The India City Gas Distribution Market Size was valued at USD XX Billion in 2022. The City Gas Distribution Market industry is projected to grow from USD XX Billion in 2023 to USD XX Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 11.80% during the forecast period (2024 - 2032). Increasing urbanization and government initiatives for clean energy are the main market drivers anticipated to propel the City Gas Distribution Market in India
In July 2022, the Petroleum Ministry stated that there are plans for the construction of 3,500 CNG stations in India over the next two years. GAIL and nine of its CGD companies are going to establish these CNG stations at 41 geographical locations across 14 states. This information reveals that Indraprastha Gas Ltd has entered into a contract with Bharat Gas Resources Ltd for more than USD 5 million since July, seeking to indulge in better gas distribution to their customers.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Rising demand is a major driver of the City Gas Distribution Market CAGR. To assess the demand situation in the polled areas, we surveyed natural gas demand requirements from various organizations, including industries, household users, commercial clients, and transportation authorities. Ratnagiri District (Maharashtra State), North Goa District (North Goa State), and Dhar District (Madhya Pradesh State) have been identified as the three "Targeted Areas" with the potential for CGD network building. The market is predicted to develop as natural gas consumption rises from automotive, industrial, commercial, and residential end users. In Rounds 9 and 10, an increasing number of enterprises are being allowed and issued licenses to operate in the CGD industry in various areas around the country, owing to the Government of India's growing number of supportive efforts in the CGD sector. For example, in the ninth and tenth rounds of city gas distribution, Indian Oil Corporation and Adani Gas Limited obtained the most permits to distribute gas in 17 and 15 geographical areas, respectively. The government also plans to create jobs by transitioning to a gas-based economy, as natural gas is a cheap and environmentally benign fuel. The new and amended laws helped to increase public and private sector engagement in the CGD market. The market is projected to be fueled by increased CNG stations and PNG connections. By the end of the 11th bidding round, nearly 96% of India's population will have access to natural gas.
Moreover, India's city gas distribution market includes both PNG and CNG segments. PNG connections are available to a variety of end users, including household, industrial, and commercial. At the same time, CNG stations, also known as retail outlets, are being erected in various locations to provide people with access to natural gas for transportation purposes. After completing the 11th A bidding cycle in the country in August 2022, the government claimed that it had covered 98% of the population, up from 96% the previous round. This expansion of the coverage area is projected to boost the number of PNG and CNG connections throughout the country. According to the Petroleum and Natural Gas Regulatory Board (PNGRB), there were approximately 9,302,667 home connections in the country in 2021, 34,854 commercial connections, and 13,215 industry connections. Additionally, the number of CNG stations in the country has expanded. As of 2021, there were 4,433 retail shops in the country. Thus, driving the India City Gas Distribution market revenue.
The India City Gas Distribution Market segmentation, based on type, includes Pipeline Natural Gas (PNG) Connections and Compressed Natural Gas (CNG) Connections. PNG connections are expected to dominate the market. A PNG connection is the supply of natural gas to homes, businesses, and industries using galvanized iron pipelines, together with the necessary fittings, pressure regulators, and meters. Natural gas, which is primarily constituted of methane gas, is recognized as one of the cleanest forms of energy. It is used for cooking in homes and a few businesses, as well as heating in industries.
Figure 1: India City Gas Distribution Market, Type, 2023 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The India City Gas Distribution Market segmentation, based on End User, includes Automotive, Residential, Commercial and Industrial. The Industrial segment holds a considerable share of the City Gas Distribution Market. Manufacturing, electricity generation, and petrochemicals are among the industries that rely heavily on gas supplies. This segment is critical in accelerating the growth and development of the City Gas Distribution Market.
The India City Gas Distribution Market is rapidly growing and is driven by urbanization and government efforts. With the growing demand for clean, high-quality energy, there is a need to expand the gas distribution network. This market offers excellent investment prospects and is likely to experience significant expansion in the future years. The India City Gas Distribution Market is an important source of energy available to consumers and plays a critical role in powering cities with renewable energy.
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the City Gas Distribution Market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their 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, the City Gas Distribution industry must offer cost-effective items.
Major players in the City Gas Distribution Market are attempting to increase market demand by investing in research and development operations, including Indraprastha Gas Limited, Mahanagar Gas Ltd, GAIL Gas Limited, Gujarat Gas Ltd, IndianOil-Adani Gas Pvt. Ltd, SKN-Haryana City Gas Distribution Pvt.Ltd., Aavantika Gas Ltd, Sabarmati Gas Ltd, Assam Gas Company Ltd, Adani Total Gas Ltd., Torrent Group.
In July 2022, the Petroleum Ministry announced plans to set up 3,500 CNG stations in India during the next two years. GAIL and nine of its CGD companies will establish these CNG stations in 41 geographic locations across 14 states.
In January 2022, Bharat Petroleum Corporation Ltd (BPCL) announced a USD 1.35 billion investment over the next five years to establish city gas distribution networks in cities for which it received licenses in the 11th bidding round.
Furthermore, BPCL said in January 2022 that it would invest about USD 1.35 billion within the next 5 years in building up city gas distribution networks in the cities for which they received licenses in the 11th bidding round.
After completing the 11th cycle of bidding in the country 'A' in August 2022, the government maintained that they had reached out to 98 percent of the population, up from the 96 percent that was reported in the last cycle. It is expected that this increase in geographical coverage will enhance the access of PNG and CNG connections throughout the nation.
| Report Attribute/Metric | Details |
| Market Size 2022 | USD XX Billion |
| Market Size 2023 | USD XX Billion |
| Market Size 2032 | USD XX Billion |
| Compound Annual Growth Rate (CAGR) | 11.80% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2019-2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Type, End User, and Region |
| Countries Covered | India |
| Key Companies Profiled | Indraprastha Gas Limited, Mahanagar Gas Ltd, GAIL Gas Limited, Gujarat Gas Ltd, IndianOil-Adani Gas Pvt. Ltd, SKN-Haryana City Gas Distribution Pvt.Ltd., Aavantika Gas Ltd, Sabarmati Gas Ltd, Assam Gas Company Ltd, Adani Total Gas Ltd., Torrent Group. |
| Key Market Opportunities | Infrastructure development: The need for expanding gas distribution infrastructure presents opportunities for investment and growth. |
| Key Market Dynamics | Government initiatives: Government initiatives for clean energy and promoting gas distribution can create new opportunities in the market. |
Frequently Asked Questions (FAQ) :
The India City Gas Distribution Market size was valued at USD XX Billion in 2023.
The market is projected to grow at a CAGR of 11.80% during the forecast period, 2024-2032.
The key players in the market are Indraprastha Gas Limited, Mahanagar Gas Ltd, GAIL Gas Limited, Gujarat Gas Ltd, IndianOil-Adani Gas Pvt. Ltd, SKN-Haryana City Gas Distribution Pvt.Ltd And others.
The Pipeline Natural Gas (PNG) Connections category dominated the market in 2023.
The Industrial had the largest share of the market.
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