Market Research Report
Global Compressed Natural Gas (CNG) Tanks/Cylinders Market - 2022-2029
|Global Compressed Natural Gas (CNG) Tanks/Cylinders Market - 2022-2029|
Published: May 7, 2022
Content info: 200 Pages
Delivery time: 2 business days
The "global compressed natural gas (CNG) tanks/cylinders market" is expected to reach CAGR of XX% during the forecast period 2022-2029.
Fuel is most commonly stored onboard vehicles in high-pressure cylinders as compressed natural gas. CNG is compressed into a high-pressure cylinder, usually around 250 bar. The weight of onboard CNG cylinders can have a wide range of importance. To contain the high-pressure gas, CNG cylinders must be structurally sturdy. Compressed natural gas cylinders are available in various types and sizes to fit different applications.
The market is expected to attain significant growth due to strict regulations on diesel-operated vehicles, rising concerns regarding GHG, and government support for the use of LNG vehicles. Light-duty vehicles are generally equipped with dedicated or bi-fuel systems, while heavy-duty vehicles use dual-fuel systems. CNG vehicles store natural gas in tanks that remain in a gaseous state. Typically, CNG cylinders have a life of 15 to 20 years, as determined by the ANSI NGV2 standard.
The market is expected to boost with rising sales of LNG vehicles as an alternative to diesel-based vehicles.
Rising sales of LNG vehicles as an alternative to diesel-based vehicles
Various countries fight against climate change globally by setting ambitious targets to reduce GHG emissions. EU has set a binding target to reduce emissions by 40 % below 1990 levels till 2030. Road transport is one of the most influential fossil fuel-dependent segments of national economies across the EU.
Oil dependency on the transport sector makes it the single biggest source of GHG emissions in Europe. Road transport is responsible for approximately 73 % of total transport GHG emissions, as Europe's more than 308.3 million road vehicles are over 95 % reliant on oil-based fuels. At the same time, there is a wide scope of low emission alternative fuels for vehicles that can reduce the oil dependence of the transport sector and lower GHG in road transport. Today, over 2 million natural gas vehicles are in use all over the EU, where they are backed by a network of 4041 CNG and LNG fueling stations.
Replacing petrol vehicles with CNG cars can reduce energy use by about 10% of the petrol equivalent. With rising gasoline prices and electric vehicles prohibitively expensive for most people, the public turns to cars running on cheap alternative fuel, such as compressed natural gas.
Need for regular maintenance
A crucial maintenance requirement for CNG fuel systems is to conduct frequent safety inspections of the CNG storage tanks. The integrity of CNG tanks can be jeopardized by road debris. Corrosion and cracking may occur as a result of exposure to certain substances. Because these tanks are pressured to 3,600 pounds per square inch (psi), even little damage could result in severe tank quality degradation, posing a serious threat. For these reasons, tanks should be examined every three years (36 months) or every 36,000 miles in an authorized service facility.
Tanks should also be inspected after any fire, accident, or other incidents potentially resulting in tank damage. Tanks positioned in the vehicle's underbody are more likely to collide with road debris or get damaged by collision, such as when driving over a curb. Before achieving standards and regulatory approval, the cylinders are submitted to a wide range of tests prescribed by the appropriate standard, including bullet impact tests and a bonfire test. The cylinders must be handled carefully despite these requirements, especially the fiberglass-wrapped and composite cylinders.
COVID-19 Impact Analysis
New vehicle sales have decreased substantially in light of lockdown measures to confine the spread of COVID-19. According to the OICA report, the automotive industry faced a production decline of 16% in 2020, to less than 78 million vehicles, equivalent to 2010's sales levels. Europe as a whole witnessed a drop of over 21% on average. All main contributing countries had sharp declines, ranging from 11% to 40%, which have impacted the CNG gas cylinder/tank market growth. Moreover, the market was also hampered by the sudden rise in raw materials prices, such as aluminum and steel.
However, the market is set to recover with companies focusing on the sales of CNG vehicles. For instance, Maruti Suzuki's sales of its compressed natural gas-powered vehicles have increased in FY 21 despite the adverse impact of the pandemic, which impacted sales and production operations. In 2021, sales of Maruti's gas-based vehicles grew by 48.11% to 157000 units, compared to 106444 units in FY 20.
The global compressed natural gas (CNG) tanks/cylinders market is segmented based on type, material, vehicle and region.
The need for reducing fuel consumption and payload has boosted the demand for carbon fiber-based LNG tanks/cylinders
Based on material, the global compressed natural gas (CNG) tanks/cylinders market is segmented into steel, glass fiber, carbon fiber, aluminum and others.
The carbon fiber wound composite cylinders have more promising performance than metal cylinders made of a single material such as aluminum and steel. It has a higher gas storage capacity than metal cylinders of the same volume, is 50% lighter, has good corrosion resistance and does not contaminate the environment. Cylinders made of carbon fiber offer the best combination of safety, efficiency and durability available in the market. The cylinders made from carbon fiber can improve vehicle range, payload, handling and reduce fuel consumption.
Various companies have recently shifted to using carbon fiber in LNG cylinders. For instance, in 2020, Hyosung Advanced Materials Corp. expanded PAN carbon fiber production by adding a third line of 2,500 tons/year at its production facility in South Korea. According to the company, the ambitious force of this expansion is to meet the demand for carbon fiber used in fuel tank cylinders for compressed natural gas and hydrogen vehicles, which typically reach 350-700 operating pressure. Hyosung Advanced Materials believes that its high-strength and high-strain carbon fibers, TANSOME, will play a critical role in type III and type IV cylinder pressure vessels and their safe operation.
Stringent government regulations on diesel-based vehicles will boost the demand for LNG vehicles in Asia-Pacific
The shift to zero-emission vehicles is driven by the desire to improve air quality, reduce CO2 emissions and increase energy independence by utilizing large amounts of gases in China. Various companies have already witnessed the growth in the sales of LNG vehicles. Maruti Suzuki India Limited India achieved the highest ever sales of eco-friendly CNG-powered cars in FY 2019-20. The company sold over 106,443 CNG vehicles across India.
With BS-VI Emissions Standards going into effect on 1 April 2020, various programs have been launched IGL or shifting away from diesel. In 2020, India's Minister for Petroleum and Natural Gas launched India's first long-distance compressed natural gas bus under a strategic program led by Indraprastha Gas Limited. The composite cylinder-based complete bus fuel system was designed by Agility Fuel Solutions, which more than doubles the range of CNG buses. While CNG buses in India earlier traveled 350 km at best, the program's five buses have a range of over 1100 km.
The global compressed natural gas (CNG) tanks/cylinders market is moderately competitive and has witnessed new entrants due to the rising sales of CNG vehicles. Major players in the market include Hexagon Agility, Worthington Industries, 3M, Luxfer Group, Cobham Limited, Quantum Fuel Systems Technologies, CNG United, REL Inc, Time Technoplast Ltd, Steelhead Composites and others. The players in the market are known to incorporate numerous market strategies to achieve growth in the global compressed natural gas (CNG) tanks/cylinders market; these include product launches, expansion and partnerships.
Overview: Hexagon Agility is a wholly-owned subsidiary of Hexagon Composites and a leading provider of clean fuel solutions for commercial vehicles. Its product offerings include hydrogen, natural gas and battery electric energy storage and delivery systems, propane and natural gas fuel systems, Type 4 composite natural gas cylinders and propane dispensers. Agility offers solutions for various vehicle types, including Class 8 trucks, transit buses, refuse trucks, school buses, concrete mixers and medium-duty delivery trucks.
TUFFSHELL all-composite Type 4 cylinders: It combines CNG vehicles' safety, efficiency and durability. The product weighs 30% of the steel, improving vehicle range and reducing fuel consumption.
Key Development: In 2020, Agility Fuel Solutions launched the new fifth-generation ProRail CNG fuel system. The ProRail is durable and lightweight, utilizing carbon fiber TUFFSHELL ACF Type 4 CNG cylinders.
To visualize the global compressed natural gas (CNG) tanks/cylinders market segmentation by type, material, vehicle and region and understand key commercial assets and players.
Identify commercial opportunities in the global compressed natural gas (CNG) tanks/cylinders market by analyzing trends and co-development.
Excel data sheet with numerous data points of compressed natural gas (CNG) tanks/cylinders market-level with four segments.
PDF report consisting of cogently put together market analysis after exhaustive qualitative interviews and in-depth market study.
Product mapping available in excel consists of key products of all the major market players
The global compressed natural gas (CNG) tanks/cylinders market report would provide approximately 61 tables, 57 figures and almost 200 pages.
Target Audience 2022
Service Providers/ Buyers
Industry Investors/Investment Bankers
Education & Research Institutes
Raw Material Suppliers
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