Compressed Natural Gas Global Market Report 2024

Compressed natural gas (CNG), predominantly compressed methane, fuels automobiles across various uses, offering fuel efficiency similar to gasoline.

Compressed natural gas (CNG) primarily categorizes into non-associated gas, associated gas, and unconventional sources. Non-associated gas originates from wells specifically targeted for natural gas extraction rather than oil wells. It's a common source for producing fuel-grade natural gas. CNG products include dedicated fuel, bi-fuel, and dual fuel variations, used across diverse applications such as light passenger vehicles, medium or heavy-duty vehicles, and other specific uses.

The compressed natural gas market research report is one of a series of new reports from The Business Research Company that provides compressed natural gas market statistics, including compressed natural gas industry global market size, regional shares, competitors with a compressed natural gas market share, detailed compressed natural gas market segments, market trends and opportunities, and any further data you may need to thrive in the compressed natural gas industry. This compressed natural gas market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The compressed natural gas market size has grown rapidly in recent years. It will grow from $166.9 billion in 2023 to $189.33 billion in 2024 at a compound annual growth rate (CAGR) of 13.4%. The expansion observed in the historical period can be attributed to factors such as adherence to environmental regulations and emissions compliance, achieving cost savings in fuel, increased adoption within the transportation sector, government incentives and subsidies, as well as efforts directed toward energy security and diversification.

The compressed natural gas market size is expected to see rapid growth in the next few years. It will grow to $304.04 billion in 2028 at a compound annual growth rate (CAGR) of 12.6%. Anticipated growth in the upcoming period is expected due to the global emphasis on clean energy, the increasing prominence of renewable natural gas (RNG), government initiatives promoting sustainable mobility, the expansion of compressed natural gas (CNG) infrastructure, and initiatives aimed at improving urban air quality. Key trends projected for this period encompass advancements in CNG storage technology, technological improvements in CNG vehicles, infrastructure development, the growth of natural gas vehicles (NGVs), and ongoing advancements in CNG storage technology.

The compressed natural gas market is poised for substantial growth, largely propelled by the increasing adoption of CNG-powered vehicles. These vehicles exclusively rely on compressed natural gas (CNG) for combustion, offering an alternative to traditional fossil fuels. The surge in popularity of CNG-powered vehicles stems from several advantages they present. They are perceived as a more cost-effective fuel option compared to other combustion fuels. Additionally, their usage tends to prolong engine lifespan by reducing gasoline contamination in motor oil and extending intervals between servicing activities such as tune-ups and oil changes. Moreover, CNG-powered vehicles produce fewer harmful emissions than conventional fuels, further contributing to their appeal. For example, the International Association for Natural Gas Vehicles reported an anticipated global usage of over 30 million natural gas vehicles (NGVs) by the close of 2021. This escalation in CNG-powered vehicle numbers stands as a primary driver behind the growth observed in the compressed natural gas market.

The anticipated growth in the compressed natural gas (CNG) market is closely tied to the expanding array of government initiatives. These initiatives encompass specific actions, programs, or projects undertaken by governing bodies to address particular issues, achieve defined goals, or implement policies. In the context of CNG, such government efforts play a pivotal role in fostering its adoption by offering financial incentives, regulatory support, and facilitating infrastructure development. These measures effectively encourage both businesses and consumers to transition toward this cleaner fuel for transportation, resulting in reduced environmental impact and the promotion of sustainable energy practices. For example, as per the Ministry of Petroleum & Natural Gas in India, the government aims to significantly augment the number of CNG stations from 1,332 in 2021-2022 to 8,000 within a span of two years. This surge in government initiatives serves as a driving force behind the observed growth trajectory in the compressed natural gas market.

Major players in the compressed natural gas (CNG) market are actively innovating with solutions such as BioCNG plants to secure a competitive advantage in the industry. BioCNG, or biocompressed natural gas, represents a renewable energy source obtained through the anaerobic digestion or fermentation of organic materials, including agricultural residues, organic waste, or dedicated energy crops. A noteworthy example occurred in October 2022 when Verbio India Private Limited, a subsidiary of Verbio Vereinigte BioEnergie AG, a German-based biofuel company, inaugurated a BioCNG plant in Lehragaga, Punjab. This facility was specifically designed to combat environmental issues linked to stubble burning, utilizing agricultural residues, particularly paddy stubble traditionally burned by farmers. Constructed over a three-year period, the plant boasts a production capacity of 33 tonnes per day (TPD) of BioCNG and 650 TPD of bio-manure. Its primary objectives include a significant reduction in air pollution within a 10-kilometer radius, offering cost-free stubble collection for farmers, job creation, enhancement of soil health through bio-manure, and the provision of a climate-friendly fuel for automotive and industrial applications. Notably, this project aligns with the Indian government's SATAT program and stands as a significant stride in VERBIO's mission to expand and establish additional BioCNG plants throughout India.

Major players in the compressed natural gas (CNG) market are emphasizing strategic partnerships to enhance service reliability for customers. Strategic collaboration denotes a mutually advantageous alliance between independent entities pursuing shared goals in line with their strategic objectives. For example, in October 2022, Advik Hi-Tech Private Limited, an Indian automotive components manufacturer, disclosed a collaboration with NIKKI CO. LTD., a Japanese fuel devices company, to produce CNG regulators in India. This collaboration aims to introduce eco-friendly innovations in CNG mobility solutions to the Indian market at competitive prices. Leveraging Nikki's established technology in designing and manufacturing alternative fuel systems for CNG, LPG, and LNG vehicles alongside Advik's manufacturing expertise, the partnership will manufacture CNG regulators for internal combustion engine applications in India's passenger car and commercial vehicle market. Aligned with the Indian government's Atmanirbhar Bharat initiative, this collaboration contributes to localizing global leading technologies and supporting the country's transition to cleaner fuels.

In February 2023, US-based energy and petrochemical company Shell Petroleum N.V. completed the acquisition of Nature Energy Biogas A/S for $2 billion. This strategic move by Shell aims to establish a comprehensive global value chain and enhance the economic reach of its low-carbon products across diverse industries. Nature Energy Biogas A/S, based in Denmark, specializes in producing natural gases such as CNG and biogases.

Major companies operating in the compressed natural gas market report are Royal Dutch Shell PLC, TotalEnergies SE, Chevron Corporation, Phillips 66 Company, PJSC Gazprom, ConocoPhillips Company, Occidental Petroleum Corporation, EOG Resources Inc., Forensic Technologies International Group Ltd., Parker Hannifin Corporation, Trillium Energy Partners LLC, Chart Industries Inc., Cavagna Group SpA, NeoGas Inc., Luxfer Holdings PLC, Clean Energy Fuels Corp., J-W Power Company, Hexagon Composites ASA, Oasis Engineering Ltd., Agility Fuel Solutions LLC, Galileo Technologies S.A., Xebec Adsorption Inc., ANGI Energy Systems LLC, NG Advantage LLC, TGT Fuel Technologies Private Limited, National Iranian Gas Company , Pakistan State Oil Company Limited, Quantum Fuel Systems LLC, Compressed Natural Gas Services Ltd., British Retail Consortium Gas Equipment Srl, Tomasetto Achille S.p.A.

Asia-Pacific was the largest region in the compressed natural gas market in 2023. The regions covered in the compressed natural gas market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the compressed natural gas market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The compressed natural gas market consists of sales of compressed natural gas used to power motor vehicles. Values in this market are 'factory gate' values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

Compressed Natural Gas Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses on compressed natural gas market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.

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Where is the largest and fastest growing market for compressed natural gas ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The compressed natural gas market global report from the Business Research Company answers all these questions and many more.

The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

• The market characteristics section of the report defines and explains the market.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include:

The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.

The impact of higher inflation in many countries and the resulting spike in interest rates.

The continued but declining impact of covid 19 on supply chains and consumption patterns.

• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth. It covers the growth trajectory of COVID-19 for all regions, key developed countries and major emerging markets.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The trends and strategies section analyses the shape of the market as it emerges from the crisis and suggests how companies can grow as the market recovers.

Scope

Markets Covered:

• 1) By Type: Non-Associated Gas; Associated Gas; Unconventional Sources
• 2) By Product Type: Dedicated Fuel; Bi-Fuel; Dual Fuel
• 3) By Application: Light Passenger Vehicles; Medium or Heavy Duty Vehicles; Other Applications
• Companies Mentioned: Royal Dutch Shell plc; TotalEnergies SE; Chevron Corporation; Phillips 66 Company; PJSC Gazprom
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Russia; South Korea; UK; USA; Canada; Italy; Spain
• Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
• Delivery format: PDF, Word and Excel Data Dashboard.