The global CNG tanks market was valued at $1.5 billion in 2021, and is projected to reach $2.6 billion by 2031, growing at a CAGR of 5.9% from 2022 to 2031.
The CNG tanks market is segmented into Raw Material, Propulsion, Vehicle Type and Type.
Compressed natural gas tanks or CNG tanks can be referred as high-pressure cylinders in which CNG gas is stored. The compressed natural gas is compressed into a high-pressure cylinder, usually to around 250 bar. In vehicles, CNG gas is stored in these tanks which is then used to power the vehicle. In recent years, the share of natural gas in the global energy mix has drastically increased. The compressed natural gas (CNG) is used widely in vehicle transportation vehicles due to affordability and eco-friendliness. In addition, rise in awareness regarding natural gas-fueled vehicles and government policies to support the green energy vehicles support the growth of the market. Surge in production of natural gas-powered vehicles, innovation in hybrid-powered vehicles, and increase in demand for lightweight storage solutions positively impact the growth of the CNG tanks industry.
Factors such as increase in adoption of natural gas in the automotive industry and rise in environmental awareness are anticipated to boost growth of the global CNG tanks market during the forecast period. However, intense competition, high cost of composite tanks, stringent regulatory approvals, and increase in use of Adsorbed Natural Gas (ANG) are expected to hinder growth of the market during the forecast period. Moreover, growth in demand from developing countries and low Cost of CNG compared to crude oil derivative fuels are anticipated to create opportunities for the market growth in the future.
The CNG tanks market is segmented on the basis of raw material, propulsion, vehicle type, type, and region. By raw material, it is divided into glass fiber composites raw materials, carbon fiber composites raw materials, and others. By propulsion, it is bifurcated into petrol and diesel. By vehicle type, it is classified into passenger cars, light commercial vehicles (LCVs), and heavy commercial vehicles (HCVs). By type, it is categorized into P Type 1 CNG Tanks, Type 2 CNG Tanks, Type 3 CNG Tanks, and Type 4 CNG Tanks. By region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Key players that operate in this CNG tanks market include Anhui Clean Energy Co., Ltd., Avanco GmbH, Beijing Tianhai Industry Co., Ltd., Everest Kanto Cylinders Limited, Faber Industrie S.P.A, FIBA Technologies, Inc., Hexagon Composites ASA, Indoruss Synergy Pvt. Ltd., Lianyungang Zhongfu Lianzhong Composites Group Co. Ltd., Luxfer Holdings PLC, Maruti Koatsu Cylinders Ltd., NGV Technologies Inc., Plastic Omnium, Praxair Technology, Inc., Quantum Fuel Systems LLC, ULLIT, and Worthington Industries Inc.
Increase in in adoption of natural gas in the automotive industry
In the U.S., more than 175 thousand vehicles are powered by natural gas, and roughly 23 million vehicles worldwide. Natural gas vehicles are high mileage vehicles which provide higher fuel range for various applications. . The advantages of natural gas as a transportation fuel are its domestic availability, widespread distribution infrastructure, and reduced greenhouse gas emissions over conventional gasoline and diesel fuels.
CNG vehicles store natural gas in tanks and cylinders where it remains in a gaseous state under pressure. The driving range of natural gas vehicles is less than that of comparable diesel or gasoline vehicles, due to lower energy density of natural gas, hence, extra storage tanks/cylinders can increase the range. Thus, multiple benefits associated with natural gas fuel its adoption in the automotive industry, which, in turn, notably contributes toward the growth of the CNG tanks market.
Rise in environmental awareness
Automobiles are a major source of ozone, particulate matter, and other smog-forming pollutants. The dangers of air pollution on one's health are enormous. Poor air quality exacerbates respiratory illnesses such as asthma & bronchitis, raises the risk of life-threatening disorders such as cancer, and costs the health-care system a lot of money. Particulate pollution is responsible for up to 30,000 deaths prematurely each year. Vehicles, engines and motorized equipment that emit exhaust and evaporative pollutants are illustrations of these sources. Vehicles utilized on roadways for passenger or freight transportation are considered on-road sources.
Vehicles, motors, and equipment used for construction, agriculture, recreation, and a variety of other applications are examples of off-road sources. To reduce the environmental impact of the vehicle sector, governments all over the world have passed strict environmental restrictions. For instance, a group of 21 state attorneys general, the District of Columbia, and several large U.S. cities encouraged the U.S. government to implement stringent automobile emission laws in September 2021.
Automobile manufacturers create alternative fuel-powered vehicles that provide a greener driving experience with little or no hazardous emissions. The use of natural gas as a transport fuel has two environmental advantages; for instance, natural gas is a clean burning fuel with very low nitrogen oxides and soot emissions, thus substantially improving the local air quality. In addition to this, natural gas produces less CO2 for every unit of energy consumed by the vehicle. CNG is employed to power passenger cars and city buses.
These vehicles emit 5-10% less CO2 than comparable gasoline-powered vehicles.. The recent environmental changes, such as increase in global warming across the globe, have led to rise in awareness among the people to spend the income to buy vehicles powered by natural gas that are less harmful to the environment compared to conventional vehicles. Moreover, governments across the globe have imposed stringent norms for the vehicle emission. Increasing government norms related to vehicle emission is expected to propel the demand for CNG vehicles, which in turn is anticipated boost the CNG tanks market across the globe.
Increase in use of Adsorbed Natural Gas (ANG)
Compressed natural gas (CNG) cylinders are available in a number of different types, weights, and sizes to suit different applications. Generally, as tanks weight decreases, tanks costs increase. In some cases, tanks are available for lease from vehicle converters or gas suppliers.
Adsorbed Natural Gas (ANG) stores natural gas in a carbon honeycomb structure and eliminates the need for high pressure storage cylinders/tanks. As the gas impacts the system, it is adsorbed into the material where it can be stored at a very low pressure in a solid form. This means it is no longer required to use high pressure cylinders to store the fuel onboard the vehicle. This reduces weight and allows the storage to be custom molded into a huge variety of shapes and sizes. The real advantage of an ANG system is that it is backwards compatible. ANG systems do not require the 3,600 pounds per square inch (PSI) pressure needed for today's CNG vehicles, though they can still use it. An ANG-equipped vehicle can still use the existing CNG network to fill up. While it is true it could dramatically lower the required pressures for an onsite station, they would not be stranded by adopting the new technology. The increase in use of Adsorbed Natural Gas storage technology in vehicle is expected hinder the demand for CNG tanks market.
Growth in demand from developing countries
The demand for automobiles in emerging countries is expected to expand dramatically in the future years as a result of urbanization and increased industrial activity. Manufacturers are increasingly building production plants in emerging countries due to rise in demand for automobiles in the region. Developing nations have observed an increase in the production of automobiles owing to factors such as favorable government policies, increasing GDP, and rising consumer spending. Emerging companies and market leaders in many industries throughout emerging nations, such as e-commerce, the food industry, and others, have boosted demand for delivery and transportation solutions, therefore boosting the production of heavy commercial vehicles even further. With the increase in demand for vehicles, the demand for CNG vehicles is increasing as it is an environment-friendly and cost-effective alternative to petrol and diesel. As a result, governments across various countries in the region promoting their use over traditional fuels. Owing to this, the CNG vehicles have gained popularity, which in turn is expected to fuel the demand for CNG tanks during the forecast period.
Key Benefits For Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the cng tanks market analysis from 2021 to 2031 to identify the prevailing cng tanks market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the cng tanks market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global cng tanks market trends, key players, market segments, application areas, and market growth strategies.
CNG Tanks Market Report Highlights
| Aspects | Details |
 By Raw Material |
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 By Propulsion |
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 By Vehicle Type |
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 By Type |
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 By Region |
|
 Key Market Players | Anhui Clean Energy Co., Ltd., Avanco Group, Fiba technologies, Praxair Technologies Inc, Beijing Tianhai Industry Co. Ltd., Worthington Industries, Quantum Fuel Systems Technologies Worldwide Inc, Faber Industrie S.P.A, Indoruss Synergy Pvt. Ltd., NGV Technologies Inc, Lianyungang Zhongfu Lianzhong Composites Group Co. Ltd., Maruti Koatsu Cylinders Ltd, Ullit SA, Plastic Omnium, Hexagon Composites ASA, Everest Kanto Cylinders Ltd., Luxfer Group |
Analyst Review
The CNG tanks market is expected to witness significant growth, owing to stringent government regulations related to fuel efficiency norms. Moreover, increase in demand for emergence of lightweight composite CNG cylinders is expected fuel the demand for CNG tanks during the forecast period. In addition, CNG-powered vehicles are considered to be a greener alternative to gasoline-powered vehicles. The bi-fuel options offered by CNG vehicles make them a preferred choice among users. In addition, the cost benefits of CNG coupled with significant reductions in CO2 emissions are expected to boost the growth of the CNG market.
Factors such as increase in adoption of natural gas in the automotive industry and rise in environmental awareness are anticipated to boost growth of the global CNG tanks market during the forecast period. However, intense competition, high cost of composite tanks, stringent regulatory approvals, and increase in use of Adsorbed Natural Gas (ANG) are expected to hinder growth of the market during the forecast period. Moreover, growth in demand from developing countries and low Cost of CNG compared to crude oil derivative fuels are anticipated to create opportunities for the market growth in the future.
Moreover, to fulfil the changing demand scenarios, market participants are concentrating on business expansion and partnership to increase the geographic presence and meet new business opportunities. For instance, in March 2022, EKC International FZE, a wholly owned subsidiary of Everest Kanto Cylinder Limited announced for setting up of a CNG cylinder production facility in Egypt. This is expected to be in the form of a Joint Venture with a local Egyptian partner with majority holding with EKC FZE. Moreover, in March 2022, Hexagon Purus, division of Hexagon Composites ASA and CIMC Enric announced the signing of investment agreement to establish a joint production facility in Shijiazhuang, Hebei and the CIMC-Hexagon New Energy Technologies management office and engineering hub in Beijing Daxing District International Hydrogen Development Zone.
In addition, market participants are continuously focusing on agreement strategy to increase their customer base and product portfolio. For instance, in June 2021, Luxfer Holdings PLC signed an agreement with Momentum Fuel Technologies to provide neck-mounted G-Stor Go Type 4 cylinders, the world’s largest manufacturer of high-pressure composite and aluminum cylinders.
Key players that operate in this market include Anhui Clean Energy Co., Ltd., Avanco GmbH, Beijing Tianhai Industry Co., Ltd., Everest Kanto Cylinders Limited, Faber Industrie S.P.A, FIBA Technologies, Inc., Hexagon Composites ASA, Indoruss Synergy Pvt. Ltd., Lianyungang Zhongfu Lianzhong Composites Group Co. Ltd., Luxfer Holdings PLC, Maruti Koatsu Cylinders Ltd., NGV Technologies Inc., Plastic Omnium, Praxair Technology, Inc., Quantum Fuel Systems LLC, ULLIT, and Worthington Industries Inc.
The global CNG tanks market was valued at $1.5 billion in 2021, and is projected to reach $2.6 billion by 2031, registering a CAGR of 5.9% from 2022 to 2031
Increase in adoption of natural gas in the automotive industry, and rise in environmental awareness are major trends that are driving the CNG Tanks Market
Passenger Vehicles is the leading application of CNG Tanks Market
Asia-Pacific is the largest regional market for CNG Tanks
Key players that operate in this CNG tanks market include Anhui Clean Energy Co., Ltd., Avanco GmbH, Beijing Tianhai Industry Co., Ltd., Everest Kanto Cylinders Limited, Faber Industrie S.P.A, FIBA Technologies, Inc., Hexagon Composites ASA, Indoruss Synergy Pvt. Ltd., Lianyungang Zhongfu Lianzhong Composites Group Co. Ltd., Luxfer Holdings PLC, Maruti Koatsu Cylinders Ltd., NGV Technologies Inc., Plastic Omnium, Praxair Technology, Inc., Quantum Fuel Systems LLC, ULLIT, and Worthington Industries Inc
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