The CNG tanks cylinders market reached USD 1.7 billion in 2022. Demand for CNG tanks cylinders is estimated to surpass USD 1.8 billion in 2023. During the forecast period, sales are poised to exhibit a 6.7% CAGR. Revenue is anticipated to cross around USD 3.5 billion by 2033.
Key Market Highlights
As per the data provided by the Department of Energy, in the United States, around 175,000 automobiles run on natural gas, while about 23 million vehicles do so globally. Compressed natural gas (CNG) fuelling is a consistent source in many regions.
High availability makes natural gas vehicles (NGVs) an excellent option for high-mileage, centrally fuelled fleets. NGVs might have applications that are confined to those areas with similar fuel range support. CNG is being utilized as a fuel for automobiles more often, particularly in fleets of public transit and commercial vehicles. This drives the demand for CNG tanks and cylinders for storing and transporting the fuel.
The expansion of CNG refueling infrastructure is crucial to support the adoption of CNG as a fuel. As a result, more CNG tanks and cylinders need to be produced and installed. CNG might be utilized to store energy, particularly when there is extra renewable energy that has to be kept for later use. This application calls for more CNG storage space. Clean energy sources such as CNG can also find applications in industries that require heat or power generation. This diversifies the demand for CNG tanks and cylinders beyond just transportation.
Strict environmental regulations on emissions can encourage companies to switch to clean fuels such as CNG. This drives demand for the necessary storage and transport infrastructure.
CNG can be a solution for reducing energy waste in situations where excess renewable energy is generated but cannot be immediately used. Storing this energy in the form of CNG can mitigate waste and bolster demand for storage solutions. As the global energy landscape evolves towards sustainability, CNG can play a role in reducing reliance on traditional fossil fuels. It will help in creating a sustained demand for CNG tanks cylinders.
| Attributes | Key Insights |
|---|---|
| CNG Tanks Cylinders Market Estimated Size (2023E) | USD 1.8 billion |
| Projected Market Valuation (2033F) | USD 3.5 billion |
| Value-based CAGR (2023 to 2033) | 6.7% |
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The market experienced steady growth at 8.2% CAGR during the historical period from 2018 to 2022. In the forecast period, the CNG tanks cylinders industry is set to register 6.7% CAGR.
There has been a recent increase in the popularity of compressed natural gas (CNG) as a vehicle fuel, particularly in commercial fleets and public transit. This is likely to increase the demand for CNG tanks cylinders for storing the gas for usage in cars and buses. The growth of CNG as a transportation fuel necessitates the development of refueling infrastructure. This infrastructure expansion would require a greater number of CNG tanks and cylinders.
CNG is seen as a way to reduce carbon emissions in transportation. This will stimulate demand for CNG tanks and cylinders to support the growing fleet of vehicles running on CNG. Governments offer incentives and subsidies to encourage the adoption of clean fuels. These policies can increase the demand for CNG-powered vehicles and, subsequently, for CNG tanks and cylinders.
Apart from transportation, CNG is used in different industrial processes and power generation. The demand for CNG tanks and cylinders in industrial applications is likely to rise as businesses seek clean energy solutions. The diversification of energy sources for transportation and industrial sectors through CNG can enhance energy security. Thereby driving the demand for CNG tanks and cylinders.
The growth of the CNG market might lead to innovations in tank and cylinder design, material, and manufacturing processes, further contributing to market demand. Geopolitical considerations can influence energy transitions.
Countries with ample natural gas resources might encourage CNG adoption, boosting the demand for associated tanks and cylinders. As the energy transition spreads to more regions globally, the demand for CNG tanks and cylinders could see increased adoption in previously untapped markets.
Government Regulations
Strict emissions regulations and incentives to promote the use of alternative fuels are encouraging the adoption of CNG vehicles, thereby boosting the CNG cylinder market.
Advancements in Composite Materials
The development of lightweight and durable composite materials for CNG cylinders enhances their safety, capacity, and efficiency, making them more attractive to consumers.
Increased Adoption in Transportation
CNG is gaining traction in commercial fleets and public transportation due to its cost-effectiveness and lower emissions, driving the need for more CNG cylinders.
Infrastructure Expansion
Expanding CNG refueling infrastructure supports the growth of the CNG market and encourages fleet operators to invest in CNG vehicles and cylinders.
Urbanization and Air Quality Concerns
Increasing urbanization and air quality concerns in cities are pushing for clean transportation solutions, which in turn drives the demand for CNG tank cylinders.
Principal Consultant
Limited Range
Vehicles running on CNG have a low range compared to traditional gasoline or diesel vehicles, as CNG has a low energy density.
Refueling Infrastructure
CNG refueling stations are limited in several regions, making it inconvenient for users to find refueling options.
Reduced Trunk Space
CNG cylinders take up space in the vehicle's trunk or cargo area, limiting storage capacity.
Safety Concerns
CNG is highly flammable, which raises safety concerns in case of accidents or leaks. Proper handling and storage are crucial.
Weight and Performance
CNG cylinders are heavy, which can impact vehicle performance, handling, and fuel efficiency.
Slow Refueling
Refueling with CNG is generally slower compared to gasoline or diesel, which could be a concern for commercial vehicles with tight schedules.
Limited Vehicle Options
The availability of CNG-compatible vehicle models is limited, reducing consumers' choices.
Environmental Concerns
While CNG is cleaner than gasoline or diesel, it's not as eco-friendly as alternative fuels such as electricity or hydrogen.
The below section highlights revenues, in terms of value, for important countries in the global landscape. The United States and China are expected to emerge as the dominant markets by 2033, with sizes of USD 632.7 million and USD 795.6 million by 2033, respectively.
Even though China is projected to emerge as the leading country in the global market by 2033, both countries are expected to grow at a similar rate. These two countries are expected to lead global sales, growing at 6.6% CAGR each.
| Countries | Market Value |
|---|---|
| United States | USD 632.7 million |
| China | USD 795.6 million |
According to Future Market Insights (FMI) analysis, the United States market for CNG tanks cylinders is set to hold a total of around USD 632.7 million by 2033. It is predicted to expand at 6.6% CAGR during the forecast period (2023 to 2033).
Growing popularity of vehicles that operate with CNG gas is likely to drive demand in the United States. The demand for more affordable and sustainable fuel choices is what's fueling growth.
Government regulations aimed at reducing emissions and promoting clean transportation have played a role in the growth of the CNG tanks cylinders market. The use of CNG and other alternative fuels is encouraged by these policies. Several commercial fleets, including taxis, buses, and delivery trucks, have started switching to CNG-powered vehicles. This has led to increased demand for CNG tanks cylinders to store the fuel.
Compressed natural gas, which produces fewer toxins and particles than gasoline or diesel, is seen to be a safer fuel than those two. It is a more enticing choice for consumers and businesses because it is less costly than conventional fuels.
The expansion of CNG refueling infrastructure is critical for the growth of the CNG tanks cylinders market. As more refueling stations are built across the country, the demand for CNG tanks cylinders is likely to increase.
Several companies are involved in the manufacturing and distribution of CNG tanks cylinders in the United States. These companies compete in terms of technology, design, and safety features. The CNG tanks cylinders market is also influenced by global energy trends and geopolitical factors that impact natural gas supply and demand.
China CNG tanks cylinders industry is poised to exhibit a CAGR of 6.6% during the assessment period. By 2033, China market size is expected to reach USD 795.6 million.
The CNG tanks cylinders market in China is expected to witness decent growth during the forecast period. This is due to the increasing adoption of natural gas as a clean alternative to traditional fuels. China government's focus on reducing air pollution and carbon emissions has driven the demand for CNG-powered vehicles. This is consequently boosting the CNG tanks cylinders industry in the country. China has been investing in the expansion of CNG refueling infrastructure, encouraging the use of CNG-powered vehicles across various regions.
Government policies, such as subsidies for CNG vehicles and refueling stations, have played a role in promoting the growth of the CNG tanks cylinders market. Several domestic and international companies are engaged in manufacturing CNG tanks cylinders in China to cater to the increasing demand.
Ensuring the safety of CNG storage and transportation is crucial, leading to the implementation of stringent safety standards and regulations for CNG tanks cylinders. Ongoing research and development efforts aim to improve the efficiency, capacity, and safety of CNG tanks cylinders, driving innovation in the market.
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The below section highlights the dominance of the carbon fiber division on the basis of material type, through 2033. It is expected to expand at 6.6% CAGR through 2033.
Based on material, stainless steel is anticipated to retain leading shares in the market through 2033. It is expected to grow at 6.5% CAGR during the assessment period.
| Attributes | Details |
|---|---|
| Carbon Fiber Division | 6.6% |
Based on material, carbon fiber division demand is expected to remain high during the assessment period. In between 2023 and 2033, sales are poised to expand at 6.6% CAGR.
Carbon fiber is considered an eco-friendly and sustainable option compared to metal. It will help in enhancing the lifespan of CNG tanks. Carbon fiber's malleability allows the user for innovative tank designs that can be tailored to fit different models. Carbon fiber tanks can store CNG at high pressures, increasing energy density and extending the vehicle's driving range. Carbon fiber's resistance to corrosion and damage low maintenance needs, reducing overall operating costs.
Carbon fiber tanks could contribute to low greenhouse gas emissions due to increased fuel efficiency. As regulations on emissions and vehicle weights become stricter, carbon fiber tanks offer a solution to meet these standards.
Ongoing advancements in carbon fiber manufacturing techniques are reducing production costs and improving scalability. Carbon fiber's success in aerospace and motorsport industries demonstrates its reliability and drives interest in using it for CNG tanks.
The eco-friendly image and potential cost savings associated with CNG vehicles could lead to increased consumer demand for carbon fiber tanks. As the demand for lightweight, high-performance CNG tanks propels, carbon fiber will likely see increased adoption to stay competitive.
| Attributes | Details |
|---|---|
| Light Duty Vehicles Market | 6.5% |
The light duty vehicles segment is expected to register a 6.5% CAGR from 2023 to 2033. The target segment will likely take center stage in the global CNG tank cylinder market.
Light-duty vehicles are typically used for personal transportation and are favored for their fuel efficiency. CNG is an appealing alternative since it is less expensive than standard gasoline or diesel. With growing concern about environmental concerns, CNG is regarded as a more sustainable choice than conventional fuels. It is known for generating less greenhouse gases and pollutants. This aligns with the trend towards eco-friendly transportation options.
The stop-and-go style of urban driving makes CNG particularly suited for commuting in cities. When CNG's advantages may be fully realized, short-distance driving is frequently done in light-duty cars such as sedans and hatchbacks. Light-duty vehicle owners will find it more convenient to refill their cars as the world's CNG refueling infrastructure develops. This growth encourages the use of CNG-powered cars even more.
Stringent emissions regulations push automakers to develop cleaner vehicles. CNG-powered light-duty vehicles. It can help manufacturers meet these requirements while appealing to environmentally conscious consumers.
Companies use light-duty vehicles for their fleets, such as taxis and delivery services. These operators might choose CNG due to its cost savings over time and reduced environmental impact. Ongoing research and development in CNG technology, such as lightweight cylinders and improved refueling systems. These factors make CNG more attractive and feasible for light-duty vehicles.
Consumers increasingly prioritize vehicles that offer a balance of fuel efficiency, affordability, and environmental friendliness. CNG-powered light-duty vehicles can meet these demands. The availability of natural gas, a key component of CNG, has increased due to advancements in extraction methods. This availability contributes to the growth of the CNG market.
To satisfy consumer requests and safety regulations, leading companies concentrate on producing lightweight, strong, and high-capacity CNG cylinders. To improve the effectiveness, safety, and performance of CNG cylinders, they are merging cutting-edge materials and production procedures.
Leading manufacturers seeking to expand into new markets by forming alliances, distribution networks, and partnerships with regional players.
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| Attributes | Details |
|---|---|
| Estimated Market Size (2023) | USD 1.8 billion |
| Projected Market Valuation (2033) | USD 3.5 billion |
| Value-based CAGR (2023 to 2033) | 6.7% |
| Historical Data | 2018 to 2022 |
| Forecast Period | 2023 to 2033 |
| Quantitative Units | Value (USD billion/million) |
| Segments Covered | Material, Vehicle Type, Region |
| Regions Covered | North America; Latin America; East Asia; South Asia Pacific; Western Europe; Eastern Europe; Middle East Africa |
| Key Countries Covered | United States, Canada, Brazil, Mexico, Germany, Italy, France, United Kingdom, Spain, Russia, GCC Countries, India, China, Japan and Australia |
| Key Companies Profiled | AVANCO GmbH; Beijing Tianhai Industry Co. Ltd.; Everest Kanto Cylinder Ltd.; Faber Industrie Spa; Hexagon Composites ASA |
The CNG tanks cylinders industry is estimated to reach a market valuation of USD 3.5 billion by 2033.
Sales of the CNG tanks cylinders industry are likely to register a CAGR of 6.7% during the forecast period
The global CNG tanks cylinders industry expanded at a CAGR of 8.2% between 2018 and 2022.
The United Kingdom is likely to be an opportunistic industry, with sales generating a 6.4% CAGR in the forecast period.
The carbon fiber segment will dominate the industry with a CAGR of 6.6% between 2023 and 2033.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Material 5.1. Carbon Fiber 5.2. Glass Fiber 5.3. Metal 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Vehicle Type 6.1. Light Duty Vehicles 6.2. Medium Duty Vehicles 6.3. Heavy Duty Vehicles 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 7.1. North America 7.2. Latin America 7.3. Western Europe 7.4. Eastern Europe 7.5. South Asia and Pacific 7.6. East Asia 7.7. Middle East and Africa 8. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 9. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 10. Western Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Eastern Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. South Asia and Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. Middle East and Africa Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 15. Key Countries Market Analysis 16. Market Structure Analysis 17. Competition Analysis 17.1. AVANCO GmbH 17.2. Beijing Tianhai Industry Co., Ltd 17.3. Everest Kanto Cylinder Ltd. 17.4. Faber Industrie Spa 17.5. Hexagon Composites ASA 17.6. Lianyungang Zhongfu Lianzhong Composites Group Co., Ltd. 17.7. Luxfer Holdings PLC 17.8. Quantum Fuel Systems Technologies Worldwide, Inc. 17.9. Ullit SA 17.10. Worthington Industries 18. Assumptions & Acronyms Used 19. Research Methodology
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CNG Tanks Cylinders Market
