By end of the 2033, the Automotive Gas Cylinder Market is estimated to be worth US$ 2.4 Billion. Automotive Gas cylinders are used for gas storage purposes under desired pressure conditions.
An automotive gas cylinder is a pressure vessel used to store and transport gases, such as compressed natural gas (CNG), liquefied petroleum gas (LPG), or hydrogen. Gas-driven vehicles are rising due to economical transportation costs over fossil fuel vehicles. This drives the market growth for gas cylinders in automobiles.
The purpose of an automotive gas cylinder is to provide a safe and convenient way to store fuel gases. Over the years, innovation and the emergence of new technology have resulted in the development of new composite materials, such as carbon fiber, glass fiber, and others, with the goal of overcoming heavy weight and safety issues in the event of an accident. These innovative safe cylinders are widely used in passenger as well as commercial vehicles, which is anticipated to lead to phenomenal market growth for automotive gas cylinders over the forecast period.
According to FMI, the automotive gas cylinder market is estimated to be valued at US$ 1.6 billion in 2023 and is projected to increase at a CAGR of 4.3% in the forecast period from 2023 to 2033.
| Attributes | Details |
|---|---|
| Market Size (2022) | US$ 1.5 Billion |
| Market Size 2023 | US$ 1.6 Billion |
| Market Size 2033 | US$ 2.4 Billion |
| Value CAGR (2023 to 2033) | 4.3% |
The automotive gas cylinder market has been growing at a healthy CAGR due to increased production and sales of gas cylinder-fitted automobiles, as well as the demand for economical and safe transportation. The automotive gas cylinder market accounts for about 5 to 7 % of its parent market, the automotive Fuel Tank market.
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The automotive gas cylinder market has witnessed a historic growth rate of 0.9 % from 2017 to 2022.
Over the last few years, the availability of automotive natural gas has been restricted to tier-one cities, limiting market growth for automotive gas cylinders in tire-2 and tire-3 cities.
The United States and Russia are the world's two largest natural gas producers. The COVID-19 pandemic shutdown, the trade war between the United States and China, and the conflict between Russia and Ukraine all harmed the natural gas supply, which put the globe in a supply chain crisis, with firms in every industry facing significant hurdles, including automotive gas cylinder industries. As a result, the price of natural gas fuel increased, which reduced the transportation cost gap between gasoline and natural gas. It negatively affects the demand for automotive gas cylinders.
Favoring high petroleum fuel prices, end-users are favoring alternative-fuel vehicles; as a result, revenue in this market is expected to rise at a healthy CAGR over the forecast period. Furthermore, demand for automotive gas cylinders is expected to rise in tandem with rising commercial vehicle demand.
The government's strengthening of rules and regulations to reduce greenhouse gas emissions in order to address the global warming problem, as well as the demand for cost-effective transportation, are the primary drivers for the automotive gas cylinder market. Governments and policymakers all over the world have enacted new regulations to reduce greenhouse gas emissions from automobiles, forcing end-users to switch to alternative fuels.
The weight of gas cylinder material and safety in a hazardous environment are overcome by innovation. According to the material used in cylinder manufacturing, automotive gas cylinders can add a significant burden to vehicles. The heavy weight of gas cylinders in vehicles can reduce vehicle speed and fuel economy. Over the past few years, innovation and the emergence of new technology have resulted in the development of new composite materials, such as carbon fiber, glass fiber, and others, which have helped to overcome these challenges and are supporting the growth of the automotive gas cylinder market.
Manufacturers use tough materials to manufacture gas cylinders for automotive use that can withstand dropping, tipping, and excessive heat exposure. They are aiming on developing strong gas cylinders to fulfill a wide range of safety precaution requirements for toxic, fireproof, and corrosive. High-quality sealants are used in the manufacture of gas cylinders to avoid valve breaks causing cracks in the gas cylinder shell. As a result of these aspects, the market for automotive gas cylinders is expected to rise over the forecast period.
Manufacturers' innovation in gas cylinder technologies for end users is propelling the market for automotive gas cylinder systems forward. The growing automobile market will provide lucrative opportunities for the automotive gas cylinder market.
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Factors such as the higher initial cost of vehicles that run on CNG are expected to restrain the global automotive gas cylinder materials market over the forecast period. Additionally, hydrogen-run vehicles are still in the development phase. However, intense competition, the high cost of composite tanks, stringent regulatory approval, and an increase in the use of absorbed natural gas that is stored in solid form are expected to hinder the growth of the market during the forecast period.
The lack of power of gas fuel over gasoline fuel hampered the growth of the gas cylinder market in the heavy-duty commercial automotive segment. Availability of gas, a time-consuming fuel refilling process, and limited gas storage constraints are also considerably affecting the gas cylinder market's growth.
Steel, composite, and other materials are used to make gas cylinders. The record-high prices caused by raw material shortages in the previous year are still having a significant impact on the economy. The production of gas cylinders and subcomponents generates supply shortages. The changing global socioeconomic landscape, as well as political influence on global trade, are significant factors that are expected to drive up raw material costs and availability, negatively impacting the automotive gas cylinder market.
Europe and North America currently account for a substantial portion of the worldwide automotive gas cylinder market. However, as pollution standards and safety regulations change, South Asia & Pacific is anticipated to emerge as a high-demand, high-growth region in the forecast years.
During the forecast period of 2023 to 2033, South Asia & Pacific will dominate the global market. The South Asia & Pacific region is expected to have the largest market share by 2033. It is anticipated that the South Asia & Pacific automotive gas cylinder market will be driven by rising demand for industrial gases and CNG vehicles in the region.
With large fleet sizes of CNG-powered vehicles, South Asia & Pacific, and North America are expected to hold significant market shares in the global automotive gas cylinder materials market during the forecast period.
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Some of the Key market players in the automotive gas cylinder market include 3M, CleanNG, CNG Cylinders International, Cobham plc, Faber Industrie S.p.A., Luxfer Gas Cylinders, Quantum Fuel Systems LLC., Beijing China Tank Industry Co. Ltd., Everest Kanto Cylinder Ltd., and MCS Technologies GmbH. To offer better products and remain competitive, companies employ various strategies such as product launches, strategic collaborations and acquisitions, partnerships, agreements, and contracts.
Key players in the gas cylinder market can create opportunities through continuous innovation and deployment. Continuous R&D, in conjunction with the market's expanding automobile fleet, is expected to generate significant market opportunities.
| Attribute | Details |
|---|---|
| Growth Rate | CAGR of 4.3 % from 2023 to 2033 |
| Base Year for Estimation | 2022 |
| Historical Data | 2017 to 2022 |
| Forecast Period | 2023 to 2033 |
| Quantitative Units | Revenue in USD Million, Volume in Units, and CAGR from 2023 to 2033 |
| Report Coverage | Revenue Forecast, Volume Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends, and Pricing Analysis |
| Segments Covered | Product, Vehicle Type, Region |
| Regions Covered | North America; Latin America; Europe; East Asia; South Asia & Pacific; Middle East and Africa (MEA) |
| Key Countries Covered | The US, Canada, Mexico, Brazil, Germany, Italy, France, The UK, Spain, Benelux, Russia, China, Japan, South Korea, India, Association of Southeast Asian Nations, Australia and New Zealand, GCC Countries, Turkey, South Africa, North Africa |
| Key Companies Profiled | 3M; CleanNG; CNG Cylinders International; Cobham plc; Faber Industrie S.p.A.; Luxfer Gas Cylinders; Quantum Fuel Systems LLC.; Beijing China Tank Industry Co. Ltd.; Everest Kanto Cylinder Ltd.; MCS Technologies GmbH. |
| Customization & Pricing | Available upon Request |
In 2022, the value of the Automotive gas cylinder market reached over US$ 1.5 Billion
The Automotive gas cylinder market is projected to reach US$ 2.4 Billion by the end of 2033.
South Asia & Pacific region is projected to lead the automotive gas cylinder market in the forecast period.
During the forecast period, the automotive gas cylinder market is estimated to expand at a CAGR of 4.30 % from 2023 to 2033.
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