Compressed Natural Gas Market by Source, Application

Description

List of Tables

[186 Pages Report] The Compressed Natural Gas Market size was estimated at USD 32.22 billion in 2023 and expected to reach USD 35.42 billion in 2024, at a CAGR 10.32% to reach USD 64.09 billion by 2030.

Compressed natural gas (CNG) is a fuel prepared from natural gas, primarily composed of methane. It is stored and transported at high pressure, typically in cylindrical tanks. Compared to other fuels, including gasoline or diesel, CNG is environmentally cleaner, emitting fewer pollutants and greenhouse gases when burned. It is an alternative to traditional automotive fuels and domestic and industrial energy applications. Adopting CNG in transportation is increasingly favored due to its cost-effectiveness and environmental benefits. These advantages make CNG a compelling alternative amidst rising pollution and fossil fuel dependency concerns. Additionally, supportive government measures, including stringent pollution control regulations and financial incentives such as subsidies, are pivotal in driving CNG's market growth. Such initiatives facilitate the broader adoption of cleaner energy and underscore governmental commitment to sustainable transportation solutions, further driving market growth. However, compressed CNG requires specialized infrastructure for fueling stations and vehicle storage tanks, which are considerably more expensive than those needed for conventional fuels. These high costs can deter new entries into the market and limit the expansion of CNG as a widely used fuel alternative, particularly in regions with less economic flexibility to invest in new technologies. Developing improved CNG storage systems that offer higher fuel capacity in a compact design provides a significant opportunity for market expansion. Technological improvements in dispensing equipment facilitate rapid and safer refueling, encouraging the adoption of CNG vehicles.

KEY MARKET STATISTICS
Base Year [2023]	USD 32.22 billion
Estimated Year [2024]	USD 35.42 billion
Forecast Year [2030]	USD 64.09 billion
CAGR (%)	10.32%

Regional Insights

In the Americas, the CNG market is driven by environmental concerns and the need for cleaner transportation solutions. The United States and Canada showcase a growing number of vehicles being converted to CNG and an increasing installation of CNG stations. In South America, countries such as Brazil and Argentina increasingly adopt CNG, primarily due to the high price of petroleum fuels and government incentives encouraging CNG use. The market's growth in the Americas is supported by stringent emission regulations and government policies favoring eco-friendly fuels. The Asia-Pacific region is showcasing growth driven by high air pollution in many cities. China and India are expanding their networks of CNG refueling infrastructure to meet increasing demand, especially in public transport and among private vehicle owners. The significant cost advantage of CNG compared to gasoline and diesel is a critical factor propelling its adoption in the Asia-Pacific region. In the EMEA region, particularly in Europe, the adoption of CNG is driven by stringent environmental norms and policies promoting cleaner fuels to reduce carbon footprints. Despite the abundance of crude oil in the Middle East, there is a growing interest in diversifying energy sources, including expanding into CNG, particularly for use in public transportation and government fleets. The CNG market in Africa is growing, with countries aiming to capitalize on CNG for domestic use.

Market Insights

Market Dynamics

The market dynamics represent an ever-changing landscape of the Compressed Natural Gas Market by providing actionable insights into factors, including supply and demand levels. Accounting for these factors helps design strategies, make investments, and formulate developments to capitalize on future opportunities. In addition, these factors assist in avoiding potential pitfalls related to political, geographical, technical, social, and economic conditions, highlighting consumer behaviors and influencing manufacturing costs and purchasing decisions.

Market Drivers
- Affordability and eco-friendliness offered by CNG for transportation
- Growth in energy requirement by various nations accompanied by recovery of high oil prices
- Increasing government regulations in pollution control and monetary assistance for subsidies

Market Restraints
- High initial investment linked with installation and costs of CNG storage tanks

Market Opportunities
- Emergence of lightweight composite CNG cylinders
- Increasing R&D investment on dual fuel technology engines

Market Challenges
- Limited number of fueling stations

Market Segmentation Analysis
- Source: Increasing use of non-associated gas as a source due to its abundance and easier extractability
- Application: Widening adoption in heavy-duty vehicles owing to its environmental and economic advantages.

Market Disruption Analysis
Porter's Five Forces Analysis
Value Chain & Critical Path Analysis
Pricing Analysis
Technology Analysis
Patent Analysis
Trade Analysis
Regulatory Framework Analysis

FPNV Positioning Matrix

The FPNV positioning matrix is essential in evaluating the market positioning of the vendors in the Compressed Natural Gas Market. This matrix offers a comprehensive assessment of vendors, examining critical metrics related to business strategy and product satisfaction. This in-depth assessment empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success, namely Forefront (F), Pathfinder (P), Niche (N), or Vital (V).

Market Share Analysis

The market share analysis is a comprehensive tool that provides an insightful and in-depth assessment of the current state of vendors in the Compressed Natural Gas Market. By meticulously comparing and analyzing vendor contributions, companies are offered a greater understanding of their performance and the challenges they face when competing for market share. These contributions include overall revenue, customer base, and other vital metrics. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With these illustrative details, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.

Recent Developments

Indraprastha Gas Ltd Advances Sustainable Energy with New Biogas Facilities

Indraprastha Gas Ltd (IGL) has announced plans to establish 19 compressed biogas (CBG) plants across Delhi, Haryana, Rajasthan, and Uttar Pradesh to integrate these facilities into its existing city gas network. The initiative, resulting from recent agreements with two technology firms, is set to generate 0.45 million metric standard cubic meters of biogas daily from organic waste. This volume represents about 5% of IGL's daily gas consumption. The project is anticipated to significantly alleviate municipal and agricultural waste issues while reducing the fuel costs for city gas distribution by blending CBG with natural gas. [Published On: 2024-02-07]

Strengthening India's LNG Ecosystem: A Strategic Partnership between Adani Total Gas Ltd and INOX India Ltd

Adani Total Gas Ltd (ATGL) and INOX India Ltd entered into a mutual support pact to enhance the nation's Liquified Natural Gas (LNG) infrastructure. This collaboration is to supply LNG and Compressed Natural Gas (LCNG) equipment and solutions to facilitate a sustainable transition in transportation fuel, particularly for long-haul vehicles and buses currently powered by diesel, to LNG. [Published On: 2024-02-06]

Strategic Enhancement of Regional CNG Delivery Through Advanced Requalification Services

Hexagon Digital Wave has partnered with Compass Natural Gas to enhance the requalification of Type 4 composite cylinders in mobile pipeline trailers across the northeastern United States. This move is part of a broader strategy to increase the accessibility and efficiency of compressed natural gas (CNG) delivery via mobile pipeline systems. By adopting Hexagon's Modal Acoustic Emission (MAE) technology, this partnership aims to improve the safety, quality, and reliability of CNG transportation, capitalizing on Compass's new operational site in Montoursville, Pennsylvania. [Published On: 2023-10-19]

Strategy Analysis & Recommendation

The strategic analysis is essential for organizations seeking a solid foothold in the global marketplace. Companies are better positioned to make informed decisions that align with their long-term aspirations by thoroughly evaluating their current standing in the Compressed Natural Gas Market. This critical assessment involves a thorough analysis of the organization's resources, capabilities, and overall performance to identify its core strengths and areas for improvement.

Key Company Profiles

The report delves into recent significant developments in the Compressed Natural Gas Market, highlighting leading vendors and their innovative profiles. These include Adani Group, ANGI Energy Systems Inc., Bharat Petroleum Corporation Limited, Chevron Corporation, China National Petroleum Corp., Clean Energy Fuels Corp., CNG Fuels Ltd., Compass Natural Gas, Equinor ASA, Exxon Mobil Corporation, Hexagon Composites ASA, Indraprastha Gas Limited, J-W Power Company, Luxfer Group, Mahanagar Gas Limited, NeoGas Inc., QatarEnergy, Quantum Fuel Systems LLC, Shell plc, TotalEnergies SE, and Trillium Transportation Fuels, LLC.

Market Segmentation & Coverage

This research report categorizes the Compressed Natural Gas Market to forecast the revenues and analyze trends in each of the following sub-markets:

Source
- Associated Gas
- Non-Associated Gas
- Unconventional Methods

Application
- Heavy-Duty Vehicles
- Light-Duty Vehicles
- Medium-Duty Vehicles

Region
- Americas
  - Argentina
  - Brazil
  - Canada
  - Mexico
  - United States
    - California
    - Florida
    - Illinois
    - New York
    - Ohio
    - Pennsylvania
    - Texas
- Asia-Pacific
  - Australia
  - China
  - India
  - Indonesia
  - Japan
  - Malaysia
  - Philippines
  - Singapore
  - South Korea
  - Taiwan
  - Thailand
  - Vietnam

Europe, Middle East & Africa
- Denmark
- Egypt
- Finland
- France
- Germany
- Israel
- Italy
- Netherlands
- Nigeria
- Norway
- Poland
- Qatar
- Russia
- Saudi Arabia
- South Africa
- Spain
- Sweden
- Switzerland
- Turkey
- United Arab Emirates
- United Kingdom

Product Code: MRR-433AB1DC2880

1. Preface

1.1. Objectives of the Study
1.2. Market Segmentation & Coverage
1.3. Years Considered for the Study
1.4. Currency & Pricing
1.5. Language
1.6. Stakeholders

2. Research Methodology

2.1. Define: Research Objective
2.2. Determine: Research Design
2.3. Prepare: Research Instrument
2.4. Collect: Data Source
2.5. Analyze: Data Interpretation
2.6. Formulate: Data Verification
2.7. Publish: Research Report
2.8. Repeat: Report Update

3. Executive Summary

4. Market Overview

5. Market Insights

5.1. Market Dynamics
- 5.1.1. Drivers
  - 5.1.1.1. Affordability and eco-friendliness offered by CNG for transportation
  - 5.1.1.2. Growth in energy requirement by various nations accompanied by recovery of high oil prices
  - 5.1.1.3. Increasing government regulations in pollution control and monetary assistance for subsidies
- 5.1.2. Restraints
  - 5.1.2.1. High initial investment linked with installation and costs of CNG storage tanks
- 5.1.3. Opportunities
  - 5.1.3.1. Emergence of lightweight composite CNG cylinders
  - 5.1.3.2. Increasing R&D investment on dual fuel technology engines
- 5.1.4. Challenges
  - 5.1.4.1. Limited number of fueling stations
5.2. Market Segmentation Analysis
- 5.2.1. Source: Increasing use of non-associated gas as a source due to its abundance and easier extractability
- 5.2.2. Application: Widening adoption in heavy-duty vehicles owing to its environmental and economic advantages.
5.3. Market Disruption Analysis
5.4. Porter's Five Forces Analysis
- 5.4.1. Threat of New Entrants
- 5.4.2. Threat of Substitutes
- 5.4.3. Bargaining Power of Customers
- 5.4.4. Bargaining Power of Suppliers
- 5.4.5. Industry Rivalry
5.5. Value Chain & Critical Path Analysis
5.6. Pricing Analysis
5.7. Technology Analysis
5.8. Patent Analysis
5.9. Trade Analysis
5.10. Regulatory Framework Analysis

6. Compressed Natural Gas Market, by Source

6.1. Introduction
6.2. Associated Gas
6.3. Non-Associated Gas
6.4. Unconventional Methods

7. Compressed Natural Gas Market, by Application

7.1. Introduction
7.2. Heavy-Duty Vehicles
7.3. Light-Duty Vehicles
7.4. Medium-Duty Vehicles

8. Americas Compressed Natural Gas Market

8.1. Introduction
8.2. Argentina
8.3. Brazil
8.4. Canada
8.5. Mexico
8.6. United States

9. Asia-Pacific Compressed Natural Gas Market

9.1. Introduction
9.2. Australia
9.3. China
9.4. India
9.5. Indonesia
9.6. Japan
9.7. Malaysia
9.8. Philippines
9.9. Singapore
9.10. South Korea
9.11. Taiwan
9.12. Thailand
9.13. Vietnam

10. Europe, Middle East & Africa Compressed Natural Gas Market

10.1. Introduction
10.2. Denmark
10.3. Egypt
10.4. Finland
10.5. France
10.6. Germany
10.7. Israel
10.8. Italy
10.9. Netherlands
10.10. Nigeria
10.11. Norway
10.12. Poland
10.13. Qatar
10.14. Russia
10.15. Saudi Arabia
10.16. South Africa
10.17. Spain
10.18. Sweden
10.19. Switzerland
10.20. Turkey
10.21. United Arab Emirates
10.22. United Kingdom

11. Competitive Landscape

11.1. Market Share Analysis, 2023
11.2. FPNV Positioning Matrix, 2023
11.3. Competitive Scenario Analysis
- 11.3.1. Indraprastha Gas Ltd Advances Sustainable Energy with New Biogas Facilities
- 11.3.2. Strengthening India's LNG Ecosystem: A Strategic Partnership between Adani Total Gas Ltd and INOX India Ltd
- 11.3.3. Strategic Enhancement of Regional CNG Delivery Through Advanced Requalification Services
11.4. Strategy Analysis & Recommendation

12. Competitive Portfolio

12.1. Key Company Profiles
12.2. Key Product Portfolio