Market Research Report
Global Compressed Natural Gas (CNG) Market - 2022-2029
|Global Compressed Natural Gas (CNG) Market - 2022-2029|
Published: May 7, 2022
Content info: 250 Pages
Delivery time: 2 business days
The global compressed natural gas market size was worth US$ XX million in 2021 and is estimated to reach US$ XX million by 2029, growing at a CAGR of XX% during the forecast period (2022-2029).
Compressed Natural Gas (CNG) is a hydrocarbon mixture of gases, mainly methane, and small amounts of ethane, propane, and butane compressed to within 1% of its original volume at standard atmospheric pressure. It is generally stored in a spherical or cylindrical container under a pressure of 3,000 psi.
CNG is a fuel gas that is mainly utilized as an alternative to gasoline and diesel in internal combustion engine vehicles. An existing vehicle can be converted to run on CNG and standard conversion kits are widely available. CNG can also be used for power generation and domestic cooking applications.
The compressed natural gas market is mainly driven by the rising demand for clean fuels to reduce carbon emissions. The difficulty in transportation and storage of compressed natural gas is one of the key challenges for the market's growth.
Increasing demand for clean fuels
Traditional vehicle fuels such as gasoline and diesel emit pollutants such as nitrogen oxides and particulate matter and unburned hydrocarbons. It causes massive air pollution along with a rise in carbon emissions. The use of coal for power generation also causes smog. Persistent air pollution leads to respiratory distress, emphysema and other heart and lung diseases.
Natural gas is a relatively cleaner fuel. The combustion of natural gas for energy leads to fewer air pollutants and carbon dioxide emissions compared to coal and petroleum products to obtain an equivalent amount of energy. Therefore, it has generated great demand for compressed natural gas as global governments look to mitigate air pollution and carbon emissions. Electric vehicles and renewable energy sources are either not readily available or are very expensive. The increasing demand for clean fuels is driving the compressed natural gas market.
Difficulty in transportation and storage of compressed natural gas
Compressed natural gas is incredibly difficult to transport and store since it must be stored under pressure. Vehicles need to be modified extensively to convert them to run on CNG. CNG also takes up more storage than petrol or diesel per gallon. It reduces the available boot space and increases vehicular weight, thereby reducing fuel efficiency.
Compressed natural gas is stored in pressurized containers and is transported using special pipelines. Therefore, high cost is incurred on the storage and transportation of compressed natural gas. CNG is transported over long distances using the sea route using special CNG carriers. The difficulty in storage and transportation of compressed natural gas is one of the key challenges in the market's growth.
COVID-19 impact analysis
The global compressed natural gas experienced uneven impacts on value chains due to the COVID-19 pandemic. Global production of compressed natural gas remained almost constant in 2020. However, decline in demands was observed across some sectors. Transportation applications saw steep declines since government-imposed lockdowns and restrictions brought a prolonged halt to global transport activities from early to mid-2020. A moderate increase was observed from late 202o onwards. Other applications such as power generation and heating remained relatively unaffected by the pandemic.
The COVID-19 pandemic has had a relatively mild impact on the compressed natural gas market in the short term. The pandemic will have little effect on the global compressed natural gas market's medium to long-term growth because gas-producing companies are expected to gradually ramp up capacity utilization as economic activity returns to pre-pandemic levels. Compressed natural gas demand remains high and is expected to rise gradually in the coming years.
The global compressed natural gas market is segmented into type, source, application and region. The compressed natural gas market is segmented into passenger vehicles, light commercial vehicles, heavy commercial vehicles, heavy-duty trucks and others based on application. Passenger vehicles are leading in the application segmentation since passenger vehicles far outnumber commercial vehicles. The per-gallon running costs are lower for CNG than for petroleum fuels. It makes them an attractive option for middle-income households.
Asia-Pacific is leading in the global compressed natural gas market. The region accounts for the largest market share, primarily due to major emerging markets in China, India, Malaysia, Indonesia. Some of the largest compressed natural gas consumers are located in this region.
Compressed natural gas vehicles are mainly used on a large scale in China, Malaysia, Pakistan, Indonesia and Thailand. The relatively high costs of petroleum fuels, along with high rates of urbanization and lower running costs, make CNG vehicles an attractive option for middle-income households. China also utilized CNG, LPG and other gaseous fuels for power generation and heating purposes.
The use of dirty fuels like coal for power generation and heating led to thick smog and extremely high levels of air pollution in all major Chinese cities. Hence, China is switching to cleaner fuels like CNG to mitigate pollution and improve urban air quality. India is also experiencing rising adoption of CNG for vehicle fuels. The Asia-Pacific will continue to have the largest market share in the global compressed natural gas market in the coming years.
The global compressed natural gas market is competitive due to the availability of many companies that sell compressed natural gas. Some of the major players contributing to the growth in the segment are Gazprom, Rosneft, Lukoil, PAO Novatek, BP PLC, Royal Dutch Shell PLC, Saudi Arabian Oil Co., TotalEnergies, Exxon Mobil Corporation and China National Petroleum Corporation. The significant players adopt several growth strategies such as new product launches, joint ventures and collaborations, contributing to global growth in the industry.
Overview: Gazprom is an energy company interested in geological exploration, production, storage, transportation and sale of natural gas, natural gas products, gas condensates, mineral oil, lubricants and vehicle fuels. The company has the largest natural gas reserves globally, accounting for 16% of the global reserves. It is also the leading natural gas producer accounting for 12% of the global production and exports to 40 countries globally. The company was founded in 1989 and is headquartered in Saint Petersburg, Russia.
Visualize the composition of the compressed natural gas market segmentation by type, source, application and region, highlighting the critical commercial assets and players.
Identify commercial opportunities in the compressed natural gas market by analyzing trends and co-development deals.
Excel data sheet with thousands of global compressed natural gas market-level 4/5 segmentation data points.
PDF report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study.
Product mapping in excel for the critical product of all major market players
The global compressed natural gas market report would provide approximately 58 market data tables, 58 figures, and 250 pages.
Target Audience 2022
Vehicle CNG kit manufacturers
Industry Investors/Investment Bankers
Education & Research Institutes
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