Compressed Natural Gas Market Report 2025

The compressed natural gas market size has grown rapidly in recent years. It will grow from $187.95 billion in 2024 to $213.29 billion in 2025 at a compound annual growth rate (CAGR) of 13.5%. The growth in the historic period can be attributed to environmental regulations and emissions compliance, fuel cost savings, transportation sector adoption, government incentives and subsidies, 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 $340.2 billion in 2029 at a compound annual growth rate (CAGR) of 12.4%. The growth in the forecast period can be attributed to global push for clean energy, rise of renewable natural gas (RNG), government initiatives for sustainable mobility, expansion of CNG infrastructure, urban air quality initiatives. Major trends in the forecast period include advancements in CNG storage technology, technological advancements in CNG vehicles, infrastructure development, growth in natural gas vehicles (NGV), advancements in CNG storage technology.

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.

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 include 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 2024. 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.

Compressed natural gas (CNG) is a blend of hydrocarbon gases and vapors, primarily consisting of compressed methane in its gaseous state, used as a fuel for powering vehicles. CNG is utilized across various light-, medium-, and heavy-duty applications, providing fuel efficiency comparable to that of conventional 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 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 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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