The global Compressed Natural Gas market size was valued at USD 97.1 billion in 2019 and is anticipated to grow at a CAGR of 12.8% during the forecast period. rowing importance of CNG as a vehicular fuel in several regional markets is the main factor to drive industry growth over the forecast period. CNG use has been increasing rapidly owing to the benefits it offers economically and environmentally. As it is a considered as one of the cleanest transportation fuels, several government initiatives and schemes have been formulated for further increasing its use. This has actually enhanced the air quality.
Know more about this report: request for sample pages
In April 2016, several countries agreed to sign in the Paris agreement to which the 21st conference (COP 21) preceded at the end of 2015 to the United Nations Framework Convention on Climate Change. Paris Protocol has already been appended by one seventy-five nations, including China, Great Britain, the USA, Russia, France, etc., which confirmed the significance of environmental issues and climate change around the world.
In the recent past, the urban population has increased across the globe. The subsequent lifestyle market developments in the past few years, particularly in 2018 and 2019 resulted in confirmation as an abundant natural resource thus resulting in its increased competitive pricing. Overall prices declined across the globe in late 2018 and continued to fall towards first half of 2019. Some of the reasons for the same were milder winter particularly in the northern hemisphere, market flexibility, and increased supply, thus enhancing the overall cost competitiveness of the market, which in turned benefitted the transport sector.
Prices of compressed natural gas remained steady across the globe, thus directly impacting the compressed natural gas market as well. The Compressed Natural Gas (CNG) prices did not quite go up with a higher rate in the recent past. In the U.S., Henry Hub prices, in early 2019, reached its 2-year low. The CNG spot prices in the U.S. Permian basin reached during the same period into negative levels, due to huge presence of associated gas obtained through oil production as well as lack of dedicated pipeline takeaway capacity.
The market is primarily segmented on the basis of type, application, and region.
Know more about this report: request for sample pages
Compressed Natural Gas (CNG) market by type is further bifurcated into associated, non-associated and unconventional. The application segments are further segmented into light passenger vehicles, medium/heavy duty vehicles and three-wheeler vehicles. Compressed Natural Gas (CNG) production of non-associated reserves is expected to be the leading source segment by 2026. Exploration of unconventional reserves has increased in the recent past owing to sustainable development of the globally increasing energy needs. Hence, this segment is projected to be a potential source for CNG processing in the near future. Associated compressed natural gas been already satisfying greatly to the present demand for CNG and is expected to experience moderate growth over the forecast period.
Associated segment as the name suggests, is the compressed natural gas produced as a byproduct during the production of crude oil and its compressed natural gas reserves are typically earmarked for crude oil production. These reserves typically are in peak production for a few years after which the production gradually declines. The demand for associated segment is expected to grow at an estimated CAGR of 11.6% over the next seven years.
Light Passenger vehicles market segment occupied major market share in 2019 and is expected to maintain its dominance by the end of forecast period. Strong initiatives aimed at CNG promotion in light passenger vehicles particularly in Asia Pacific regions, low cost of CNG leading to cost competitiveness are some of the factors benefitting the segment growth.
Public transport heavy and medium duty vehicles run with Compressed Natural Gas (CNG) as transportation fuels in almost every developed and developing nation globally. This has been made mandatory by the governments in most of the countries as a step towards contributing towards a clean atmosphere which helps in minimum release of CO2 compared to ignition of other fissile fuels. Passenger cars and other three-wheeler vehicles using Compressed Natural Gas (CNG) has been increasing yearly from 2014; however, the volume of CNG consumed compared to the heavy-duty vehicles is significantly less. Rising demand for cleaner fuels and development of new CNG engines which offer similar efficiency as petrol/diesel ones are expected to be some of the reasons to drive product demand in these vehicle segments.
Asia Pacific was the leading region for the Compressed Natural Gas (CNG) market in 2019. Pakistan, India, China and Thailand are the leading CNG vehicles market in the region with Pakistan and India ranked among the top five nations worldwide. Product demand in Pakistan is expected to increase further despite deregulations in the market and the parallel rise in diesel/petrol prices. Public transport and commercial use vehicles in many cities in India use CNG as a mandatory fuel, which has significantly helped in reducing the carbon footprint. China, Singapore, Thailand and even Malaysia are yet another potential markets for CNG consumption with stringent regulations for it use as a mandate for transportation fuel.
North America Compressed Natural Gas (CNG) market demand for CNG is being driven by strong demand from countries such as the U.S., And Canada. The rising number of CNG vehicles in the region is benefitting the regional market growth. Increasing number of refueling stations, rapid rise in compressed natural gas production in the region leading to reduced imports are benefitting the regional market growth.
The compressed natural gas market players are expanding their presence across various geographies and entering new markets in developing regions to expand their customer base and strengthen presence in the market. The companies are also introducing new innovative products in the market to cater to the growing consumer demands.
Some of the leading industry participants in the Compressed Natural Gas (CNG) market include China Natural Gas Inc., NeoGas Inc, ANGI Energy Systems Inc, GNVert, Trillium CNG, OAO GasProm, J-W Power Company, Mahanagar Gas Limited (MNGL), National Iranian Gas Company, Indraprastha Gas Limited (IGL), ExxonMobil, Chevron, ConocoPhillips, EOG Resources, Occidental Petroleum, Phillips 66, Valero Energy, Halliburton, Anadarko Petroleum, and Marathon Petroleum.