Volume Insights Strategic Overview
Allied Market Research announces the release of its comprehensive analysis of the composite cylinder sector. Adoption in Automotive and Aerospace is expected to drive the growth of the composite cylinder market. The adoption of composite cylinders in the automotive and aerospace sectors has been gaining significant momentum in recent years, largely driven by the increasing need for lightweight, durable, and high-performance storage solutions. In the automotive sector, composite cylinders are primarily used for Compressed Natural Gas (CNG)-powered vehicles, where reducing vehicle weight without compromising safety is a critical factor. Traditional steel cylinders, though strong, add considerable weight to vehicles, affecting fuel efficiency and overall performance. Composite cylinders offer a superior strength-to-weight ratio, which not only enhances fuel economy but also allows manufacturers to design vehicles with greater efficiency and extended driving ranges. In January 2024, Time Technoplast received official approval from India's Petroleum and Explosives Safety Organization (PESO) to manufacture high-pressure Type IV composite cylinders for hydrogen storage a government-backed enablement for automotive hydrogen applications.
The report highlights the growth in cost competitiveness of renewables. For EPC contractors, the declining technology costs make it easier to plan and execute projects within budget while maintaining profitability. The reduction in capital expenditure (CAPEX) lowers the entry barrier for developers and enables a faster return on investment, which in turn increases the volume of project opportunities. Additionally, integrated solutions combining solar or wind with battery storage are now economically viable, providing reliable, dispatchable power that can compete with traditional base-load plants. EPC firms benefit from this trend by offering turnkey solutions that incorporate advanced storage technologies, ensuring grid stability and improving project feasibility. The cost of battery storage projects globally fell by a third in 2024 to $104/MWh, and solar project costs declined by 21%, showing that renewable solutions involving composites are increasingly price competitive. Wind and solar generation costs are expected to drop another 4–2% in 2025. Battery costs are set to cross the $100/MWh barrier, further improving the storage economics vital for renewables
The global volume of LPG cylinder type is expected to grow from 2,898 thousand units in 2019 to 4,207 thousand units by 2030, registering a CAGR of 3.8% over the forecast period. The engineering aspect of EPC firms can also contribute to the design and development of LPG cylinders themselves, particularly as demand grows for advanced, lightweight, and composite cylinders. Modern LPG cylinders increasingly require materials like aluminum, high-strength steel, or composite polymers to reduce weight while maintaining safety under high pressure. EPC firms can integrate material selection, structural analysis, and process engineering to improve cylinder strength, minimize production defects, and ensure compliance with international safety standards such as ISO 4705 or EN 1442.
Regional, Composite cylinder Sector Volume Growth
Asia-Pacific dominates the composite cylinder sector sales with 42.0% share in 2019 and 5.1% CAGR, while Europe and LAMEA show strong growth at 4.5%, and 3.6% CAGR respectively, fueled by growing adoption in clean energy including CNG, LPG, and hydrogen vehicles.
The regional analysis highlights significant variations in adoption trends and market potential across the globe. Asia-Pacific leads the market, contributing over 42.0% of the total volume in 2019 and expected to grow at a CAGR of 5.1%, driven by growth in smart cylinder integration.
Composite Cylinder Sector Volume Growth, By Region, 2019-2030 (Thousand units)
Region | 2019 | 2026 | 2030 | CAGR (2025-2030) |
North America | 1,544 | 1,788 | 2,013 | 2.8% |
Europe | 1,112 | 1,361 | 1,575 | 3.6% |
Asia-Pacific | 2,162 | 2,948 | 3,616 | 5.1% |
LAMEA | 326 | 427 | 513 | 4.5% |
Total | 5,144 | 6,524 | 7,718 | 4.1% |
Source: AMR Analysis
The report identifies Asia-Pacific as the largest contributor to the composite cylinder sector in terms of volume. Hybrid and hydrogen fuel cell vehicles emerging, there is an increasing need for lightweight, high-pressure cylinders in vehicle design drive the growth of composite cylinder sector in Asia-Pacific region which are projected to reach 3,616 thousand units by 2030, achieving a CAGR of 5.1%. However, the LAMEA remains an important player in global composite cylinder sector, growing with a CAGR of 4.5% by 2030.
Emerging markets such as China and India are expected to drive significant growth as the leading Chinese manufacturers, such as Anhui Clean Energy and CIMC Enric Energy Equipment, are capitalizing on this trend by producing cylinders that comply with international standards, including TUV, CE, and ISO certifications. These cylinders are not only utilized within China but are also exported globally, contributing to the country's position as a key player in the composite cylinder industry.
Public Sector Undertaking (PSU) and Oil Marketing Companies (OMCs) in India have introduced composite cylinders with a three-layered construction, thus enhancing safety and durability. These cylinders are still in limited circulation but represent a significant step towards modernizing the LPG distribution infrastructure.
Composite Cylinder Sector Volume Share, By Country, 2019-2030 (Thousand units)
Country | 2019 | 2026 | 2030 | CAGR (2025-2030) |
China | 891 | 1191 | 1444 | 4.8% |
India | 538 | 769 | 969 | 5.8% |
Indonesia | 105 | 134 | 158 | 4.0% |
Malaysia | 83 | 108 | 128 | 4.2% |
Thailand | 91 | 125 | 154 | 5.2% |
Taiwan, Republic Of China | 46 | 62 | 76 | 5.0% |
Vietnam | 67 | 89 | 107 | 4.6% |
Rest of Asia-Pacific | 341 | 470 | 581 | 5.3% |
Source: AMR Analysis
Key Highlights by Stakeholders
The demand for composite cylinders in Asia-Pacific countries has been rising steadily due to a combination of industrial growth, urbanization, and increasing adoption of cleaner energy solutions. In countries such as China, India, Japan, South Korea, and Australia, the shift towards lightweight, durable, and corrosion-resistant gas storage solutions is driving adoption in both commercial and residential sectors. Household and commercial LPG users, in particular, are transitioning from traditional steel cylinders to composite cylinders, attracted by their enhanced safety features, reduced weight, and portability. Government initiatives promoting safer energy storage and handling are further reinforcing this trend.
Increase in Hydrogen Storage Applications Sector Volume Trends
The report also highlights the rapid growth of hydrogen mobility and energy storage technologies, which is creating a significant demand for high-pressure storage solutions. Being a lightweight and highly flammable gas, hydrogen requires advanced, safe, and durable storage systems, and composite cylinders are increasingly being recognized as the ideal solution. These cylinders offer a high strength-to-weight ratio, corrosion resistance, and the ability to withstand very high pressures, making them suitable for both stationary and mobile hydrogen storage applications.
In the transportation sector, the rise of hydrogen fuel cell vehicles, including cars, buses, and trucks, is driving the need for lightweight, high-pressure composite cylinders that can store hydrogen efficiently while meeting stringent safety standards. Additionally, the energy sector is exploring hydrogen as a clean energy carrier for grid storage and backup power solutions. Composite cylinders allow for scalable and safe storage of hydrogen at refueling stations and industrial sites, supporting the broader adoption of hydrogen as a sustainable energy source.
Composite cylinder stakeholders should use the report’s insights to grab new opportunities and plans.
About Allied Market Research
Allied Market Research is a full-service research and business consulting firm that provides actionable insights and strategic recommendations to help clients make informed decisions and achieve sustainable growth. For more inquiries, please visit alliedmarketresearch.com.
About Allied Market Research
Allied Market Research is a full-service market research and business consulting firm, which provides actionable insights and strategic recommendations to help clients make informed decisions and achieve sustainable growth. For more inquiries, please visit alliedmarketresearch.com
