According to a report by Grand View Research, Inc., global compressed natural gas (CNG) market is estimated to value USD 129.77 billion by 2020. Growing requirement for automobile fuels offering low greenhouse emissions can stimulate demand for compressed natural gas. CNG can be used as fuel in conventional internal combustion engines to run vehicles.
Growing demand for economical fuel resources for automobiles is anticipated to propel growth of market. CNG is projected to cost less as compared to diesel & petrol and can produce similar energy. This, in turn can surge demand for CNG as alternate fuel for various automobiles in coming years. Stringent government regulations to curb air pollution attributed to harmful emissions from vehicles can augment market growth. Increasing R&D investments by automobile companies to design hybrid engines can fuel growth of market during the forecast period (2012 to 2020).
Full Research Report On Compressed Natural Gas (CNG) Market Analysis: www.grandviewresearch.com/industry-analysis/compressed-natural-gas-cng-market
Global CNG market estimates and forecast by source, 2012-2020 (million cubic meters)
High initial investment for installing CNG engines into vehicles can restrict growth of market over the forecast period.
The compressed natural gas market can be segregated on the basis of source, application, and region. Based on source, the market can be categorized on the basis of unconventional methods, associated gas, and non-associated gas. Non-associated gas segment is predicted to witness significant growth owing to increasing use of these gases to produce CNG. Increasing R&D activities to explore non-associated gas reservoirs can fuel growth of market in near future.
Similarly, associated gases segment accounted for substantial market share after non-associated gases. It is predicted to grow at similar pace during the forecast period due to availability of wet gases.
On the contrary, unconventional methods segment is likely to witness fast growth in coming years. Growing adoption of re-gasification facilities in countries including India and China can augment growth of segment in Asia Pacific region.
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Based on application, the market can be classified into medium/heavy duty buses, medium/heavy duty trucks, light duty vehicles, and others. In past years, LDV segment dominated the market and accounted for 50% market share. It is predicted to grow at similar pace in coming years attributed to increasing production of NGVs. In addition, growing need for environment friendly fuels for vehicles can stimulate growth of segment in near future. Moreover, increasing use of CNG fuel tanks by major automobile companies owing to low maintenance and efficiency can fuel growth. These manufacturing companies can include Toyota, Honda, Fiat, General Motors, and Suzuki.
Regional segmentation includes Asia Pacific, Europe, North America, Middle East & Africa, and Central & South America. In 2013, Asia Pacific consumed maximum volume of CNG. It accounted for 46.6% of overall market volume in that year. Growing adoption of CNG in emerging economies including India, Indonesia, China, and Malaysia owing to increasing use of natural gas vehicles (NGVs) can fuel market growth. Supportive government policies regarding use of CNG vehicles can drive growth of market in this region. In addition, changing consumer preference for CNG vehicles over conventional fuel systems can influence market growth.
In Europe, the market grew well in past years and accounted for second largest market share after Asia Pacific. However, in Central & South America, the market is likely to grow fast in coming years. It is estimated to grow at CAGR of 17% from 2014 to 2020.
Moreover, South American countries including Argentina and Brazil are expected to face high demand for NGVs in near future. This, in turn can impel growth of market in the region over the forecast period.
Some of the leading companies offering compressed natural gas are Mahanagar Gas Limited (MNGL), Trillium CNG, National Iranian Gas Company, J-W Power Company, and Indraprastha Gas Limited (IGL). The market is estimated to be highly divided attributed to huge number of market players across the globe. Most companies are likely to compete on basis of service and price differentiation. In addition, companies are likely to focus on installation of CNG engines below vehicle’s body. This, in turn can increase storage space and fuel demand for CNG based vehicles in coming years. Moreover, increasing R&D activities on hybrid engines by major automobile manufacturers can create lucrative opportunities for new entrants.
Grand View Research has segmented the CNG market on the basis of source, application and region:
Global Compressed Natural Gas (CNG) Source Outlook (Volume, MCM; Revenue, USD Billion, 2012 – 2020)
Global Compressed Natural Gas (CNG) Application Outlook (Volume, MCM; Revenue, USD Billion, 2012 – 2020)
Light Duty Vehicles
Medium/Heavy Duty Buses
Medium/Heavy Duty Trucks
Global Compressed Natural Gas (CNG) Regional Outlook (Volume, MCM; Revenue, USD Billion, 2012 – 2020)
Middle East & Africa
Central & South America
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