Compressed Natural Gas (CNG) Market Share, Size, Trends, Industry Analysis Report
By Source (Associated Gas, Non-Associated Gas, Unconventional sources), By Application, By Region, Segments & Forecast, 2023 – 2032
- Published Date:Jun-2023
- Pages: 114
- Format: PDF
- Report ID: PM1256
- Base Year: 2020
- Historical Data: 2019-2021
Report Outlook
The global compressed natural gas (CNG) market was valued at USD 138.06 Billion in 2022 and is expected to grow at a CAGR of 17.2% in the forecast period. The rising prices of fossil fuels such as gasoline and diesel, and surging carbon emissions from these fuels are the major reasons for driving the demand of CNG in the last few years. The lower price and greater efficiency of CNG along with stringent government regulations in pollution control has further increased the growth opportunity of the market in the last few years.
The research report offers a quantitative and qualitative analysis of the Compressed Natural Gas (CNG) Market to enable effective decision-making. It covers the key trends and growth opportunities anticipated to have a favorable impact on the market. Besides, the study covers segment and regional revenue forecasts for market assessment.
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Compressed natural gas (CNG) market is a form of natural gas that is compressed to a pressure of up to 3,600 pounds per square inch (psi) to be used as fuel for vehicles or industrial processes. It is an alternative to traditional fossil fuels such as gasoline and diesel and is considered a cleaner and more environmentally friendly option. CNG is primarily composed of methane, a greenhouse gas less harmful to the environment than other fossil fuels. When burned, CNG produces lower levels of harmful emissions such as carbon dioxide, nitrogen oxides, and particulate matter, making it a popular choice for vehicles and industrial processes that require cleaner fuel options.
CNG is also used in various industrial applications, including power generation and heating, as well as in producing chemicals and fertilizers. In addition, CNG is often used as a feedstock for producing liquefied natural gas (LNG), a more concentrated form of natural gas that can be easily transported over long distances.
For instance, as per International Energy Outlook 2016, global natural gas consumption is estimated to increase from 120 trillion cubic feet (Tcf) in 2012 to 203 Tcf in 2040. Further, the global industrial consumption of CNG has been growing at an average rate of 1.7%/year and increases by 2.2%/year from 2012 to 2040 by consumption of electric power sectors.
Inadequate infrastructure such as refilling stations and higher initial installation costs are the key challenges faced by players in the market. One of the main challenges for the CNG market is the need for more infrastructure, such as refueling stations, pipelines, and storage facilities. Expanding CNG's use for vehicles and industrial processes can be easy with adequate infrastructure.
Industry Dynamics
Growth Drivers
The rising prices of fossil fuels are one of the driving factors for the growth of the CNG market. As the costs of traditional fossil fuels such as gasoline and diesel continue to increase, more consumers and industries are looking for more cost-effective and sustainable alternatives. CNG is a viable alternative because it is generally less expensive than gasoline and diesel and has a more stable price than other fossil fuels.
In addition, the availability of natural gas and the development of infrastructure for CNG refueling have also contributed to the market's growth. With advancements in technology and improvements in infrastructure, CNG is becoming a more practical and convenient option for vehicle owners and industrial users.
The environmental benefits of CNG are one of the driving factors for the growth of the CNG market. CNG produces lower levels of harmful emissions such as carbon dioxide, nitrogen oxides, and particulate matter than traditional fossil fuels like gasoline and diesel. It makes it a cleaner and more environmentally friendly option for vehicles and industrial processes.
Reducing harmful emissions from CNG can help improve air quality and reduce the carbon footprint of vehicles and industrial processes. It has led to government initiatives and policies promoting using CNG as an alternative fuel, such as tax incentives, subsidies, and mandates for using alternative fuels in transportation.
Report Segmentation
The market is primarily segmented based on source, application, and region
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By Source |
By Application |
By Region |
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The non-associated gas segment will account for a major revenue share in the forecast period.
Due to several growth factors, using non-associated gas as a compressed natural gas (CNG) source has become increasingly popular. Non-associated gas refers to natural gas extracted from reservoirs that do not contain significant amounts of oil.
One of the main growth factors driving the use of non-associated gas for CNG production is the increasing availability and accessibility of this source of natural gas. Advances in drilling technology and techniques, such as horizontal drilling and fracking, have made extracting natural gas from previously inaccessible shale formations possible.
In addition, the development of infrastructure for CNG refueling has also contributed to the growth of the market for non-associated gas. With more CNG refueling stations being built, it has become more practical and convenient for vehicle owners to use CNG as a fuel source. It has helped drive demand for CNG and has led to an increasing focus on using non-associated gas as a source for CNG production.
Light-Duty Vehicles are anticipated to dominate the market in the forecast period.
Light-duty vehicles, such as passenger cars and light trucks, are the largest segment of the transportation sector and are responsible for significant greenhouse gas emissions. CNG offers a clean and cost-effective alternative to traditional gasoline and diesel fuels, making it an attractive option for light-duty vehicles.
One of the main growth factors driving the adoption of CNG in light-duty vehicles is the increasing availability of CNG refueling infrastructure. As more CNG refueling stations are built, it becomes more convenient and practical for vehicle owners to switch to CNG. It has helped drive demand for CNG-powered vehicles and has led to an increasing focus on developing CNG refueling infrastructure.
Another growth factor is the environmental benefits of using CNG as a fuel source. Compared to gasoline and diesel, CNG produces lower harmful emissions such as carbon dioxide, nitrogen oxides, and particulate matter. It makes it a cleaner and more environmentally friendly option for light-duty vehicles responsible for a significant amount of air pollution.
In addition, the cost savings associated with using CNG as a fuel source are also driving the market's growth. CNG is generally cheaper than gasoline or diesel, and the cost savings can be significant over the vehicle's life. CNG is an attractive option for fleet owners and other businesses that operate large numbers of cars.
Asia Pacific region is projected to dominate the market in the forecast period.
The Asia Pacific region has emerged as a dominant player in the CNG market in recent years, driven by several growth factors. These include government support, cost savings, environmental concerns, growing transportation demand, and natural gas availability.
Governments in the region have introduced policies to promote the use of CNG as a fuel source, including subsidies for CNG-powered vehicles and the development of CNG refueling infrastructure. It has helped to drive demand for CNG in the region, particularly in countries like China, India, Pakistan, and Bangladesh. CNG is generally cheaper than gasoline and diesel, making it an attractive option for regional vehicle owners. In countries with relatively high fuel prices, such as India and Pakistan, the cost savings associated with using CNG can be significant.
Environmental concerns are also driving the growth of the CNG market in the region. The Asia Pacific region is home to some of the world's most polluted cities, and using CNG as a fuel source can help reduce air pollution and improve air quality. The growing demand for transportation in the Asia Pacific region is also driving demand for CNG. Rapid urbanization and industrialization are leading to increased vehicles on the road, and CNG-powered vehicles offer a cost-effective and environmentally friendly alternative to traditional gasoline and diesel vehicles.
Competitive Insight
Some of the prominent key players operating in the marketspace includes National Iranian Gas Company, Chevron Corporation, Indraprastha Gas Limited, Total Energies, Phillips 66 Company, OAO Gazprom, ExxonMobil, Royal Dutch Shell, Angienergy, JW Power Company, EOG Resources, Occidental Petroleum Corporation, Spectrum Renewable Energy Limited, BioCNG
Recent Developments
- April 2023: Chevron Corporation has opened a new retail CNG station in California, that increases the availability of lower carbon fuels for use in heavy-duty vehicles.
- August 2022: ExxonMobil Lubricants Pvt Ltd has collaborated with Think Gas Distribution Pvt. Ltd., to made available its products across various states in India, and market its range of CNG offerings.
Compressed Natural Gas (CNG) Market Report Scope
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Report Attributes |
Details |
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Market size value in 2023 |
USD 160.08 Billion |
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Revenue forecast in 2032 |
USD 667.78 Billion |
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CAGR |
17.2% from 2023 - 2032 |
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Base year |
2022 |
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Historical data |
2019 - 2022 |
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Forecast period |
2023 - 2032 |
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Quantitative units |
Revenue in USD Billion and CAGR from 2023 to 2032 |
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Segments covered |
By Source, By Application, By Region |
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Regional scope |
North America, Europe, Asia Pacific, Latin America, Middle East & Africa |
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Key companies |
National Iranian Gas Company, Chevron Corporation, Indraprastha Gas Limited, Total Energies, Phillips 66 Company, OAO Gazprom, ExxonMobil, Royal Dutch Shell, Angienergy, JW Power Company, EOG Resources, Occidental Petroleum Corporation, Spectrum Renewable Energy Limited, BioCNG |
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FAQ's
key companies in Compressed Natural Gas (CNG) Market are National Iranian Gas Company, Chevron Corporation, Indraprastha Gas Limited, Total Energies, Phillips 66 Company.
The global compressed natural gas (CNG) market expected to grow at a CAGR of 17.2% in the forecast period.
The Compressed Natural Gas (CNG) Market report covering key segments are dsource, application, and region.
key driving factors in Compressed Natural Gas (CNG) Market are Growing energy demand.
The global compressed natural gas (CNG) market size is expected to reach USD 667.78 Billion by 2032.
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