch to CNG cars, which boosts the demand for CNG tanks.
Covered Aspects:
| Report Attribute/Metric | Details |
|---|---|
| Segment Outlook | Raw Material, Propulsion, Vehicle Type, Type, and Region |
CNG Tanks Market Highlights:
Global CNG Tanks Market Overview:
The CNG tanks market industry is projected to grow from USD 1.8 Billion in 2023 to USD 3.9 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 9.80% during the forecast period (2023 - 2032). CNG Tanks Market Size was valued at USD 1.7 Billion in 2022. Environmental concerns and emissions reduction, government incentives and regulations, energy security and diversification, cost savings, fleet conversion, infrastructure development, urbanization and air quality, industrial applications, consumer awareness and preference, alternative fuel infrastructure investment are the key market drivers enhancing the market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
CNG Tanks Market Trends
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Environmental concerns and emissions reduction is driving the market growth
The market for CNG (compressed natural gas) tanks is expanding rapidly due in large part to environmental concerns and the pressing need to reduce emissions. The need to switch to cleaner energy sources has assumed more importance in a time when concern over climate change, air pollution, and the long-term viability of our planet is at an all-time high. In order to address these urgent environmental concerns, CNG, which is frequently touted as a bridge fuel between conventional fossil fuels and renewable energy sources, has emerged as an effective option. As a result, there is now an unprecedented demand for CNG tanks, which are essential for facilitating the deployment of CNG-powered machinery and vehicles across industries.
Realizing how much traditional fuels like gasoline and diesel contribute to air pollution and the buildup of greenhouse gases in the atmosphere has led to an increase in environmental concerns. These pollutants have a negative impact on health, degrade the environment, and speed up climate change. As society struggle with the wide-ranging effects of these problems, the attractiveness of CNG as a cleaner-burning option emerges more and more clearly. Comparing CNG combustion to its conventional counterparts, it results in significantly reduced levels of harmful pollutants and greenhouse gas emissions, such as particulate matter, nitrogen oxides (NOx), and carbon dioxide (CO2). Governments, businesses, and consumers are being pushed to adopt CNG tanks and the vehicles they power by this environmental benefit.
The transition to CNG tanks is especially noticeable in sectors like transportation and logistics where emissions reduction is particularly difficult. Heavy-duty vehicles, such as delivery vans, trucks, and buses, are a significant source of urban air pollution. These cars can switch to a fuel source that considerably lowers their carbon footprint while retaining operational efficiency using CNG tanks. The use of CNG tanks in these vehicles helps to promote public health and a healthier urban environment at a time when urban regions are struggling with traffic and air quality problems. Thus, driving the CNG tanks market revenue.
CNG Tanks Market Segment Insights:
CNG tanks Raw Material Insights
The CNG Tanks Market segmentation, based on raw material, includes glass fiber composites raw materials, carbon fiber composites raw materials and others. The glass fiber composites raw materials segment dominated the market in 2022. Glass fiber composites have a remarkable strength-to-weight ratio and are renowned for their longevity. These substances are suitable for CNG tanks that must hold compressed gas at high pressures because they can tolerate high pressures and impact forces.
CNG tanks Propulsion Insights
The CNG Tanks Market segmentation, based on propulsion, includes petrol and diesel. The petrol category generated the most income in 2022. The demand on the petroleum sector to lower greenhouse gas emissions and lessen environmental effect is growing. Since CNG emits less pollutants than gasoline, especially in terms of carbon dioxide (CO2) and particulate matter, it is regarded as a cleaner fuel.
CNG tanks Vehicle Type Insights
The CNG Tanks Market segmentation, based on vehicle type, includes passenger vehicles, light commercial vehicles and heavy commercial vehicles. The passenger vehicles segment dominated the market in 2022. Environmentally friendly transportation options are receiving more attention as a result of growing worries about air pollution and greenhouse gas emissions. Compared to gasoline or diesel, CNG is known for having a cleaner burn that produces fewer emissions like carbon dioxide (CO2), nitrogen oxides (NOx), and particulates.
CNG tanks Type Insights
The CNG Tanks Market segmentation, based on type, includes type 1 CNG tanks, type 2 CNG tanks, type 3 CNG tanks and type 4 CNG tanks. The type 2 CNG tanks segment dominated the market in 2022. The transportation industry worldwide is shifting more and more toward cleaner and more sustainable fuel sources in order to reduce emissions and the industry's negative environmental effects. CNG is becoming more and more well-liked since it is a cleaner-burning fuel than other types.
Figure 1: CNG Tanks Market, by Type, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
CNG tanks Regional Insights
By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North America CNG Tanks Market dominated this market in 2022 (45.80%). Natural gas is widely available in North America, making CNG a desirable and affordable alternative fuel. The adoption of CNG-powered vehicles is encouraged by the availability of domestic natural gas supplies, which raises the demand for CNG tanks. Further, the U.S. CNG tanks market held the largest market share, and the Canada CNG tanks market was the fastest growing market in the North America region.
Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: CNG Tanks Market Share By Region 2022 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe CNG tanks market accounts for the second-largest market share. The European Union (EU) has implemented stringent emission regulations to reduce greenhouse gas emissions and other pollutants from moving cars. The fact that CNG-powered vehicles with CNG tanks offer a practical alternative to comply with these stringent emission standards is what drives demand for CNG tanks. Further, the German CNG tanks market held the largest market share, and the UK CNG tanks market was the fastest growing market in the European region.
The Asia-Pacific CNG Tanks Market is expected to grow at the fastest CAGR from 2023 to 2032. The APAC area is home to many nations that are struggling with serious air pollution problems. Communities and governments are looking for solutions to lower emissions and enhance air quality. This objective is in line with the introduction of CNG-powered vehicles, made possible by CNG tanks, because natural gas burns more cleanly than conventional fossil fuels. Moreover, China’s CNG tanks market held the largest market share, and the Indian CNG tanks market was the fastest growing market in the Asia-Pacific region.
CNG Tanks Key Market Players & Competitive Insights
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the CNG tanks market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, CNG tanks industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global CNG tanks industry to benefit clients and increase the market sector. In recent years, the CNG tanks industry has offered some of the most significant advantages to medicine. Major players in the CNG tanks market, including Maruti Koatsu Cylinders Ltd, Anhui Clean Energy Co., Ltd., Hexagon Composites ASA, Plastic Omnium, Praxair Technologies Inc, Worthington Industries, Everest Kanto Cylinders Ltd., NGV Technologies Inc, Ullit SA, Luxfer Group, Faber Industrie S.P.A, Indoruss Synergy Pvt. Ltd., Quantum Fuel Systems Technologies Worldwide Inc, Fiba technologies, Lianyungang Zhongfu Lianzhong Composites Group Co. Ltd., Beijing Tianhai Industry Co. Ltd., Avanco Group and others, are attempting to increase market demand by investing in research and development operations.
Worthington Industries Inc. (Worthington) is a varied metal producing corporation. Its top focuses are manufacturing metal products and value-added steel processing. The company's product line also includes pallets, reusable custom steel platforms, high-pressure steel, steel and fiberglass storage tanks, separation equipment, control and measurement, and propane-filled camping cylinders. It also offers support for ceiling grid systems and light gauge steel frames. A few of the markets the company serves include oil and gas, construction, HVAC, leisure, agricultural, office furniture, aerospace, and automobiles. The company also operates several production facilities in the US, Poland, Portugal, Austria, China, and Germany. Worthington has its headquarters in Columbus, Ohio, in the US.
A company called Luxfer Holdings PLC (Luxfer) specializes in the development, manufacture, and distribution of high-performance materials, components, and gas cylinders for a variety of customers and industries. It manufactures zirconium compounds and oxides, commodities connected to magnesium, components made of aluminum and composite materials using superplastic manufacturing, and aluminum and carbon composite gas cylinders. Some of the industries that Luxfer supplies goods to include the automotive, environmental, healthcare, aerospace, defense, medical, rail, and emergency services sectors. Manufacturing facilities for the company are located in the US, France, the Czech Republic, Canada, the UK, and other nations. Asia, Australia, Europe, and North America are all where the company conducts business. Luxfer is headquartered in Wisconsin, a US state.
Key Companies in the CNG tanks market include
- Maruti Koatsu Cylinders Ltd
- Anhui Clean Energy Co., Ltd.
- Hexagon Composites ASA
- Plastic Omnium
- Praxair Technologies Inc
- Worthington Industries
- Everest Kanto Cylinders Ltd.
- NGV Technologies Inc
- Ullit SA
- Luxfer Group
- Faber Industrie S.P.A,
- Indoruss Synergy Pvt. Ltd.
- Quantum Fuel Systems Technologies Worldwide Inc.
- Fiba technologies
- Lianyungang Zhongfu Lianzhong Composites Group Co. Ltd.
- Beijing Tianhai Industry Co. Ltd.
- Avanco Group
CNG Tanks Industry Developments
May 2023: Compagnie Plastic Omnium SA signed partnership agreements with two international academic institutions to provide the opportunity to harness innovation ecosystems.
January 2023: Compagnie Plastic Omnium SA and Rein formed a 50/50 joint venture based in Shanghai to manufacture and market type III and IV high-pressure hydrogen storage systems for the commercial vehicle market in China.
CNG Tanks Market Segmentation:
CNG Tanks Raw Material Outlook
- Glass Fiber Composites Raw Materials
- Carbon Fiber Composites Raw Materials
- Others
CNG Tanks Propulsion Outlook
- Petrol
- Diesel
CNG Tanks Vehicle Type Outlook
- Passenger Vehicles
- Light Commercial Vehicles
- Heavy Commercial Vehicles
CNG Tanks Type Outlook
- Type 1 CNG Tanks
- Type 2 CNG Tanks
- Type 3 CNG Tanks
- Type 4 CNG Tanks
CNG tanks Regional Outlook
North America
- U.S.
- Canada
Europe
- Germany
- France
- UK
- Italy
- Spain
- Rest of Europe
Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Australia
- Rest of Asia-Pacific
Rest of the World
- Middle East
- Africa
- Latin America
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