Compressed Natural Gas (CNG) Market Size, Share, Trends, Industry Analysis Report
By Source (Refinery, Associated Gas, Non-Associated), By Application (Light Duty Vehicles, Medium/Heavy Duty Trucks), By Region – Market Forecast, 2025–2034
- Published Date:Sep-2025
- Pages: 125
- Format: PDF
- Report ID: PM1256
- Base Year: 2024
- Historical Data: 2020-2023
Overview
The global compressed natural gas (CNG) market size was valued at USD 174.03 billion in 2024, growing at a CAGR of 11.70% from 2025 to 2034. Key factors driving demand for CNG include rising urbanization, increasing production of CNG vehicles, and rising petroleum prices.
Key Insights
- The non-associated segment accounted for 56.23% of revenue share in 2024 due to its independent production from dedicated gas fields.
- The light duty vehicles segment accounted for 63.21% of revenue share in 2024 due to the expanding commercial transportation sector.
- Asia Pacific accounted for 48.15% of global CNG market revenue share in 2024, owing to rapid urbanization and increasing vehicle ownership.
- China held the largest revenue share in the Asia Pacific CNG landscape in 2024, due to rising focus on reducing smog and carbon emissions.
- The industry in Europe is projected to grow at the fastest pace in the coming years, owing to carbon reduction goals and policies favoring low-emission vehicles.
Industry Dynamics
- The increasing production of CNG vehicles is fueling the demand for CNG by encouraging more people and businesses to adopt CNG fuel by offering a wider range of affordable and efficient models.
- The rising petroleum prices are driving the CNG market globally by pushing consumers and businesses to seek cheaper fuel alternatives such as CNG.
- The growing focus on clean energy worldwide is expected to create a lucrative market opportunity during the forecast period.
- The high setup cost of a CNG fueling station hinders the compressed natural gas market growth.
Artificial Intelligence (AI) Impact on the CNG Market
- AI enhances CNG production and distribution by predicting demand, optimizing supply chains, and reducing downtime through predictive maintenance.
- AI-driven analytics improve compressor efficiency and leak detection, cutting costs and emissions.
- AI models analyze market trends and demand patterns to enable dynamic pricing strategies for CNG.
- AI monitors pipelines and infrastructure in real-time, detecting anomalies to prevent accidents.
Market Statistics
- 2024 Market Size: USD 174.03 Billion
- 2034 Projected Market Size: USD 525.26 Billion
- CAGR (2025–2034): 11.70%
- Asia Pacific: Largest Market Share
Compressed natural gas (CNG) is a clean-burning alternative fuel derived from natural gas, primarily composed of methane. It is stored in high-pressure cylinders to reduce its volume, making it suitable for use in vehicles and industrial applications. CNG is odorless, colorless, and non-toxic, though an odorant is often added for leak detection. Compared to conventional fuels like petrol and diesel, CNG emits significantly fewer pollutants, including carbon monoxide, nitrogen oxides, and particulate matter, making it an environmentally friendly option.
CNG is widely used as a transportation fuel, especially in buses, cars, trucks, and three-wheelers, due to its cost-effectiveness and lower emissions. Many countries promote CNG vehicles to reduce air pollution and dependence on petroleum. Additionally, CNG is used in industrial applications for power generation, heating, and as a feedstock in manufacturing processes. Its high octane rating improves engine efficiency, and its lower carbon content helps combat climate change.
 Market.png)
The global demand for CNG is driven by the rising urbanization. World Economic Forum, in its 2022 report, stated that the share of the world’s population living in cities is expected to rise to 80% by 2050, from 55% in 2022. This is driving governments and businesses to seek cleaner and more cost-effective fuel alternatives to reduce pollution and operational costs. Compressed Natural Gas (CNG) offers a cheaper and eco-friendly solution compared to traditional fuels like diesel and petrol, making it a preferred choice for automotive vehicles. Urban areas also face stricter emission regulations, pushing fleet operators and commuters to adopt CNG-powered vehicles, contributing to market growth. Additionally, growing urban populations require more efficient waste management, and converting organic waste into biogas, which can supplement CNG, further drives demand. Thus, urbanization directly fuels the need for CNG as a sustainable energy solution.
Drivers & Opportunities
Increasing Production of CNG Vehicles: The increasing production of CNG vehicles is encouraging more people and businesses to adopt CNG fuel by offering a wider range of affordable and efficient models. Fleet operators, especially in logistics and public transport, are heavily adopting CNG vehicles due to lower fuel costs and compliance with emission norms, driving higher CNG consumption. Additionally, government incentives and subsidies for CNG-compatible vehicles further stimulate demand, as more drivers switch from petrol or diesel. Hence, as CNG vehicles become mainstream, fuel stations invest in more CNG dispensing infrastructure, making refueling easier and further increasing demand.
Rising Petroleum Prices: Rising petroleum prices are making petrol and diesel more expensive, pushing consumers and businesses to seek cheaper fuel alternatives such as CNG. Fleet operators, taxis, and public transport services are prioritizing CNG to cut fuel bills and maintain profitability. Governments worldwide are also promoting CNG adoption through subsidies and policies, especially when high petroleum prices strain economies. Additionally, rising oil prices make CNG infrastructure investments more attractive, leading to more refueling stations and further encouraging the shift. This cost-driven demand strengthens CNG’s position as a preferred fuel in the transportation sector.
 Market.jpg)
Segmental Insights
Source Analysis
Based on source, the segmentation includes refinery, associated gas, and non-associated. The non-associated segment accounted for 56.23% of revenue share in 2024 due to its stable and independent production from dedicated gas fields. Producers preferred this source owing to its consistent supply, lower contamination with oil, and reduced processing requirements compared to other sources. Abundant reserves in key producing countries and the development of advanced extraction technologies further strengthened its dominance. Governments in various regions encouraged non-associated utilization through supportive exploration policies and infrastructure investments.
The associated gas segment is projected to register a CAGR of 12.32% from 2025 to 2034, owing to rising crude oil production, which naturally boosts associated gas output as a byproduct. Energy companies are increasingly investing in capturing and utilizing this resource instead of flaring it, driven by stricter environmental regulations and economic incentives. Technological advancements in gas processing and transportation, along with policies promoting waste minimization, are expected to make associated gas a more practical and sustainable source of supply. Additionally, expanding oil exploration in offshore and unconventional reserves is estimated to contribute to the segment’s strong growth.
Application Analysis
In terms of application, the segmentation includes light duty vehicles, medium/heavy duty trucks, medium/heavy duty buses, and others. The light duty vehicles segment accounted for 63.21% of revenue share in 2024 due to their widespread adoption in both personal and commercial transportation. Consumers favored these vehicles for their lower fuel costs, reduced greenhouse gas emissions, and extended driving ranges compared to traditional gasoline-powered options. The availability of factory-fitted models from major automakers and the expansion of refueling infrastructure in urban and suburban areas further boosted their demand. Government incentives, tax benefits, and stricter emission norms also encouraged fleet operators and private owners to transition toward light-duty vehicles, ensuring their strong presence.
The medium/heavy duty trucks segment is estimated to register a CAGR of 13.08% from 2025 to 2034. The growth is attributed to logistics and freight sector’s increasing focus on cost efficiency and environmental compliance. Operators in long-haul and regional transport are shifting to this vehicle category to reduce dependence on diesel while maintaining high load-carrying capacity. Advancements in engine technology, improved fuel storage systems, and the establishment of high-capacity refueling stations along major transport corridors are projected to make these trucks more practical and competitive. Additionally, rising e-commerce activity and industrial output are expected to generate sustained freight movement, strengthening the segment’s growth.
-market-by-source-analysis,-2020---2034.webp)
Regional Analysis
The Asia Pacific CNG market accounted for 48.15% of global revenue share in 2024. This dominance is attributed to rapid urbanization, increasing vehicle ownership, and government policies promoting cleaner fuels to combat air pollution. United Nations Human Settlements Programme, in its report, stated that the urban population in Asia is expected to grow by 50% by 2050. Countries such as India and Pakistan expanded CNG infrastructure to reduce reliance on expensive oil imports, while economic benefits and lower emissions make CNG an attractive alternative for public transport and commercial fleets in the region.
China CNG Market Insights
China held the largest revenue share in the Asia Pacific CNG landscape in 2024, due to stringent environmental regulations aimed at reducing smog and carbon emissions. The government supported CNG vehicles with subsidies and tax incentives, particularly for buses and trucks, while abundant domestic natural gas reserves ensured supply stability. Rising fuel costs and energy security concerns further accelerated the shift toward CNG.
North America CNG Market Trends
The market in North America is projected to hold a substantial revenue share in 2034 due to the abundant and low-cost shale gas production, making CNG cheaper than gasoline or diesel. Fleet operators and logistics companies are adopting CNG vehicles to cut fuel expenses and meet sustainability targets. Government incentives, such as tax credits for clean-fuel vehicles, are also encouraging the transition, especially in heavy-duty transport.
U.S. CNG Market Overview
The demand for CNG in the U.S is being driven by cheap domestic natural gas, alongside federal and state-level incentives for alternative fuel vehicles. Waste management, transit agencies, and long-haul trucking companies are leading the shift to CNG to lower operating costs and comply with stricter emissions standards. Expanding refueling infrastructure is further supporting market growth in the country.
Europe CNG Market Assessment
The industry in Europe is projected to grow at the fastest pace in the coming years, owing to high diesel prices, carbon reduction goals, and policies favoring low-emission vehicles. Countries such as Germany and Italy are investing in CNG refueling networks, while automakers are offering more CNG-compatible models. The EU’s focus on decarbonizing transport, along with tax benefits for CNG users, strengthens demand, particularly in the commercial and public transportation sectors.
-market-trends,-by-region,-2020-–-2034.webp)
Key Players & Competitive Analysis
The global CNG market is highly competitive, with key players including Bharat Petroleum Corporation Limited, BP Plc, Chevron Corporation, Eni S.p.A, EOG Resources, Exxon Mobil Corporation, Gujarat Gas Ltd., Lukoil, Shell plc, and TotalEnergies. These companies dominate through extensive distribution networks, technological advancements, and strategic partnerships. Major oil and gas giants such as Shell, TotalEnergies, and Chevron are investing heavily in CNG infrastructure to capitalize on the shift toward cleaner fuels. Regional players such as Gujarat Gas Ltd. (India) and Lukoil (Russia) hold strong market positions due to government policies promoting CNG adoption. Competition is intensifying as companies focus on expanding refueling stations, improving fuel efficiency, and integrating renewable natural gas (RNG) to enhance sustainability. Additionally, collaborations with automotive manufacturers to develop CNG-compatible vehicles are shaping market dynamics.
A few major companies operating in the CNG industry include Bharat Petroleum Corporation Limited; BP Plc; Chevron Corporation; Eni S.p.A; EOG Resources, Inc.; Exxon Mobil Corporation; Gujarat Gas Ltd.; Lukoil; Shell plc; and TotalEnergies.
Key Players
- Bharat Petroleum Corporation Limited
- BP Plc
- Chevron Corporation
- Eni S.p.A
- EOG Resources, Inc.
- Exxon Mobil Corporation
- Gujarat Gas Ltd.
- Lukoil
- Shell plc
- TotalEnergies
CNG Industry Developments
In March 2023, Chevron U.S.A. Inc. announced the opening of its second compressed natural gas (CNG) station in the state of California, U.S.
In November 2022, Chevron U.S.A. Inc., a subsidiary of Chevron Corporation, acquired full ownership of Beyond6, LLC (B6) and its network of 55 compressed natural gas (CNG) stations across the U.S.
CNG Market Segmentation
By Source Outlook (Revenue, USD Billion, Volume Million Cubic Meter, 2020–2034)
- Refinery
- Associated Gas
- Non-Associated
By Application Outlook (Revenue, USD Billion, Volume Million Cubic Meter, 2020–2034)
- Light Duty Vehicles
- Medium/Heavy Duty Trucks
- Medium/Heavy Duty Buses
- Other
By Regional Outlook (Revenue, USD Billion, Volume Million Cubic Meter, 2020–2034)
- North America
- U.S.
- Canada
- Europe
- Germany
- France
- UK
- Italy
- Spain
- Netherlands
- Russia
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- Malaysia
- South Korea
- Indonesia
- Australia
- Vietnam
- Rest of Asia Pacific
- Middle East & Africa
- Saudi Arabia
- UAE
- Israel
- South Africa
- Rest of Middle East & Africa
- Latin America
- Mexico
- Brazil
- Argentina
- Rest of Latin America
CNG Market Report Scope
|
Report Attributes |
Details |
|
Market Size in 2024 |
USD 174.03 Billion |
|
Market Size in 2025 |
USD 194.04 Billion |
|
Revenue Forecast by 2034 |
USD 525.26 Billion |
|
CAGR |
11.70% from 2025 to 2034 |
|
Base Year |
2024 |
|
Historical Data |
2020–2023 |
|
Forecast Period |
2025–2034 |
|
Quantitative Units |
Revenue in USD Billion, Volume in Million Cubic Meter, and CAGR from 2025 to 2034 |
|
Report Covera.ge |
Revenue Forecast, Competitive Landscape, Growth Factors, and Industry Trends |
|
Segments Covered |
|
|
Regional Scope |
|
|
Competitive Landscape |
|
|
Report Format |
|
|
Customization |
Report customization as per your requirements with respect to countries, regions, and segmentation. |
FAQ's
The global market size was valued at USD 174.03 billion in 2024 and is projected to grow to USD 525.26 billion by 2034.
The global market is projected to register a CAGR of 11.70% during the forecast period.
Asia Pacific dominated the market in 2024
A few of the key players in the market are Bharat Petroleum Corporation Limited; BP Plc; Chevron Corporation; Eni S.p.A; EOG Resources, Inc.; Exxon Mobil Corporation; Gujarat Gas Ltd.; Lukoil; Shell plc; and TotalEnergies.
The non-associated segment dominated the market revenue share in 2024.
The medium/heavy duty trucks segment is projected to witness the fastest growth during the forecast period.
© 2025 Polaris Market Research and Consulting. All rights reserved
