Compressed Natural Gas (CNG) Market Size to grow by USD 19.77 billion between 2024-2028
According to a research report “ Compressed Natural Gas (CNG) Market” by Application (LDV, MDV, HDV) Source (Non associated gas, Unconventional gas, Associated gas) Geography (APAC, Middle East and Africa, South America, Europe, North America)- Global Forecast to 2028 published by Technavio, the market size is estimated to grow by USD 19.77 billion, at a CAGR of 7.51% during the forecast period. The Compressed Natural Gas (CNG) market for automobiles presents an eco-friendly and sustainable mobility solution, with CNG vehicles offering significant improvements in air quality. Favorable government regulations and the development of CNG infrastructure have boosted consumer acceptance, resulting in increased competitiveness. In India, the CNG vehicle market is projected to expand by 233.33% from 2018 to 2024-2025, adding 10 million new CNG fleets consisting of buses, three-wheelers, and passenger vehicles. Similarly, Phoenix, USA, has transitioned its solid waste transportation fleet to CNG since 2012, showcasing the growing trend towards eco-friendly and cost-effective alternatives to traditional fuels..
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By Application, the LDV segment is projected to dominate the market size in 2024
The US Energy Information Administration (EIA) categorizes light-duty vehicles (LDVs) with a gross vehicle weight rating (GVWR) of 8,500 lbs. or less, which encompasses private automobiles and vans, as significant contributors to global oil consumption and CO2 emissions. In 2022, these vehicles accounted for over 25% of global oil consumption and roughly 10% of worldwide energy-related CO2 emissions. However, the production and usage of larger, less fuel-efficient vehicles, such as SUVs, hinder the progress towards enhancing vehicle fuel efficiency. To align with the International Energy Agency's (IEA) Net Zero Emissions Scenario by 2050, the automotive sector must expand the market share of electric vehicles and expedite advancements in the fuel efficiency of new conventional vehicles.
By Source, Non associated gas segment is expected to hold the largest market size for the year 2024
In the oil and gas industry, associated gas is a valuable yet often underutilized resource. This natural gas is a byproduct of crude oil extraction and is typically developed to offset the costs of oil field production. However, associated gas reserves have a limited production lifespan, often declining after a few years. Traditionally, this gas has been viewed as an unwanted byproduct, with options for disposal including venting, flaring, or reinjection into oil wells. To maximize the value of associated gas, it undergoes a series of processes to produce Compressed Natural Gas (CNG). These steps include extraction, treatment to remove impurities, compression to reduce volume, storage, and transportation to end-users. By converting associated gas into CNG, energy companies can tap into a new revenue stream and reduce environmental emissions.
APAC is forecasted to hold the largest market size by region in 2024
The Compressed Natural Gas (CNG) market in the Asia-Pacific (APAC) region is experiencing substantial growth, primarily driven by the significant demand in countries such as Japan, Pakistan, China, South Korea, India, and Taiwan. Pakistan, in particular, is a major consumer of CNG globally. In China, the demand for CNG is escalating rapidly and is anticipated to continue growing at a robust pace during the forecast period. Notably, initiatives are underway to promote the use of CNG in the transportation sector, coupled with the development of CNG infrastructure. By 2020, Zhuzhou, China, had established ten new CNG fueling stations as part of the Zhuzhou City Gas Development Plan. This expansion is a testament to the Chinese government's commitment to increasing CNG adoption and addressing the growing demand.
The Compressed Natural Gas (CNG) Market growth and forecasting report also includes detailed analyses of the competitive landscape of the market growth and forecasting and information about 20 market companies, including:
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Research Analysis Overview
The Compressed Natural Gas (CNG) market has gained significant attention as a viable alternative to conventional fuels like crude oil, diesel, and gasoline. With the discovery of large shale gas reserves, unconventional gas sources have emerged as a key player in the energy sector. Shale gas is a form of unconventional gas that is extracted from shale formations, often through hydraulic fracturing or fracking. CNG is derived from both associated and non-associated gas sources. Associated gas is extracted from oil fields, while non-associated gas is found in gas fields. CNG is composed primarily of methane and is a cleaner burning fuel compared to diesel and gasoline. The use of CNG in light duty vehicles, medium duty trucks, heavy-duty transport trucks, and buses has gained popularity due to its environmental benefits. Compared to diesel and gasoline, CNG produces fewer greenhouse gases and zero ozone depletion. However, the production and transportation of CNG require careful handling to prevent methane leakage, which can contribute to greenhouse gas emissions. The shift towards CNG as a transportation fuel is driven by the need to reduce carbon emissions and the increasing availability of shale gas reserves. The market for CNG is expected to grow significantly in the coming years, with competition from other alternative fuels like propane/LPG. The future of the CNG market depends on the continued exploration and production of unconventional gas sources and the development of infrastructure to support the growing demand for CNG as a transportation fuel.
Market Research Overview
The Compressed Natural Gas (CNG) market is experiencing significant growth due to the increasing demand for cleaner and more sustainable transportation fuels. With the rise of unconventional gas sources like shale gas and associated gas from oil wells, the market for CNG is expanding. CNG is a viable alternative to conventional fuels like crude oil, diesel, and gasoline, especially for light-duty vehicles, medium/heavy-duty trucks, and buses. CNG is derived from unconventional sources such as shale gas reserves and associated gas. It is a cleaner burning fuel than diesel and gasoline, producing fewer greenhouse gases and fewer emissions, including ozone depletion and carbon emissions. The use of CNG in vehicles also reduces the dependence on fossil fuels and contributes to the reduction of air pollution. The market for CNG is driven by the increasing popularity of natural gas vehicles, the availability of refueling stations, and the investment in infrastructure. The auto industry is also responding to the demand for cleaner transportation fuels by producing more natural gas cars. However, challenges such as installation costs, pressure difficulties, and tank fitment remain. Other alternative fuels like biomethane, propane/LPG, and even unconventional sources like anthracite coal, peat, and geological conversion are also being explored as potential sources for CNG. The global CNG market is expected to continue growing as more countries shift towards cleaner transportation fuels to meet energy demand and reduce carbon footprint.
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