Compressed Natural Gas (CNG) Market to Hit USD 21,068.66 Mn by 2030 | Consegic Business Intelligence

 

Compressed Natural Gas (CNG) Market Overview:

The global CNG market has been experiencing steady growth over the years. Factors such as environmental concerns, government initiatives, and the rising demand for cleaner fuels have contributed to the Compressed Natural Gas (CNG) Market Expansion. The market size is expected to continue its upward trajectory in the coming years. Compressed Natural Gas (CNG) Market is USD 1,262.27 Million in 2022. It is projected to reach USD 21,068.66 by 2030, indicating a CAGR of 8.4% during the forecast period.

Market Definition:

Compressed Natural Gas (CNG) is a type of fuel made by compressing natural gas to a reduced volume. Natural gas, primarily composed of methane (CH4), is extracted from underground reserves or produced as a by-product of oil extraction and other industrial processes. CNG is stored and transported in high-pressure cylinders or tanks.

Market Drivers:

Compressed Natural Gas (CNG) Market has Growing concerns about environmental pollution and climate change have led to increased emphasis on cleaner fuel alternatives. CNG is considered a cleaner-burning fuel compared to gasoline and diesel, as it produces lower emissions of greenhouse gases, pollutants, and particulate matter. Governments, regulatory bodies, and consumers are increasingly recognizing the environmental benefits of CNG, driving its demand and market growth.

Governments around the world are implementing policies and regulations to promote the use of CNG as part of their energy and environmental strategies. These initiatives include tax incentives, subsidies, and grants for CNG vehicle purchases, infrastructure development, and conversions. Government support creates a favourable market environment for CNG and encourages businesses and individuals to adopt this cleaner fuel option.

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Market Restraints:

The availability and accessibility of CNG refuelling stations remain a significant challenge. In some regions, the CNG refuelling infrastructure is not as developed compared to gasoline and diesel stations. This limitation poses a barrier to widespread adoption of CNG, as consumers and businesses may hesitate to switch to CNG-powered vehicles without convenient refuelling options.

The initial costs associated with CNG vehicles and related equipment can be higher compared to traditional gasoline or diesel vehicles. The specialized CNG fuel system and storage tanks add to the upfront costs, making CNG vehicles less affordable for some consumers. Although cost savings can be achieved in the long run through lower fuel prices, the higher initial investment can deter potential buyers.

Key Players of the Compressed Natural Gas (CNG) Market:

The Compressed Natural Gas (CNG) market involves various key players who contribute to its development, production, distribution, and utilization. These players operate across different segments of the CNG value chain. Here are some prominent CNG market key players:

·        Cabot Oil & Gas Corporation

·        Indraprastha Gas Limited

·        ConocoPhillips Company

·        ENGIE Group

·        Exxon Mobil Corporation

·        Chevron Corporation

·        J-W Power Company

·        National Iranian Gas Company

·        Shell group of companies

·        Trillium Transportation Fuels

Market Segmentation

By Source:

Associated Gas:

Associated Gas refers to natural gas that is found in conjunction with crude oil deposits. When oil is extracted from underground reservoirs, associated gas is often produced as a by-product. It is called "associated" because it is associated with the oil production process. Associated gas is typically extracted using the same drilling operations as oil extraction

Non-Associated Gas:

Non-Associated Gas, also known as Free Gas or Independent Gas, refers to natural gas reserves that are not found in conjunction with crude oil deposits. It exists independently in underground reservoirs and can be extracted separately from oil. Non-Associated Gas reserves are typically identified through geological surveys and exploration activities.

Unconventional Sources:

Unconventional Sources of natural gas are those that do not fit the conventional methods of extraction. These sources include shale gas, tight gas, and coal bed methane (CBM). Unconventional gas extraction involves advanced techniques such as hydraulic fracturing (fracking) and horizontal drilling. Shale gas, for instance, is extracted from shale rock formations, while tight gas is trapped in low-permeability reservoirs.

By End Use:

Light Duty vehicles:

Light Duty vehicles include passenger cars, sedans, hatchbacks, SUVs, and small trucks used for personal transportation and light commercial purposes. CNG-powered Light Duty vehicles offer an alternative to conventional gasoline or diesel vehicles, providing lower emissions and potential cost savings.

Medium/Heavy Duty Trucks:

Medium/Heavy Duty Trucks refer to commercial trucks, delivery vehicles, and freight carriers used for transportation and logistics purposes. These vehicles typically have higher payload capacities and are designed for long-haul or heavy-duty operations.

Medium/Heavy Duty Buses:

 Medium/Heavy Duty Buses include public transportation buses, intercity coaches, and other large passenger-carrying vehicles. CNG-powered buses have gained popularity in urban areas and public transit systems due to their environmental benefits and cost-effectiveness.

Regional Analysis:

North America has been at the forefront of CNG adoption, driven by favourable government policies, environmental concerns, and abundant natural gas reserves. Europe has witnessed significant growth in the CNG market, with several countries actively promoting the use of CNG as a cleaner fuel option. Countries like Italy, Germany, and Sweden have well-developed CNG infrastructure and strong government support.

he Asia-Pacific region has emerged as a promising market for CNG, driven by factors such as increasing urbanization, pollution concerns, and government initiatives. China, India, and Iran are among the key countries promoting CNG as a cleaner fuel alternative. Latin American countries have shown a growing interest in CNG as a cost-effective and cleaner fuel option. Countries like Argentina, Brazil, and Colombia have implemented supportive policies and incentives to encourage CNG adoption.

Recent Developments:

GAIL (India) - 2022: GAIL (India) Limited, the state-owned natural gas processing and distribution company, announced its plans to set up 10,000 CNG stations across the country by 2030. This ambitious initiative aims to promote the use of CNG as a cleaner fuel alternative and enhance the accessibility of CNG refuelling infrastructure in India. GAIL's efforts contribute to the growth of the CNG market in India and support the country's transition to cleaner transportation fuels.

Clean Energy Fuels Corp - 2021: Clean Energy Fuels Corp, a leading provider of natural gas fuel for transportation in North America, made significant strides in expanding the CNG market in 2021. The company announced the completion of its first renewable natural gas (RNG) production facility in Brookhaven, New York. RNG is a sustainable form of natural gas derived from organic waste sources. Clean Energy Fuels' RNG facility has the capacity to produce 100,000 gallons of RNG per day, which can be used as a cleaner fuel alternative for CNG vehicles.

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