Compressed Natural Gas (CNG) is a widely used type of natural gas which odorless, remains clear, and non-corrosive. It gained huge preference over other available options due to its cheaper rate, higher efficiency, and comes under the category of greener fuels. In addition to this, CNG is used in compressed form so that the vehicle can store it in large quantities to extend the driving range. Its key characteristic of being the cleanest fuel that emits very few impurities makes it popular among the users. This helps to increase the vehicle’s longevity and also reduces frequent maintenance requirements. It contains no additives as well as it burns clearly which keeps the proper functioning of a vehicle.
The rising adoption of compressed natural gas (CNG) as an alternative fuel to diesel and gasoline owing to the increasing fuel efficiency of vehicles is expected to boost the use of CNG across the globe. Additionally, increasing supportive government initiatives such as special subsidies provided in major consuming countries of Asia Pacific, especially in India and China to encourage adoption of CNG is projected to fuel the market growth over the forecast period. Furthermore, rising investment in infrastructural facilities for increasing the penetration of CNG is set to augment the market growth.
- Major economies from the Asia Pacific region are major consumers of CNG fuel and its demand is set to grow at a higher rate over the forecast period. The domestic market in Asian countries such as India, Indonesia, China, and Malaysia are witnessing increasing in NGVs demand which in turn driving the growth of the compressed natural gas (CNG) market.
- Light-duty vehicle (LDV) is anticipated to emerge as the most dominant application segment for the global CNG market and accounts for almost half of the total share in the CNG market. The substantial growth of the segment is a result of a rise in the production of natural gas vehicles (NGVs) along with a growing demand for clean fuels.
- Based on sources of extraction, non-associated gases accounted for the majority of revenue share in the market and are expected to grow their share in the coming years. Increasing exploration of unconventional gas reservoirs is responsible for segmental growth.
Based on the geographical scenario, the market in the Asia Pacific is growing at the fastest rate owing to the huge demand for CNG fuel in countries with the largest population. A rising number of automobiles using natural gas along with huge funding for the storage and distribution of CNG is estimated to drive major sales in the region. Increasing exploration of conventional gas reserves especially in Europe and North America is expected to drive growth in the regional markets. In addition to this, international companies are investing the regional market, as a result of prevailing lucrative opportunities.
Players working in the compressed natural gas (CNG) market are focusing on their business expansions across various regions to strengthen market position and increase customer base to increase revenue generation. In addition to this, key players are also bringing new products to fulfill the emerging needs and gain an edge over their competitors. ANGI Energy Systems Inc, Indraprastha Gas Limited, National Iranian Gas Company, ConocoPhillips, Halliburton, Marathon Petroleum, NeoGas Inc, China Natural Gas Inc., Anadarko Petroleum, and Occidental Petroleum are some of the prominent market players.
Deep-dive Insights on Compressed Natural Gas (CNG) Market by Polaris Market Research: https://www.polarismarketresearch.com/industry-analysis/compressed-natural-gas-cng-market