Compressed Natural Gas Market Report 2026

The compressed natural gas market size has grown rapidly in recent years. It will grow from $211.06 billion in 2025 to $235.57 billion in 2026 at a compound annual growth rate (CAGR) of 11.6%. The growth in the historic period can be attributed to high gasoline and diesel prices, availability of natural gas reserves, early adoption in public transport fleets, government incentives for clean fuels, development of city gas networks.

The compressed natural gas market size is expected to see rapid growth in the next few years. It will grow to $379.84 billion in 2030 at a compound annual growth rate (CAGR) of 12.7%. The growth in the forecast period can be attributed to stringent vehicle emission norms, expansion of urban gas infrastructure, rising demand for cost effective fuels, growth of commercial vehicle fleets, integration of renewable natural gas. Major trends in the forecast period include rising adoption of cng powered vehicles, expansion of cng refueling infrastructure, growing use of cng in public transportation, increasing adoption of bi fuel and dual fuel vehicles, rising demand for low emission automotive fuels.

The increasing number of CNG-powered vehicles is anticipated to drive the growth of the compressed natural gas market in the future. CNG-powered vehicles run exclusively on compressed natural gas (CNG) as an alternative to other fossil fuels. Their popularity has surged in recent years due to several advantages, including being a more economical option compared to other combustion fuels, enhancing engine longevity by reducing gasoline contamination of motor oil, extending intervals between maintenance activities like tune-ups and oil changes, and generating fewer harmful emissions than traditional fuels. For example, in March 2024, Autocar Professional, an India-based B2B automotive industry publication, reported that total sales of CNG-powered vehicles in FY2023 reached 679,822, marking a 38% increase to 939,615 in FY2024. Thus, the rise in CNG-powered vehicles is contributing to the growth of the compressed natural gas market.

Leading companies in the compressed natural gas (CNG) market are focusing on innovative solutions such as ZeroHP CNG production technology to provide cleaner, decentralized energy and reduce dependence on conventional compressors. ZeroHP CNG utilizes naturally occurring high pressures from deep shale formations to compress natural gas efficiently, lowering capital and operating costs while minimizing environmental impact. For example, in April 2024, CNX Resources Corporation, a U.S.-based natural gas development and technology company, launched ZeroHP CNG, a first-of-its-kind system that leverages geobaric pressure from shale to rapidly fill virtual pipeline trailers. This technology reduces emissions, lowers maintenance requirements, and enables deployment in remote locations compared with traditional compressor-based systems, while supporting faster and more cost-effective access to CNG.

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 are Royal Dutch Shell plc, TotalEnergies SE, Chevron Corporation, Phillips 66 Company, PJSC Gazprom, ConocoPhillips Company, 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., Tomasetto Achille S.p.A.

Asia-Pacific was the largest region in the compressed natural gas market in 2025. The regions covered in the compressed natural gas market report are Asia-Pacific, South East Asia, 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, Taiwan, 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.

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