CNG Tank And Cylinder Market Size, Share, Growth, And Industry Analysis, By Type (Metal Material, Glass Fiber Composites Raw Materials, Carbon Fiber Composites Raw Materials and Other), By Application (Passenger Vehicles and Commercial Vehicles), Regional Insights, and Forecast To 2032

Updated On: 08 July 2024

CNG Tank And Cylinder Market Report Overview

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The global CNG tank and cylinder market size was USD 933.7 million in 2023 and market is projected to touch USD 1363.8 million by 2032, at a CAGR of 4.3% during the forecast period. In the market study, our analysts have considered CNG tank and cylinder players such as Sinomatech, Everest Kanto Cylinders, Worthington, Industries, Luxfer Group, Hexagon Composites, Beijing Tianhai Industry, Rama Cylinders and Others

As high-pressure cylinders where CNG gas is kept, compressed natural gas tanks, often known as CNG tanks or cylinders, can be used. Typically, a high-pressure cylinder is used to compress the natural gas to a compression ratio of 250 bar or more. When used to power a vehicle, CNG gas is kept in these tanks in cars. Because it is inexpensive and environmentally friendly, compressed natural gas is commonly employed in transportation vehicles.

The expansion of the market is aided by rising public awareness of natural gas-powered vehicles and government initiatives to boost green energy vehicles. The industry for CNG tanks and cylinder is expanding favorably as a result of increased production of vehicles fueled by natural gas, advancements in hybrid vehicles, and growing preference for lightweight storage options.

COVID-19 Impact: Supply of Crucial Raw Materials Suddenly Decreased due to the Strict Lockdowns Implemented by Governments

Due to the COVID-19 outbreak, import-export of certain raw materials was prohibited for the majority of 2020 and a small portion of 2021. Strict lockdowns were also implemented by governments around the world. As a result, the supply of crucial raw materials for automotive components suddenly decreased. The COVID-19 epidemic greatly affected aircraft sales and production, which had a detrimental influence on the market for CNG tank and cylinder in 2020. These disruptions to supply chains and manufacturing schedules were the result. The epidemic made it harder to produce essential raw materials like steel that are employed to make alternative fuel vehicles and reduced the supply of these tanks globally.

Latest Trends

"Strategic Initiative Introduced to Substantially Enhance the Range of CNG Buses "

With the implementation of BS-VI Emissions Standards on 1 April 2020, IGL has started a number of programmes or is moving away from diesel. The first long-distance compressed natural gas bus in India was introduced in 2020 by the Minister of Petroleum and Natural Gas of India as part of a strategic initiative run by Indraprastha Gas Limited. Agility Fuel Solutions created the composite cylinder-based entire bus fuel system, which substantially enhances the range of CNG buses. The five buses in the programme have a range of more than 1100 km, whereas CNG buses in India previously had a maximum range of 350 km.

CNG Tank And Cylinder Market Segmentation

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• By Type Analysis

According to type, the market can be segmented into Metal Material, Glass Fiber Composites Raw Materials, Carbon Fiber Composites Raw Materials and Other

• By Application Analysis

Based on application, the market can be divided into Passenger Vehicles and Commercial Vehicles

Driving Factors

"Advantages Offered by Natural Gas make it  More Suitable to be Employed by the Automobile Industry than Conventional Gasoline"

Around 23 million automobiles worldwide and much more than 175 thousand in the United States are fuelled by natural gas. Vehicles powered by natural gas have good fuel efficiency and offer a wider range of uses. Natural gas is superior to conventional gasoline and diesel fuels for use as a transportation fuel since it is domestically accessible, has a large distribution network, and emits fewer greenhouse gasses. As a result, natural gas is increasingly being used in the automobile industry due to its many advantages. This, in turn, has significantly fueled the demand for CNG tank and cylinder.

"Growing Urbanization and Rising Industrial Activity in Developing Nations aids in Fueling the Growth of the CNG Market"

Due to urbanization and rising industrial activity, the demand for automobiles in developing nations is anticipated to increase considerably in the next few years. Due to the rising demand for automobiles in the region, manufacturers are progressively constructing production facilities in emerging nations. Automobile production has increased in developing countries as a result of favorable government policies, rising GDP, and expanding consumer expenditure. The demand for CNG vehicles is growing along with the demand for automobiles since it is an economical and environmentally friendly alternative to gasoline and diesel. Governments in a number of the region's nations are therefore urging people to utilize them instead of conventional fuels. Because of this, CNG vehicles have become more popular, which is expected to drive the requirement and growth of the CNG tank and cylinder market growth during the anticipated time frame.

Restraining Factors

"Multiple Issues Associated with the Utilization of Natural Gas as Vehicle Fuel can Obstruct the Expansion of this Industry"

If the car manufacturer offers both diesel/petrol variations and a factory-installed CNG version, the CNG versions are typically more expensive when compared to their petrol and diesel-powered equivalents. Owners of automobiles that do not come standard with a CNG kit must fork out additional funds to convert their conventional vehicles to CNG-powered models. Along with this, one other drawback of CNG automobiles is that they have a lesser range than diesel and petrol vehicles. Due to the shorter range, the motorist will need to frequent refueling facilities more frequently. CNG-powered vehicles also have worse fuel efficiency than other conventional automobiles.

CNG Tank And Cylinder Market Regional Insights

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"Increasing Requirement for Natural Gas and Investing in CNG Tanks in the region is Promoting Asia Pacific to Hold the Leading Position  "

Due to the region's increasing need for natural gas, particularly in countries like India, China, Japan, and others in the region, the Asia Pacific is anticipated to control the largest market. China is investing in CNG tanks at the quickest rate because of its emphasis on using cleaner energy for commercial and industrial transportation, which is expected to stimulate demand there and elsewhere in the world. Additionally, Type 1 CNG tanks are consumed at a higher rate in this region, which further stimulates the CNG Tank and Cylinder market share.

The increase in commercial and industrial commuting has resulted in the development of CNG tank and cylinder across the region, favorably changing the market environment for CNG tank and cylinder. North America has put in place strict laws to reduce emissions and is more centered on renewable energy initiatives and energy-efficient sectors.

Key Industry Players

"Investments in R&D Activities by the Key Players to have Competitive Advantage than their Competitors"

The major companies in this market put a lot of effort into building out their production facilities. Investing in R&D, developing their infrastructure, and utilizing integration opportunities throughout the value chain. These tactics help CNG tank and cylinder businesses meet rising demand, ensure competitive effectiveness, create cutting-edge goods and technology, cut manufacturing costs, and broaden their clientele.

List of Market Players Profiled

• Sinomatech (China)
• Everest Kanto Cylinders (India)
• Worthington Industries (U.S.)
• Luxfer Group (U.K.)
• Hexagon Composites (Norway)
• Beijing Tianhai Industry (China)
• Rama Cylinders (India)
• Quantum Technologies (India)
• Faber Industrie (Italy)
• Praxair Technologies (U.S.)
• CIMC ENRIC (China)

Report Coverage

This report covers the CNG tank and cylinder market. The CAGR expected to be in during the forecast period, and also the USD value in 2022 and what it is expected to be in upcomming years. The effect COVID-19 had on the market in the beginning of the pandemic. The latest trends taking place in this industry. The factors that are driving this market as well as the factors that are restraining the growth of industry. The segmentation of this market based on type and applications. The region leading in the industry and why they will continue to do so during the forecast period. Further, the key market players, what all is being done by them to stay ahead of their competition as well as retain their market positions. All these details are covered in the report.