CNG, RNG, and Hydrogen Tanks Market by Gas Type (CNG, RNG, Hydrogen), Material Type (Metal, Carbon Fiber, Glass Fiber), Tank Type (Type 1, Type 2, Type 3, Type 4), Application (Fuel, Transportation), and Region - Global Forecasts to 2030
The global CNG, RNG, and hydrogen tanks market size is expected to be USD 2.5 billion in 2022, and grow at a CAGR of 10.7% during the forecasted period. There is an intense effort to switch from fossil fuels to cleaner, more sustainable energy sources as concerns over climate change and air pollution continue to rise due to which the demand for alternative fuel vehicles, such as CNG, RNG, and hydrogen fuels, is also about to increase. The coming demand from the automotive industry due to the stringent environmental regulations and the concern about the environment to boost the market of CNG, RNG and hydrogen tanks in forecasted period.
Attractive Opportunities in the CNG, RNG, and Hydrogen Tanks Market
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Global CNG, RNG, and hydrogen tanks market Dynamics:
Drivers: Increasing tax incentives for CNG vehicles and infrastructure
In areas like North America and Asia Pacific, tax incentives have been improved and expanded. As an illustration, in May 2019, legislation pertaining to tax credits for Compressed Natural Gas (CNG) vehicles and refueling was updated and passed by the US government, in particular the state of Oklahoma. The tax credit now lasts through December 31, 2027, instead of just January 1, 2020. With this action, Oklahoma will continue to play a leading role in promoting natural gas as the preferred fuel for automobiles. As a result, the company's goods are anticipated to see a growth in demand while promoting cleaner air thanks to their focus on high-mileage and high-emission automobiles. The state and its residents benefit economically from the tax perks as well. Additionally, the Indian Oil Ministry lowered the Goods and Services Tax (GST) on CNG vehicles from 28% to 5% in December 2019. This action inadvertently increased the appeal of gas cars in India. Since natural gas produces 25% less carbon dioxide (CO2) per unit of energy produced compared to gasoline, countries are primarily motivated to offer these enhanced tax incentives to reduce CO2 emissions. The demand for CNG tanks and related items has increased as a result.
Restraints: High cost of composite material tanks and regulatory approvals
Strong competition is a hallmark of the composites market and the end-use industries it serves, where commercial considerations are key factors in decision-making. Operating expense (OPEX) and capital expenditure (CAPEX) are the two main commercial considerations. However, establishing economies of scale is difficult because of the high cost of raw materials and the high manufacturing cost. As a result, there is a high demand in the market for composites for cost-efficient design and production technology. Potential market participants are discouraged from entering the business because carbon fiber and glass fiber, two essential materials for Type 3 and Type 4 CNG composite tanks, demand a significant capital investment. The high cost of these raw materials directly affects how much Type 3 and Type 4 CNG composite tanks cost to make overall. Finding low-cost methods of creating carbon and glass fiber composites thus becomes a major problem for producers all over the world.
Manufacturers must obtain approval for their composite cylinder types from regulatory bodies or independent inspection authorities. Adhering to safety standards is essential to prevent accidents and ensure the protection of human life and property. Instances of blast accidents are often linked to the use of substandard CNG cylinders and kits in vehicles, potentially hindering demand and restricting the growth of the CNG, RNG, and hydrogen tanks market. These factors may ultimately impact the overall market for CNG, RNG, and hydrogen tanks.
Opportunities: Development of low-weight transportation tanks
As both use electric motors to move the wheels, hydrogen-powered vehicles and electric cars have certain similarities. The main contrast, though, is in how they store their energy. While hydrogen cars store electricity in the form of hydrogen that is then turned into electrical power using a fuel cell, electric cars rely on traditional batteries. At the moment, the price of storage tanks for hydrogen automobiles is still high, which makes their widespread adoption difficult. The cost of these tanks, which range from USD 4,000 to 4,500 for a 5-kg capacity, dramatically raises the price of the entire car. Current research is focused on creating lightweight Class 4-cylinder carbon fiber tanks that minimize costs by lowering gas storage pressure in order to address this issue. The Luxfer Group (UK), lljin (South Korea), Quantum Fuel System Technologies (US), and Hexagon Lincoln (US) are well-known producers of hydrogen storage tanks for automobiles.
Challenges: Already well-established infrastructure for electric cars
Hydrogen-powered vehicles have become more popular in nations like South Korea and Japan, in part because of government subsidies and funding for infrastructure expansion. California in the US also provides incentives for vehicles fueled by fuel cells. Despite the fact that creating hydrogen from natural gas is considered a sustainable technology, some experts contend that since electric automobiles rely on batteries rather than fossil fuels, they are more environmentally friendly than hydrogen-powered vehicles. However, initiatives are being made to generate hydrogen using sustainable resources. Due to their three times worse energy efficiency, lower volumetric efficiency, and higher weight than electric vehicles, hydrogen-powered vehicles have some disadvantages. Insufficient refueling infrastructure also hinders market expansion. Electric vehicles may take the role of hydrogen vehicles if global hydrogen technology does not progress significantly. In anticipation, companies like Toyota, Hyundai, and Honda are already considering developing electric vehicles alongside hydrogen-powered ones.
CNG, RNG and Hydrogen tanks market: Ecosystem
CNG tanks to account for the largest market share, in terms of value and volume
The CNG gas segment held the dominant position in the CNG, RNG, and hydrogen tanks market in both value and volume terms. This was primarily due to increasing awareness and preference for CNG gas compared to other options. Moreover, CNG is considered less hazardous for fuel and transportation tanks when compared to hydrogen gas. However, the market size of the gas type segment witnessed a decline in 2020, both in terms of value and volume, attributed to the recession in 2020. Despite of the recession, it is anticipated that the hydrogen gas segment will exhibit the highest growth rate in terms of volume after 2021, throughout the forecast period.
Metal accounted for the largest share in terms of value and volume
In 2022, the metal material market dominated the CNG, RNG, and hydrogen tanks market both in terms of value and volume. This is because the technology for manufacturing metal-based tanks is well-established and relatively cost-effective compared to glass and carbon fiber-based alternatives. Metal-based tanks also boast numerous advantages, including exceptional durability, high stiffness, remarkable toughness, and resistance to fatigue. Although, Carbon fiber based tanks are expected to witness the maximum growth in the forecasted period.
Type 4 tanks are expected to grow with the highest growth rate
Type 1 tank type dominated the market in 2022, due to well-established and relatively cost-effective manufacturing process and technology. But, Type 4 tank type is expected to grow with the maximum CAGR of 16.7% in terms of value during the forecasted period. This growth rate is attributed to a combination of their lightweight construction, safety features, large storage capacity, and technical developments.
Asia Pacific holds the maximum share along with the maximum CAGR in terms of volume
Asia Pacific held the leading position in the global CNG, RNG, and hydrogen tanks market, primarily driven by the substantial demand for CNG tanks. The Asia Pacific region boasts well-established CNG tank manufacturing technology and infrastructure, surpassing that of hydrogen and RNG. Notably, the number of CNG vehicles in countries like China, India, Pakistan, and Thailand has been witnessing remarkable growth, supported by government incentives and favorable policies.
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Rising environmental awareness increases natural gas demand
Strict environmental regulations are a significant driver for the growing demand for CNG vehicles worldwide. While gasoline, diesel, and petroleum products have harmful environmental impacts, natural gas is considered a more sustainable alternative, reducing carbon emissions, slowing down global warming, and minimizing greenhouse gas (GHG) emissions. According to the U.S. Environmental Protection Agency (EPA), CNG vehicles can reduce greenhouse gas emissions by up to 25%. To promote the usage of natural gas as a cleaner fuel and mitigate the risks associated with gasoline and diesel, the US government has established various environmental conservation rules and regulations. Countries with substantial natural gas reserves are recognizing the advantages of using CNG as an alternative fuel due to its lower CO2 emissions compared to petrol or diesel.
Moreover, stricter environmental regulations that mandate the use of cleaner, low-emission fuels, and stringent engine manufacturer specifications are expected to further drive the demand for hydrogen gas during the forecast period. For instance, the European Commission has introduced Euro VIl standards, aiming to reduce NOx emissions by 4% for cars and 2% for vans and trucks by 2030. Similarly, India plans to reduce carbon emissions by 1 billion tons by 2030, emphasizing the significance of cleaner fuel options.
Key Market Players
The key players in the global composites market are:
- - Worthington Industries, Inc. (US)
- - Faber Industrie SpA (Italy)
- -Luxfer Group (UK)
- - Hexagon Composites ASA (Norway)
- - Everest Kanto Cylinders Ltd. (India)
These companies are involved in adopting various inorganic and organic strategies to increase their foothold in the composites industry. The study includes an in-depth competitive analysis of these key players in the CNG, RNG, and hydrogen tanks market, with their company profiles, recent developments, and key market strategies.
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Report Metric |
Details |
|
Market size available for years |
2018–2030 |
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Base year considered |
2022 |
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Forecast period |
2023–2030 |
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Units considered |
Value (USD Million/Billion), Volume (Units) |
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Segments Covered |
By Material Type, By Tank Type, By Gas Type, By Application, and By Region |
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Geographies covered |
Europe, North America, Asia Pacific, Latin America, the Middle East, and Africa |
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Companies covered |
Worthington Industries, Inc. (US), Luxfer Group (UK), Hexagon Composites ASA (Norway), Quantum Fuel Systems LLC. (US), Everest Kanto Cylinders Ltd. (India), Praxair Technologies Inc. (US), Avanco Group (Germany), Xinyi Beijing Tianhai Industry Co. Ltd. (China), Lianyungang Zhongfu Lianzhong Composites Group Co. Ltd. (China), Faber Industrie SpA (Italy). |
The study categorizes the CNG, RNG, and hydrogen tank market based on Precursor Type, Source, Resin Type, Manufacturing Process, End-Use Industry, and Region.
By Material Type:
- Metal
- Glass Fiber
- Carbon Fiber
By Tank Type:
- Type 1
- Type 2
- Type 3
- Type 4
By Gas Type:
- CNG
- RNG
- Hydrogen
By Application:
- Fuel Tank
- Transportation Tank
By Region:
- North America
- Asia Pacific
- Europe
- Latin America
- Middle East & Africa
Recent Developments
- In May 2023, Luxfer Group has manufactured a new type 4 cylinder. The G-Stor Go H2 features a proven boss-to-liner interface that results in minimal permeation and is a certified, cost-effective hydrogen storage solution ideal for fuel cell transit buses, heavy-duty trucks, vans, bulk gas transport, boats, and trains.
- In January 2023, Hexagon purus opens a new hydrogen cylinder manufacturing facility in westminster, maryland, usa, with the annual production of up to 10,000 cylinders for heavy-duty vehicle applications and will employ up to 150 skilled workers. The new facility expands cylinder production capabilities and capacity and allows for further expansion by adding additional production equipment as demand for hydrogen storage cylinders continues to grow.
- In February 2021, Worthington industries manufactured Thermaguard hydrogen cylinders. ThermaGuard™ hydrogen cylinders are optimized to meet the unique needs of hydrogen fuel. Meticulously developed using Worthington’s aerospace-grade standards, ThermaGuard hydrogen cylinders are proven more efficient means of transporting and storing high-pressure hydrogen gas.
- In March 2021, Luxfer Group completed the acquisition of SCI (Structural Composites Industries, which is a business u of Worthington Industries). This acquisition is aimed to enhance the capabilities of the hydrogen and CNG gas businesses of Luxfer Group.
- In January 2021, Worthington Industries, Inc. announced the acquisition of PTEC Pressure Technology GmbH. This acquisition is expected to develop the system capabilities of Worthington Industries, Inc.
Frequently Asked Questions (FAQ):
Which are the key players of CNG, RNG, and hydrogen tanks market and what are their strategies to strengthen their market presence/shares?
Some of the key players of CNG, RNG, and hydrogen tanks market are Worthington Industries, Inc. (US), Faber Industrie SpA (Italy), Luxfer Group (UK) , Hexagon Composites ASA (Norway) and Everest Kanto Cylinders Ltd. (India), among others, are the key manufacturers that secured contracts, deals in the last few years. Agreements, expansions, technological developments, contracts, and deals was the key strategies adopted by these companies to strengthen their market presence.
What are the drivers and restraints for the CNG, RNG, and hydrogen tanks market?
The growing number of natural gas vehicles, increasing environmental awareness, and government support encouraging adoption of clean fuel while high processing and manufacturing cost of composites tanks is acting as a restraint for CNG, RNG, and hydrogen composites tanks market.
Which is the fastest growing country-level market for CNG tanks market and what would be the reason of that growth?
India is the fastest-growing CNG market. To lessen pollution and minimize greenhouse gas emissions, the Indian government has been actively encouraging the use of clean and sustainable fuels. The use of CNG vehicles is encouraged through a number of incentives, subsidies, and tax advantages, which has helped to fuel the rise in demand for CNG tanks.
What is the major factor on which the final price of CNG, RNG and hydrogen tanks rely?
Price and availability of raw material along with the type of tank and manufacturing process used plays an important role in determining the costs of the CNG, RNG and hydrogen tanks.
Which region is expected to hold the highest market share?
Asia Pacific will dominate the market share in forecasted period i.e between 2023 to 2030, due to the huge demand coming from the countries like China, Japan, India and South Korea.
What is the biggest restraint in the CNG, RNG, and hydrogen tanks market?
Volatility in the prices of natural gas and lack of hydrogen and RNG infrastructure are restraining market growth for RNG and hydrogen tanks. .
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The study involves two major activities in estimating the current market size for the CNG, RNG, and hydrogen tank market. Exhaustive secondary research was done to collect information on the market, peer market, and parent market. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain through primary research. Both top-down and bottom-up approaches were employed to estimate the complete market size. After that, market breakdown and data triangulation were used to estimate the market size of segments and subsegments.
Secondary Research
Secondary sources referred to for this research study include financial statements of companies offering CNG, RNG, and hydrogen tanks and information from various trade, business, and professional associations. Secondary research has been used to obtain critical information about the industry’s value chain, the total pool of key players, market classification, and segmentation according to industry trends to the bottom-most level and regional markets. The secondary data was collected and analyzed to arrive at the overall size of the CNG, RNG, and hydrogen tank market, which was validated by primary respondents.
Primary Research
Extensive primary research was conducted after obtaining information regarding the CNG, RNG, and hydrogen tank market scenario through secondary research. Several primary interviews were conducted with market experts from both the demand and supply sides across major countries of North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America. Primary data was collected through questionnaires, emails, and telephonic interviews. The primary sources from the supply side included various industry experts, such as Chief X Officers (CXOs), Vice Presidents (VPs), Directors from business development, marketing, product development/innovation teams, and related key executives from CNG, RNG, and hydrogen tank industry vendors; system integrators; component providers; distributors; and key opinion leaders. Primary interviews were conducted to gather insights such as market statistics, data on revenue collected from the products and services, market breakdowns, market size estimations, market forecasting, and data triangulation. Primary research also helped in understanding the various trends related to technology, application, vertical, and region. Stakeholders from the demand side, such as CIOs, CTOs, CSOs, and installation teams of the customer/end users who are using the CNG, RNG, and hydrogen tank industry, were interviewed to understand the buyer’s perspective on the suppliers, products, component providers, and their current usage of CNG, RNG, and hydrogen tank and future outlook of their business which will affect the overall market.
The Breakup of Primary Research:
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Market Size Estimation
The research methodology used to estimate the size of the CNG, RNG, and hydrogen tank market includes the following details. The market sizing of the market was undertaken from the demand side. The market was upsized based on procurements and modernizations in CNG, RNG, and hydrogen tank in different applications of the fuel tank industry at a regional level. Such procurements provide information on the demand aspects of the CNG, RNG, and hydrogen tank industry for each application. For each application, all possible segments of the CNG, RNG, and hydrogen tank market were integrated and mapped.
CNG, RNG, and Hydrogen Tank Market Size: Botton Up Approach
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CNG, RNG, and Hydrogen Tank Market Size: Top Down Approach
Data Triangulation
After arriving at the overall size from the market size estimation process explained above, the total market was split into several segments and subsegments. The data triangulation and market breakdown procedures explained below were implemented, wherever applicable, to complete the overall market engineering process and arrive at the exact statistics for various market segments and subsegments. The data was triangulated by studying various factors and trends from the demand and supply sides. Along with this, the market size was validated using both the top-down and bottom-up approaches.
Market Definition
Homewood Disposals defines CNG, or compressed natural gas, as an eco-friendly alternative to gasoline made by compressing natural gas (methane) down to less than 1% of its volume. CNG fuel is safer than gasoline and diesel because it is non-toxic and does not contaminate groundwater. This natural gas is the same gas that is used daily to cook on the stove and even to dry clothes in a dryer. The use of CNG fuel is becoming more popular in both commercial and non-commercial vehicles.
The Office of Energy Efficiency and Renewable Energy of Department of Energy US has defined that hydrogen can be stored physically as a gas or a liquid. Storage of hydrogen as a gas typically requires high-pressure tanks [350–700 bar (5,000–10,000 psi) tank pressure]. Storage of hydrogen as a liquid requires cryogenic temperatures because its boiling point at one-atmosphere pressure is -423.04°F (−252.8°C).
Southern California Gas Company defines RNG (renewable natural gas) as a natural gas derived from organic waste in daily life, such as food waste, garden and lawn clippings, and animal and plant-based material. It can also be derived from degradable carbon sources such as paper, cardboard, and wood. RNG is considered a carbon-neutral fuel because it comes from organic sources that once absorbed carbon dioxide (CO2) from the atmosphere during photosynthesis. Biomethane is less corrosive than biogas and potentially more valuable as a fuel.
Key Stakeholders
- CNG, RNG, and hydrogen tank manufacturers and distributors
- Key application segments for CNG, RNG, and hydrogen tanks
- Research and consulting firms
- R&D institutions
- Associations and government institutions
- Environmental support agencies
Report Objectives
- To define, describe, and forecast the Compressed Natural Gas (CNG), Renewable Natural Gas (RNG), and Hydrogen tanks market, in terms of volume and value.
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To provide detailed information regarding the major factors influencing the growth of
the market (drivers, restraints, opportunities, and industry-specific challenges) - To identify and measure the market size by tank type, material type, gas type, application, and region
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To analyze significant market trends in North America, Europe, Asia Pacific (APAC),
Latin America, and the Middle East & Africa (MEA), and country-specific trends in these regions - To strategically analyze micro markets with respect to individual growth trends, prospects, and their contribution to the overall market
- To analyze the opportunities in the market for stakeholders and provide a competitive landscape for market leaders
- To strategically profile the key players and comprehensively analyze their market shares and core competencies
Available Customizations
MarketsandMarkets offers following customizations for this market report:
- Additional country-level analysis of the CNG, RNG, and hydrogen tank market
Product Analysis
- Product matrix, which provides a detailed comparison of the product portfolio of each company's market
Generating Response ...
Growth opportunities and latent adjacency in CNG, RNG, and Hydrogen Tanks Market