What is the Historical Analysis of the Compressed Natural Gas Market Size?
The compressed natural gas market has seen considerable growth due to a variety of factors.
• In recent times, the market size for compressed natural gas has witnessed substantial growth. The market, which stood at $187.95 billion in 2024, is projected to reach $213.29 billion in 2025, registering a compound annual growth rate (CAGR) of 13.5%.
Factors like environmental laws and emission standards, cost savings on fuel, uptake in the transport sector, government incentives and subsidies, along with energy security and diversification have contributed to the growth historically.
How Will the Compressed Natural Gas Market Size Evolve over the Forecast Period?
The compressed natural gas market is expected to maintain its strong growth trajectory in upcoming years.
• It is projected that the size of the compressed natural gas market will expand significantly in the upcoming years. By 2029, it is expected to be valued at $340.2 billion, with a Compound Annual Growth Rate (CAGR) of 12.4%.
This growth for the anticipated period can be credited to the global demand for clean energy, the emergence of renewable natural gas (RNG), government-led sustainable mobility programs, and the development of CNG facilities, along with initiatives to improve urban air quality. The forecast period will likely see major trends such as progress in CNG storage technology, advancements in CNG vehicles, infrastructure development, increase in natural gas vehicles (NGV), and further advancements in CNG storage technology.
Which Key Drivers Are Propelling Th Compressed Natural Gas Market's Growth?
The increase in the usage of CNG-powered vehicles is anticipated to accelerate the expansion of the compressed natural gas market. Vehicles powered by CNG rely solely on the burning of compressed natural gas as a substitute for other fossil fuels. Thanks to their various benefits, CNG-powered vehicles have become increasingly popular in recent years. These advantages include being more cost-effective compared to other combustion fuels, lengthening the engine's lifespan due to reduced gasoline contamination of the motor oil, lengthened periods between vehicle maintenance activities such as tune-ups and oil changes, and producing fewer harmful gases compared to traditional fuels. For instance, Autocar Professional, an India-based B2B automotive industry publication, reported in March 2024, that total sales of CNG-powered vehicles in FY2023 were 6,79,822, which rose by 38% to reach 9,39,615 in FY2024. Thus, the growing popularity of CNG-powered vehicles is fuelling the expansion of the compressed natural gas market.
What Key Areas Define The Segmentation Of The Global Compressed Natural Gas Market?
The compressed natural gas market covered in this report is segmented –
1) By Type: Non-Associated Gas, Associated Gas, Unconventional Sources
2) By Product Type: Dedicated Fuel, Bi-Fuel, Dual Fuel
3) By Application: Light Passenger Vehicles, Medium or Heavy Duty Vehicles, Other Applications
Subsegments:
1) By Non-Associated Gas: Dry Gas, Wet Gas
2) By Associated Gas: Gas Produced With Oil (Associated Gas), Gas From Oil Fields
3) By Unconventional Sources: Shale Gas, Coalbed Methane (CBM), Tight Gas
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How Are Emerging Trends Reshaping The Dynamics Of The Compressed Natural Gas Market?
Key companies within the compressed natural gas market like Verbio India Private Limited are innovating and incorporating BioCNG plants to attain a competitive position in the market. BioCNG, an abbreviation for biocompressed natural gas, is a renewable energy source obtained from the anaerobic digestion or fermentation of organic waste such as agricultural residues or dedicated energy crops. Verbio India, a subsidiary of Germany's biofuel company Verbio Vereinigte BioEnergie AG, inaugurated a BioCNG plant in Lehragaga, Punjab, in October 2022. The plant was erected to address environmental issues caused by stubble burning, using paddy stubble - an agricultural residue traditionally burned by farmers. The plant, erected over a course of three years, boasts an impressive production capacity of 33 tons per day (TPD) BioCNG and 650 TPD bio-manure. It's aimed to dramatically decrease air pollution within a 10-kilometer radius, offer free stubble collection for farmers, generate employment opportunities, improve soil quality via bio-manure, and provide a sustainable fuel for automotive and industrial uses. The project aligns with India’s SATAT initiative and represents a significant progress in VERBIO's mission to develop and proliferate more BioCNG plants throughout India.
Who Are the Key Players in the Compressed Natural Gas Market?
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.
What Is The Most Dominant Region In The Compressed Natural Gas Market?
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.
