CNG Type 3 and Type 4 Tank Market Expected to Reach $498.8 Million by 2032

According to a new report published by Allied Market Research, titled, “CNG Type 3 and Type 4 Tank Market," The CNG type 3 and type 4 tank market size was valued at $263.90 million in 2022, and is estimated to reach $498.8 million by 2032, growing at a CAGR of 6.8% from 2023 to 2032.

The glass fiber composites raw materials segment is witnessing consistent growth, fueled by the increasing demand for cost-effective and reliable CNG tank solutions. As the adoption of CNG vehicles expands globally, particularly in emerging economies, the need for affordable tank options has become a driving force in this market.

In addition, CNG tank manufactures are shifting towards type 4 CNG tanks as it offers higher storage capacity at a reduced weight. For instance, in February 2024, Confidence Group, known for its numerous CNG and LPG cylinder manufacturing plants and extensive distribution network, announced plans to introduce Type-4 cylinders constructed from composite polymer and carbon fiber wrapping. These cylinders are notably lighter compared to the conventional Type-1 steel cylinders commonly utilized in India. The reduced weight is expected to enable substantially higher capacity when integrated into vehicles or utilized for gas transportation via trucks, as stated by the company.

Furthermore, Europe is one of the major regions of the global CNG type 3 and type 4 tank industry, dominated by European countries such as France, Germany, and the UK. The European market for CNG Type 3 and Type 4 tanks is driven by the region's focus on reducing greenhouse gas emissions and promoting sustainable mobility solutions. Several European countries, including Germany, Italy, and the Netherlands, have implemented policies and initiatives to encourage the adoption of CNG vehicles, thereby stimulating the demand for advanced CNG tank technologies. The growth of the CNG type 3 and type 4 tank marketin Europe is further propelled by the region's emphasis on innovation and technological advancement. The CNG Type 3 and Type 4 tank market analysis includes evaluations of technological advancements and innovations driving market growth.

The European Union's ambitious targets to reduce carbon emissions are also propelling the market forward, leading to the development of advanced CNG tank technologies and infrastructure. Moreover, understanding the CNG Type 3 and Type 4 tank market share helps investors gauge the market's competitive landscape.

In addition, wide adoption of CNG vehicles by logistic companies further creates demand for CNG Type 3 and Type 4 Tank in the region. For instance, in March 2024, Iveco, a brand under the Iveco Group that specializes in light, medium, and heavy commercial vehicles, secured an order for 178 S-Way CNG (Compressed Natural Gas) trucks from DHL's Post & Parcel Germany division. This order aims to bolster DHL's sustainable fleet, aligning with their goal of reducing their carbon footprint and supporting the decarbonization of road transport. The trucks will primarily serve for inter-hub transport at DHL parcel centers, customer pick-ups, and urban deliveries to post offices. Therefore, many initiatives and developments by European companies support the market growth in the region.

In addition, Indian CNG tank manufacturers have expanded their presence through manufacturing plant. For instance, in February 2022, EKC, India based company through its wholly owned subsidiary EKC International FZE, received in-principal approval to establish a CNG cylinder production facility in Egypt. The facility will be formed as a joint venture with a local Egyptian partner, with EKC FZE holding the majority stake. Manufacturers are aligning their production strategies with the CNG Type 3 and Type 4 tank market forecast to meet evolving customer demands.

The growth of the CNG type 3 and type 4 tank market in the Asia-Pacific region is propelled by several factors, including favorable government policies, investments in CNG refueling infrastructure, and the region's focus on reducing air pollution and greenhouse gas emissions. The availability of cost-effective CNG Type 3 tanks has made CNG vehicles an attractive option for commercial fleets and public transportation systems, further increases CNG type 3 and type 4 tank market size.

The CNG type 3 and type 4 tank industry is segmented on the basis of raw material, type, and region. By raw material, it is divided into glass fiber composites raw materials, carbon fiber composites raw materials, and others. By type, it is categorized into Type 3 CNG Tanks, and Type 4 CNG Tanks. By region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

Key Findings of the Study

• By raw materials, the glass fiber composites raw materials segment is anticipated to dominate the CNG type 3 and type 4 tank industry in the coming future.
• By type, the type 3 CNG tanks segment is anticipated to lead the market.
• By region, Asia-Pacific is anticipated to register the highest CAGR during the forecast period.

The key players operating in the global CNG type 3 and type 4 tank market include with Anhui Clean Energy Co., Ltd., Beijing Tianhai Industry Co. Ltd., Everest Kanto Cylinders Ltd., Faber Industrie S.P.A, Fiba Technologies, Hexagon Agility, Luxfer Group, Maruti Koatsu Cylinders Ltd, Quantum Fuel Systems Technologies Worldwide Inc., Worthington Industries, Indoruss Synergy Pvt. Ltd., Santek, Shandong AUYAN New Energy Technology Co., Ltd., Time Technoplast Ltd., Hanwha Solutions, Shanghai Metal Corporation, Beijing SinoCleansky Technologies and Corp, Weifang Hengsheng Gas Co. These players are adopting strategies such as contracts, agreements, and acquisitions to improve their market positioning.