The compressed natural gas market size has witnessed rapid expansion in recent years, escalating from $166.9 billion in 2023 to $189.33 billion in 2024, with a compound annual growth rate (CAGR) of 13.4%. This surge in the historical period is due to stringent environmental regulations, efforts toward emissions compliance, cost savings in fuel, increasing adoption of compressed natural gas in the transportation sector, government incentives and subsidies, and concerns about energy security and diversification. Looking ahead, the market is expected to continue its rapid expansion, projected to reach $304.04 billion by 2028 with a CAGR of 12.6%. This growth is driven by the global push for clean energy, the rise of renewable natural gas (RNG), government initiatives promoting sustainable mobility, expansion of compressed natural gas infrastructure, and efforts to improve urban air quality. Salient trends in the forecast period include advancements in compressed natural gas storage technology, technological innovations in compressed natural gas vehicles, infrastructure development, growth of natural gas vehicles (NGV), and further advancements in storage technology.
Major Driver In The Compressed Natural Gas Market
The rise in the number of CNG-powered vehicles is expected to propel the growth of the compressed natural gas market going forward. CNG-powered vehicles are vehicles that are fueled solely by the combustion of compressed natural gas (CNG) as an alternative to other fossil fuels. CNG-powered vehicles are gaining popularity in recent years due to their number of advantages such a cheaper option as compared to other combustion fuels, increasing engine lifespan due to less gasoline contamination of the motor oil, extended intervals between car servicing activities such as tune-ups and oil changes and produces less harmful gases as compared to conventional fuels. For instance, according to the report published by the International Association for Natural Gas Vehicles, a New Zealand-based association for natural gas vehicles, more than 30 million natural gas vehicles (NGVs) were expected to be in use worldwide by the end of 2021. Therefore, the rise in the number of CNG-powered vehicles is driving the growth of the compressed natural gas market.
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Compressed Natural Gas Market Competitive Landscape
Royal Dutch Shell plc, TotalEnergies SE, Chevron Corporation, Phillips 66 Company, PJSC Gazprom, ConocoPhillips Company, Occidental Petroleum Corporation, EOG Resources Inc., Forensic Technologies International Group Ltd., 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., British Retail Consortium Gas Equipment Srl, Tomasetto Achille S.p.A.
Key Compressed Natural Gas Market Trend
Major companies in the compressed natural gas market are developing new solutions like BioCNG plants to gain a competitive edge. BioCNG, or biocompressed natural gas, is a renewable energy source derived from the anaerobic digestion or fermentation of organic materials such as agricultural residues and organic waste. For example, in October 2022, Verbio India Private Limited, a subsidiary of Germany-based Verbio Vereinigte BioEnergie AG, launched a BioCNG plant in Lehragaga, Punjab. This plant addresses environmental challenges associated with stubble burning and has a production capacity of 33 tons per day (TPD) of BioCNG and 650 TPD of bio-manure. It aims to reduce air pollution, provide cost-free stubble collection for farmers, create jobs, improve soil health, and offer a climate-friendly fuel for automotive and industrial applications. The project aligns with the Indian government's SATAT program and marks a significant step in VERBIO's expansion plans in India.
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Compressed Natural Gas Market Segmentation
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
By Geography:The regions 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.
Asia-Pacific was the largest region in the compressed natural gas market in 2023.
The Compressed Natural Gas Global Market Report 2024 furnishes information about the global compressed natural gas market, encompassing details like market size, projections for growth, segmentation across various sectors and regions, and an overview of competitors, including their revenues, profiles, and market shares. Furthermore, the report pinpoints potential opportunities and strategic directions derived from market trends and the strategies adopted by key competitors. The report also offers an assessment of how the COVID-19 pandemic, the Russia-Ukraine conflict, and increasing inflation have affected both global and regional markets, furnishing valuable strategic insights for businesses.
