The global compressed natural gas market was valued at $9.9 billion in 2020, and is projected to reach $22.3 billion by 2030, growing at a CAGR of 8.2% from 2021 to 2030.
The compressed natural gas (CNG) is used widely in heavy duty transportation vehicles, owing to its properties, including low-cost and eco-friendly nature. Many nations across the globe started using CNG in power production, owing to rise in environmental concerns, including climatic changes and depleting ozone layer. CNG provides effective way for transportation of shorter distance. It is widely used as an alternative for gasoline, diesel, and propane.
Rise in demand for CNG as vehicle fuel across the globe is a key factor driving the growth of the global CNG market during the forecast period. In addition, rise in awareness toward environmental pollution and increase in stringent government regulations toward pollution drive the growth of the global CNG market from 2021 to 2030. However, high cost associated with initial investment, storage infrastructure & tanks, and installation hamper the growth of the market. Conversely, technological advancements in CNG storage technologies and rapid investment toward building CNG infrastructure are expected to create potential growth opportunity for key players operating in this market.
The global CNG market is segmented on the basis of source, end user, and region. Depending on source, it is categorized into associated gas, non-associated gas, and unconventional sources. According to end user, it is classified into light duty vehicles, medium/heavy duty buses, medium/heavy duty trucks, and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The compressed natural gas (CNG) is used widely in heavy duty transportation vehicles, owing to its properties, including low-cost and eco-friendly nature. Many nations across the globe started using CNG in power production, owing to rise in environmental concerns, including climatic changes and depleting ozone layer. CNG provides effective way for transportation of shorter distance. It is widely used as an alternative for gasoline, diesel, and propane.
Rise in demand for CNG as vehicle fuel across the globe is a key factor driving the growth of the global CNG market during the forecast period. In addition, rise in awareness toward environmental pollution and increase in stringent government regulations toward pollution drive the growth of the global CNG market from 2021 to 2030. However, high cost associated with initial investment, storage infrastructure & tanks, and installation hamper the growth of the market. Conversely, technological advancements in CNG storage technologies and rapid investment toward building CNG infrastructure are expected to create potential growth opportunity for key players operating in this market.
The global CNG market is segmented on the basis of source, end user, and region. Depending on source, it is categorized into associated gas, non-associated gas, and unconventional sources. According to end user, it is classified into light duty vehicles, medium/heavy duty buses, medium/heavy duty trucks, and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Key Benefits For Stakeholders
- The report includes in-depth analysis of different segments and provides market estimations between 2021 and 2030.
- A comprehensive analysis of the factors that drive and restrict the growth of the global CNG market is provided.
- Porter’s five forces model illustrates the potency of buyers & sellers, which is estimated to assist the market players to adopt effective strategies.
- Estimations and forecast are based on factors impacting the global CNG market growth, in terms of value.
- Key market players are profiled to gain an understanding of the strategies adopted by them.
- This report provides a detailed analysis of the current trends and future estimations from 2021 to 2030, which helps identify the prevailing market opportunities.
Key Market Segments
By Source
- Associated Gas
- Non Associated Gas
- Unconventional Sources
By End User
- Light Duty Vehicles
- Medium Or Heavy Duty Buses
- Medium Or Heavy Duty Trucks
By Region
- North America
- U.S.
- Canada
- Mexico
- Europe
- Germany
- France
- U.K.
- Italy
- Spain
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Pakistan
- South Korea
- Rest of Asia-Pacific
- LAMEA
- Brazil
- Iran
- Africa
- Argentina
- Rest of LAMEA
Key Market Players
- Chevron Corporation
- Royal Dutch Shell Plc
- JW Power Company
- Indraprastha Gas Limited
- Eni
- Trillium Energy
- Total Energies
- Occidental Petroleum Corporation
- Phillips 66 Company
- EOG Resources, Inc.
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Table of Contents
CHAPTER 1: INTRODUCTION
CHAPTER 2: EXECUTIVE SUMMARY
CHAPTER 3: MARKET OVERVIEW
CHAPTER 4: COMPRESSED NATURAL GAS MARKET, BY SOURCE
CHAPTER 5: COMPRESSED NATURAL GAS MARKET, BY END USER
CHAPTER 6: COMPRESSED NATURAL GAS MARKET, BY REGION
CHAPTER 7: COMPANY LANDSCAPE
CHAPTER 8: COMPANY PROFILES
LIST OF TABLES
LIST OF FIGURES
Executive Summary
According to this report titled, 'Compressed Natural Gas Market,' the compressed natural gas market size was valued at $9.9 billion in 2020, and is estimated to reach $22.3 billion by 2030, growing at a CAGR of 8.2% from 2021 to 2030.Compressed natural gas (CNG), is one of the most commonly used natural gas in heavy-duty commercial vehicles, including buses, locomotives, trucks, and ships. CNG is mainly composed of methane, which is compressed to less than 1% of the volume to obtain CNG. The concept of using natural gas as alternative to conventional fossil fuel, including gasoline and diesel is increasing rapidly. CNG gained popularity in the market, owing to its eco-friendly nature, better performance advantages, and reduced maintained cost of the engine. Asia-Pacific is the largest consumer of CNG as transit buses and delivery & refuse truck fleets prefer CNG over fossil fuel.
Low-cost of CNG along with rise in energy requirement from transportation industry across the globe drive the growth of the market during the forecast period. In addition, rise in exploration and production activities of non-conventional sources of energy and growth of shale gas market fuel the growth of the compressed natural gas market in the future. Furthermore, rise in stringent government regulations, owing to environmental concern and increase in subsidy among various regions, including Asia-Pacific and LAMEA increase the demand for CNG. However, high initial investment cost and presence of limited number of fuel stations restrain the growth of the compressed natural gas market.
Depending on the source, the non-associated gas segment garnered the highest market share of about 62.4% in 2020, and is expected to maintain its dominance during the compressed natural gas market forecast period. This is attributed to rise in demand for CNG and emergence of non-associated gas reservoir for CNG production across the globe. In addition, rise in exploration and production activities in non-associated gas reservoirs are anticipated to fuel the growth of the global compressed natural gas market in future.
According to end user, the light duty vehicles segment garnered the largest share in 2020, in terms of revenue, and is expected to grow at a CAGR of 8.3%, owing to rise in demand for light duty vehicles with increase in consumer expenditure across the developing regions, including Asia-Pacific and LAMEA. In addition, rise in awareness toward air pollution and cost-effective CNG compared to other fossil fuels is expected to fuel the global compressed natural gas market growth in the future.
Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA. Asia-Pacific dominated the market in 2020, and is anticipated to maintain this compressed natural gas market trend during the forecast period. This is attributed to presence of huge consumer base, rapid development of the transportation sector, and existence of key players. Moreover, presence of the countries such as China, Japan, India, South Korea, and Pakistan contribute toward the growth of the compressed natural gas market in Asia-Pacific.
The global compressed natural gas market analysis covers in-depth information of the major compressed natural gas industry participants. The key players operating and profiled in the report include Chevron Corporation, Eni, Royal Dutch Shell Plc., EOG Resources, Inc., Trillium CNG, Occidental Petroleum Corporation, Phillips 66 Company, JW Power Company, Total Energies, and Indraprastha Gas Limited.
The other players operating in the compressed natural gas market are Neogas, Inc., Gazprom Neft, BP Plc., GNVERT, ANGI Energy Systems Inc., Exxon Mobil Corporation, Lukoil, Rosneft, National Iranian Gas Company, Mahanagar Gas Limited, and China Natural Gas, Inc.
COVID-19 Impact on the Market
Lockdown imposed, due to the outbreak of COVID-19 pandemic resulted in temporary ban on import & export and manufacturing & processing activities across various industries, which decreased the demand for CNG from these consumers. In addition, halt in building & construction of new CNG infrastructures and natural gas fields, owing to unavailability of workers and increase in demand-supply gap hampered the compressed natural gas market growth during the pandemic period. This resulted in decline in market growth in the second, third, and fourth quarters of 2020. However, the compressed natural gas market recovered by the second quarter of 2021, as COVID-19 vaccination begun in various economies across the globe, which improved the global economy.Key findings of the Study
- In 2020, the non-associated gas segment accounted for about 62.4% of the share in the global compressed natural gas market, and is expected to maintain its dominance till the end of the forecast period.
- In 2020, the associated gas segment is accounted for 20.2% market share, and is anticipated to grow at a rate of 7.9% in terms of revenue.
- In 2020, the light duty vehicle segment accounted for 86.6% market share, and is anticipated to grow at a rate of 8.3% in terms of revenue.
- Medium/Heavy duty buses is the rapidly growing segment in the global compressed natural gas market, and is expected to grow at a CAGR of 8.5% during 2021-2030.
- North America is expected to grow at the fastest rate, registering a CAGR of 8.7%, throughout the forecast period.
- In 2020, Asia-Pacific dominated the global compressed natural gas market with more than 68.13% of the share, in terms of revenue.
Companies Mentioned
- Chevron Corporation
- Royal Dutch Shell Plc
- JW Power Company
- Indraprastha Gas Limited
- Eni
- Trillium Energy
- Total Energies
- Occidental Petroleum Corporation
- Phillips 66 Company
- EOG Resources, Inc.
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 260 |
| Published | April 2022 |
| Forecast Period | 2020 - 2030 |
| Estimated Market Value ( USD | $ 9.9 billion |
| Forecasted Market Value ( USD | $ 22.3 billion |
| Compound Annual Growth Rate | 8.5% |
| Regions Covered | Global |
| No. of Companies Mentioned | 10 |
