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Compressed Natural Gas (CNG) Tanks/Cylinders Market - Forecast(2023 - 2028)
Compressed Natural Gas (CNG) Tanks/Cylinders Market Overview
The Compressed Natural Gas (CNG)
Tanks/Cylinders Market size is projected to reach a value of US$2.6 billion by the end of 2027 after growing at a CAGR of 8.5% during the
forecast period 2022-2027. Compressed natural gas
(CNG) tanks/cylinders are
composed of various materials which include metals such as steel or aluminum,
glass fiber and carbon fiber. They are primarily used for CNG gas storage in
various applications which include automotive, marine and locomotive transports
capable of operating on CNG. In 2020, the COVID-19 lockdown significantly
reduced automotive production activities as a result of the country-wide
shutdown of manufacturing sites, shortage of labor and the decline of the
supply and demand chain all across the world, thus, impacting the automotive
industry. This, in turn, reduced the production of CNG-fueled vehicles as well,
thus, affecting the compressed natural gas (CNG) tanks/cylinders industry. However,
a steady recovery in automobile production has been witnessed across the world since
2021. Compressed natural gas (CNG) tanks/cylinders are primarily used in the
automotive industry for onboard storage of gas in CNG vehicles required for its
operation. For instance, the total number of CNG-powered vehicle registration
in India increased to 1,63,696 units in 2021 as compared to 41,572 units in
2020. An increase in automotive production along with
the surging developments associated with CNG-fueled locomotives is expected to drive the growth of the
compressed natural gas (CNG) tanks/cylinders market size in the upcoming years.
On the other hand, limitations associated with CNG vehicles may confine the
growth of the market.
Compressed Natural Gas (CNG) Tanks/Cylinders Market Report Coverage
The “Compressed
Natural Gas (CNG) Tanks/Cylinders Market Report – Forecast (2022-2027)” by IndustryARC, covers an in-depth
analysis of the following segments in the Compressed
Natural Gas (CNG) Tanks/Cylinders Market.
Key Takeaways
- The carbon fiber segment held a significant share in the Compressed Natural Gas (CNG) Tanks/Cylinders Market in 2021. Its wide range of characteristics and higher efficiency made it stand out in comparison to other types of materials in the market.
- Automotive held the largest share in the Compressed Natural Gas (CNG) Tanks/Cylinders Market in 2021, owing to the increasing demand for CNG tanks/cylinders for onboard gas storage in vehicles required for its operation, owing to its properties such as high strength, durability and excellent corrosion resistance.
- ·Asia-Pacific dominated the Compressed Natural Gas (CNG) Tanks/Cylinders Market in 2021, owing to the increasing demand for CNG tanks/cylinders from the automotive sector in the region.
- A detailed analysis of strengths, weaknesses, opportunities and threats will be provided in the Compressed Natural Gas (CNG) Tanks/Cylinders Market Report.
Figure: Asia-Pacific Compressed Natural Gas (CNG) Tanks/Cylinders Market Revenue, 2021-2027 (US$ Million)
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Compressed Natural Gas (CNG) Tanks/Cylinders Market Segment Analysis – by Material Type
The carbon fiber material held a significant Compressed
Natural Gas (CNG) Tanks/Cylinders Market share in 2021, owing to its increasing
demand due to the benefits it offers over other types of materials. For
instance, carbon fiber offers higher efficiency, safety and durability in
comparison to metal and other types of materials. Moreover, they
offer a wide range of characteristics such as low density, better thermal
stability, high strength and modulus of elasticity as compared to other
materials. They also offer better heat resistance, along with excellent
abrasion resistance in comparison to other types of materials. Furthermore, CNG
tanks/cylinders composed of carbon fiber offer higher mileage, owing to their
lightweight and are more cost-effective, which makes them ideal for use in the
automotive industry. Hence, all of these benefits of carbon fiber are driving
its demand over other types of materials, which in turn, is expected to boost
the market growth during the forecast period.
Compressed Natural Gas (CNG) Tanks/Cylinders Market Segment Analysis – by Application
The automotive application held the largest Compressed
Natural Gas (CNG) Tanks/Cylinders Market share of over 25% in 2021, owing to its
increasing demand for use in CNG vehicles from automotive sectors across the
world. CNG-powered vehicles operate on lower operational costs and are
eco-friendly in nature as they do not emit harmful emissions as compared to
petrol or diesel-powered vehicles, which in turn, is driving its demand in the
automotive sector. For instance, according to the European Automobile
Manufacturers' Association, 14,313 units of CNG commercial vehicles were
registered in Europe in 2019, an increase of 32.1% in comparison to 2018. Among
these, Italy accounted for 6,293 units of CNG vehicle registration, followed by
Spain with 1,858 registrations and Belgium with 1,281 registrations. Thus, such
surging demand for CNG-powered vehicles is expected to increase the demand for CNG
tanks/cylinders for onboard gas storage in CNG vehicles required for its
operation, owing to its properties such as high strength, durability and
excellent corrosion resistance. This is expected to expand the compressed
natural gas (CNG) tanks/cylinders market size during the forecast period.
Compressed Natural Gas (CNG) Tanks/Cylinders Market Segment Analysis – by Geography
The Asia-Pacific held a dominant Compressed
Natural Gas (CNG) Tanks/Cylinders Market share of around 30% in the year 2021.
The consumption of CNG tanks/cylinders is particularly high in this region due
to its increasing demand from the automotive sector. For instance, according to
the IEA (International Energy Agency), the total production of CNG vehicles in
China reached 6.72 million units in 2019. Moreover, in 2020, the sales
volume of CNG vehicles in China reached 169,619 units, indicating an increase
in demand and consumption of CNG vehicles in the country. The consumption of
CNG vehicles was particularly high in provinces such as Hebei, Xinjiang,
Shaanxi and Shandong. Furthermore, in March 2022, Maruti Suzuki, an automobile
manufacturer, announced its plan to produce around 600,000 CNG vehicles in
India by 2023, owing to the increasing cost of fuel and consumer preference for
CNG-powered vehicles.
Compressed natural gas (CNG) tanks/cylinders are primarily used in the automotive industry for onboard gas storage in CNG vehicles required for its operation, owing to the increasing consumer preference toward CNG-powered vehicles due to its lower operational costs and eco-friendliness as they do not emit harmful emissions as compared to petrol or diesel-powered vehicles. Thus, the surging growth of CNG-powered vehicles in the automotive sector in the region is expected to increase the demand for CNG tanks/cylinders, which in turn, is expected to accelerate the market growth during the forecast period.
Compressed Natural Gas (CNG) Tanks/Cylinders Market – Drivers
An increase in automobile production
Compressed natural gas (CNG) tanks/cylinders
composed of metals, glass fiber and carbon fiber are mostly used in the
automotive industry for storing gas in the CNG vehicles required for powering
the vehicle. Its properties such as high strength, durability, heat tolerance, and longer shelf life along with excellent resistance to tear, wear, abrasion and
corrosion make them ideal for use in such automotive applications. For
instance, according to the European Automobile Manufacturers' Association
(ACEA), in 2019, France accounted for 1,147 units of CNG vehicle
registration, an increase of 48% as compared to 2018, followed by Sweden with
1,081 registrations and Germany with 1,003 registrations. Furthermore, in
April-September 2021, the sales of CNG cars reached up to 1,01,412 units in
India, indicating a significant increase in consumption of CNG vehicles as
compared to 51,448 units in April-September 2020. Hence, an increase in demand
for CNG vehicles, owing to their eco-friendliness and lower operational costs is
expected to increase the demand for CNG tanks/cylinders for gas storage in such
vehicles. This is expected to accelerate the growth of the market in the
upcoming years.
Surging developments associated with CNG-fueled locomotives
The locomotive industry consists of
self-propelled vehicles that operate or runs on railways. Compressed natural gas
(CNG) tanks/cylinders are mainly utilized in the locomotive industry involving
CNG trains, particularly for storing gas in such trains. For instance, in 2020,
G-volution Ltd. launched its first dual-fuel multiple unit train in the UK. The
train is capable of operating on both diesel and compressed natural gas (CNG),
which can help reduce fuel costs and CO2 emissions significantly. Furthermore,
in February 2022, the Railway Ministry of Bangladesh announced its
plans to convert Bangladesh’s diesel fuel-based railway locomotives into
bio-fuels-powered railways including CNG, LNG and LPG, with the aid of UK-based
manufacturing firm G-volution Ltd. Furthermore, the Indian
Railways launched its CNG train that operates on the Rewari-Rohtak section of the Northern zone of the country, with the aim of reducing harmful emissions
and adopting cleaner fuel options as compared to diesel-powered trains. Hence,
such increasing developments associated with CNG-fueled railway locomotives are
expected to increase the demand for CNG tanks/cylinders for onboard storage of
gas in such locomotives. This is anticipated to drive the growth of the market
in the upcoming years
Compressed Natural Gas (CNG) Tanks/Cylinders Market – Challenge
Limitations associated with CNG vehicles may confine the growth of the market
CNG vehicles have numerous limitations such as
the limited availability of CNG fuel & gas stations, along with the need
for a larger capacity for storing CNG tanks/cylinders in the vehicle. Moreover,
CNG vehicles are relatively more expensive than petrol or diesel-powered
vehicles. CNG-powered vehicles are generally less powerful, require frequent
refilling and offer a shorter driving range as CNG fuel tanks are smaller in
comparison to diesel or petrol tanks. Furthermore, CNG vehicles require
frequent maintenance which adds to the additional costs while offering lower
performance as opposed to petrol and diesel vehicles. Thus, such limiting factors of CNG
vehicles may confine the growth of the compressed natural gas (CNG)
tanks/cylinders industry.
Compressed Natural Gas (CNG) Tanks/Cylinders Industry Outlook
Technology launches, acquisitions and R&D
activities are key strategies adopted by players in the Compressed Natural Gas
(CNG) Tanks/Cylinders Market. The top companies in the Compressed Natural Gas (CNG)
Tanks/Cylinders Market are:
- Luxfer Holdings PLC
- Worthington Industries Inc.
- Quantum Fuel Systems LLC
- Hexagon Composites ASA
- Xinyi Beijing Tianhai Industry Co. Ltd.
- Praxair Technologies Inc.
- Lianyungang Zhongfu Lianzhong Composites Group Co. Ltd.
- Avanco Group
- Everest Kanto Cylinders Ltd.
- Faber Industrie SpA
Recent Developments
- In August 2020, Time Technoplast Ltd., based in India, developed its type-4 carbon fiber composite CNG cylinders. It is specifically designed for use in buses, passenger cars and trucks.
- In
May 2020, Agility launched its new and optimized ProRail CNG fuel systems. The
ProRail offers a range of benefits such as high durability and lightweight and
employs carbon fiber composite Type 4 CNG cylinders.
Relevant Reports
Report Code: EPR 0011
Report Code: EPR 68468
Report Code: AM 88423
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